An acupuncturist who also sells Pre-Paid Legal Services memberships... A sales trainer who also distributes organic chocolate bars... A land development consultant who also sells purified water machines... A real estate agent who also sells beauty products...
I'm seeing more and more of this. Friends, acquaintances and service providers promoting their *other* businesses to the same audience to whom they promote their *primary* businesses.
For example, I get emails now and then from a real estate agent who includes a blurb about that month's Avon (or maybe it's Mary Kay) special in her signature line. Sometimes it's reversed; she sends out a promotional email for her beauty product business and includes a blurb about real estate in the signature.
Another one - I was approached a few weeks ago by an industry sales trainer who wanted to know if I'd be interested in selling organic chocolate bars to supplement my own sales training income.
And yes, I was in an acupuncturist's office where his Pre-Paid Legal Services membership brochure was prominently displayed on the check-in/check-out counter.
Hey, I know times are tough. I recently calculated that I have 15 different sources of income, although I will say that the distribution of organic chocolate bars is not going to be one of them. In an uncertain economy, maybe it's prudent to hedge one's bets and create alternative income streams across different industries. (Maybe... I'm not convinced that a better strategy isn't to commit 100% to one, but that's a topic for a different day).
But cross-marketing incompatible products or services will likely backfire. We all have visions of the sort of person we'd feel comfortable entrusting our beauty needs to and that's not likely the same vision of the person we'd like to talk to about refinancing our home. And it's human nature to assume that someone who claims to be worth, let's say, $150/hour to consult on land issues shouldn't need to sell water purification systems on the side.
Instead of broadening the audience for both your primary product or service and your supplemental product or service by cross-marketing to your database, you'll very likely discredit yourself in both.
Okay, okay Ms. Smarty Pantz - I get it, but what should I do instead?
Here are a few ideas...
First, choose compatible industries. Selling organic chocolate bars might fit quite nicely into the business model of an acupuncturist, chiropractor or massage therapist. Ditto water purification systems. Selling Pre-Paid Legal memberships is somewhat compatible with the business model of a real estate agent or tax accountant. Mortgage brokering along with selling supplemental insurance or financial services might make some sense.
OR
If you're already committed to incompatible industries, perhaps you can bring your spouse on board to be the "front" man or woman for the supplemental business. Therefore, when you promote the second business, you can be doing it ostensibly for your spouse (isn't that sweet?), even though you may be the primary business owner/manager.
OR
If neither of the above options are, well, options for you, don't promote the products or services at the same time. Keep them separate in your marketing. When you send out stuff about real estate, keep it about real estate. When you promote your organic chocolate business, don't breathe a word about your mortgage business. Don't show up at a real estate closing with a Mary Kay pin on your lapel. Don't show up at your Pampered Chef party with a REALTOR pin on your lapel.
Thoughts? Please share!
Hi Jennifer,
Couldn't agree more. Mixed/unrelated businesses come off as unprofessional. I think there is no quicker way for a real estate agent to lose credibility than to start talking about their other jobs.
~Lisa
Jennifer,
I love it. I find it unsettling when a professional attempts to upsell me to additional ancillary items, obviously for their own profit.
When I go to my Doctor's office, I don't expect to see cruise vacation brochures, or get an Amway/Quixtar pitch.
Lisa - No kidding. I've run into that a lot lately and I can't help but wonder about their professionalism.
Mike - I HATE that, too!!!
JA - Totally agree as well ! That type of cross-marketing or cross-selling diminishes the value of both services in my opinion. A better combination would be Listing Agent and Staging and Design Consultation. Or better yet, form an alliance with a design person as an example. The examples you give are pretty amazing and just will not work from a cross selling standpoint. ~ Chris
Good points. Multiple income streams are important today but pushing off on clients could alienate one and cost business.
Jack of all trades = Master of NONE!
