Thursday, December 30, 2010

Luxury Real Estate Marketing: The Luxury of Working with Ideal Clients

Each year around this time we reflect back over the past twelve months and single out a song that captures the essence of the year. Last year it was Forever Young by Bob Dylan and sung exquisitely by Joan Baez. This year our choice is Seasons of Love from the Broadway musical, Rent with lyrics by Jonathan D. Larson. The Stevie Wonder’s version of this song is particularly inspired. (See the lyrics below)

When we coach our clients in our strategic branding and marketing practice we encourage them to describe who their ideal client is and to strive to work only with ideal clients. Imagine the concept of waking up in the morning and actually being excited about everyone with whom you are working. We truly have a “love – fest “ with our clients because we share the same core values, and we want to enjoy our 525,600 minutes of the next year in our life.

We understand that this is challenging. to achieve. However, the rewards are immeasurable when you love your work and those with whom you invest your valuable time. It allows you to measure a year in your life in seasons of love.

We wish you a very prosperous 2011, a year that is also filled with an abundance of love!

Cheers, and All the best!

Ron & Alexandra Seigel

Seasons of Love (partial lyrics)

Five hundred twenty-five thousand
Six hundred minutes,
Five hundred twenty-five thousand
Moments so dear

Five hundred twenty-five thousand

Six hundred minutes
How do you measure, measure a year?

In daylights, in sunsets, in midnights

In cups of coffee
In inches, in miles, in laughter, in strife

In five hundred twenty-five thousand

Six hundred minutes
How do you measure a year in the life?

How about love? How about love?

How about love? Measure in love

Seasons of love

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Wednesday, December 29, 2010

Three Luxury Real Estate Marketing Trends for 2011

Three emerging marketing trends are worth considering when you develop your 2011 luxury real estate marketing plan. They are 1) The return to snail mail vs. email or social media; 2) The direct approach of using the telephone to connect with prospective clients/customers, and; 3) Consumers are seeking intrinsic value vs. status symbols when purchasing luxury goods. Collectively they represent a larger trend in consumer behavior: Contrarian and independent thinking!

The Return to Snail Mail

24-35 year olds are increasing choosing to connect with their peers, family and business prospects through fine greeting cards and other upscale stationery products. The stationery goods market is a $37.4 billion dollar industry that is not going away any time soon as we move increasingly to digital communication. In an over-communicated world a personal note still shows you care and is a good way to differentiate yourself from your competition. This is contrarian thinking.

The Direct Telephone Call

Over 81 million smart phones sold world-wide in the third quarter of 2010, according to the analysts at Gartner. That is almost twice as many as a year earlier. You would think that more people would use them to make more smart phone calls.

Surprisingly, Google, of all companies, understands the importance of the direct telephone call. They now have a huge sales force that reaches out to local small to mid-size businesses directly by telephone. According to BIA /Kelsey, local businesses will spend about $20 billion online this year in advertising. That number could increase to $35 billion by 2014.

An alarming number of luxury real estate agents do not respond to email in a timely manner, let alone return their phone calls consistently. How can you differentiate yourself from your competition by being more responsive with your telephone calls?

Intrinsic Value vs. Status Symbols in Luxury Goods

High net worth consumers are recovering from frugal fatigue and they are now out spending more. But, they are looking for intrinsic value. No longer can luxury brands get away with hyping the symbol of their brand a means of satisfying the consumer’s need of self-expression to impress others. The goods have to have the goods. Hype no longer sells to luxury consumers who are thinking more independently.

Are you spending your valuable time and money marketing luxury real estate properties that are based on their intrinsic value? Or, are you allowing sellers to dictate unrealistic inflated prices? Luxury consumers are much savvier now, due to the overwhelming amount of information at their finger tips online. Let your competitors work with sellers who are not in tune with the new luxury real estate buyer.

Be a contrarian and think independently! That is what your luxury real estate clients are responding to now.

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Tuesday, December 28, 2010

Marketing Luxury Real Estate: Chart a Steady Course When Targeting High Net Worth Buyers

This is a reposting of an article we wrote in January 2009. It seems that the luxury buyers are still alive and well. Here is a capsule of the spending habits of high net worth individuals that still hold true today. Luxury real estate marketing professionals take heed!

Exclusivity. The desire to have something better and less known to the mass audience remains strong. New niche labels can prosper in these circumstances, such as limited editions or homes with extraordinary architectural features.

