Home Warranty

General Inspection Topics General Inspection Discussion
41

IMHO, every profession is about marketing. One can be the best inspector in the world but if no one knows about you because you don’t know how to market yourself, you’ll be sitting at home 24/7 letting your ego get in the way of making money.

Reminds me of a marketing seminar I went to back in 1995 at Stanford University. Said seminar was to last 6:00-10:00 p.m. on a week day and was being put on by the one and only Lee Iacocca (Google or Wikipedia him). He told us the following story, loosely quoted, to illustrate marketing.

A very good plumber—we’ll call him John Smith— living in a small Midwestern town was coming up on his 25th anniversary with ABC Plumbing Company he worked with. Everyone who had plumbing problems always knew which plumbing company to call first, and to ask for John Smith.

ABC Plumbing decided to throw a huge celebration for John and invite all his past clients. Many hundreds of people came.

At home, after the party, John began to think about his 25 years working for ABC Plumbing, about the hundreds of people who came to the party, and about how much money ABC was making off of him. He decided that the next 25 years would be spent owning and operating his own plumbing company, so he quit ABC and started his John Smith Plumbing.

Six months later he was back working for ABC Plumbing.

What happened?

What happened was that John just naturally thought that the hundreds of people who came to his party would follow him to his new company. Unfortunately, he didn’t understand even the basics of marketing: To tell people who you are and where you are! He knew he was the best and the townsfolk knew he was the best, but told just his family and close friends what he was doing. How did he think that everyone else would find him? They knew that if they had plumbing problems, the first company to call would be ABC Plumbing, but when they called and asked for John, the owner of ABC said that John had retired. Not quit, but retired. Semantics, since, in a way, he did retire from ABC. Bill was taking John’s place, and with the satisfaction guaranteed policy, no one had a problem with Bill coming out to do the work.

The owner of ABC knew how to market his company. John did not.

I have worked in dozens of industries in my 50 years of business. Bar none, those companies that knew how to market themselves were my greatest competition.

This also reminds me of when I started my home inspection company in 2001. I joined ASHI & CREIA because they had local chapters here. My wise old grandmother taught me to put 10% of my gross income into a marketing account and to market my company in good times and bad times. Marketing in good times would also help ensure that I could get through the bad times. 2001-2006 were very good years here in San Diego for home inspectors. When I told ASHI & CREIA members that I spent 10% of my income on marketing they exclaimed, “Why? We don’t even have enough inspectors as it is, so just sit back and let the business come to you.” Well, I have never been one to sit back and hope for the best. Action, action, action!

Here I am in 2016, retired from home inspections on December 31, 2015. Guess how many of those 217 ASHI & CREIA inspectors were still around in December 2015? Six, if you include me, and four of those six work for large, multi-inspector firms whose owners know how to market. The real estate bust and Great Recession decimated everyone else because they didn’t know how to market themselves in the good times, so they sure didn’t know how to do it in the bad times.

One of my reasons for going into home inspections was because of the very well-defined target audience: Realtors. Realtors needed, and need even more in today’s world, home inspectors, so it was very easy to recognize that target audience and market to them.

I think the lack of basic marketing knowledge/skills is the reason why 80% of businesses fail by the end of year 5.

42

How about if the Realtors definitely know about you (regardless of how much “marketing” you do or don’t do), but won’t use you or refer you, because you’re “too good,” “too thorough,” “kills too many deals,” or “finds way to much stuff,” should one continue to keep marketing to them?
Me thinks “marketing” in this profession means the same as “kissing you-know-what.”

43

The only Realtors I have ever found who thought that I was too good, too thorough, killed too many deals, or found way too much stuff were the Top 10 (plus or minus) Realtors. One asked me to alter my report to help her “get to closing.” Another one actually sent me an email which I discussed on this message board at the time. I still have his email:

Sadly, I killed that deal, too.

I know for a fact that one Top 10 Realtor here, and that’s Top 10 in San Diego County, not just for his brokerage, has a slush fund. He puts 10% of his gross income into the slush fund, and if a Client has a problem with his services, he just pays them off. Now that’s a viable and legal business model but not one that I personally subscribe to. He makes about $50 million a year, so $5 million goes into his slush fund. He is the person who caused me to implement my “Aggravation Surcharge” so that if one of his Clients found me via the Internet, and I asked who the Realtor was and the answer was this guy, I would tack on a $1,000 Aggravation Surcharge, without telling him that’s what it was, of course.

Pretty much I have been able to determine that I don’t want to work with the Top 10 Realtors anywhere because I’m pretty much certain that their brand of ethics doesn’t mesh with my brand of ethics.

44

It’s not just this profession. It’s all professions. That’s why we have the mantra “The customer is always right.” The only difference, and a significant one, is that in this profession we market to people who do not pay us. Third parties who we then rely on to refer us to their Clients. Of course, those third parties often forget that when they refer us to their Clients, their Clients become our Clients, too. Realtors are not our Clients, just our target audience, and therein lies the confusion for so many people.

That’s my whole purpose in implementing House Key News (see this thread: https://www.nachi.org/forum/f7/house-key-news-live-112758/), to help home inspectors get past those third party Realtors. It’s not a short process, though, which is why it’s important to get started today!