I have often been approached to do many different things, some that compliment the mortgage world and some that do not. I always say "NO" and go on to explain that the mortgage biz is MY CAREER, and I am committed to it. (funny thing is it is usually realtors that approach me with some get rich quick idea)
I already have a career and I am pretty good at it. I wouldnt want to tarnish the reputation that I have built to pull in a few extra dollars, that few extra dollars will probably cost thousands in lost business in your main business.
Heck, if you just put that extra effort into your real job/career you wouldnt need to sell the other crap!
Hi Jennifer,
I couldn't agree more. Regardless of your primary occupational focus, it will make it seem as you are "part time" and are having trouble making ends meet...down goes customer confidence.
But what if they approached you with organic sushi?? :) :)
all the best...
While I am not unsympathetic to those who truly need the additional income, it just smacks of failure to me...promoting a make up line or similar while selling real estate? My first impression is, ooh, not making enough at real estate = not successful = not very good maybe? Regardless of whether that is a fair assessment, that IS the impression it makes on me, so rather than generating additional income, it has the potential to turn off a lot of prospective clients...face it, we all want to work with the best and hiring the local Avon lady just isn't gonna cut it, IMHO.
If they have to do it, as you suggest, at least make it a compatible business...or at a minimum, keep the businesses separate if possible.
Amen! I see this so often, and it's almost always a REALTOR. My office partner was getting her hair cut recently, and upon finding out what she did, her stylist said, "I'm a REALTOR, too!" My thought was, "Ummm, no. You're a stylist with a useless license hanging on a wall in some brokerage." To each their own, though...
Excellent point I couldn't agree more, I see this many times
I once saw someone on AR asking for feedback on his business card. One side was his real estate business and the other was his DJ'ing business. My reaction was the same as yours.
My first impression is the same as Susan's - can't make it in one business and so you've taken up another. Smacks of teetering on the edge of failure to me.
The Script:
"You have come to know me as your fiduciary in real estate, and today, recognizing the personal trust we have built, I recommend you seriously consider this nutrition supplement that will increase your preapproval level 10% overnight..."
Or not...
Jennifer - Like Rob, I too have been asked to do some complimentary work because in addition to being a licensed MLO I am also licensed with the CA DRE. I've been asked to lease corporate apartments to manage property to being a TC but have always responded with an emphatic, "NO". I have a career and it's one that takes up a majority of my time (I'm currently averaging 60+hrs a wk) and any free time I have I spend on me and my family & friends.
However, having said that, there was one offer that did kind of intrigue me for about a day because it seemed interesting and because I could have used the extra bucks. In the end, I still said no because it would just take away time from my current clients as well as my family.
This got me giggling about a situation I'd love to share......but I think it would be too easily recognized by other readers in my area so I won't do that. The person involved would be too obvious.
Hi Jennifer. I am with you!
As an agent, people think you would want to sell all sorts of products to your database...
I am offered "opportunities" all the time.
Look, I sell real estate. I don't need to sell anything else!
Thanks for writing,
Ken
Ann... ahhhhh, Ann... you're just too discreet. We love gossip around here!
Donne - Every once in awhile I get all revved up about a product that really worked for me and consider marketing it... and maybe I will some day. But ONLY if I can truly swear that it's the coolest thing ever.
Mike - NOT
Julia - Guess he was trying to save a few dollars on business cards...
Roberto - Thanks!
Shelley - Definitely "to each his own." But I wonder if folks who do this realize how much they just trashed their credibility for both businesses! Apparently not...
Susan - Same here. We see debates here all the time about the necessity for a second job (I like to start those debates, actually!), but we rarely talk about the credibility factor...
Bill - Organic sushi - well, now, that's a whole different matter!
Robert - AMEN!!! Very well said!
Gary - I agree 100%!
Chris - it seems so obvious, but I see this stuff all the time, particularly in the real estate community.
Jennifer - Actually, it wasn't a product that intrigued me, or maybe it was. Anyway, it was selling timeshares for WorldMark and part of the compensation package was getting free vacation points and passes. That seemed kind of cool and I even talked to hubby about it but in the end I said no because the time spent doing that would have just taken away from my current clients and my family.
