SINGAPORE: Like many agents looking to grow their presence in a neighbourhood, property agent Andik Imran uses door-to-door flyer distribution services once a month to reach residents.
A campaign that covers 20,000 units – spanning roughly 150 16-storey blocks – typically costs between S$1,500 (US$1,200) to S$2,500, said the senior associate director at PropNex.
From one campaign, he may get just one person who responds with interest. But it helps to build a network of potential clients.
“So when we put the flyer, people might think, this guy is … my neighbourhood-friendly agent.
“That’s usually the purpose of flyers – so the neighbours will be connected to you. Of course, they won’t straight away call you, but they will know that this guy is always here,” he said.
But it may soon cost more for agents like him, following a new memorandum of understanding (MOU) aimed at reinforcing proper flyer distribution practices in Housing and Development Board (HDB) estates.
Under the MOU, property flyers and pamphlets that are distributed to HDB homes must not be visible to members of the public other than their intended recipients, the Singapore Institute of Estate Agents (SIEA) said on Feb 13.
Agents are advised to place flyers in mailboxes or use distribution services instead.
The MOU was signed by SIEA and five major property agencies – PropNex, ERA, Huttons, OrangeTee & Tie and SRI – which together represent more than 87 per cent of all registered estate agents in Singapore.
In response to CNA's queries, SIEA said: "Commencing this initiative with committed industry leaders allows SIEA to establish best practices and demonstrate the framework's effectiveness.
"The MOU remains open for other property agencies to join, and we actively encourage broader industry participation."
Most of the 10 agents CNA spoke to said the enforcement move could deter some from continuing with flyer distribution due to the higher costs of engaging postal distribution services.
Mr Imran, 40, estimates that postal distribution services, which deliver advertisement mail through mailboxes, could cost 20 to 30 per cent more.
“It's always about risk and reward ratio. So a lot of us will think in that manner – whether it's still viable to reach residents via the traditional mode,” he said.
SIEA’s guidelines are not entirely new. In 2011, the Council for Estate Agencies’ (CEA) Practice Guidelines on Ethical Advertising stated that flyers must be properly distributed without being visible to members of the public other than the intended recipient.
This was to avoid the build-up of distributed materials within public view when owners are away, CEA said then.
Former president of SIEA Adam Wang, who was involved in developing the latest guidelines, said one reason the previous guidelines were largely overlooked was due to the cost of distributing flyers to mailboxes.
Delivering flyers, or ad mail, directly to mailboxes through postal distribution services can cost significantly more, agents noted.
Singapore Post charges S$0.16 for ad mail items not exceeding 50g during peak months between October and January. It is S$0.14 in other months of the year. The national postal service provider also sets a minimum charge of S$3,270, including Goods and Services Tax (GST).
In comparison, other printing and distribution services can cost S$530 for 10,000 flyers, which comes to about S$0.05 per flyer, said ERA division director Richmond Chia, 54, who previously used flyers.
He added that he has often received messages from freelance distributors – often students or foreign workers – offering to deliver 1,000 flyers for S$50.
But such distributors may not deliver flyers properly, which is beyond the agent’s control and can lead to complaints from residents, he said.
He decided to stop distributing flyers after two or three rounds cost him about S$8,000 and yielded zero callbacks.
“It’s a very old school method. It may work for some, it may not work for others. And you must have consistency, number one. Number two, you must have the financial resources,” he said.
With the new guideline, agents may seriously consider whether they want to continue flyer distribution, said Mr Wang, who is also a key executive officer of LandPLUS, an agency that is not among the five major firms.
From Apr 1, agents who breach the guidelines will face consequences.
A first offence will result in a letter of caution. A second offence will lead to another letter of caution and mandatory attendance of an ethical flyer distribution course conducted by SIEA.
A third offence will result in a six-month suspension from distributing flyers to HDB homes, with penalties escalating until the agent maintains a clean record for two years.
The five agencies will have to inform SIEA of agents who receive complaints from residents, and SIEA will maintain records of all reported breaches.
“I guess those who are serious in it, they will still engage maybe other vendors to distribute the flyers to the mailboxes, or otherwise they can actually do it on their own,” said Mr Wang.
“But those who are maybe not so determined, or they may find that it's a hassle to do it. They may adopt other means, especially electronic means.”
Anecdotally, many in the industry have already moved away from traditional marketing methods such as flyers.
