The Environment - A Global Overview

It is not difficult to become a believer in global warming. According to the U.S. National Climatic Data Center 2001 was the second warmest year on record and it was the 23rd consecutive year of above normal temperatures. Perhaps most troubling is the fact that the rate of temperature increase is accelerating. Add to this the data just released from insurer Munich Re stating that deaths from natural disasters were more than double in 2001 versus 2000 and insured losses were up more than 50%.UNEP estimates that the extra economic costs of disasters attributable to global warming are running at more than $300 billion annually.

Some 180 countries are proceeding toward an expected ratification of the Kyoto Protocol by the end of this year. Of the six gases it will control CO2 is by far the largest contributing nearly 90% of the global warming impact. The primary source of CO2 is the burning of fossil fuels. Therefore the focus on energy will continue to increase.

Throughout the world different methods are being used to encourage reduced energy use. Japan has enacted the Energy Conservation Law in 1999 mandating huge efficiency improvements by 2004 for nearly all air conditioning products. The U.S. has revised ASHRAE Standard 90.1 for buildings to raise the minimum COP level for centrifugal chillers from the current value of 5.2 to 6.1 effective in October 2001. DOE and Green Seal have revised their recommended efficiency levels to an even higher level of 6.27.

Some countries use laws. Others use codes and standards. An increasing number of countries are using environmental costing which increases the price of energy thereby increasing the financial attractiveness of high efficiency products. European countries have been using such "carbon taxes" for more than a decade. However a rapidly growing trend in developing countries is the reduction of subsidies to energy industries "so prices more accurately reflect environmental impacts" according to OECD's Environmental Strategy for the First Decade of the 21st Century.

China has shown leadership by reducing subsidies to the coal industry from $24.5 billion in 1990 to $10 billion in 1996 resulting in 7% emissions reduction while seeing a solid economic growth of 36%! China is now moving aggressively into environmental costing with the just announced (1/13/2002) 5-year environmental plan that commits 700 billion yuan ($84 billion) to help protect the environment. The government will provide the fist 65 billion yuan to initiate the project but will apply the "polluter pays" principle for the rest. The "environmental protection authorities will collect funds from the pollution-producing companies". The impact on the price of energy is not known at this time. However it is clear that the addition of environmental costing will increase energy prices. According to a European Research Commission Report of July 2001 "The cost of producing electricity from coal or oil would double if costs such as damage to the environment and health were taken into account".

The global movement to high efficiency is accelerating just like the rate of temperature increase. But this is not all that is changing. This second environmental threat of global warming is making it clear that we need to give combined consideration to ozone depletion and global warming. But more important is the need to focus on the real issue which is the total environmental impact not address each individual environmental threat in isolation. This includes the concept of environmental risk exposure, which recognizes that there are other environmental threats that are less well understood today. However, there are "no regrets" decisions we can make today (such as minimum refrigerant charge, minimum atmospheric life refrigerants, etc.) to minimize these risks.

Combined consideration would place more emphasis on reducing the use of CFCs, which are still being produced in developing countries until 2010 in accordance with the Montreal Protocol. Little attention is being given the large contribution to global warming from CFCs. Actions which cause confusion and delay the phaseout of CFCs cause increased environmental damage rather than lessening the environmental impact.

The other rapidly changing factor in the HVAC industry is the shift to becoming a hermetic industry, where refrigerant is contained throughout the life of a chiller and recycled for further use when the chiller is replaced. This simple understanding that "if it doesn't get into the environment it does no harm" is a powerful argument, which will lead to the continued use of the most efficient refrigerants in such closed hermetic applications as chillers. In just 15 years annual refrigerants emissions from chillers have been reduced from 25% to well below 1% today. This defines a whole different world than that which existed when the Montreal Protocol was crafted some 15 years ago.

But perhaps the most important change coming to our industry is the realization that there are no new or "perfect" refrigerants waiting to be discovered. There are eight elements that can be combined for use in a vapor compression cycle. All feasible combinations of these eight have been evaluated. The reality is "what we have now is all there is".

This recognition is why we are now seeing a shift from the search for a perfect refrigerant to a search for the right refrigerant(s) for the right application. Said another way, the highest efficiency refrigerants for the lowest emissions applications. Many in our industry call this "Responsible Use".

