We conducted a non-scientific poll this week via Facebook to determine how investors felt about the speakers at their local real estate club meetings marketing to them, and the results are pretty clear.
We asked, “Should real estate investor clubs allow speakers to market their products during meetings?”
Updated 5/1/11: We’ve had a total of 53 respondents. 45 people (85%) answered no while 8 (15%) indicated yes.
We also collected actual feedback from investors on the topic through our forums; here are some highlights.
NOPE! I stop going to some clubs because 65% of the meeting is promoting new programs etc. – Mike Jakobczak
No. I’ve been to a few meetings here and the first thing you see when you enter are the tables with the upsells. Can’t even get to the meeting room without getting hit on. I don’t go anymore. Just because of that. – Kenneth Smith
No. I think that the guru pitch gives the meetings a “made for newbies” feel… I would love to hear a talk given by a local expert on pertinent subject matter. But I can’t stand the sales pitches. I stopped going because of them. – Ryan Pyle
No, I quit going to one that the speakers always had something to sell. – Charles Perkins
my answer is also a Big Fat NO! I can’t stand gurus or what they stand for (which is take money from unsuspecting people looking for pipe dreams that can not be delivered without actual work and effort!)
I enjoy attending clubs that have informative spekares who are local investors. Even the most experienced investors can pick up tidbits of valuable information, not only that, the networking to build your network (also know as your net worth) is vital and beneficial.
People must understand that the main speaker should somehow be compensated for giving up their time making a valuable presentation and one of the ways to do that is to offer some sort of class or seminar at a fee. So long as the class is reasonably priced and the information valid and beneficial, I see no problem with that. – Will Barnard
What do you think? Be sure to vote and leave your feedback in the comments below or on the forum thread above.
Related posts:
- Local Real Estate Club Meetings: 7 Reasons to Attend
- Finding a “legit” real estate investing club
- Getting the Most From Your Real Estate Club
- How to Find a Real Estate Investing Club – Avoiding the Bad Clubs and Succeeding With the Good Ones
- Analysis: The Real Estate Investment Club Meeting From Hell
Article Author: Joshua DorkinJoshua has written 568 articles for us.
Visit Joshua's Website: http://www.biggerpockets.com/
Joshua Dorkin (@jrdorkin, Google+) is the founder and CEO of BiggerPockets.Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
Joshua Dorkin
{ 7 comments… read them below or add one }
I went to one last Tuesday that for the first time had a sales pitch. I was very disappointed. I guess it all depends on how pitchy they get and how much info they give back to the group. If a speaker spends 55 minutes educating a group and only 5 minutes on the sales pitch, I am okay with that. Its when they use the entire presentation to build to the close, that I get annoyed.
In the last meeting the gentleman’s entire presentation was a rosy apartment investing picture capped with a buy my cd’s. A $3000 value. But wait, if you act tonight I’ll sell it for only $697. Really? Your going to sell me this “$3000″ product for over 75% off? Gee, it must be my lucky day! It’s laughable.
I did pick up some useful tidbits and will still go to this rei meetup, but it left a sour taste. When someone is trying to sell me something, my first instinct is to be very leery at the truthfulness of information presented. If I have to question that, I often wonder if my 1-2 hours spent was worth my time.
Makes sense, Jason. I’m definitely not a fan of this tactic, and believe that real estate clubs that profit by splitting the proceeds of sales made from their speakers, are incentivized to get the best salesmen to their clubs as opposed to those people are are the best educators. The more the speakers sell, the more the clubs typically profit — I believe there is a conflict of interest there. These clubs are simply affiliate marketing platforms as opposed to being institutions devoted to the real education of their members, IMO.
I agree with both you and Jason, Josh. I think the majority of these clubs do cater to the typical, new investor. Usually, there are far more new investors who attend these meetings than seasoned ones (in my experience).
Honestly, I think many of these clubs (yet not all) cater more to new investors who want the dream. It’s hard to escape the way our society thinks as we live in a culture of convenience. Many people would rather do something easy than work hard for it. It’s just the way we have been taught.
This is the reason why we hear of people who can only profit during the good times yet perform poorly during the bad times – they are only following the herd. And, the truth is – the way the herd, the masses, think make up the majority of our society. This is why there is such a large gap between the “haves” and the “have nots.”
In all honesty, I’m not sure who is to blame. People will buy and hear what they want to hear – many want the dream. And, the reality is – some of these gurus who sell these products are doing just that. As for the clubs themselves, I can see how it may be a conflict of interest. Then again, running a club takes time and hard work. It may be a bit difficult to see whose interests are really being served for the best.
Personally, I have been involved with my local REIA in the past. Though, I find many times it has just turned into a “dog and pony show” and sometimes may not be the best use of my time. So, I tend to spend the majority of my time in the field. Though, I can see how for some (especially those who are new) can benefit – many attend for information and networking purposes.
With the advent of technology and the internet, having sites such as BiggerPockets has leveled the playing field to fill the void for those who are looking for a change in scenery away from the typical, guru hype out there.
Good discussion here, Josh. I enjoy these write-ups!
Thanks Rachel. Working on another one for this week . . .
Josh, you make a very valid point – the focus SHOULD BE to bring those people who are the best educators in a specific area of expertise, NOT those who are best skilled at selling an information product.
Very interesting analogy – clubs who use their REI clubs as a platform to sell REI information as affiliate marketers LOL. Never looked at it in that light.
Iman
Josh
Once you realize one definition of a REIA club is a place to sell you are all set.
I have listened to many people speaking about product, training etc. Every one has taught me things that I did not know. It has also helped me think differently about a technique.
The biggest value is the ability to speak to others at the meeting. I meet dozens of new people every month. I go to three or more meetings a month every one is valuable.
Paul – I talk to new investors all the time and just as the results of the survey reflect, 80%-90% of those individuals do not want to be sold; they want to learn and network, and find the selling to be a major turnoff.