Connect with Different Niche Markets

A little while ago I was interviewed for an article in a real estate publication and one of their questions was: “Can you give us strategies agents can use to grow their database in each of the following niches: luxury market, Gen X, baby boomers and millennials?” It was an interesting question, after all, because one size does not fit all.

When it comes to prospecting, you will get a better return for your time and your investment if you consider the Ws:

• WHO is your ideal client (e.g. age, ethnicity, education, income, common connections, location)?
• WHO do you connect well with (e.g. you have similar interests and backgrounds)?
• WHERE can you find a lot of them (e.g. is there enough of them to warrant the investment)?
• WHAT are their specific challenges (e.g. baby boomers have different challenges than millennials)?
• WHAT marketing message would resonate with them (e.g. to let them know you understand them)?
• WHEN would be the best time to reach this group (e.g. weekdays, weekends, evenings, at social events)?
• HOW should you connect with them (e.g. print marketing, door knocking, networking groups, social media)?

Let me tell you a story. I was teaching a class in Florida and one of my students came up to me and said she had decided she was going to work the luxury market. When I asked why she wanted to work in the luxury market, she said she wouldn’t have to work as hard because she only needed to sell a few houses to make a good living.

My next questions was: “Do you live in a luxury house?” She said, no. I asked: “Do you hang out with people who live in luxury houses?” She said, no. I then explained that she will have a challenge breaking into a market if she is not part of that community. There is no problem that can’t be resolved. If she is really committed to servicing that market then she could figure out a way. However, there’s an easier solution to earning a good income in real estate without tackling a market that you don’t have a lot in common with.

When you go on a listing appointment, it makes more sense to sit across the table from someone you have a lot in common with. It is so much easier to build trust and rapport.

Here are recommended strategies to connect with each of these different niche markets:

LUXURY MARKET

If you want to connect with people who live in the luxury market, you need to hang out where they hang out. You must run in their social circles. Professionals who have money tend to hang out with other professionals who have money. If you keep showing up in their universe, strangers become friends through constant contact. If this is your chosen niche market, I recommend you join a country club, golf club, sailing club or tennis club. Think about what they like to do in their off time. Participate in their social events. If the club is having a mixer on the weekend, you need to be there and elegantly work the room, so people recognize you are in real estate. The initiation fee to get into these types of clubs can be expensive, but so is the real estate you are attempting to sell. Consider it an non-tax-deductible investment in your business to put you in an environment where your highly-sought-after clients frequent.

GENERATION X

This group is working day and night to make ends meet. They are trying to raise a family, put their kids through college and save for retirement. This group is spinning a lot of plates. They are the sandwich generation: they are trying to move their kids out while they are moving their aging parents in. Most are in need of sound financial planning to help them live today and save for tomorrow. Think about the tremendous value you can bring to this group. Their parents may need to sell their house to move in with them or go to assisted living. If the parents move in with them, they will likely need to sell their existing home and move into a house that allows for separate living areas. Assisted living facilities are expensive. It is often more cost effective to sell both houses and move into a house that can accommodate everyone. I recommend you host financial planning seminars and advertise a marketing message that speaks to their pain points. Partner with financial planners and estate lawyers to share the costs and marketing.

BABY BOOMERS

This group typically has both money and time.  Most are health conscious – they want to recapture the health they had when they were younger. They are focused on enjoying their golden years. Many want a care-free, active, social lifestyle, so they are joining gyms, getting involved in yoga, joining cooking classes and eating heathier. A great way to connect with this group is to frequent your local farmers’ market. People who go to farmers’ markets usually go every week. You can sponsor contests at the market to get your name known. See if they will allow you to set up a table to answer real estate questions. Hand out environmentally-friendly shopping bags with your logo and contact information on them. You can organize a food drive and collect food at the market to help the less fortunate in your community. Saving the planet, giving to charity and supporting the community…all of this will go over well with baby boomers.

MILLENNIALS

They spend more time looking down at their phone than they do looking at the world. They are constantly connected. If you want their attention, go social. Most agents think Facebook, but to connect with Millennials, think Instagram. Take great pictures of entry-level houses that they can afford. Share photos of contemporary interior design. They are drawn to clean, modern decorating ideas. Millennials love videos, so create a series of video tips on real estate and lifestyle. Keep the videos shorter than 60 seconds. Be authentic. Keep it real. Post often. Talk about topics they care about. Leave them with the feeling like you are one of them and you understand their unique concerns. Also, think about hosting first-time home buyer seminars. Partner with a mortgage professional who can help them get qualified for a mortgage.

These are just a few ideas to help you connect with various niche markets. Be thoughtful about who you are trying to connect with, what struggles they have, and how you can best help them.

Chris Leader
President
Leader’s Edge Training