Larry Butz is a business globalization and energy efficiency expert for GEA Consulting. GEA Consulting is a global resource dedicated to developing practical solutions that drive client revenue, efficiency, and operational productivity. GEA Consulting can be found online at www.gea-consulting.com

Traditional Marketing Tactics Fail to Produce Results in Today's Business Environment

Is your marketing message getting through to your target audience? Is it as effective as it once was or should be? Probably not and here is why.

The National Association of Realtors reports that they have 1.1 million members and there is no mystery that existing home sales are down significantly. There are simply too many agents chasing too few transactions. Add to that the fact that there have been many forces at work in recent years that are changing the way consumers respond to advertising and marketing messages. We are living in an over communicated world that has consumers tuned out and trusting less. What follows is an outline of the problem and the contributing factors.

Business through the ages:

What follows is a look at how our economic base has changed over the years. It is important to know where we came from to understand where we are today and where we are going.

The Agrarian Age

Farming and livestock formed our early economic base. The land gave us what we needed to feed and shelter ourselves. Trade amongst businesses was very prevalent at this time.

The Industrial Age

In the early part of the 20th Century, we witnessed the Industrial Age. We not only worked the land for food but also started to extract natural resources and raw materials to manufacture products. The challenges that companies faced were based on the productivity of workers and the efficiency of factories. Manual labor and hard work were thought to be the answer to higher output and increased profits.

The Information Age

The latter half of the 20th Century ushered in the beginning of the Information Age. The use of High Technology starts to change the game and the basis for our economic output. The Information Age gave us global companies like Microsoft and Intel and the products they produce enable even the smallest of companies to work smarter and not harder. We have gone from using our hands to using our heads. One of the most valuable assets a technology firm has is the knowledge and intellectual capital of its workers.

The Relationship Age

We are now entering a period where we are starting to understand the power of relationships. It is through human relationships that we are seeing new ways to capture and keep customers. If done properly, you create customers for life. The rapid rise in Social Media sites shows peoples true desire to connect with each other. When you take all of this into consideration, it is clear we are living in a Relationship Age

The following key factors have also brought us to this Relationship Age

The Cocooning trend

Faith Popcorn coined the term Cocooning in the 1980's. This trend sees people socializing less and retreating to their homes more. The trend is commercially significant in that it changes the way we reach out to obtain and retain customers. This trend is also a direct assault on brick and mortar businesses. Some examples of cocooning are working from home, internet home delivery of goods, home theaters, gated communities, surveillance cameras and many other services that allow the consumer to retreat and stay home. The Internet has enabled this trend to continue and further points to the need to embrace new tactics for the Relationship Age.

Mistrust in corporations

Over the last decade, consumers have started to develop mistrust in companies. You only need to think back to the Enron, WorldCom and Cendant scandals, to name a few, to see how we got here. For many corporations, regaining the trust of the consumer has been their primary mission. Mistrust in businesses is at an all time high. A recent survey by the public relations firm Edelman shows that only 44% of Americans said they trusted business as a whole. This is down from 58% in the fall of 2007 and the downward trend continues. Consumers are fed up with the status quo and are not going to take it anymore. Now more than ever, advertising messages are being viewed through skeptical eyes.

Mistrust in leaders

Along with a general mistrust in business is mistrust in public figures and leaders. On an almost daily basis, we see another disgraced Politician, CEO, Religious figure or Celebrity grace the front page of the newspaper. Whom we thought to be solid citizens giving sound advice has become anything but. This has also caused business to rethink how they go about advertising and marketing to new and existing customers.

These factors all lead to the consumers need to have a louder voice in what they buy and how business is transacted. The increasing popularity of consumer review sites is aiding them in protecting one another from unscrupulous businesses. As countries around the world struggle with economic challenges, people are yearning for deeper relationships and more say in the process. People worldwide seek more than material wealth and superficial contacts. They want environmental consciousness, business reform and a deeper level of connection with companies, people and the products and services they provide.

The new forms of communication and technologies developed during the Information Age are changing the game. Our past frustrations with corporate performance, government, health care, education and environmental policy are providing the motivation for a new mindset. Enter the Relationship Age.

From Transactional Marketing to Relationship Marketing

The days of "doing the deal" and hit and run marketing are gone. Social Media tools and online technologies are allowing us to deal with customers on a more personal and cost-effective basis. We now have the technology to deal with each customer on a personal level and if done properly, create an outspoken advocate and a customer for life.