I do not think it works and it is tacky, now if you provide referals to associates I think that is OK, if it is a needed service.
I have also felt targeted lately by telemarketers and e-mail marketing wanting me to branch out.
I hate it! I'm tired of being hit up by OTHER agents even to buy their special juice, their pampered chef, their avon, their scents, their jewelry, GAH!
And yes, it does make me think they're less credible as an agent/whatever their primary is. I can't imagine how the clients would feel.
So thank you for this post, I feel better for venting, lol.
Jennifer, I can't help but ask. What are your 15 sources of income. (Psst, you only have to name a few and we won't think it's cross-marketing.)
Jennifer,
I would think that if you are marketing yourself for one profession, and throw in another, it makes you look like you are not very successful at the first profession.
Marcy
Jennifer, I can't agree with you more. I have always felt that if I were to choose a second career to augment my real estate income it would have to be something that is compatible. I don't want to be known as the realtor that also sells supplements or some other item. Real Estate is my first and primary career and so far I haven't found anything that I'd rather spend my time concentrating on than finding a home for my buyers or selling a home for my sellers.
Jennifer,
I absolutely loved your post and I am glad you wrote it. Mike's comment is hilarious. How come agents do not understand how cheap they come out, I do not know
I "suggested" you post for feature
Thanks, Jon!
June - Thanks for the reblog. And yeah, our industry has a hard enough time understanding the notion of not begging for real estate business... toss in some vitamins or candy bars and our audience will RUN screaming from us when we come around!
Marcy - Exactly!
Judy - Don't mind at all... Speaking fees, book sales from book stores, product sales from my bookstore, referral fees from real estate agents in Denver, referral fees from my SWS Referral Network, royalties from the continuing education classes I wrote, rentals, consulting, membership fees for my paid members only program... stuff like that.
Sheree - Glad my post gave you the opportunity to vent. GAH! I love that...
Gene - Me, too...
Donne - I think you made the right decision.
I get a lot of calls , many times from other realtors who are asking me to join or work or sell something else. It does sound appealing in these tough times but I am in lock step with you on this issue.
Agreed! And now we're starting to get loads of pitches on Facebook and Twitter from people wanting to help us "supplement our income" by selling the next big thing, fixing people's credit, the latest MLM craze or whatever. UGH!
Jennifer, as always I love your insight and this has been something that has bothered me for quite some time. I currently have 5 sources of income and, while I want my marqeting clients to know pretty much the scope of who I am, I'm careful not to "mix business with business" (love that phrase!) because I've always believed your client should be able to see you as a trusted expert in what you do rather than a practitioner of much and a master of nothing. You're right on:)
When I first got into the business over 12 years ago, I noticed quite a few people doing the 'side' jobs. Reading your post reminded me of that. I was approached many times for my SOI to market Amway. HA HA HA If someone wants to take on something extra, fine. But don't use the clients, or see them as you next powder puff sale.
I am so happy to have found this post... I have been feeling that way for sometime now, and was starting to think that I was the weird one for not having some gimmicky side business.
We commit 100% of our efforts to 1 thing - selling real estate.
We take our career and this profession seriously, and I feel that these type of folks who have a million other things they sell just make a mockery of it.
Jim Rockford would have loved living today, where he could use his laser printer to create a business card for every occasion.
Good, post, I agree it can be annoying because it will make people feel more like prospects than business partners, hold still while I reach into your pocket in five different ways....
Agree!!!!
I agree with you on the cross marketing not good, I do have a part time bartending job at a local pub, but I've actually gotten quite a few clients from my part time job.
Cross marketing like this is the best way in the world to label yourself as a Jack of all Trades. Go for I don't mind, I'll be seen as the real estate expert and will take your business!
Jennifer, in my book you have hit the nail right on the head. It should not be done. At worst just keep them apart and if your make-up lady needs a Realtor, refer it out so you don't loose beauty credibilty.
I understand folks may be having a tough time financially right now but you have made a great point that they may be harming themselves in the long run with cross marketing.
