Incentive Marketing

When it comes to attracting customers, incentive marketing represents a highly valuable tool for every industry. The real estate trade is no different from other sectors trying to boost clientele; because houses are big ticket items that require greater time and attention prior to purchase, agents and their clients alike can benefit from utilizing this particularly valuable approach.



Beyond a price reduction, real estate sales promotions might originate from the lender (percentage of loan fees), other companies (homeowner warranty, etc.), the agent (reduced commission) or even the seller (including appliances for no extra cost). Many first-time home buyers qualify for special discounts and savings, while military buyers also receive certain promotional markdowns for time served. There are myriad types of sales promotions depending upon the buyer's income level, home purchasing status, occupation, etc., and all are meant to improve sale probability.

While it may seem buyers reap the most benefit from incentive marketing, the agent also stands to collect commission for a home that otherwise might not sell. It makes good business sense to invest a few hundred dollars in non-reimbursable discounts to boost buyer interest and earn thousands in exchange. Some agents prefer to give rewards rather than discounts, keeping the original sales price firm for the seller but still allowing the buyer to reap additional incentives. According to Jim Logan, founder of revenue growth company Accelerate Business Group, LLC, "rewards preserve the value of your product or service and don't set a precedent of a lower price for an established offering."

Keep these two points in mind in order to maximize an incentive's benefit:

1) Place time limits so potential buyers feel an urgency to act now

2) Add an additional incentive for those who respond in that time frame

Logan also suggests infusing creativity to make sure all parties benefit from the incentive. For example, use money otherwise tagged for a price reduction as an offer back to the buyer in complimentary home accouterments, such as patio furniture or window treatments. This way, sellers realize a full sales price, agents still receive full commission and buyers spruce up their new home.