To do this you need to move from the old mindset of being product centric to the new reality of being people centric. It is all about the customer. By putting the customer first and serving their needs, we will back into running better businesses via a stronger brand and deeper relationships with our clients.

In the Information Age, employee's knowledge and intellectual capital were the primary currency for companies to keep their competitive edge. In the Relationship Age, it is the number and depth of connections with the customer that is the primary form of capital. It is a shift from Knowledge Capital to Social Capital. We move from serving companies by getting people to buy as much product or services as possible to serving the customer at the highest level and inducing them to buy and remain loyal to your brand over time.

Slow Sales Cycles

Real estate has one of the slowest sales cycles of any product or service. A typical client only needs your services once every 5 to 7 years at best. This makes staying in close touch with the client, adding value and gaining their referrals more important than in any other sales profession.

A Call for Change

When you take all of these factors into consideration, a change in the way you market your service is needed now more than ever. Change is inevitable and the rate at which our environment changes is getting faster and faster each year. How you adapt to that change will determine your level of success moving forward. You need business and marketing systems that speak to today's economy and demography to remain viable. You cannot employ the same old tired methods and tactics and expect to be successful in today's Relationship

Age.

Meeting the Challenge

Marketing has always been a costly endeavor, however, networking and the effective use of your networks and connections is often overlooked. Networking is the most powerful and professional form of selling when done properly. The rapid rise in social networking tools gives you the ability to learn an incredible amount of information about a contact and market to them in a personal and powerful way. Having a sound relationship management system will allow you to remain viable during the long sales cycles and garner a steady stream of referrals. People do business with and refer those they Know, Like and Trust. You must maintain that level of connection with everyone you know to reap the reward of referrals. By adding value to the lives of others, you will gain the success you deserve. If you want to make money, add value to the lives of others. If you want to make a lot of money, add a LOT of value. I have found that by helping others gain what they need all of my needs are met as well. These are RENA's principals of working in the Relationship Age. It starts with a mindset of giving. You need to give to others with the expectation of getting nothing in return.

Most of the marketing methods used by Realtors today have become common and generic. You need to stand out from the crowd if you expect your message to be heard in today's over communicated society.

Becoming a Commodity

Almost all real estate companies and agents are providing the same general services. When you become generic, the only thing you have left to compete on is price. This is one of the major reasons we have seen the decline in fees agents can charge. The public views real estate services as a generic commodity and are refusing to pay what they used to for the service. There are other factors involved in this as well such as the dramatic increase in average sales prices over a relatively short period. This makes the 6% fee much more significant. The internet has dealt a heavy blow to many other financial services and businesses such as insurance, stock brokerage and travel. It is actually amazing that the real estate industry has held up so well for so long. The fact is, our day is coming. If you want to remain viable, you need to provide unique and valuable services.

Niche and Specialization

One of the best ways to cut down on the amount of competition is to have a niche or area of specialization. If you look at the most successful people in the world, they share a few common traits. They all have great networks; they have top-notch coaches and have a specific niche they fill. Establishing yourself as an expert in a specific area gives you the ability to transmit a unique message and stand out from the crowd. You will also increase the amount of referrals you get from within your industry. Your niche does not necessarily have to be real estate specific, like first time buyers etc, you can specialize in a particular industry or represent a particular demographic.

Advanced Database Marketing

Your database holds the key to your success in building your business and relationships. A good database will allow you to do so much more than have contact information for mailings. By acquiring high value data, that is information on your contacts beyond name and address, you can begin to provide a high level of personalized services. Along with custom tailored marketing, you can also employ my cross endorsement and circle of endorsement strategies. Your database is the lifeblood of your business. Maintaining a database rich in information will put you on the path to creating a saleable business.

Identify Key Professionals

You can market your services to two different groups of people. You can spend a lot of time and money trying to find individuals that need to buy or sell real estate or you can work with other professionals that deal with MANY people that buy and sell on a regular basis. By understanding whom these professionals are and how to connect and add value to their lives, you will ensure you will have a steady stream of referral business in any market. You also need to understand the various roles people in your networks play such as Mavens, Subject Matter Experts and Thought and Opinion Leaders. By identifying these key people, you will find it much easier to broadcast your message and brand.

