Target marketing is the real secret to real estate investors’ success. It’s a concept successful business people in any industry take very seriously. Marketing experts see it as a core principle of success. So if you’re not target marketing you may be taking the long way around.
What is Target Marketing?
Target marketing refers to focusing on a specific market segment for promotion of your real estate investment business. If you target you will usually make more money in the long run than those who don’t.
The first thing you as an investor need to do before you prospect is target a market you want to work with. What’s your preference? Everyone has preferences and it doesn’t always revolve around what will make you the most money. It’s MOST important that you enjoy what you do. Loving your work, and taking an interest in it will contribute to your success.
How Can You Determine Your Target Market?
Regardless of the business you’re in, the process is the same. Know who you want to work with and then learn about that audience/group. What makes them tick? What’s in it for you? The better investment business will grow.
As a real estate investor, you are a problem solver and you need to think of yourself that way all the time. What problems do your prospects have? Are they trying to solve it? Do they even know how?
Here’s the thing—some people aren’t even aware they have a problem until they meet you. For instance, property owners may be selling for the first time and think their homes will sell overnight—not realizing there is a process. Once you have the opportunity to educate them and they learn about your solutions they see things differently and will be more open to listening to you.
Avoid Making Assumptions!
Points of view differ and personal experience can cause you to make assumptions about your target market. Resist! Never make decisions in lieu of research. Listen to your clients. Neglecting to do so might cause you to overlook vital information. THAT could cost you money! It might also leave your business vulnerable to competitors who are salivating, waiting in the wings to grab onto the prospects you neglect.
Some investors want to work with everyone who comes their way. They assume that working with a target market will lessen their opportunities. They ONLY WAY that will happen is if you leave no room for expansion.
Focus on a target market, decide whom you want to work with and then follow up with a plan. A business plan and a marketing plan go hand in hand with deciding what market to focus your efforts on.
The more you understand your prospective market, the more solid your foundation—and the faster you’ll become an established real estate investor.