Technology is opening new doors everyday across every industry and real estate is no exception. As the largest trade organization in the country, new technology vendors are constantly looking to tap into the real estate industry. This means brokers and agents alike are inundated with looking at and incorporating new technologies into their marketing mix all the time. We can’t all do everything, but does what we buy and how much we spend on technology actually make us more money?
According to a survey conducted by BrandonGaille.com, there is a correlation between income and money spent on technology. According to ByReptuation.com, over 50% of high income real estate agents (agents earning $100k or more) who spent $2,500 or more out of pocket each year on technology. Compare that to over 83% of middle income real estate agents (earning from $50-$100k) who spent less than $2,500 out of pocket on technology each year. The overwhelming majority of agents not earning over $100k per year aren’t investing as much as much as their high income earning counterparts.
Is it the amount spent on technology that’s creating the difference income? Not entirely. The survey found the differences between high income earners and other didn’t stop at the amount spent on technology, but also the time invested in technology. Half of all high income earners reported updating their website at least once a week, while almost 40% of lower income earners ($30-$50K) reported updated their website once a month. Typically, your website is paid technology service, but high income earners also invested their time in free technologies like social media. On Facebook for example, 33% of high income earners had more than 1,000 friends, expanding their reach. On the other hand, 66% of middle income earners had less than 500 friends.
With all of the technology out there, there’s also a lot of free technology available and in addition to Facebook, YouTube is a great example of that. Video is one of the fastest growing and most engaging ways to reach consumers. Not surprisingly, the survey found that 82% of high income earners had a YouTube account – allowing them to provide video content to their audience across all devices.
While how much money and time you decide to spend on technology for yourself or your firm is ultimately up to you, it seems clear that a significant investment in technology can lead to making you more money if done correctly. Ultimately the best mix would combine the free tools you choose to take advantage of with the ones your paying for so you have a clear and coordinated strategy that helps you meet your business objectives.
For more information contact Seth Kaplan, firstname.lastname@example.org.