Proptech Growth Strategy Brief Newsletter

Listing AI Growth Strategy

Listing AI helps realtors write listing descriptions using AI.

https://listingai.co/

"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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Real estate agents around the world are in a difficult position. With minimal support from their brokerages, they're expected to run nearly all functions of a normal business - operations, sales, marketing, and even HR when they grow. It's no wonder that the field attracts not just sales pros who know where the money is, but jacks-of-all-trades confident they can juggle their divergent responsibilities better than their competition.

Given this dynamic, real estate agents have historically created mini teams to help them with aspects of the business. Local photographers have long made bank partnering with high-flying agents, and agents often hire operations managers to handle low priority tasks and lead qualification. Where human help ends, software help begins - CRMs and digital marketing suites rest firmly in the quivers of most leading agents.

But what of the multitude of smaller tasks that help propel successful brokers - the ones that require human skill but are often cost prohibitive to hire for? Tasks like writing listing descriptions. Usually, agents do this themselves. After all, they've been to the property, and they understand the market. But frankly, most agents are no Henry Millers, and poor listing descriptions could really tank a deal's potential value.

Enter Listing AI. Listing AI creates custom real estate listing descriptions in seconds using OpenAI's GPT-3 AI, which uses deep learning to produce human-like text, resulting in AI generated listing descriptions with a click of a button.

They've only just launched, but here's how I think they could unlock new levels of growth.

Acquisition

Realtor's jobs depend on being easy to contact. This makes them easy to find, but hard to sell to - their inboxes are forever blowing up with folks also trying to sell them something.

To get around this and to maximize referral opportunities, roll out state by state. Pay someone on Fiverr to create a list of all the realtors in the area. Since you'll likely have the realtor's work emails, they'll be difficult to match with Facebook users - but you should be able to create a lookalike audience of that same email list which will enable you to target most realtors in that state as well.

The price of the service is pretty low, so I recommend testing to see if you can achieve conversions at a strong rate using Facebook ads. If not, limit ads to a week or two at the beginning of your campaign, and then start cold emailing your list using a tool like Lemlist. Ideally, your realtor audience will have seen your name in ads, and will now be more likely to open your emails.

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Colin here. If you're building or growing a real estate or hospitality tech company, you should sign up to my newsletter Proptech Growth Strategy Brief. Every week, I write a 3-point growth strategy for a real estate or hospitality startup, just like this one. Join the fun!

Activation

Before sending too much traffic to their landing page, Listing AI needs some testimonials and social proof. Cold email some Realtors in a few cities, and offer them lifetime free access in exchange for testimonials. Write them up and grab the logos of their brokerages to make the landing page irresistible.

In addition, bring the tool out into the forefront. Encourage users to input info about a property, and let them try the tool without signing up. Just disallow the copy/paste function of the listing description that comes out. This way, users can see the tool in action, but would be forced to re-type the listing write up if they wanted to use it, creating the perfect opportunity to pitch the paid product.

Retention/Referral

Realtors are notoriously cheap. I don't blame them - they run independent businesses, and have people constantly pitching them new services. To take advantage of this dynamic, offer generous referral programs. Make it cheaper for the referrer to refer more users back, and make it cheaper for the referred user to join than if they'd found it themselves.

That's it for today.  Thanks for reading!

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See you in two weeks,
Colin

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