How The Compound Effect Of Marketing Helps You Sell For More Money

After several questions, it was necessary to do a video about the compound effect of marketing. It has been mentioned in several other videos and it can be a bit confusing.

The compound effect includes marketing a number of properties over a long period of time. It's easier to understand when looking at a comparison between someone selling a few hundred properties a year compared to someone selling just a few properties.

An Individual Selling One Property

Let's look at someone selling on their own that's going a bit overboard and overachieving with their marketing plan. They will obviously have a sign in the yard, but that's just the beginning. This person would also be posting an ad on Craigslist and the Facebook Marketplace. They will likely post on NextDoor and also in any groups they may be a part of within the community, such as church groups, book clubs, golf leagues, etc.

This person may have even gone as far as sending out an email to their centers of influence (people they know within the community) to let them know their home is for sale. They may even go a step further and optimize their profiles on Zillow, Trulia, and Maybe they have even gone as far as doing a video tour of the property including shots from a drone.

This overachiever may even go as far as refreshing these profiles, ads, and marketing methods once a week to keep them current. They certainly have quite a bit of marketing out there for their one property. This is an example of an over-the-top marketing plan for one property sold by one person. Most sellers won't go this far.

Most people selling on their own will put a sign in the yard and take out a couple ads, but that's about all they do. This example, however, is pretty aggressive for someone selling on their own without the resources of a professional real estate agent.

In this example, you're selling one property every couple of years, at most, because it's your own property. Over time, there's no build up from the marketing you're doing for that one property. There's no compound effect from your marketing efforts and no database of buyers being created due to your marketing plan.

It's also unlikely that you would set up funnel systems for those expressing interest in your property, but not showing up or making an offer. While all the marketing methods in this example are good, they are just one-off activities used to sell your property once.

The Power of the Compound Effect from a Professional Marketing Agent

When you hire a professional marketing agent to market your property, you get the compound effect. They will do many of the things mentioned in the first example and more, but it's done with every single property on a day in and day out basis. This creates the compound effect.

When an agent markets like this, they capture buyer leads from various properties and build a database of interested buyers to market to over and over again. This allows a good agent to follow a lead from someone that's just looking to someone ready to buy.

Over time, these systems are refreshed and maintained. This would be far more than a full-time job for a for sale by owner person and require a staff. This wouldn't make any sense for a single for sale by owner seller, but for an agent, it makes perfect sense.

The compound effect of marketing allows for a higher return on your property's sale. This is due to the marketing done over time, the database built by a good agent, and the staff they have to market your property in the most aggressive way possible.

The compound effect of marketing over time can be very powerful and can make it easier to sell your property. This effect allows an agent to become well-known within the right circles in their community, as well. If you're looking for the most powerful marketing possible, choosing an agent that markets hundreds of properties is a great way to put the compound effect to work for you.