Become a Connector

As I stated earlier, by adding value to the lives of others, your business will grow to new heights. One way to do this is to connect the people in your database with others that will add value to each other. The average database contains 250 contacts. Within those contacts, there are people that should know each other and can add great value to each other's businesses. It is up to you to identify these connections and bring them together.

Branded Unique Services

Another way to stand out from the crowd is to have unique services you offer that are branded to and associated with your name. This is a process of looking at all of the tasks you do on a regular basis and putting your own unique spin on them. A simple example of this would be holding a new home orientation for buyers. After the close of escrow, have the property inspector join you at the home with the buyers for an orientation of the homes systems. You can use the internet to print out instructions for just about all systems and appliances the property may have. This is an excellent way to present the new home to the buyers and leave a lasting impression of service. There are so many steps throughout a transaction you can apply this thinking.

After Sale Services

Another important tool for operating in the Relationship Age is having strong after sale service programs. The actions you take add value to your client's lives and keep you top of mind for referrals. Things such as sending a repair person in for a few hours of free work for a buyer or rekeying the locks make strong statements about your service and make you stand out. I have a long list of service programs I am happy to share with you, just ask.

Referral and Reward Programs

In order to build a strong referral business you must have programs in place that reward that behavior. Teaching people how to refer you, giving them information they can pass on and rewarding them for their efforts are essential for you growth. I recommend having a "referral kit" that your clients can have readily available to aid in recommending you. The kit should contain you resume or bio, specific verbiage for them to use, references and some gift cards.

Conclusion

The economy and business climate has changed dramatically over the last few years yet most people continue to employ the same tactics and strategies that were created 20 or more years ago. The real estate industry is in dire need of fresh thinking for agents to remain viable in the coming years. Many well-funded enterprises are attempting to replace Realtors and reinvent the industry. This is a small sample of many unique strategies that I have created in my 20 plus years in the real estate business.

I urge you to contact me to learn more about RENA and the services I provide.

About Larry Klapow
Larry Klapow has been a luminary in Bay Area real estate for over 19 years. He has been an influential leader holding every position from top producing agent to President of the largest real estate firm in Northern California throughout his career. Using fresh thinking and creative ideas, he has mentored both individuals and entire offices to amazing success. Currently, Larry is the founder and CRO of RENA Professional Networks Inc. RENA is an innovative company that manages powerful networking teams, produces highly impactful seminars and coaches and mentors business leaders to their highest levels of achievement. Larry is also the author of the book "Effective Networking in the Relationship Age" and a member of the National Speakers Association.

Larry Klapow was the President of Coldwell Banker Residential Brokerage's San Francisco Bay Area Region - incorporating 16 offices and a talented team of more than 1,000 real estate professionals. Prior to being named President in 2007, Larry was the Senior Vice President and Regional Manager of Coldwell Banker Residential Brokerage's San Francisco-Peninsula region, a position that he held from 2001-2007. During his tenure, the San Francisco-Peninsula region's offices earned several outstanding accolades. Most notable was the San Francisco Van Ness office's achievement of number two producing office nationwide. This impressive accolade, combined with countless others, positioned the San Francisco-Peninsula region as one of Coldwell Banker Residential Brokerage's most notable and productive regions in the country.

Prior to serving as Senior Vice President and Regional Manager, Larry was Manager of the company's award-winning Morgan Hill/Gilroy offices. Among Larry's impressive list of managerial accolades: member of the President's Council of Managers (1999-2006) and during his tenure, the Morgan Hill/Gilroy office earned the coveted Premier Office - honoring offices with consistent sales achievement for four consecutive years.

How To Create an Environment of Investment - Or How Humanitarian Projects Could Save The Day

Sometimes, when surviving through an economic depression, especially like the last one, which had world-wide coverage and effect, the only way to get going at full speed again is by applying a massive kick-start.

Create an Environment of Investment.

Most noble comment. But which Government has the will, or the financial clout (especially after a series of such dramatic natural disasters) to start or jerk this fragile recovery into action?

Perhaps no 'standard' government has the financial clout any more. But what about an association of First Nations people?

More about that later; let's look at what is happening in the world, and issues that need addressing as rapidly as possible.

Those that spring most readily to mind are Global Warming, and our seemingly unswerving dependence on rapidly-dwindling fossil fuels, followed by a world-wide concern over poverty and health issues.

