Not All Real Estate Data Sets Are Created Equal!

Video Transcription

Jared W: So today we're going to talk about not all lists are created equal. And that's kind of an open-ended statement, term. But when we're dealing with data, specifically data in the real estate space. We just need to talk through a little bit and help you guys understand that all data's not created equal.

So when you have your own database and you get a database from the Share Group, you open them up and they look the same. They both have addresses and they both have names and phone numbers. But you just need to maybe go through a couple of keys to make sure that all lists are created equal. Some ideas and recommendations, what to look for if you're out there buying a list. And then we can maybe touch further into some comparisons.

Four Tips to Making Sure That all Lists are Not Created Equal

Andy S: All right. So let's walk that through. What are people looking through when they're ordering lists? Or I should say ordering data, in general.

Jared W: Right, so on of-

Andy S: And what are those top three things or top five things that you would see come through?

1. How Often is The Database Updated?

Jared W: I have four. So we're in the middle there. Yeah, what does it mean when I say not all lists are created equal? And so there's a couple of things that go on there. So number one for me is, one thing I would identify if I'm buying a list is how often is this database updated? So frequency of update is so important because over time data becomes stagnant. It becomes very not usable.

Is There a Set Timeframe Where it Starts to Get Stale?

Andy S: When you say over time, is there a set timeframe where you would say it starts to get stale?

Jared W: Yeah, after about 90 to 120 days.

Andy S: Yeah, I think so too.

Jared W: We've run some comparisons. So let's say we have a client that buys 3,500 names from us. Five months later we'll run it through some re-phone hygiene. So adding a new phone number if we have it. And we were able to identify like 800 new phone numbers in five minutes out of the 3,500. So there's real life scenarios, especially these non-owner, occupied owners or some distressed households that might not be consistent with the same phone number. And so it's important to track that.

2. What Are The Sources of The Database?

And so that talks about updates, but then the sourcing is what is also another key point. So point number two for me is I would ask, what kind of sources are they using to build their database? And a lot of times you'll get back like, "Hey, I use my title company. My title company can pull the MLS." And so it's all cool when you can pull the address information. But that contact information, that phone number, that email address is relevant when you ask, what sources are you using to update the data?

How You Build the Data?

Like for example, the Share Group that's been doing this a long time, and that's a hint of step number three. But topic number three is, sources to understand like how you build the data. So at the core level, we'll get the data at the transactional. So at the county level where someone buys a house, someone refinance, someone exchanges ownership, that is public record. So that's what one primary source. A lot of companies just stop there and utilize that as a database.

But what we do is utilize several, 12 to be exact, multiple sources that enhance the data, that add demographic information like age and income and presence of children, and number of children. And then we'll go through this thing called the worldwide web that allows-

Andy S: Is that new?

Jared W: It's fairly new. But you and I are old enough to not know what it was when we were kids.

Andy S: True story.

Jared W: But anyway, we utilize incentive-based and non incentive-based websites to capture a cell phone to get that number opted in, to receive third party information, to verify that phone number matches that address in a timely manner. And that's something that's really important to us as far as really understanding what sources are used to build the database.

Andy S: Which also goes ... I mean, not to circle back to your point one. But if you're updating it every 90 days, just because the website updates themselves, you might see those additional numbers that you're talking about. I mean, that's freaking huge.

Jared W: And the reason why we use multiple sources is because we're not just going to rely on a single source phone number. We're going to rely on multiple sources telling us that that's that number at that residence. So it's kind of like a double verify.

So yeah, tip number one, the four tips to making sure that all lists are not created equal was updating. So find out how often the database is updated. We update our database four times a year, like a complete overhaul every 90 days. And it's because we have seen results teeter a little bit towards the end of an update once we get a new fresh update in. And we're starting our update immediately as we release a new update, we're behind the scenes building...

Andy S: I will tell you, man, that right there, between the updates and the sources, those two things alone ... and again, as a coach with real estate agents, what I see is that people will purchase the list and then not take any action on it for four, five, six months because they're preparing to prepare to prepare to get ready.

Jared W: Right.

Andy S: Just pull the damn trigger and go, and you're going to see significantly more results simply because of what you're talking about, that's data getting stale. And they have to re-update the list at that point.

Jared W: And it's another investment, exactly. No, totally.

And we just had a call with a client that was kicking himself in the butt because he was calling a month or two too late, just the same thing you said, Andy, is trying to get motivation to call. And then realized that there was multiple opportunities he missed on just recently. It was a timing issue and he was like, "Man, I know the data works. It was my bad for not following through as quick as I could." So yeah, updating and sourcing are very important, I think, just to see who you're dealing with.

3. It's All About Experience

And then the third item for me is experience. So you have someone like Jared who started selling data when he was 10, that has been doing this for 22 years. It's all about experience, and I think through the experiences of my career in data really allows us an advantage to understanding how data's built, how data performs. And that's just one.

4. Do your Homework

And then do your homework, I think, is so important too. I mean, there's so many different list companies and data resources and skip tracing and Fiverr and all these other outlets for you get what you pay for kind of thing. So do your homework, look at reviews. In today's day and age with the internet and reviews, make sure you're dealing with someone reliable, ask for references. And once you do find a legitimate high value source, then the sky's limit for that success.

And we always say this, and I'm going to say it again, but we, you, me, anything that attributes to success for these real estate professionals, we're the treasure map to the gold. And so at the end of the day, we can provide them with so many tools and so much value, but they have to go on the hunt. But do your homework before you head out on that treasure hunt of who can be a resource, if it's Andy and its coaching, or it's high performance closing or anything that provides value to you to get to that ROI, very similar to a data source. And I think that's why we wanted to touch base on why not all lists are created equal.

Andy S: Yeah, I think it's ... so just to speak to the Share Group and what you guys do, I've tried every data source out there. So I've been in real estate, mortgages 2008, yes, working through the recession and then licensed as an agent in 2013 coaching for the past six years. I've seen every data source, I'm always looking for other things to see what else is out there. And man, I keep coming back to you guys. It's the same thing, and it's everything that we're talking about today and more.

There's even more on top of what you're even alluding to. I think you are being somewhat humble inside of what you're saying, man, but-

Jared W: Totally.

Andy S: The level of conversation that I personally am able to have with you. But even before you and I were connected, the level of conversation I would have with Sean or with John or with anyone else on the team, their insight and their knowledge as to what's available and how to get the most out of a particular list or particular source or whatever else. Like that, for me, as a real estate agent was invaluable. And why, honestly, I personally, I won't recommend anybody else except for you guys.

Jared W: That's awesome, man. That motivates me and us to continue to be better, to find new sources, to stay ahead of the curve, to constantly be a steward for our customers. And at the end of the day, if our customers don't have success and we don't have success, and it's plain and simple. So I really appreciate that, man. And you being a part of EXP and the momentum that you guys have and the coaching you provide is second to none. So we're excited to keep this bus rolling and see what the future holds. But at the end of the day, we're here to help people, man. And that's what it's all about.

Andy S: Yeah, dude, good stuff today.

Jared W: I just cramped up.