Proptech Growth Strategy Brief Newsletter
Beycome Growth Strategy
Beycome is a double-sided for-sale-by-owner marketplace. Here's a quick 3-point strategy brief on how I'd aim to grow their user base and revenue.
"Grain of Salt" Warning: I write this newsletter with an outsider's understanding of the business in question. I am likely to make mistakes, leaps of judgement, and assumptions - that's what makes it fun.
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Beycome is a double-sided for-sale-by-owner marketplace. They allow home sellers to list with them for cheap ($99 and up) in exchange for paying around 1/3 the usual realtor fees when selling. They also offer buyers 2% cash back on their purchase - money that's usually spoken for on the seller's end with their realtor.
The average seller "saves $12,000 in closing costs" compared with using a realtor. If that's 2% of their average transaction, then Beycome's end is $6,000 - 1% of the transaction fee. This puts them in a much stronger position than typical For Sale By Owner (FSBO) companies, who typically just earn on the listing side.
A company like Beycome has some unique opportunities and challenges. Here's how I'd help them grow.
Typical wisdom in a marketplace is to seed the seller side with "ghost" supply and use it to validate demand. Presumably that isn't an option for Beycome - real estate listing sites are pretty protective when it comes to listings.
I'd first leverage Facebook/Instagram ads to seed the marketplace. Qualify broad audiences with gated content such as "10 things to know before selling your home in [State Name]". Collect their email and pitch them to create a listing, but what we're really doing here is building a remarketing and email list.
Why? Because it's really hard to find people looking to sell right now. But it's easy to find people who might sell in the near future. We want to build a relationship through ads and email that make Beycome the place they come when they're ready to sell.
Build lead nurture campaigns for email and remarketing ads, and start a weekly newsletter featuring all the homes for sale in their area. Eventually, they'll start converting.
To take advantage of your newly converted sellers, build out a generous referral program. If your average transaction is $6,000, we can afford a higher CAC to start. Offer sellers $250 cash for them and their referral when they list.
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Facebook can also be leveraged to produce buyer leads. Build local market lookalike audiences for users who clicked your moving article, and run carousel ads featuring your most interesting properties in their town. Hit hard on the fact that buying through Become saves them an average of $12,000 - this is the unique selling proposition. Remarket people who click aggressively - most lookers will be in the market.
Cross-Selling to Other Side of Marketplace
There is always some natural cross pollination between the sides of a marketplace, but this is high priority in Beycome's case.
Once a seller lists, we need to have a strong product flow and email flow working on them to persuade them to buy their next home from Beycome's listings.
Same for buyers. Once they signal their interest in a property, push them into an email flow about listing their home, and retarget them with listing ads.
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