Let's take a closer look at some of these issues:

Our continuing desire to burn massive amounts of fossil fuels (petrol and diesel), as well as even bigger amounts of coal, oil, and natural gas on generating most of our electrical power.

We create monstrous, unsightly, and highly inefficient wind farms, using out-dated technology that in itself takes up to 20 years to replace the carbon footprint created to install them

Our continuing desire to throw away our waste in the most selfish manner, and then let our local councils either burn or bury it (or export it to some other country - who usually bury or burn it for us).

Our very fickle desire to build houses in a manner that takes such a high carbon footprint to achieve it, and causes so much waste by-products, and then, we insist in spending even more fossil fuels in an attempt to keep these houses hot in winter and cold in summer.

Then, do we make any attempt to conserve water. No, we regularly flush our toilets, public urinals waste Olympic Swimming pools of water every year; rainwater and waste water is just literally poured down our sewers.

How do we try to control diseases? We just get through millions of gallons of bleach, and other products that 'kill all known germs DEAD'. We treat fats oils and grease in the same manner, and just move the problems 'further down-stream', creating a superb playing field for all sorts of nasty pathogenic bacteria.

Let's look at each of the above points in more detail

Burning masses of fossil fuels to run our power stations, or run our cars and other transport. Until the recent Japanese nuclear disaster, Britain was on track to build 4 new nuclear plants. What an environmental and potentially disastrous choice. Electric cars? Not with the current battery issues and recharging times. But how about hydrogen produced from a simple cell, with a few gallons of water? Want to see a MAC truck or a Hummer running on one of these devices, with very little modification? Email me and I will send you a number of videos.

Wind farms. Have you recently been concerned about a collection of these prehistoric monsters getting planning permission to damage your view and your environment, as well as a danger to wildlife? We have the latest technology vortex wind turbines, that are unobtrusive, and far more efficient than the gargantuan dinosaur wind turbines.

Waste handled in the only proper manner. We have systems that can automatically sort all household waste (no more need to have selective bins); that can also take in dangerous hospital waste, green waste, oily sludge, tyres and plastics, and even human and animal sewage, and convert it very efficiently into green electricity - with No Incineration, and No Toxic ash. Efficient, maximised recyclables, reduced landfill needs, and reduced pollution. Perfect solution to our energy, resources, disease containment, and stops locking up scant fossil fuel based products on land fill sites for ever.

Sustainable Living. Why continue to build houses that need such a large carbon footprint to build, create so much waste, and then cost so much to run. Our houses are already built to the UK Government's Code 4 standards - probably 10 years ahead of anyone else.

Water -that scant resource that in some areas may cause a new World War. How about a collection of systems that can conserve water in toilets, recycle rainwater and other waste water, purify water, computerise crop watering, and how about this - a machine that can extract gallons of water every day from the air - even in a desert?

Using Nature to help fight disease. Rather than using chemicals that are toxic to our very environment, why not resort to Nature to fight natural illnesses. Using products such as EcoBug that uses 'good' bacteria to remove smells, fats etc, by outperforming pathogenic germs, alongside other natural products, we start to undo much of the destruction to our natural environment by this subtle move.

Eco-Tourism. Living with Nature. No point continuing what mankind has done increasingly over the last few centuries - destroying Rain Forests, hunting to extinction so many forms of wild life. Each Peace City will have an EcoPark area allocated to it, where the local natural flora and fauna, and indigenous animals and bids, are protected, encouraged, and enjoyed.

Fine. So we have many technological breakthroughs, that if they were to be adopted universally, what a great overall benefit they would have for all mankind.

Taking that process one stage further, and, following the lines of the United Nations 8 Millennium Goals, that also includes eradicating poverty and homelessness, reducing infant mortality, better education, better sports health, better employment which would lead to a much higher standard of living for so many millions of people across the world. If we could combine technological advances with these humanitarian goals, what a better place the whole world would be!

Now, going back to my earlier comment about a coming together of a number of First Nations people, who were able to combine their Sovereign Wealth into a suitable financial instrument of power, here we are looking at levels of resources that at this present moment in time, no 'conventional ' government could access.