Quality, Dependability and Authenticity. The consumer will want to know the provenance of the goods they are buying. They will want the manufacturer to stand by the product and take care of it, if something goes wrong. Social and environmental responsibility is an important key in the purchase making decision. If it’s “green”, they will part with their green bucks. In the days of “shop till you drop”, consumers were fascinated by novelty. Now they want the “real”, the authentic. They are no longer interested in high end reproductions or anything with “faux” in front of it. Along with authenticity is transparency. How someone does business, their ethics, has become an important part of the process.

Translating this to luxury real estate marketing is simple.

  1. Refresh your brand. Make sure your website and all your materials have the look and feel of luxury, and do not look like everyone else’s site. Remember they are looking for the exclusive feel.
  2. Make sure you demonstrate your transparency in terms of your customer relationship management. Your word MUST BE your bond. Go out of your way to provide excellent service. This makes you easy to refer via word-of-mouth advertising.
  3. Describe your listings by emphasizing the quality and the durability of the home’s appliances and finishes. Make sure that those finishes are the “real” thing. If they aren’t, point it out. If you are not sure, find out. This furthers your authenticity and your transparency.

In the long run remember. “A calm sea does not produce a skilled sailor. We cannot direct the wind, but we can adjust the sails. Anyone can hold the helm when the sea is calm.” Tom Culve

Luxury real estate marketing professionals: Happy Sailing and Selling in 2011!

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Friday, December 24, 2010

We Wish You Happy Holidays 2010


Live Orchid Ornament Tree

We took this photo yesterday at our favorite orchid greenhouse, Westerlay Orchids, in Carpinteria, California. This is a wonderful representation of a Christmas tree with orchid flowers. Each flower is attached to a tube filled with water. It celebrates nature and its beautiful bounty.

Merry Christmas, Happy Channukah, Happy Kwanzaa, Happy Winter Solstice, Happy Celebrations of Everyone and Everything that brings us joy and unconditional positive regard for each other.


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Wednesday, December 22, 2010

Marketing Luxury Real Estate: Shoe Biz Buzz Marketing Lessons

Mark Parker, Nike president & CEO and Kobe Bryant

Important lessons can be learned about marketing luxury real estate by studying what works and what does not work in the marketing of major TV sports events. Because the games are live the likelihood that viewers mute the commercials (or not watch them at all in the case of digital video recorders) is considerably less. But, the surest way to reach viewers who have a hot hand on their remote control is “product placement”.

The best form of product placement in TV and movies triggers “buzz” or word-of-mouth advertising. And, buzz marketing is a skill set that should be a top priority for you in 2011.

If the media hype for LeBron James has not been enough for you this year, brace yourself for the basketball game of the year on Christmas Day when the Miami Heat take on the 2009-2010 World Champion Lakers in Los Angeles. Los Angeles is one of the biggest media markets in the United States for television advertising. Watch how Nike, the masters of product placement, will be “killing it” this year. Both Kobe and LeBron are Nike “spokesmen”.

The day after Christmas, Nike is coming out with a new Kobe basketball shoe named after Kobe’s “alter-ego” the black mamba snake, one of Africa’s most dangerous and feared snakes. The shoes are black and grey. But, for the Christmas Day game they made them in green. The LeBron Nike shoe will be in red for the game. Not only will Kobe be wearing the shoe in green but all of those LA ticket holders with courtside seats will get a pair of green Kobe Nike shoes. To afford those seats these people typically have huge spheres of influence (Jack Nicholson for example).

One of the best opportunities of social media is the ability to create buzz through contests. The prize does not necessarily have to cost you anything if you can find a co-marketing product or service provider who is also interested in reaching the same target market as you. For example, this season, one of our luxury real estate strategic branding clients will be raffling off two Super Bowl tickets which is certain to create a buzz.

What are some ways that you can become well known as a luxury real estate marketing professional through buzz marketing in 2011?

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Monday, December 20, 2010

Personal & Company Branding: It Is Written!

A major key to success is identifying and focusing upon a market category or sub-category in which you can become the dominate player. To fully succeed however, it must be a niche that you believe you can do better than anyone else in your marketplace, a niche about which you are passionate. When you are passionate about what you are doing your interest in your work will be sustained, you will continuously be innovative and you will persevere during the most challenging moments in your career.

When you are passionate about what do you also attract people and events, almost magically, that can help you achieve your dreams and confirm that you are on the right path. Here is a fun true story that we experienced about this kind of serendipity.