45

So as a new InterNachi vendor are you teaming up with Nate?

Or promoting his gimmicks on your own?

46

No and yes.
I have only met a handful of people who can do marketing as well as me. In that handful I include Nick and Nathan. Great marketers have lots of “gimmicks,” and we’re not afraid to use them to be successful.

47

Seems pretty clear!

48

Russel, I have always liked you, think you are pretty smart, respect and enjoy what you write, but That right there is some funny as…s stuff bro. I think you are mistaking snake oil BS of widgets for self profit (oh and lets not forget Realtor As…s kissing to the max)for legit marketing, of something useful.

Jim

49

My wise old grandmother taught me to add laughter to each day. Thanks for adding laughter to my Saturday, Jim…LOL

50

You’re exactly right. And at least you can admit it. Most like to pretend it doesn’t happen or try to come up with lame excuses on why.
Regardless, my problem, though, is you’re in a place where you can get away with not working with these types of people due to the massive amounts of population and more REA’s. You can just move on, because there’s so many other people. Obviously, didn’t have any effect on you.
In my area, that’s not the case. I also have to deal with the small town “grapevine” effect as well - all of the “little” REA’s that “look up” to the “bigger” agents, hear about the Home Inspector to stay away from. Not to mention all of the home buyer’s that hear the same unjustified things.
The biggest problem, though, is that the HI profession knows exactly what’s going on, just lets it happen, & doesn’t do anything about it.

51

What do you recommend the HI profession do about this?

52

[size=4]Don’t rely on the HI profession to do anything for you. InterNACHI members are lucky that Nick and I love doing things for people, but the profession as a whole? That’s just not going to happen. Thus, do it yourself.
[/size]
You have been in business for at least 8 years that I know of because we both went to ActiveRain together in 2008.

After 8 years I have to presume that you have done some home inspections and have some past Clients.

With what you have said here, I would have to ask if you’re using your past contacts to your best advantage? Using something like House Key News can get those Realtors out of the equation. It’s not an overnight process, though. The sooner one starts stroking those past clients, the sooner the Realtors become a non-factor.

I started my own newsletter just a couple of months before John Onofrey started HomeHints eNews. We both had the same idea but he was willing to help other people with their success while I needed to help me with my own success. John quit publishing HomeHints a couple of years ago, leaving a huge void in word-of-mouth advertising for home inspectors.

I retired as a home inspector on December 31, 2015, 14 years in the business, due to shoulder and knee problems. I have my slice of the pie, and now my whole business philosophy after the real estate bust and the Great Recession is to help other people get their slice of the pie by keeping in touch with those past clients through House Key News.

I firmly believe that’s critical because home inspector clients don’t go to the home inspector store every day, or week, or month, or even year. Home inspectors need to do everything they can to make those clients work for them–get those testimonials, publish those testimonials, use a Referral Rewards Program, send them House Key News each month. Whatever. But remember to have fun doing it. House Key News is fun.

I do all the work in creating each month’s issue of House Key News. You sit back and reap the benefits, and InterNACHI members get a deep discount simply because I’m dedicated to InterNACHI and its members. For more information, including the NACHI discount code, go here: https://www.nachi.org/forum/f7/house-key-news-live-112758/#post1524203

For anyone wanting to see a sample email of what will be sent to your clients, email me, housekey@housekeynews.com, and put “sample email” in the subject line. I even personalize the sample email with YOUR information before sending it to you.

End of Informercial.

53

What do you recommend the HI profession do about this?

54

Having more experience in home inspection than all but a handful of inspectors, and as a past agent for John Hancock …I’m with Russell 100% on the warranty thing.

Too many used house commissioned sales people AND home inspectors seem to think that a warranty policy is gonna cover ANYTHING that goes wrong. NO insurance policy does that BUT it puts the consumer in a better position if something does go wrong that is covered.

I get sick to my stomach when I inspect a 18 year old furnace whose burners are covered with 4" of rust and debris AND hear the REA say something to the buyers like

I’ve used a 90 day warranty through 4 or 5 different companies over 23-24 years and have no complaints with them.

55

As far as what he suggests the industry do, I am surprised the industry has never lobbied to make it illegal for real estate agents to recommend any home inspector as it can obviously be a conflict of interest. That being said, I feel that would actually be detrimental to my business. I’ve created awesome relationships with the realtors who I work with, most if whom are really good agents with their clients best interest in mind, and I love working with them. The ones that think I’m too harsh or thorough, well i don’t want the stress of working with their clients anyway, so I’m glad they don’t refer me. All you can do is be the best type of inspector that you are, whether it’s thorough and knowledgeable, or a powder puff. Unfortunately there’s a market for both. But I don’t want to have to spend tens of thousands of dollars on branding and advertising just to have the privilege to work with more clients of the bad realtors and less of the good ones. I’d prefer to continue working with the realtors who’s ethics match with my own. Much less stress and bs that way IMO.

56

Wayne I’ve been involved fighting home inspector bills in 4 different states and it has always amazed me how many inspectors I’ve met that whine and moan about being pushed around by REA’s or being under the REA’s thumb that when push came to shove would NOT do anything that might make the realtor community unhappy.