What better way to utilise these resources to create a number of new 'Peace Cities' in a number of locations around the world, that combined all of the above benefits, including plans for education, employment, medical health, hospitals, shopping malls, sports awareness, agriculture, animal husbandry, with all the civic structure of a new City fully in place.

If these First Nations fully funded these projects, imagine the amount of local investment that this would attract - creating the climate for investment and humanity - and here you have the perfect kick-start to a far better, caring, humanitarian, peaceful world.

Far-fetched? It can never happen? Then I suggest you see what the Matua Karanga Foundation Trust is up to - under the control of His Excellency Chief Charles Hohepa - Sovereign Mandate of the Maori Nation.

Geoff Morris is working with a number of companies facilitating the humanitarian projects being implemented by the Matua Karanga Foundation. If you would like to understand more about His Excellency Chief Charles Hohepa, The Foundation, and the collaboration between First Nations, their Cultures, and the planned Humanitarian projects for around the world, please visit http://www.matuakarangaglobal.org

Traditional Marketing Tactics Fail to Produce Results in Today's Business Environment

Is your marketing message getting through to your target audience? Is it as effective as it once was or should be? Probably not and here is why.

The National Association of Realtors reports that they have 1.1 million members and there is no mystery that existing home sales are down significantly. There are simply too many agents chasing too few transactions. Add to that the fact that there have been many forces at work in recent years that are changing the way consumers respond to advertising and marketing messages. We are living in an over communicated world that has consumers tuned out and trusting less. What follows is an outline of the problem and the contributing factors.

Business through the ages:

What follows is a look at how our economic base has changed over the years. It is important to know where we came from to understand where we are today and where we are going.

The Agrarian Age

Farming and livestock formed our early economic base. The land gave us what we needed to feed and shelter ourselves. Trade amongst businesses was very prevalent at this time.

The Industrial Age

In the early part of the 20th Century, we witnessed the Industrial Age. We not only worked the land for food but also started to extract natural resources and raw materials to manufacture products. The challenges that companies faced were based on the productivity of workers and the efficiency of factories. Manual labor and hard work were thought to be the answer to higher output and increased profits.

The Information Age

The latter half of the 20th Century ushered in the beginning of the Information Age. The use of High Technology starts to change the game and the basis for our economic output. The Information Age gave us global companies like Microsoft and Intel and the products they produce enable even the smallest of companies to work smarter and not harder. We have gone from using our hands to using our heads. One of the most valuable assets a technology firm has is the knowledge and intellectual capital of its workers.

The Relationship Age

We are now entering a period where we are starting to understand the power of relationships. It is through human relationships that we are seeing new ways to capture and keep customers. If done properly, you create customers for life. The rapid rise in Social Media sites shows peoples true desire to connect with each other. When you take all of this into consideration, it is clear we are living in a Relationship Age

The following key factors have also brought us to this Relationship Age

The Cocooning trend

Faith Popcorn coined the term Cocooning in the 1980's. This trend sees people socializing less and retreating to their homes more. The trend is commercially significant in that it changes the way we reach out to obtain and retain customers. This trend is also a direct assault on brick and mortar businesses. Some examples of cocooning are working from home, internet home delivery of goods, home theaters, gated communities, surveillance cameras and many other services that allow the consumer to retreat and stay home. The Internet has enabled this trend to continue and further points to the need to embrace new tactics for the Relationship Age.

Mistrust in corporations

Over the last decade, consumers have started to develop mistrust in companies. You only need to think back to the Enron, WorldCom and Cendant scandals, to name a few, to see how we got here. For many corporations, regaining the trust of the consumer has been their primary mission. Mistrust in businesses is at an all time high. A recent survey by the public relations firm Edelman shows that only 44% of Americans said they trusted business as a whole. This is down from 58% in the fall of 2007 and the downward trend continues. Consumers are fed up with the status quo and are not going to take it anymore. Now more than ever, advertising messages are being viewed through skeptical eyes.

Mistrust in leaders

Along with a general mistrust in business is mistrust in public figures and leaders. On an almost daily basis, we see another disgraced Politician, CEO, Religious figure or Celebrity grace the front page of the newspaper. Whom we thought to be solid citizens giving sound advice has become anything but. This has also caused business to rethink how they go about advertising and marketing to new and existing customers.