Several years ago, we were walking on the beach and discussing the fact that we are truly passionate about our strategic branding practice that is focused on the luxury real estate industry. We were wondering if personal and company branding would be the vehicle that could lead to working internationally which was our desire.

Suddenly, we came upon some letters that someone had written in the sand upside down. When we walked around to read it our jaws dropped. A young man had written his own name which happened to be B R A N D! Luckily, we had our camera and took the picture posted above. It was like a “sign” to stay on our path.

Since then, the opportunities that social media has offered in terms of expanding internationally and also meeting more and more fascinating people have enriched our lives and added significantly to our career in strategic branding. There is no question that being passionate your work makes life much more fun!

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Thursday, December 16, 2010

Marketing Luxury Real Estate: What You Know is Equally as Important as Who You Know

Koa Wood Box

As a luxury real estate marking professional you are expected to know your product inside and out. Yes, the luxury home you are selling is a product and superior product knowledge is one of the factors that separate the sales pros from the amateurs. In marketing luxury real estate what you know is just as important as who you know.

Your command of everything from wood finishing to high-end kitchen appliances to the variety of roses in the garden can establish your level of expertise as superior to your competition. It can also determine the speed of trust that you establish with your client as you demonstrate that you understand the nuances of what is or may become their most prized possession.

For example, Hawaiian koa wood flooring found in a mainland home is a rarity. Exporting it from Hawaii is no longer permitted because the koa population has suffered severely from grazing and logging. The word koa itself means brave, fearless or warrior. Hawaiian crafts people have created magnificent hand-carved bowls, boxes and even guitars using this reddish wood which is very similar in strength to black walnut. If one of your listings happens to have koa wood floors you need to be able to passionately convey the significance of this to potential buyers.

One of the best aspects of being a luxury real estate marketing professional is also being a lifetime learner and a perennial student of the language of luxury. We suggest taking the time to go through each and every unique feature of your luxury home listing and doing some research on it. Your buyers and sellers will appreciate your interest and attention to details. Plus, your value as a professional will appreciate over time as a result.

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Tuesday, December 14, 2010

Marketing Luxury Real Estate: Do You Speak "Contemporary Art"?

As a luxury real estate marketing professional, do you have clients who are collectors of contemporary art? The more you understand about this category of art the more you will be able to connect and relate with those who appreciate it. The more these clients sense your connection on this subject the more likely they will be to refer you to their collector friends because you speak “their language”.

Recently, we happened to sit next to an up and coming contemporary Los Angeles artist on our flight to the East Coast. We took an interest in Cole Sternberg’s work and wanted to share it with you. Cole has been challenging society with his works for the last ten years, blending compelling visuals with issues ranging from pop culture to human rights to the environment. Schooled in the law and a published author on international law issues, Sternberg’s insight into his subject matter gives a unique twist rarely seen in the arts.

We were impressed by Cole’s take on the deterioration of quality journalism where the shock value of stories supersedes the truth. “The scary element is that this mentality, previously reserved for reality TV and celebrity culture, has crossed over to real issues, according to Cole.

On Thursday, January 27th 2011, art collector Normandie Keith will open her home to unveil her latest acquisition, a massive room installation by Cole Sternberg. The Content is Bleeding Through is an installation with many layers meant to challenge the progression of media and society, questioning the celebrity manufacturing system of the media and the concentration of the news on falsities and trivialities. After collecting multiple paintings by Sternberg, Keith commissioned Cole to take over an external space on her property to produce his piece.

"Cole is one of the most important artists of his generation and I'm so happy to be able to live with his amazing installation. It provides a sociological snapshot of where we are at, both disturbing and beautiful," states Keith.

Take the time to learn about what your clients are interested in. When you are interested in what matters most to them they will be more interested in promoting you.

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Monday, December 13, 2010

Iconoclast Series: Netflix's Reed Hasting's the Risk Taker

Netflix & Apple TV

This is another post in our iconoclast series featuring Reed Hastings, the CEO of Netflix, who recently was honored as Fortune’s No. 1 Businessperson of the Year. An iconoclast is somebody who challenges or overturns traditional beliefs, customs, and values. Understanding the mindset and the accomplishments of iconoclasts such as Mr. Hastings, can inspire you to develop new ways of marketing luxury real estate and also encourage you to out-think your competition.

