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Marketing strategy: get paid when sold?2267

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htimsabbub23 private msg quote post Address this user
We have been pretty successful on marketing our virtual tours but still have plenty of skeptical realtors. I was trying to come up with a new strategy of pay when sold approach. I am considering a free upfront cost, $5 a month until the property is sold, then pay us for the virtual tour (normal price) If the property does not sell we eat the cost minus the $5 a month.

Has anyone tried a similar approach? I would love to hear thoughts, ideas.
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lisahinson private msg quote post Address this user
Interesting idea!
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franmts private msg quote post Address this user
How do you plan To monitor If it was sold or not?
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THRHHI private msg quote post Address this user
Are you then offering the same deal to all realtors, even your established clients?
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smcclell private msg quote post Address this user
I think the problwm in this happens when or if the realtor loses the listing. Has been brought up before as an idea. I would not think that situation would happen often though, so could be worth the odd loss.
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htimsabbub23 private msg quote post Address this user
@franmts, I think the client would want to inform us when sold, because they are wasting $5 a month if they do not notify us.

@thrhhi, I would offer both methods to all realtors and let them choose.
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TrustedPhotoDC private msg quote post Address this user
@htimsabbub23 have you considered the cost of the float(i.e. the loan) that you are extending? Big companies can afford to carry zero interest loans on their books, can you?

Also that $5 per month isn't really $5 per month. What is the net after service fees? And your cost to carry the model in the cloud? Depending on your plan, you are out of pocket for that tour.

The only way that this model works is if you have the reserves to carry yourself for 6-8 months until the fees start coming in. You cannot live on $5(gross) a tour per month.
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Jonrusso private msg quote post Address this user
I think this is a great way to do business of you can afford it. It shows your clients that you have faith that your 3D tour will get their property sold. Also, I feel like agents will be more likely to book if they don't have to pay up front. I was even thinking about allowing them to charge it to escrow so the agent actually pays nothing at all. This idea will work if you get constant bookings and the cash flow will start coming in a few months after you implement it. There will be a percentage of houses that don't sell and won't pay you. However, that is all part of the business model and should be accounted for when planning.
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thebiggerpicture private msg quote post Address this user
This has been brought up to me before by realtors. Here's my position.

As a Matterport Service Provider, it is my job to provide you with a quality scan that showcases the space. When that job has been successfully completed, I should be paid in full for the service. There are too many parameters out of my control that affect whether or not a property sells. What if it's not priced right for the market? What if there is a contingency? What if it doesn't appraise or pass inspection? What if the realtor simply can't get the property sold? Should any of that cost me a job when I did my part successfully? Why put my livelihood at risk over something I have no control over, especially when I did my part and did it well?

When a realtor gets flyers done, does the copy shop defer payment until a closing or not get paid at all? Do they get to run a billboard or other advertising and not pay if they don't get leads or conversions? The realtor chooses to invest in a certain amount of marketing in hopes of selling the property, selling it faster, and/or winning the next listing.
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htimsabbub23 private msg quote post Address this user
@thebiggerpicture
In the B2B world many companies do net30, net60 or even longer. The bigger picture here is that you create a flow of cash coming in 3-6 months down the road, along with an extra $5 a month for each model you are finacing. If you score an extra 10 models this way that take 6 months to close, you in turn made yourself an extra $300.00. Realtors are motivated to close houses, it's their livelyhood at stake as well.

Out thought was to take the realtor pictures (x amount of money up front) finance the virtual tours (x amount of money at closing). Hook the client and hopefully expose us in the process.
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thebiggerpicture private msg quote post Address this user
@htimsabbub23 nice allusion to my company name even if it was snide.

I've been in business as a marketing professional for over 10 years doing web development, print, photography, branding, and social media marketing. My entire client base is B2B and I do use similar terms. I recently added matterport as a tool and property marketing as a niche target.

I look at this service differently than other things I do for B2B. Net 30 is different than six months plus and ultimately the risk of not paying for a service you successfully completed. It's not just the individual realtor's ability, but the market, seller, unknown buyer (or lack thereof) that can ultimately cost you hundreds. The $30 on a monthly charge isn't enough of a consolation prize for the time and revenue lost if the property doesn't sell after a typical 6-month listing agreement. I still stand by my position that there is a lot of risk in a situation that has variables you can't control.

If you decide to try it and it proves to be successful, please report back and I'll gladly reconsider my position
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franmts private msg quote post Address this user
We have them cover costs + plus small profit, that get the company growing faster than seating waiting for the phone to ring for a 1.000usd scanning, so then, having scans costs paid, anything later (without further work) is a bonus, often good one. When you're fully booked for months the pot starts showing up. The more they scan, the more they want it and prioritize, this is true because it's a basic necessity to view the house in advance, specially in modern days, so they start understanding its value and willing to pay. Better days are coming, my only fear is the 30 seconds per sweep + scanning bugs when compared to gear360 360 tours, that costs nothing. Make your money fast and get people loyal to your company, grow, almost to whatever it takes. Risk is part of any business. Just play hard, take, and hold market-share.
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