Home » Advertising/Marketing, Broker Profitability, Career Development, Featured Post, General, Lead Gen/Prospecting, Productivity, Real Estate Technology

Quick Answer Series: Just Say No to SEO!

11 September 2009 by Matt Jones Please wait View Comments
Quick Answer Series: Just Say No to SEO!

I’m often asked, “Matt, what do you think of SEO?”. The short answer is not very much!  I’ll explain. First, most of what is known as SEO (or Search Engine Optimization) is really a misnomer.  When companies call you to sell you their SEO service, they are not really talking about optimizing your website for search engines, but rather they are talking about trying to fool search engines.  But I’m getting ahead of myself.  Let me back up a minute.

Last year, according to the National Association of REALTORS® 2008 Profile of Home Buyers and Sellers, 87% of our customers began their home search online.  Most of us are trying desperately to improve our online presence.

Because today’s REALTOR® is now focusing on web marketing, we’ve created a market for a variety of online services ranging from template-based websites, to fully customized websites, to websites bundled with web traffic, to websites optimized for traffic, to just selling us the traffic, to search engine optimization,  and many more.

Some of these services are good, while some are dubious at best.  At the very bottom of the list, are many of today’s search engine optimization scams.  If you’ve ever been scammed by one of them, don’t feel like the Lone Ranger… so have I.  That’s how we learn.

Let’s face it:  Most agents don’t have the technical background to fully understand Internet marketing.  Sure, we know we need to bring our businesses online, and so we’re gullible to anyone who offers what sounds like a simple solution to meet our complex need.  Enter the world of SEO.

Now before I take a broad brush and paint all search engine optimization as “bad”, let me be more specific.  There is good SEO (also know as “white hat SEO”) that involves simply making your website search engine friendly, and well-designed.  These techniques are typically done once, when designing and building the website.  But since most agents don’t design their own websites, a discussion of white hat SEO techniques here is moot.

On the other hand, bad SEO (also known as “black hat SEO”) is predicated on the idea that you can “deceive” search engines into thinking that your site is more relevant than it truly is, resulting in higher organic (or free) search rankings in the major search engines.  If Abe Lincoln had been doing SEO, he’d say “You may fool all the search engines some of the time, you can even fool some of the search engines all of the time, but you cannot fool all of the search engines all the time.”

Think about it this way — for this type of search engine optimization to work, the techniques must deceive the search engines into believing your website is better than it really is.  At the same time, the search engine’s very existence is dependent upon returning relevant search results to its users, or in bringing users the most valuable websites for their search requests.  That means that the SEO industry is at odds with the search engines.  It is a win-lose.  For one to win, the other must lose.

Many of these companies can deliver short-term results (like my experience with the now infamous Traffic Power) but ultimately they will have your website “sand boxed” (banned) from the search engines so that nobody can find you.  If you are still thinking about taking the risk and using an SEO company, think about the irony of this:  SEO companies generate most of their online business by using Pay-per-Click advertising and links from other websites, and not by optimizing their search engine results (the very techniques they’d like to sell you on).  What would you think of your local Ford dealer if he was driving a Chevy?

So, I am very much in favor of online marketing, but please don’t waste your money on SEO.  The money you spend chasing the search engines could be much better invested in legitimate online marketing yielding much better and much more predictable results.  Don’t fight the search engines.  You’ll lose.  And that’s my quick answer.

1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 3.33 out of 5)
Loading ... Loading ...
  • SEO is important especially for real estate industry. And many realtor don't see its importance!

    HartfordBankOwned
  • A few months ago, a realtor stopped into my office and asked me if SEO was right for them. I surprised him with my answer. I said, "I’m not sure, let’s find out."

    In general, SEO works best for people that are selling really expensive items. This is because all things being equal, doing 100 SEO for something worth $1 generally only brings 2x as much traffic as doing SEO for a website selling things worth $10,000. The conversion rate for the website selling $1 trinkets is going to be lower then the one selling a $10,000 service, but not by as much as you might think. The conversion rate depends on the
    - quality of the product
    - quality of the website
    - competitiveness of the pricing (or at least perceived competiteveness).

    So, to give you actual numbers... If we did SEO for a website that sells $1 widgets, we might get them 10,000 extra visitors/ month at the end of the first year. This might sound like a lot, but you can only expect them to sell widgets to two to five percent of the visitors. So, they’ll make $200-$500.

    Let’s consider the people selling the $10,000 product. They might only have a 0.5% conversion and get an additional 2,000 visitors/ month at the end of the first year. I’m being quite conservative here. 2,000 visitors x 0.5% = 10 sales/month, or $100,000/month in revenue. Pretty amazing, isn’t it. If you want to do SEO for your website, you need to find an expensive item to sell.