Over the years, naysayers predicted that Netflix’s DVD distribution via snail mail business would be trounced by Blockbuster (now in bankruptcy) or other behemoths such as Wallmart or Amazon. But, now, with more than 16 million members in the United States and Canada, Netflix is the world’s leading Internet subscription service for enjoying movies and TV shows.

For $7.99 a month, Netflix members can instantly watch unlimited movies and TV episodes streamed over the Internet(in the same way you can watch unlimited You Tube videos) to PCs, Macs and TVs through digital video recorders and Internet video players, Apple’s iPhone, iPad and iPod touch, as well as Apple TV and Google TV. In all, more than 200 devices that stream from Netflix are available in the U.S. and a growing number are available in Canada. With instant streaming video which has surpassed even its own DVD mail order business, Netflix is destined to become a globally ubiquitous brand.

Netflix is also confounding the cable and satellite TV companies who offer movies on demand for as much as $4,99 for each movie. If you have Apple TV (a $99 mini box that connects to your TV and your home Wi-Fi) and an IPad you can now wirelessly send your movie (or streaming TV show) from your iPad to your TV screen with a new iPad feature called Air Play. It is truly amazing!

Reed Hastings has built his company on a risk-taking culture and a deep sense of trust that is the foundation of his executive team. Most of the original team is still at the helm.

There is a phrase in one of the songs (Look to the Rainbow) from the classic Broadway musical, Finian’s Rainbow that says, “Follow the fellow who follows a dream”. As a luxury real estate marketing professional it is important to follow fellows like Reed Hastings. It can inspire you to take the risks your competition will not take. Netflix’s stock soared 200% since January 2010. The S&P 500 by contrast increased by only 7%.

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Wednesday, December 8, 2010

Marketing Luxury Real Estate: The Advantage of Working with a Professional Videography Crew

We were recently in Key Largo, Florida orchestrating a video shoot for our client, a luxury real estate marketing professional in Ocean Reef, which is an exclusive private community. We had the distinct pleasure of working with Frazier Nivens, the Emmy award winning film maker of “Sharks, Killers of the Caribbean”. Frazier has over 30 years of experience as a videographer and also as a diving instructor. He has produced thousands of videos above and below water.

It makes an enormous difference when you work with professionals who are experts at their craft. The difference is in the attention to details. This was immediately evident with Frazier’s command of lighting, his camera angles, and his overall ease of production logistics. The savvy videographer views the video shoot with an editor’s eye, making post-production in the editing room easier for the editor.

Getting the sound just right is also crucial to the success of video production. This is particularly important when you need to mix the sound of multiple “actors”. We also had the privilege of working with an outstanding sound technician, Gustavo, a professional who is truly passionate about his work.

When you see the end result, which we will soon share here on our Language of Luxury blog, you will immediately be able to sense the high caliber of video production which is important for marketing luxury real estate and also for video blogging in the luxury realm.

Raising the quality bar in video production on your website and set you apart from your competition and help you to amass an audience of raving fans. Anyone can point and shoot a video camera. Working with professionals makes all the difference in the world. It can give you the superior competitive edge.

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Tuesday, December 7, 2010

Luxury Real Estate Marketing Tip: Escape the Tyranny of Status Quo

In marketing luxury real estate, you need a website with a brand identity that not only looks distinct from your competition but also offers distinctive content. This requires that you develop your own unique voice as a real estate expert.

Let’s face it! The content on most real estate websites is mostly the same: Property search, featured listings, and neighborhood information. This content has become a ubiquitous commodity. Some sites are more user-friendly, better organized and more efficient than others. But, what makes a real estate website stand apart from the pack, besides a great look and feel, is original content that cannot be found elsewhere.

There has never been a time when original thinking has been more important in marketing luxury real estate than right now. That is because the medium of the internet (and search engines in particular) rewards iconoclastic thinkers, those who have the guts to escape the tyranny of status quo. This is a daunting challenge for most people who settle for sameness and conformity or are too afraid to stand out.

It is interesting to note that some cultures value individuality more so than others. In Japan, for example, where the group is often a higher priority value than the individual, there is an expression that states, “If a nail sticks out, it must be hammered down”.

Original content, however, that “hits the nail on the head” in terms of precisely answering the questions that web visitors are seeking, is sure to build an audience and create buzz. Are you up for the challenge of escaping the tyranny of the status quo?

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Monday, December 6, 2010

Luxury Real Estate Marketing: Is the Description of Your Marketplace Compelling?