These factors all lead to the consumers need to have a louder voice in what they buy and how business is transacted. The increasing popularity of consumer review sites is aiding them in protecting one another from unscrupulous businesses. As countries around the world struggle with economic challenges, people are yearning for deeper relationships and more say in the process. People worldwide seek more than material wealth and superficial contacts. They want environmental consciousness, business reform and a deeper level of connection with companies, people and the products and services they provide.

The new forms of communication and technologies developed during the Information Age are changing the game. Our past frustrations with corporate performance, government, health care, education and environmental policy are providing the motivation for a new mindset. Enter the Relationship Age.

From Transactional Marketing to Relationship Marketing

The days of "doing the deal" and hit and run marketing are gone. Social Media tools and online technologies are allowing us to deal with customers on a more personal and cost-effective basis. We now have the technology to deal with each customer on a personal level and if done properly, create an outspoken advocate and a customer for life.

To do this you need to move from the old mindset of being product centric to the new reality of being people centric. It is all about the customer. By putting the customer first and serving their needs, we will back into running better businesses via a stronger brand and deeper relationships with our clients.

In the Information Age, employee's knowledge and intellectual capital were the primary currency for companies to keep their competitive edge. In the Relationship Age, it is the number and depth of connections with the customer that is the primary form of capital. It is a shift from Knowledge Capital to Social Capital. We move from serving companies by getting people to buy as much product or services as possible to serving the customer at the highest level and inducing them to buy and remain loyal to your brand over time.

Slow Sales Cycles

Real estate has one of the slowest sales cycles of any product or service. A typical client only needs your services once every 5 to 7 years at best. This makes staying in close touch with the client, adding value and gaining their referrals more important than in any other sales profession.

A Call for Change

When you take all of these factors into consideration, a change in the way you market your service is needed now more than ever. Change is inevitable and the rate at which our environment changes is getting faster and faster each year. How you adapt to that change will determine your level of success moving forward. You need business and marketing systems that speak to today's economy and demography to remain viable. You cannot employ the same old tired methods and tactics and expect to be successful in today's Relationship

Age.

Meeting the Challenge

Marketing has always been a costly endeavor, however, networking and the effective use of your networks and connections is often overlooked. Networking is the most powerful and professional form of selling when done properly. The rapid rise in social networking tools gives you the ability to learn an incredible amount of information about a contact and market to them in a personal and powerful way. Having a sound relationship management system will allow you to remain viable during the long sales cycles and garner a steady stream of referrals. People do business with and refer those they Know, Like and Trust. You must maintain that level of connection with everyone you know to reap the reward of referrals. By adding value to the lives of others, you will gain the success you deserve. If you want to make money, add value to the lives of others. If you want to make a lot of money, add a LOT of value. I have found that by helping others gain what they need all of my needs are met as well. These are RENA's principals of working in the Relationship Age. It starts with a mindset of giving. You need to give to others with the expectation of getting nothing in return.

Most of the marketing methods used by Realtors today have become common and generic. You need to stand out from the crowd if you expect your message to be heard in todays over communicated society.

Becoming a Commodity

Almost all real estate companies and agents are providing the same general services. When you become generic, the only thing you have left to compete on is price. This is one of the major reasons we have seen the decline in fees agents can charge. The public views real estate services as a generic commodity and are refusing to pay what they used to for the service. There are other factors involved in this as well such as the dramatic increase in average sales prices over a relatively short period. This makes the 6% fee much more significant. The internet has dealt a heavy blow to many other financial services and businesses such as insurance, stock brokerage and travel. It is actually amazing that the real estate industry has held up so well for so long. The fact is, our day is coming. If you want to remain viable, you need to provide unique and valuable services.

Niche and Specialization

One of the best ways to cut down on the amount of competition is to have a niche or area of specialization. If you look at the most successful people in the world, they share a few common traits. They all have great networks; they have top-notch coaches and have a specific niche they fill. Establishing yourself as an expert in a specific area gives you the ability to transmit a unique message and stand out from the crowd. You will also increase the amount of referrals you get from within your industry. Your niche does not necessarily have to be real estate specific, like first time buyers etc, you can specialize in a particular industry or represent a particular demographic.

Advanced Database Marketing

Your database holds the key to your success in building your business and relationships. A good database will allow you to do so much more than have contact information for mailings. By acquiring high value data, that is information on your contacts beyond name and address, you can begin to provide a high level of personalized services. Along with custom tailored marketing, you can also employ my cross endorsement and circle of endorsement strategies. Your database is the lifeblood of your business. Maintaining a database rich in information will put you on the path to creating a saleable business.