    What’s the most expensive item that the average person sells during their lifetime? It’s their home. The realtor isn’t generating $200k in revenue every time he/she sells a home. The realtor might be generating $10k in commission revenue. But still, the numbers are impressive. As a realtor, you can expect a SEO campaign with e reasonably budget (around $5,000/month) to generate around $100,000/month in revenue. This works out to a return on Investment (ROI) of $20 in revenue for every $1 invested in SEO.

    I finished this discussion and the realtor said three words. "Let’s do it." He thought for a moment, and added another word "now".

    If you’d looking for a good how-to document that describes almost everything you need to know, then check out this SEO guide for realtors . It’s a pretty long document (22 pages) but it tells you everything that you need to know about SEO. Good luck!
    You can also click here to find more about how SEO relates to the real estate industry.
  • Never say to SEO, SEO is the best to increase traffic in your website, if you're on top of "your main keyword" that users search on, then, there is a higher probability that 98 percent of user who use that keyword will click you coz you're on top, plus, if they like what you have offer, they won't settle for others they'll grab your's. Is a good way to generate leads

    - Fort Myers |
    Fort Myers REO Properties | REO Properties in Fort Myers For Sale -
  • Matt Jones
    Thanks for reading and for your comment, Marry. I'll have to respectfully disagree with you. There are many ways to get traffic to your sight. Organic traffic is only one of them.

    Here is the problem: For most agents, continually "chasing the bots" with SEO is a bad investment, since it costs several thousand dollars every time you do it. Furthermore, most agents have no way of determining whether or not the SEO tactics being used will risk "sandboxing" their website for an extended period of time.

    In 2003 when I had TrafficPower do SEO for me, not only were the results marginally good, but they were short lived as well. Most of the gimmicky tricks they were using (and that most SEO firms still use today) would get me sandboxed in a heartbeat today. But more importantly, let's look at the money.

    I spent about $3600 in SEO. I had no results for about two months. Then I had moderate results for about three months. Then I had nothing. So take the $3600 and divide it by 3 months and I spent $1200 per month for a non-scalable, unpredictable, short-term advertising idea. Using the same money in pay-per-click advertising, I could easily produce 400 leads a month, in a legitimate, scalable, predictable ongoing advertising campaign.

    Here's my bottom line. If you are a geek, and know how to do your own SEO, and you understand the accompanying risks of doing it wrong, by all means, say yes to SEO. Otherwise, I'll stand by my title, of "Just Say No to SEO!"

    Thanks again for reading and for your comment.
  • If you say no to SEO what will happen to your site? Well aside from not having traffic, you don't get leads. Websites neds to get high traffic, so that home buyers easily find your website. Because now a days homebuyers are searching more from internet.


    BankOwnedColoradoSprings
  • I totally agree that without traffic you have no leads. I guess what I am trying to convey is that traffic should come from the least expensive and most predictable source.

    I've seen agents waste thousands of dollars doing SEO, only to have them have decent traffic for a short time, and then see their website sandboxed by the major search engines.

    Anyone using mirror pages, key-word spamming, link-spamming, hidden key-word stuffing, and other favorite schemes, are destined to not only have short-lived results, but to risk having their sites banned by the major search engines.

    Having tried many sources for traffic, I believe that the key is first, getting good lead capture in place (installing an LCM gateway) and then, buying traffic from the search engines and optimizing your PPC campaign so leads are affordable, scalable, and predictable.

    Thanks for the input. BTW, I grew up right up the road from you in Alamogordo, NM. Small world.
  • Realtors need SEO because it is one effective way to promote your website and to market your property. If your website is not optimize, possible buyers won't be able to see or search your site. In real estate marketing it is vital that your website has many traffic and can be transform into leads.
  • It doesn't mean you'll work on seo, it means fighting search engines.
    SEO is also another form of marketing your business. Why Not? the higher ranking of your website in different Search Engines - the more probability that your website will be visited by your targeted visitors. Those visitors generated can be converted as one of your leads.


    - Minneapolis REOs
  • Matt Jones
    Thanks for feedback and for reading! It's really all about business for me.

    All website traffic costs money, whether you pay somebody to wear a clown suit and stand by the side of the road with a sign that says "Go to SusieSellsHouses.com" or for pay-per-click traffic, or for search engine optimization. The key is to simply run the numbers and determine if the resulting leads produced will justify the expenditure.

    If you can produce 24 leads for 10% or less of average GCI, it's OK by me. Thanks again for your comments!
  • Do not ignore SEO!!! it is very important in real estae. SEO's help real estate agents/broker to promote their sites and to make it easier for buyers to find it.

    South Bend Bank Owned
  • Great Post Matt. SEO is so very important and many Realtors ignore it.

    Stefan
  • Robyn Hardy
    Matt, you hit the nail on the head. Too many companies, especially in the real estate industry, are being robbed blind by people who say they can provide top placement with SEO. There are so many "results related" sites that get in the way of landing on an actual site right now that it just isn't worth wasting a lot of effort and money.
blog comments powered by Disqus