Ten Things a Real Estate Professional Can Do in a “Down” Economy #5

#5  Build Local Vendor Partnerships (fifth in a series)

I’m sure that you realize that developing cordial relationships with businesses and service providers in your real estate market is simply good business practice.  You may already have several vendors listed on the Community page of your website.  You may also have received occasional referrals from them.

But have you considered that these relationships could develop into an ongoing source of revenue, too?  I offer two models – one simple (mutual support), one more complex (revenue generating) – for your consideration.

Mutual-Support Local Vendor Partnership Model

For the simple, win–win partnership model, you agree to promote each other’s services, in equivalent ways.  For example, you would publish their advertisements and special offers in your newsletter; they would publish yours in their newsletter.  You would list them as a preferred service provider on your website; they would list you on their website, in a similar manner.

This model requires no exchange of money, just a signed letter of agreement, in which the two of you agree to provide reciprocal marketing services for each other.  It is advisable to also specify how frequently you will advertise each others’ services – weekly? monthly? quarterly?

Revenue-Generating Local Vendor Partnership Model

Some vendors cannot provide reciprocal marketing services for you.  They may not have a website (still common, for small independent service providers) or publish a newsletter, relying solely on business cards and referrals.  You can offer marketing services for these vendors, for which they would pay you a small monthly fee.

For example, in addition to the two marketing services mentioned for the mutual-support model, you might feature a particular vendor in each issue of your newsletter.  You could also provide a link to a comparable, permanent feature page on your website.  Such features could include

• a photo of the business (or vendor “in action”)
• a case study (description of common consumer problem solved by the vendor)
• your comments on the quality of the vendor’s services
• a discount coupon or discount code
• contact information, with your referral code.

This partnership model requires a signed contract[1], in which you specify the marketing services you will provide (including frequency), and the vendor agrees to pay you a specified amount, each month.  The amount you charge will depend on the size of your marketplace and the number of “impressions” you are willing to provide.  Your prices should be competitively affordable.

I strongly urge you to implement this model only with vendors that you can justifiably recommend – whether based on personal experience, or on testimonials that you trust.

Benefits of Partnering with Local Vendors

The benefits from your building partnerships with local vendors accrue to all:

1. You will benefit from referrals generated through mutual advertising (simple model) and from the extra revenue received (complex model).
2. The vendors will benefit from increased exposure, not only to consumers already in your marketplace, but also to consumers who are moving to your marketplace.
3. Consumers will benefit from detailed information about high-quality service providers and from the discounts you are able to negotiate on their behalf.

Previous post #4 Get Some Training

Forthcoming post #6 Implement One New Technique, Every Month

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[1] CAVEAT: We recommend that you consult a lawyer about all contracts, however simple. If you will receive a referral fee from any of your vendors, be sure to acknowledge that vested interest on your webpage.