Hi Jennifer. I totally agree. To be successful at anything takes time and hard work. When I became an agent after 20 years in another industry, I learned previous contacts don't really transfer. I had to start all over building a new business. The time and effort I would have to spend selling something else even if it was related would be time I rather devote to expanding my real estate business.
I am both a real estate broker and an attorney. I don't cross sell, but most of my real estate clients see it as a benefit to them though I am clear with them that I am not a real estaet attorney.
WOW Jennifer I flipped through several of your posts and there are "Gold Stars" by most of them, great job and great writing "The Gods" like you!
VB ;-)
And by the way I like your new profile pic!
Jennifer, you made me laugh :) Wonderful post!
You know, in some instances, I think some people MIGHT be doing this because of you! - Here's why: in your book you say, that instead of dumping on someone s head that "I'm in the Real Estate now, and if you know anyone planning to buy or sell a house" etc - we have to slip it in, weave together with our other activities. And some people weave it quite interestingly.
I'd say, choose an area of major expertise, (be it chocolate, or re, or mowing lawns), and promote it in the first place.
I used to originate mortgages because of the clear parallel with residential real estate but decided later that it would be better to do one thing well.
BTW, love your new profile picture!
Realizing everyone's just doing what they think will help their life, plus many of the two paths do actually correlate, as mentioned with loan originating and real estate, so I try not to let it bug me, but it bugs me. Good post.
Jennifer, right on the mark! I think it might be OK with a spouse as a "front" person but it just dilutes the business of the person.
Oh, Jennifer! I thought I was the only one noticing this trend. I have been getting emails from agents trying to sell me stuff that couldn't be farther from real estate. It is getting a bit frustrating honestly. I am all for multiple streams of income, but I agree with you about trying to pick complementary business options, or keep the marketing seperate. Thanks for sharing.
I can't stop thinking about your post, Jennifer :)
I'm now thinking about these people who "combine businesses", why would they do that, so extensively? In so many different fields? Maybe it does in fact work?.. I would think it doesn't, but what if I'm wrong
I mean, I'm not selling mary kay or any type of cosmetics, but if someone invited me to a party, I might consider sticking in my RE/MAX pin, and getting ready for some questions... But not vice versa
Hi Jennifer. I agree with you. Promoting other products while trying to represent yourself as a high dollar professional just doesn't make the high dollar pro look very successful. It may be better to concentrate on one career at a time. Although I have seen some who seem to pull it off.
Anna - thanks for all your thoughts! To clarify - if you go to a party or event and want to wear your REALTOR pin, that's dandy. Just not if you're hosting a Pampered Chef or Candle party or whatever as your business...
Jennifer:
Whenever I see a real estate agent who is selling Mary Kay, jewelry or nutritional products it makes me completely doubt their validity as a Realtor. If I feel that way, how do you think the buying/selling public feels?
Should your clients EVER have to spend a second worrying about whether they have your FULL attention on one of the biggest financial deals of their lives? I don't see how selling a non-compatible product could do anything BUT make them think they've made the wrong choice in agent.
I have been asked to participate in every MLM there is. Nope don't have time or the desire to mix the business.
I use a lot of MLM products but have never sold any of them. If it can be done in a way that in non intrusive them fine but I would not want to put that pressure on my clients...EVER.
While I am symphatetic to those who may need to supplement their income, I find that very hard to accept (for me at least). I role played for 4 years in my life as a Realtor(R) and a structural engineer.
Guess what? No one was getting the best of me.
That's also the reason why I am highly doubtly that cross selling is a good idea.
I was approached by others who told me that I could make another 4-5 figure income monthly withou doing much work selling "stuff"..... I said, Just send me the checks. I'd cash them.
I'm not foolish enough to believe that if you tread yourself too thin, you'd get nothing in the end.
Business is slow? How about making full use of the time to market yourself? Preview properties, visit builders, blog, etc.?
