HOW IT WORKS SERVICE REQUEST A NEW CUSTOMER LEAD MATCHING CUSTOMER CONNECTION
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1 HOW IT WORKS SERVICE REQUEST Customer Searches online for a Real Estate Agent to buy a home / sell a home Submits a request with the details of their request at ServiceMagic.com A NEW CUSTOMER Real Estate Agent You connect with customer You grow your business faster and cheaper LEAD MATCHING ServiceMagic Matches customer's request to your criteria Sends leads to you via , cell-text messaging, phone or fax Matches a maximum of 3 Real Estate Agents to your request depending on request type CUSTOMER CONNECTION ServiceMagic Introduces you to customer immediately, showing them your profile and ratings Real Estate Agent Follow up with the customer using all available contact information from the lead
2 HOW MUCH? SERVICEMAGIC CAN BE THE MOST COST EFFECTIVE WAY FOR YOU TO GET YOUR NEXT CLIENT! No monthly / annual fees and no commission / referral fees Simply tell us how many leads a month you want for your business and we'll send you that many - Consistent, predictable monthly spend - Spend as much or as little as you like and get the right amount of leads for your business - Adjust your spend target at any time Lead fees range from $30 to $75 depending on the type of client -Buy a Home ($30) -Sell a Home ($40) -Buy & Sell a Home ($60) -Free Home Valuation - exclusive lead ($75) Receive a rebate on your lead fees based on your monthly spending Monthly Spend $200 - $500 $501 - $2,500 $2,501 - $5,000 $5,001 - $10,000 $10,001+ Earn a Rebate Credit of... 5% on all dollars spent up to $500...plus 10% on dollars spent over $500...plus 15% on dollars spent over $2,500...plus 20% on dollars spent over $5,000...plus 25% on dollars spent over $10,000 Agents agree ServiceMagic provides a great return on investment! -Example: Homebuyer lead = $30 -Agent accepts 10 leads = $300 cost -ServiceMagic Agents close 1 out of 10 leads on average. Agent closes just one transaction worth $250,000. Agents makes $7500 for $300 in marketing expense.
3 SAMPLE LEAD Lead Information - View type and location Customer Responses - See responses to specific questionnaires created by experts in the field
4 COMPARE US SERVICEMAGIC MARKETING VS. OTHER FORMS OF MARKETING ServiceMagic brings you more customers at a lower cost than print advertising. If you advertise in the Yellow Pages, Newspaper or Direct Mail, consider this According to NAR, more homebuyers find their real estate agent via the Internet than from yellow page ads, newspaper ads and direct mail combined. The Internet is the fastest growing customer acquisition medium for real estate agents. ServiceMagic brings you leads from this growing and effective medium. With print advertising, you can spend a lot of time vetting unqualified callers to determine if they are serious and right for you. ServiceMagic checks 100% of the leads we receive and filters out over half of them before sending the best ones on to you. According to NAR, only 4% of newspaper readers read the Real Estate classified section. In contrast, about seven out of ten home buyers use the Internet in their search for a home. ServiceMagic spends over $10M per year and works with over 125 online partners to market to these Internet users. Direct mail has a typical response rate of less than 1%. Why spend a fortune on thousands of newsletters, flyers and schedules that don't bring you new business? In contrast, ServiceMagic real estate agents close 10% of the leads they purchase, on average. With print advertising -You pay a fixed fee with no guarantee that the phone will ring -It's very difficult to measure your success or return on investment -You can't adjust your advertisement quickly if your conditions change With ServiceMagic, you only pay for leads from consumers who match the type of work you do and the areas you prefer to work. ServiceMagic is the most cost effective method for Internet leads. If you use Internet Referral Services, consider this Back-End Referral Fee models charge 25% to 35% of your commission check. Agents who use ServiceMagic, in contrast, spend about 5% of their commission checks on leads. Many of these referral programs provide leads to tens of thousands of agents. Servicemagic caps your competition at no more than two other agents. The Internet is the most effective way to obtain new clients. ServiceMagic is the most cost-effective way to obtain Internet clients. Check us out today!
