Social Media & Illinois License Law

Carrie J. Bey-Little

Protect Your Business

The objective

• Social Media & Real Estate

• The overview of our time together TODAY!

• Protecting Your Clients in the Social World - Representation

• Top Social Sites

• Draw Backs of Social Media in Real Estate

• Social Media Benefits for You, Your Brokerage, and Your Clients

• Advertising with Social Media in line with Illinois License law

• Sponsored Licensee's and Their Responsibilities with Social Media

• What to Include in Your Social Media Marketing

• Protecting Yourself and Your Firm/Company

2

Social Media & Real Estate

• Social media is changing the way we do business. Agents have the ability to advertise, share listings, network, communicate and generate new business faster than ever before.

• Social media allows just about anyone with a smart phone, iPad, tablet or laptop to engage in conversation from anywhere.

• Whether you have decided to embrace social media or not every agent should consider Real Estate License Law, as it applies to the benefits and drawbacks to social media.

• As Owners, Managing Brokers, and Brokers we must educate ourselves, our clients, future clients, friends and family on how to make sure we are making good choices with social media. 3

The Goal For Today

1. Protect your clients in the social world and how they can protect themselves

2. Understanding the best practices for the most used Social Media sites (license law)

3. The Drawbacks of Social Media

4. Benefits of Social Media for your brokerage, the managing broker and you the agent.

5. Advertising with Social Media and following license law

6. Sponsored licensee’s and their responsibilities while using social media

7. How to protect yourself and your firm/company4

“You are what you share.” ― Charles Leadbeater,

SocialNomics2014

5

How Social Media works – The social Graph

6

Your Client and the Social Graph

• We are social every day (in person and SM)

• Each person you know might know someone in your circle – you know someone that might know someone.

• When you represent a client it’s important to understand how social media can affect your social network and their social network

• Therefore, we must remember to keep a fiduciary relationship with our clients.

• Keep it confidential and help your clients keep it confidential (how?)

7

Your Client and the Social Graph

• PROMOTE the best interest of the client

– Avoid talking about the client on Social Media.

– Avoid Negotiating publicly on Social Media

– Avoid discussing the transaction with the client publicly. **Don’t post it**

– Have the conversation with your client regarding Social Media at the beginning of your relationship.

– (TIP. Keep your new purchase or sale private – even if you are excited about the transaction – you could potentially harm the sale or end up paying more for the home you want or selling your home for less because of something you said on Social Media.)

8

The Three Major Social Sites

• The most used social sites in business are

– Facebook, Twitter and LinkedIn

• There are over 100 social media sites that any business owner could choose to implement in their businesses.

• 56% of agents are using social media per NAR (realtor.org)

Top Ten Reviews, www.ebizmba.com 2012 9

What is Facebook?

• Facebook was launched in 2004

• 1.317 billion users

• Free form of social advertising

• It has changed the way we advertise and directly market

• Facebook is a social networking site that allows you to make connections, share interests, and join groups

• Currently the #1 social media site

• Most Popular social media site

• Personal pages

• Business pages

Facebook.com Terms section 10

What is Twitter?

• Real-time information network

• Connects you to the latest stories, ideas, opinions and news

• The heart of twitter are small bursts of information “Tweets” only 140 characters long

• Connects businesses to customers in real time

• Allows users to connect to potential followers in real time

• Founded in San Francisco March 2006

• 271 million users – 500 tweets per day – 78% use it on a mobile device

• Archived by the Library of Congress

Twitter.com/about11

What is Linked In?

• World’s Largest professional Network

• Over 300 million members

• LinkedIn connects you to your trusted contacts

• Helps you exchange knowledge, ideas, and opportunities with a broader network of professionals

• Strengthens your current business network

• The goal of LinkedIn is to establish and document networks of people they know and trust professionally.

12

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. ” 

― Alvin Toffler

13

The Draw Backs to Social Media

• What you say could be seen be all

– Are your privacy & account settings current?

– Have you every updated your settings?

• Buyer & Sellers could say too much about their property

• I just don’t get it!

• Open to hackers to commit fraud

• Could result in negative comments by buyers, sellers or clients

• You could waste too much time on it and gain nothing

• Open to legal Risks

– False advertising – advertising property in a misleading fashion

– Blind advertising – “an advertisement that does not include the identity of the brokerage placing the ad. Agents could easily market property without acknowledging the brokerage. 14

The Benefits of Social Media!

• Increase Sales (clients) just by investing 5-6 hours per week

– Don’t panic 6 hours is easy!

• 97% of consumers use the internet to do online research

• Provides an opportunity to widen contacts

• Improves business reputation

• Helps you reach the new generation of buyers and sellers

• Share quickly via your iPad, iPod, Droid phone, iPhone or any smart mobile device

• Helps build a web presence and Search Engine Optimization (SEO)

• Easier to do than build a website

• Easy to be social - if you understand real estate marketing and advertising, following The Real Estate License Act of 2000, Social media could change your business. (Sec. 10-30) 15

Advertising with Social Media – license law

• Cannot be fraudulent

• Cannot be deceptive

• Cannot be Inherently misleading

• Or misleading in practice

• Shall not be misleading or untruthful – never to deceive the ordinary

– Purchaser, seller, lessee, lessor or owner

• Must be accurate, direct and readily comprehensive

• No blind advertisements by any licensee, in any media

– That means “Social Media”

Illinois License Law - Section 10-30 16

Sponsored Licensee

• May not advertise under his or her own name

– Must always include the sponsored broker

– How in social media? – edit profile, resume or about sections

– Must be under the direct supervision or managing broker & in

– The sponsoring brokers business name –

• Include the franchise affiliation as well as the name of the individual firm

• When doesn’t it apply?

– When the licensee enters into a brokerage relating to his/her own real estate – ownership interest

– Selling his/her own real estate with proper disclosure of interest and a licensee

– Must list the sponsoring brokers name.17

What must you include in your marketing

• Sponsoring broker’s Business and the name of the Licensee (Section 10-30e)

– Add the company logo if possible

• Add the company address in the appropriate sections on social media

• As of May 1, 2012 If you hold a managing brokers licensee and you are the managing broker you must identify yourself this way to the public. Yes, On Social Media. (Section 10-30g )

• If you are a managing broker, however, you are an associate broker (Broker) do not include managing broker on your social media pages. (Section 10-30g )

• A way to contact the office or the agent directly.

• When selling your own property as an agent always disclosure your licensee status.

• If the home is off the market remember to take down the advertisement18

Twitter Settings location

19

LinkedIn Settings Location

20

Facebook Business Page Settings Location

21

Protecting Yourself & Your Firm

• Review your agents social media pages

• Managing Brokers and Broker Owners may consider creating updated material for their office policies and for independent agent agreements.

• Educate your office on new office policies regarding social media.

• Incorporate Social Media Workshops in your office training

• Check your social media sites regularly

• Consider adding social media time into your day. It only takes a few minutes to share, follow up and interact with your fans.

• What you don’t know could hurt you. If you don’t understand Social Media find someone that does. Consider hiring social media staff. Social media is here to stay!

22

Let’s Review & The Exam

• Facebook.com/TheRealEstateTrainer

• Twitter.com/CarrieBeyLittle

• #SocialCarrie

• Wikipedia, Liquid Learn, Social Media, Illinois License Act of 2000 23