Antebellum Mansion Detail

By Alexandra Seigel

How do you describe your marketplace? Does it make your web visitors feel compelled to move there? As a luxury real estate marketing professional you need to move people emotionally, make them fall in love with your area, before you help them make the physical move. Second home or multiple home buyers have choices of where to buy. Your first sale is selling your marketplace. If you do a good job of it you will sell YOU in the process.

Ron and I finished reading a wonderful book by one of our favority authors, Pat Conroy. You may remember his earlier novels, The Great Santini and The Prince of Tides, both of which were made into movies. After a 14 year hiatus, his new novel is South on Broad.

Set in Charleston, South Carolina, it is a must read for uxury real estate marketing professional looking to improve the description of their marketplace. By the first page, we felt the urge to visit, and it took all of 3 sentences to do it. Throughout the book, the feel of the city, the antebellum mansions, and the description of the gardens make you want to book a flight to Charleston.

The story itself is well written and riveting. Neither one of us could stop reading it. It made us think, reflect, and laugh, and we could not wait to tell you about it. If you are not a reader, give it as gift to someone who loves a good story!

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Sunday, December 5, 2010

Marketing Luxury Real Estate: The Pursuit of Personal Mastery

Courtesy of Tom Collins - Wine Country Master Potter -Napa Valley, CA

Have you ever contemplated becoming a master at marketing luxury real estate? This is what every market leader in every luxury marketplace has pondered before actualizing this attainment. What is the standard for mastery? Is it consistently out-producing the closest competitor? Or, is it the consistent demonstration of artfully matching buyers and sellers and satisfying their express needs? However you measure the success of a master in your field, it ultimately comes down to the personal satisfaction of reaching your own self-defined standards.

Andre Agassi has won every major tennis tournament in the world. By all outward standards he is a true master of the game. Yet, he admits that he hates tennis because it was not his goal to become be a superstar. Rather, he was pleasing others in his pursuit of becoming a champion.

When mastery is viewed as an inner game, one that involves the quest of your personal passion, it takes on an entirely different meaning. From this perspective, success is measured only by your own standards of excellence regardless of the criticism or praise that is bestowed upon you by others. The real reward of mastery is the self-satisfaction that comes from actualizing your own self-determined values.

Much can be gleaned about the process of mastery by observing masters at work and also by viewing their masterpieces. We were privileged to study with the Wine Country master potter, Tom Collins, when we lived in the area. It was one of the most gratifying experiences of our life. We consider the ownership of some of Tom’s pieces to be among our most cherished possessions.

Pottery is both an art form and utilitarian objects. When we serve pasta we usually serve it in a bowl that either Tom has crafted or we made under his tutelage. When not using these objects they are on display for us to enjoy as art.

Tom recently sent us this photo (above) of one of his latest works which we consider to be one of his masterpieces. We have seen dozens of his pieces. Yet, the glazing of this one in particular is, in our opinion, truly outstanding. This piece is on display at the prestigious Beatrice Woods Center of the Arts in Ojai, California.

To play the inner game of marketing luxury real estate, find a niche within your marketplace that you can pursue with passion and set your own standards of excellence. Derive satisfaction not from the praise of others, but from yourself as you incrementally become masterful at what you do. When others shower you with accolades, accept them graciously. But, consider them to be confirmations of what you already know about yourself.

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Luxury Real Estate Marketing: Is the Description of Your Marketplace Compelling?

Antebellum Mansion Detail

By Alexandra Seigel

How do you describe your marketplace? Does it make your web visitors feel compelled to move there? As a luxury real estate marketing professional you need to move people emotionally, make them fall in love with your area, before you help them make the physical move. Second home or multiple home buyers have choices of where to buy. Your first sale is selling your marketplace. If you do a good job of it you will sell YOU in the process.

Ron and I finished reading a wonderful book by one of our favority authors, Pat Conroy. You may remember his earlier novels, The Great Santini and The Prince of Tides, both of which were made into movies. After a 14 year hiatus, his new novel is South on Broad.

Set in Charleston, South Carolina, it is a must read for uxury real estate marketing professional looking to improve the description of their marketplace. By the first page, we felt the urge to visit, and it took all of 3 sentences to do it. Throughout the book, the feel of the city, the antebellum mansions, and the description of the gardens make you want to book a flight to Charleston.

The story itself is well written and riveting. Neither one of us could stop reading it. It made us think, reflect, and laugh, and we could not wait to tell you about it. If you are not a reader, give it as gift to someone who loves a good story!

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