Hubble Homes and Network Marketing
I’ve never sold a Hubble Home. In fact, I’ve only ever shown one to a client; they didn’t like it and neither did I. However, I often have clients ask about them and I am usually at a loss. Hubble Homes fill a niche and they do it very well, but they do it by giving their home buyers the bare minimum in almost every area. As a real estate agent, I am always concerned with my clients’ ability to resell their home in the future. With Hubble mass producing the same floor plans across the valley at the lowest possible price, my concern is that it will take longer for the homeowner to build equity in the home. Now, with that said, I have no data to back up this hunch as that is all it is - a hunch.
So, when I got an email from a colleague about Hubble’s new VIP program, I almost disregarded it until I read that I could make $200 for 2 hours of my time. It would seem that Hubble has realized I may not be the only real estate agent with the above opinion of their homes as they are now spending half of their marketing dollars (around half a million) on incentives for real estate agents who learn about and sell their homes.
It starts like this: an agent that has sold a Hubble Home in the past year becomes a VIP. As a VIP they earn $200 for bringing other agents to a presentation where a Hubble representative explains the advantages of a Hubble Home and walks you through the buyers’ options when they purchase a Hubble Home. The guest agent also gets $200. In simple terms, Hubble is bribing agents to take a look at their homes. However, this is not where it stops. If the guest agent goes on to sell a Hubble Home, both the guest and the VIP get a bonus and the guest becomes a VIP. This continues three degrees deep (if a guest of a guest of a guest of a VIP sells a home, the initial VIP still gets a bonus).
My first thought when I heard about this is that it is your basic network marketing program (of which I am not a fan). But on second glance (and after having gone to the presentation) I think there might be some value in it for Hubble and for real estate agents. After visiting their homes and showroom, my opinion of Hubble has changed, if only slightly. I still have my concerns regarding resale, but the overall quality and options of the home are quite a bit better than I had thought. So will I start selling Hubble Homes and become a VIP? I doubt it as most of my clients tend to choose location and style over square footage, but I wouldn’t talk someone out of buying one if it fit their needs.
that’s their great marketing plan? that’s how they are going to expose their product?
You’re punking me, aren’t you? Aren’t you?
Let me ask you, do you think if the CEO/President would have made a 5 minute phone call to you, saying something like “Cityburb, we have noticed that we have not done a transaction with you or your clients. We would like to invite you to come to a private party thurday night at 5:00 for some cheese and wine and we would like to get to know you and show you are product.” that you would have shown up?
Darin - I’m not punking you. The idea of offering $200 to come look at their product isn’t all that bad (this can be argued). I went, and I saw a different product than I had seen three years ago. What I don’t like is the hidden incentives to get buyers in the door in the form of agent bonuses. I think if you’re going to offer incentives, offer them to the buyers, not the agents. That creates a conflict of interest.
As for wine and cheese, I probably wouldn’t have made it.