Oh need income to put food on the table? Didn't they say to get out of debt as well as having a very large savings were requirements of the business?
I just imagine that you cannot be the best you can be without fully engaging yourself in the field you plan to soar. If you want to dabble here and there, sure. You also get dabbling income along the way.
I keep coming back to the post because I find the comments to be so judgmental of agents doing other things. I am not sure the average consumer cares as much as you think if their agent also sells marykay or 5 lynx. I personally do not care what other agents feel they need to do to make ends meet for their family. I think the average consumer can relate to the feeling of needing multiple streams of income because they have experienced pay cuts and job losses too. If you think about it, so many people are doing it so there is clearly some financial benefit.
If the argument is that we should devote ourselves only to real estate then whether the other business is compatible or not should not matter. The idea that the clients should not have to worry about having your FULL attention is ridiculous (#50). If my child is sick they may not have my full attention, if I can't pay my mortgage they may not have my full attention, if my husband and I are having problems they may not have my full attention. Maybe I become a better agent because I have some additional income so I am not as stressed about each sale so I can do a better job.
I feel like I say this over and over but success as an agent is more about work ethic and a willingness to learn the job and listen to my clients than about how many hours I claim to work. Just because I am only working as an agent does not make me GOOD.
Interesting, Jennifer. I'm a real estate broker (all agents got a promotion in title in Quebec with new legislation passed on May 1) and a home stager...and I also do interior decorating. I promoted all three when I was just starting out. But now, I see people's eyes glaze over once I hit the interior decorating part. I've stopped mentioning it, and I only do it for past clients. Real estate and home staging go together and complement each other, thankfully. But I am still mindful of "Jack of all trades, Master of none."
Enjoyed reading your post and comments. However, my husband Doug and I have great success with both our lobbying and REAL ESTATE businesses. Oklahoma session is Feb-May and Mon-Thurs so it works well with a REAL ESTATE schedule. Most Oklahoma Legislature Members also have another profession.
JA - totally agree with you. I'm in my first year of real estate and owned an Interior Design and Staging business prior to getting my license. I even struggled with cross marketing my staging services because I didn't want to seem like I was less than 110% committed to Real Estate sales. Since then, I've done a fair amount of cross marketing of my staging skills with the understanding that I'm an agent first and foremost. Clients seem to appreciate the approach.
I now have a client for life (and a good friend) because another Realtor - who was working in her other job at the time - gave her MY business card instead of her own. She must have thrown mine in with hers when I toured one of her listings.
By the way, that 'other job' had absolutely nothing to do with real estate.
Jennifer, I agree with you about compatibility. Doug still does some handy man work, as he will never truly give up his love for helping others that way. what happens is there is never really a need to advertise his other service, because it inevitably comes up in our real estate work since it is a related field of work.
Gloria
I agree, keep your dissimliar business separate.
I agree that is better to do a job related to yours but I can not say it's as simple as that. I know a friend of mine that could not catch up with the expenses and did not want also to do something unrelated to Real Estate. He started to go through other financial businesses like selling RSP and RRSP to the families so at the same time could do Real Estate. He wanted to go through other Financial areas to find his clients and friends to help him do his real job. I always encouraged him but I also mentioned at the time that he needs a job that would pay not commission but a pay check to survive and be able to pay bills. Finally he Failed. I also gone through it but I always make sure that my bills are paid and my Education is in place and just learn more , look for answers and put them again and again into practice untill finally get the results. Meanwhile I am not going to jeopardize my License. As long as you can survive and get better and updated in Real Estate and can keep focus on what you really mean to do, I think you have to do anything legal to survive and get to the next step. Of couse as soon as you can should get back to what you really want to do. Fred Redjaie with Right At Home Realty, Toronto, Ontario, Canada.
REALTOR Magazine picked this up - did their regular hatchet job, but it's not as bad as most of their "paraphrasing." http://www.realtor.org/RMODaily.nsf/pages/News2010072004?OpenDocument&WT.cg_n=RMO&WT.cg_s=RSSDaily