Real Estate Gimmicks Pt.2 | Celebrity Endorsements
Today I’m continuing my video series that discusses the various gimmicks you sometimes see in the real estate world. Today I’ll be talking about celebrity endorsements.
I’m sure at some point you’ve seen a glossy real estate ad that features a celebrity endorsing a local agent. In most cases, the celebrities who do this are radio or television personalities who have a large following. The celebrity tells you this agent is the greatest thing since sliced bread and recommends that you use them if you are thinking of buying or selling a property. Maybe you thought to yourself, “Wow, that agent must really be something to have a celebrity endorsing them!”
Now, think about this: What if you saw that same celebrity on TV endorsing a credit card or life insurance company? You’d immediately think they are a paid spokesperson for that company. Yet somehow when the celebrity is endorsing a person, it must be different. Guess what folks – it’s not! When a celebrity is endorsing a real estate agent it’s also because they are being paid to do so.
So, how does it work? There are actually two different ways you might see this work.
In scenario number one, the agent is advertising that a certain celebrity personally endorses them. And yes, that’s right, the celebrity is personally endorsing them as long as they receive a fat paycheck each month from that agent. If the checks stop flowing, then some other agent across town will soon be the best thing since sliced bread.
In scenario number two, the celebrity has a website where you can request that they recommend the agent or agents in the local community whom they personally recommend. Again, the agents being recommended are paying for the endorsement. The celebrity receives a big chunk of that agent’s check when you buy or sell through them.
In both scenarios, the celebrity has never personally bought or sold anything through the agent they are recommending. In fact, they’ve probably never even met the agent. They’ve worked out a business arrangement to endorse an agent in most cities in the United States and it results in a significant boost to the celebrity’s bottom line. If an agent decides they no longer want to pay the celebrity a fat referral fee, then the celebrity will soon endorse a different person in the community.
In conclusion, the best agent recommendations come from the people you know in your local community. Ask your friends and family who they have had a good experience with and who has a good reputation. You’ll be getting an honest recommendation from someone who’s not getting paid for it, and that is the best recommendation of all!