Inspectors that would complain BUT refuse to write complaint letter to their legislators rebutting the REA’s telling how vitally important it is to national security, etc that they get HI’s licensed. OR inspectors that would complain in HI meetings BUT refuse to take off 1 day and go to a legislative hearing AND stand and testify rebutting the REA’s comments to legislators about the thousands of problems there are with inspectors AND how all the realtors want is well trained, knowledgeable inspectors.

In short MANY inspectors would fight to the death to NOT get something in a real estate bill that would prevent agents from referring inspectors … Their entire business has been built on pleasing an agent AND if they had to change that and market the general public, they’d be out of business.

57

Dan - I agree with what you said 100%. That’s the definition of a whiner to a tee. Complaining and whining that outside sources are their problem, then refusing to do anything about it.

I went through a short period where I had the same feeling, however I quickly kicked my own butt and realized a few things.

a) Regardless of the rules and regulations, I won’t get them all. As long as I know I am doing my best and marketing and educating to the best of my ability, in the end it will work out. My marketing can always use a huge improvement, so if I’m feel slow, I can blame myself for it and be motivated to do more, rather than wallow in self pity. I’m actually just in the process of getting Home Binder set up now so that I’ll have yet another reason to market why my services can better help agents who choose to refer me.

b) If I currently have 1/3 of the local market share, and at this point I am happy with all the agents that refer me and I can look forward to almost every inspection knowing I can do my job as required without concerns about having to unnecessarily kiss butts. Where there is also another 1/3 of agents out there who I don’t even want to work for, if I just randomly got business from websites, signs, adds, etc. I’d be doing alot more for the bad ones and alot less for the good ones. I hate doing inspections for clients of realtors who hate me so much that they refuse to step foot in a house that I’m inspecting (it’s happened, lol).

c) SEO, high end websites, signs, newspaper and radio ad’s, the race to have the most widgets, etc are extremely expensive and is like trying to shoot fish out of a barrel. Only one out of 5,000 people reading the newspaper are looking for a home inspection that morning if you’re lucky for example. Where building relationships with quality agents is actually very inexpensive if you understand basic marketing and also keep their interests in mind as well. And no that doesn’t mean soft reports, anyone who understands marketing at all will understand what I mean. Those who don’t understand are probably in the wrong business.

58

Enlighten me & those who don’t understand. We’re all here to help and I’m asking for your help, please. thx in advance.

59

It just meant that basic selling principles are that you aren’t only selling yourself. That’s boring and no one cares about you honestly. You need to be of value to them, whether it’s being available when they have questions about things that other inspectors have reported on their listings, or about their own homes, doing things to try to help them better their own business and listings (that is why I signed up for Home Binder), if they’re a good agent, don’t be afraid to mention that to their customers that they’ve referred you to, etc. It’s basic business principles. People want to do business with people they know, like and trust. Also, all things being equal, people want to do business with their FRIENDS. All things being NOT equal, people STILL want to do business with their friends.

I don’t know everything and am not trying to portray that I think I do. I’m not TexInspect nor is that my style. I’m only saying that if realtors trust that you’re honest and know what you’re talking about, know that you care about them and if you have good people skills… then you probably have a good chance of getting referrals from 66% of the realtors out there once they get to know you, and none of it means compromising your ethics.

I know this was probably way too much talk about marketing to realtor’s and relationships for the vast majority of realtor haters on this board, but I live in an area where 50% of the inspections I do are for people moving from out of town who don’t know anyone. There’s no chance to build relationships or trust with them since they know no one… except their realtor. So that’s who I have to market to, and I’ve never compromised, and for that I know I’ll never work for everyone, but oh well, I enjoy working with the ones that I do.

60

One of the things that my wise old grandmother taught me as she was helping me set up my first business when I was 11 was to “be helpful.” I didn’t fully understand what she meant until I graduated from college and really got going in the business world. What she meant, and what I have practiced for the past 40 years, is to be helpful BEFORE someone needs my services. Being helpful creates that relationship, so when that person needs your services, you have top of mind awareness because of your helpfulness and that relationship.

As an example, when my husband became a Realtor in 2005, he had not a clue how to get started. What I did was write helpful articles about real estate. We put those helpful articles on his web site but hidden from everyday view. Then we sent out postcards each month to his real estate farm with a link to that month’s helpful article. After just three months he got a $1.5 million listing of a beautiful ocean view home. It was way out of his farm. However, the couple’s daughter lived in his farm, and she had kept his postcards and gave them to her parents. Her parents were impressed with Jim’s helpfulness and hired him to list their home.

Such is the same with my new venture House Key News. My goal is to have a monthly newsletter with about 80% helpful articles and the other 20% interesting/unique/unusual pictures/quotes/facts/tidbits/snippets/etc. The type of help I am trying to provide to YOU will, I hope, indicate to your past clients just how helpful you can be when you are not even getting paid. That continues to build on the home inspection itself, which was the start of your relationship with those clients. Continue to be helpful long after the inspection, continue to build on that relationship, and you’ll continue to prosper.