Identify Key Professionals

You can market your services to two different groups of people. You can spend a lot of time and money trying to find individuals that need to buy or sell real estate or you can work with other professionals that deal with MANY people that buy and sell on a regular basis. By understanding whom these professionals are and how to connect and add value to their lives, you will ensure you will have a steady stream of referral business in any market. You also need to understand the various roles people in your networks play such as Mavens, Subject Matter Experts and Thought and Opinion Leaders. By identifying these key people, you will find it much easier to broadcast your message and brand.

Become a Connector

As I stated earlier, by adding value to the lives of others, your business will grow to new heights. One way to do this is to connect the people in your database with others that will add value to each other. The average database contains 250 contacts. Within those contacts, there are people that should know each other and can add great value to each other's businesses. It is up to you to identify these connections and bring them together.

Branded Unique Services

Another way to stand out from the crowd is to have unique services you offer that are branded to and associated with your name. This is a process of looking at all of the tasks you do on a regular basis and putting your own unique spin on them. A simple example of this would be holding a new home orientation for buyers. After the close of escrow, have the property inspector join you at the home with the buyers for an orientation of the homes systems. You can use the internet to print out instructions for just about all systems and appliances the property may have. This is an excellent way to present the new home to the buyers and leave a lasting impression of service. There are so many steps throughout a transaction you can apply this thinking.

After Sale Services

Another important tool for operating in the Relationship Age is having strong after sale service programs. The actions you take add value to your client's lives and keep you top of mind for referrals. Things such as sending a repair person in for a few hours of free work for a buyer or rekeying the locks make strong statements about your service and make you stand out. I have a long list of service programs I am happy to share with you, just ask.

Referral and Reward Programs

In order to build a strong referral business you must have programs in place that reward that behavior. Teaching people how to refer you, giving them information they can pass on and rewarding them for their efforts are essential for you growth. I recommend having a "referral kit" that your clients can have readily available to aid in recommending you. The kit should contain you resume or bio, specific verbiage for them to use, references and some gift cards.

Conclusion

The economy and business climate has changed dramatically over the last few years yet most people continue to employ the same tactics and strategies that were created 20 or more years ago. The real estate industry is in dire need of fresh thinking for agents to remain viable in the coming years. Many well-funded enterprises are attempting to replace Realtors and reinvent the industry. This is a small sample of many unique strategies that I have created in my 20 plus years in the real estate business.

I urge you to contact me to learn more about RENA and the services I provide.

About Larry Klapow
Larry Klapow has been a luminary in Bay Area real estate for over 19 years. He has been an influential leader holding every position from top producing agent to President of the largest real estate firm in Northern California throughout his career. Using fresh thinking and creative ideas, he has mentored both individuals and entire offices to amazing success. Currently, Larry is the founder and CRO of RENA Professional Networks Inc. RENA is an innovative company that manages powerful networking teams, produces highly impactful seminars and coaches and mentors business leaders to their highest levels of achievement. Larry is also the author of the book "Effective Networking in the Relationship Age" and a member of the National Speakers Association.

Larry Klapow was the President of Coldwell Banker Residential Brokerage's San Francisco Bay Area Region - incorporating 16 offices and a talented team of more than 1,000 real estate professionals. Prior to being named President in 2007, Larry was the Senior Vice President and Regional Manager of Coldwell Banker Residential Brokerage's San Francisco-Peninsula region, a position that he held from 2001-2007. During his tenure, the San Francisco-Peninsula region's offices earned several outstanding accolades. Most notable was the San Francisco Van Ness office's achievement of number two producing office nationwide. This impressive accolade, combined with countless others, positioned the San Francisco-Peninsula region as one of Coldwell Banker Residential Brokerage's most notable and productive regions in the country.

Prior to serving as Senior Vice President and Regional Manager, Larry was Manager of the company's award-winning Morgan Hill/Gilroy offices. Among Larry's impressive list of managerial accolades: member of the President's Council of Managers (1999-2006) and during his tenure, the Morgan Hill/Gilroy office earned the coveted Premier Office - honoring offices with consistent sales achievement for four consecutive years.