5 FREQUENTLY ASKED QUESTIONS Q: How do homeowners find ServiceMagic? A: ServiceMagic spends over $10M in advertising per year and has partnered with over 125 online partners to drive over 3 million visitors to our website each month. Let us be your multi-million dollar web marketing department! Q: How do I know ServiceMagic provides quality leads? A: Consumers provide 20+ pieces of information like price range, credit info, home specs and more. ServiceMagic attempts to contact each lead to verify contact information and filters out over 50% of the lead requests we receive. Only the quality leads that remain are sent to members. Q: With other lead services I only pay a referral if I go into contract. Why do you charge for every lead? A: With ServiceMagic you pay a fee for every lead you pursue regardless of the outcome. The lead fees have been priced in a way that even with a small win percentage, ServiceMagic will be your lowest cost of advertising. ServiceMagic agents get at least one new client under contract for every 10 leads they purchase. That s just $300 per new client. Lead Referral services keep between 25%-35% of your commissions and can cost you thousands for each new customer. Q: Do my payments to ServiceMagic constitute the payment of Referral Fees as regulated by some state-level real estate laws and RESPA? A: ServiceMagic does not believe its advertising fees constitute Referral Fees. However, ServiceMagic does have a Managing Broker's license and thus ServiceMagic can accept Referral Fees from other licensed brokers. Q: Why should I pay for leads when I currently get most of my clients by word-of-mouth referral? A: Word-of-mouth is great, but many times it is unreliable and you end up working with clients that are a drain on your time and energy. With ServiceMagic you can get a steady flow of leads and take the clients that are a pleasure to work with. Q: Is it safe to give ServiceMagic my payment information online? A: ServiceMagic uses state of the art security to protect our real estate agent s information. We use Secure Socket Layers (SSL) and encrypt all of your personal information. The industry leader Verisign backs all of our security measures. You can rest assured we have done millions of online transactions without any incidents of credit card fraud. Q: How do I know this will work for me in my area? A: To find out how many leads we produce in your area, call our enrollment team toll free at: (877) You can also try a 10-day free preview. Just tell us what areas you like to work and we will show you actual leads as if you were a member free for 10 days. To sign up for the free preview, call us at: (877)
6 SUCCESSFUL AGENTS We knew we had to double our business when Victoria left her job, to make up for her salary. We never expected our sales to grow so quickly, increasing by 75% since joining ServiceMagic. This summer we earned $37,000 in commissions in June just through ServiceMagic leads, $12,000 in July, and $12,000 in August.! We ve also been able to cut down on the $5,000-$7,500 per year in other advertising costs. We no longer depend on newspapers, magazines and direct mail marketing. We spend as much as 50% less on print advertising, because we know our clients are coming from ServiceMagic. - Terry & Victoria Schreiner, RE/MAX Achievers, Mesa, AZ "I was using other online services, but their fees are so high that I have quit. In contrast, I have landed about 50% of the leads ServiceMagic has sent me a total of nine or ten listings. Your service is more valuable than any other I have used." - Wayne Wormhood, Coldwell Banker Legacy, Albuquerque, NM "I use other online sources and have never gotten a lead with over 200 proposals! With ServiceMagic, I took four leads, and I got one sale! Commission will be $4400. Thank you." - Eric Weckman, Realty 2000, Plant City, FL "I was a little leery when I joined because there are so many scams out there, but I just wanted to thank you very much for the leads! I have received three so far and two of them I listed and sold! Both within a week! I am so happy! Both experiences with the sellers have been great! Keep the leads coming please!" - Elizabeth Zosman, Coldwell Banker, Miami, FL
7 IN THE NEWS Real Estate Web Sites Rock INSIDE MORTGAGE TECHNOLOGY ServiceMagic Helps Lenders Get Good Leads at Low Cost REALTOR MAGAZINE Internet Lead Generation SOUTHERN LIVING Home Tips: Find the Right Person for the Job E and Pru: Reading the Tea Leaves January 2004 ROCKY MOUNTAIN NEWS Net Firm Hiring up to 40 in Denver January 2004 ServiceMagic Puts Magic Into Mortgage Lending January 2004 REALTY TIMES ServiceMagic: Don't Lump Us in With Referral Fee Companies Either December 2003 NEWSWEEK Computing: Try This At Home July 2003 Innovator Award Nominee - Most Innovative Business Model July 2003 Web Marketing a Lead Generation Powerhouse August 2003 WASHINGTON POST Help Is Just a Click Away January 2003
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