How to Market a Free Service in Real Estate Marketing Plan

Marketing Plan for a KW Service Designed to Generate New Clients

Product Idea

The product idea for this marketing plan is a service that Keller Williams could provide to potential home buyers/investors that no other competitor is currently offering: that is, free educational classes for the public about the process of buying, investing, owning, keeping up or rehabbing houses. The purpose of this service would be that it draws potential clients into the office and generates leads for agents working within the office.

Keller Williams is a national real estate brokerage with offices in districts around the U.S. The office branch of Keller Williams for this marketing plan is located in Houston, Texas, which is the "home" of Keller Williams -- the place where the brokerage began.

The problem that this service would target is the problem that a lot of new home buyers often experience, which is that they do not understand the intricacies of searching for a home, getting a loan, planning for the loan, understanding their needs (what is important, what matters, what doesn't), understanding what is needed to keep up a home, what is needed to rehab a home, what to look for, what to avoid, and how to go about getting started. A lot of buyers jump in thinking that they will find something "cheap" that they can fix up but don't understand that when it comes to foreclosures, most foreclosures are repossessed by the lender for a reason (namely, consumers couldn't afford to pay the mortgage) and that if the owner is behind on payments he or she is more than likely not putting money into the house to keep it up. And houses need constant attention, maintenance and upkeep or major problems that require a lot of money will end up being the result. This and a plethora of other issues, such as investing in real estate, relocating, finding renters, and preparing for a loan (which is much harder to get in today's market than it was ten to fifteen years ago) can all be addressed by these free public service classes.

The competitive edge that this service will provide is that it will get potential buyers/sellers and investors into the KW offices where they will become leads for agents in the office. Real estate agents know that generating leads is one of the most difficult and time-consuming things to do. It is not like it is for car salesmen, who have the product sitting on their lot. Real estate agents have no way to attract business to their offices and so they have to go out into the world, to events, parties, do cold calling on the telephone, or any number of other methods in order to drum up clients. This service is one that will bring clients to the agent: it would be like having a product on the lot; it can be advertised on social media and in traditional print media; and it can act as the pipe of the Pied Piper -- by showing that you are giving something for free that people can use, it will cause KW to receive more looks from more people, bring more consumers into contact with KW agents and affiliates, and put KW that much more at the forefront of the real estate market.

Challenges that KW might face in the marketing of this service might be that it could be easily replicated by competitors should they see that it provides an advantage to the brokerage. Another challenge would be developing the classes, maintaining them on a consistent enough schedule with a sufficient teaching "staff" that it can be an actually vital resource for consumers. Agents and affiliates (loan agents, home inspectors, etc.) would work together to cover shifts -- but this should not be too great a challenge as it is something that KW agents and affiliates already do with Ignite classes for new agent orientation.

2. Mission Statement

The mission statement of KW is to provide intelligent service in the form of education, planning, and commitment to clients who are looking to buy, sell or invest in real estate.

Present and potential customers benefit from KW services because of KW agents' commitment to providing the highest level of attention to meeting the needs of every unique and individual buyer, seller and investor.

Keller Williams has shown that it has what it takes to rise to the top of an industry that is full of high-performing brokerages -- and it has done so without relying on advertising: the message and value of Keller Williams has spread because it has a program of profit sharing that encourages new agents to come on board and because it has the best training program in the world (Larcker, Baron, Tayan, 2011).

By incorporating a system of virtue ethics in line with servant leadership principles, the program to incentive its agents through profit-shares and highly-touted educational programs like Ignite and BOLD, KW has risen to the top of its class in terms of acquiring agents and developing training programs. KW has more agents for the reason of its strong culture than any brokerage in North America and its long-term aim is to stay that way, to continue to grow and increase its agent list, and to provide the best possible service to its clients in every season and on every occasion, whether large or small.

The market that KW wants to serve is every aspect of the real estate market, and this includes not only residential but also commercial real estate, in every aspect. This market, in today's economy, however, presents certain obstacles.

The economic downturn in recent years remains a significant factor in this market because if the economy is in a downturn it is more difficult for a Real Estate Broker to drum up business (less money in the economy means fewer buyers/investors). So it becomes essential for Keller Williams to hone in on that sector of the market that is buying and selling and capture this market. This will require sizable expertise in marketing and salesmanship as well as motivation (through programs like Ignite and Bold) which drive new and old agents to succeed at levels never before imagined. Whether they are doing so independently or as part of a team, the end goal is the same: to generate leads, to make contacts, to secure listing presentations, to market, and to close transactions. Doing so in an economic downturn is especially hard because there are fewer potential clients. This means that one has to know one's market especially well so as to have the maximum amount of information to be able to provide to clients. But it also means that one must have the special skill and charisma needed to reach out to clients and get them to work with you.

Keller Williams and the agents who work with the organization view themselves as all being on the same team rather than in competition with one another. There is a culture of respect that the organization tries to cultivate. Other brokerages dislike this "familial" values core that Keller Williams paints as the secret to its success and they also dislike the commission split which favors the agent at Keller Williams, but the truth is that the motto "God, family, business" really is the core of KW's business plan and is the focus of all its initiatives.

3. SWOT Analysis

For the best companies in the world, a strategic mission is influential in establishing a corporate guideline -- and the shorter and more concise that mission statement, the more impactful it can be (Collis, Rukstad, 2008).

Keller Williams promotes the motto "God, Family, Business" in that order to show that in their workplace environment what comes first is not business but that which is more important than business: family and God. In effect, the workplace environment under this direction becomes familial and fosters a "spirit of mission" (Samaan, Verneuil, 2009) that is located in the overall objective of the employees to not only be successful in their careers but also to be successful as people, i.e., good, understanding, ethical, supportive, unified, and giving. In other words, the theory of servant leadership is combined with the theory of directional leadership in order to enhance employee development and facilitate employee commitment to the organization and its objectives. This is made easier and more possible because it is emphasized under these two theoretical approaches that the organization's objectives are identical to the employee's objectives.

Few companies embody the concept of managerial support the way that Keller Williams does. While the individual real estate agents who work for Keller Williams brokerage houses around the world are technically not employed and therefore do not "have" managers, the KW offices utilize a system of agent reciprocity rooted in the management support system doctrine. In other words, senior agents provide guidance (often 24/7) to young or inexperienced agents in order to help them establish and further their careers as well as their…