Investment Capital and Real Estate Leads: Two Reasons to Increase Your Social Media Presence
If you’re not already active on Facebook and Twitter, here are two new reasons to up your
game on the popular social media platforms:
1. Investors are more likely to fund your business.
2. Facebook’s new Graph feature provides new ways to generate real estate leads.
Investors follow the money and money follows businesses that use Facebook and Twitter, a report in the March 4 edition of Harvard Business Review reveals.
Want to Double Revenues? Spend More Time on Facebook and Twitter
On average, social entrepreneurs with dedicated Facebook accounts earn almost twice as much as those who do not have accounts. And the more “likes” a company has the more revenue — and capital — the company raises. While ventures without Facebook accounts earned an average of $77,000 each year, the average entrepreneur with a Facebook account earned $142,000.
And there was a strong positive correlation — of 0.38 — between the number of likes a company had and the amount of investment capital it raised. (0.0 would mean no correlation and 1.0 would mean absolute correlation.)
Companies with a Twitter presence also earned and raised more money than those without, but having more followers didn’t increase revenue or capital. Typically a venture with active Twitter accounts earned $149,000 in revenue and raised $147,000 in capital annually. This compared to non-Twitter users, who earned $69,000 and raised $67,000 in capital, according to Harvard Business Review.
The study was not specific to real estate but if you’ve ever questioned the ROI of social media, the Harvard report should help convince you that it pays to tweet.
Generate Leads with New Facebook Tool
If you make Facebook a daily habit, you won’t miss out on the earliest possibility to start using Facebook Graph, a feature with vast potential to help you generate leads, according to a March 4 article in Inman News. Facebook announced the feature in January and has been slowly rolling it out to users. If you don’t want to wait for Facebook Graph to grant you access to the new feature, you can add your name to a waiting list.
Facebook Graph takes search to a granular level, says Mari Smith, a social media expert. She told Teke Wiggin, a writer for Inman News, that she conducted a search for “friends of my friends who live in San Diego, California and who are female Real Estate Agents and who like Spirituality” and got five results for her efforts.
As a real estate agent, you could use Facebook Graph to search for “friends of my friends who (blank)” and grow a list of people who might be interested in buying or selling homes.
You can fill in the blank any way you want. You can make the search narrow — to people who want to buy homes in a particular neighborhood — or broad to increase your marketing base. A search for “friends of my friends who drive BMWs” or “friends of my friends who are pregnant” may, for example, connect you with people who have the money and motivation to purchase a home even if they are not currently chatting on Facebook about home purchases.
Facebook Graph can also make it easier for potential prospects to find you. Someone thinking about selling a house in Phoenix might search for “friends of my friends who live in Phoenix and who are real estate agents.” To make your Facebook profile more user-friendly, be certain to include keyword phrases that would help searchers find you. You may also want to make more of your information public, but review your profile carefully before adjusting your privacy settings.
It’s easy to think of social media as a time and money drain. And it is if you treat the medium as entertainment. But, if you’re serious about marketing your real estate business, social media provide unprecedented opportunities.