PropNex’s Veroy Chua, 39, said he started more than a decade ago using traditional prospecting methods such as mailers and door-to-door marketing.
But the industry has shifted over the years, and he has since pivoted to digital channels.
“I just didn’t want something that was so perishable in terms of printed media,” he said.
“Everything becomes digital. Then if I’m not adapting and shifting towards something that is going to be here for the longer haul, then I’m just worried that I will be phased out,” he said.
He added that cost is another factor, as agents typically need to commit to at least six months of a flyer campaign. This is to build familiarity and brand recall among residents.
“Mailers are something that, once you commit to it, you shouldn't stop, because it's about showing up every single day,” he said.
Mr Rechard Tan, 41, who is with OrangeTee & Tie, said he used to distribute flyers once a week. However, his team has shifted to distribution on an ad-hoc basis and is starting to scale down.
“I personally feel that the outreach via digital means is more effective for us, compared to flyers, whereby there are too many flyers for the consumers to be reading,” he said.
Digital marketing also provides his brand more exposure, leading to a higher chance of interest from clients, he added.
While the new guidelines may deter some agents from using flyers, some still see value in them.
Mr Imran said that flyers are often more targeted and can benefit segments of the population that are less digitally savvy, such as the elderly.
“The internet has a vast amount of information. The only problem is, what will you do with that vast amount of information?
“So flyers still play a role in the sense where it gives targeted information,” he said, explaining that flyers can offer information tailored to the home owner’s neighbourhood.
But he added that he understands the frustrations that residents face and intends to reduce the frequency of distribution.
“Again, I cannot just diminish flyers at all because it does help some segment of the homeowners who rather receive information on paper,” he said.
Like him, Mr Terence Tee, 45, key executive officer of Iconic Realty, has used flyers as one of his marketing prospecting methods for the past 19 years.
“Flyers offer a more tangible presence in the community. It actually allows agents to target specific neighbourhoods,” he said.
Mr Tee has engaged SingPost for his distribution services despite it costing more than other distributors. As an independent realtor, he is not beholden to SIEA’s guidelines.
“I welcome this initiative by the five major agencies to promote a cleaner environment, and also enhance the real estate industry image,” he said, adding that it should be extended to the whole industry.
Currently, the enforcement measures only apply to agents under the five major real estate companies.
Still, boutique agencies told CNA they are unlikely to ramp up flyer distribution simply because they are not bound by the guidelines.
For one, most have more targeted marketing approaches and operate within specific niches, several agents from boutique agencies told CNA. As such, they do not rely on flyer distribution.
LandPLUS’ Mr Wang noted that most flyers are distributed by the five major agencies, as they have the largest number of salespersons in the industry.
“Hopefully we don't see any (flyers at doors) going forward, but we strongly believe that there will be a significant drop,” he said.
“Agents are agile – they will adapt to other means of advertisement fast.”
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A campaign that covers 20,000 units – spanning roughly 150 16-storey blocks – typically costs between S$1,500 (US$1,200) to S$2,500, said the senior associate director at PropNex.
From one campaign, he may get just one person who responds with interest. But it helps to build a network of potential clients.
“So when we put the flyer, people might think, this guy is … my neighbourhood-friendly agent.
“That’s usually the purpose of flyers – so the neighbours will be connected to you. Of course, they won’t straight away call you, but they will know that this guy is always here,” he said.
But it may soon cost more for agents like him, following a new memorandum of understanding (MOU) aimed at reinforcing proper flyer distribution practices in Housing and Development Board (HDB) estates.
Under the MOU, property flyers and pamphlets that are distributed to HDB homes must not be visible to members of the public other than their intended recipients, the Singapore Institute of Estate Agents (SIEA) said on Feb 13.
Agents are advised to place flyers in mailboxes or use distribution services instead.
The MOU was signed by SIEA and five major property agencies – PropNex, ERA, Huttons, OrangeTee & Tie and SRI – which together represent more than 87 per cent of all registered estate agents in Singapore.
In response to CNA's queries, SIEA said: "Commencing this initiative with committed industry leaders allows SIEA to establish best practices and demonstrate the framework's effectiveness.
"The MOU remains open for other property agencies to join, and we actively encourage broader industry participation."
Most of the 10 agents CNA spoke to said the enforcement move could deter some from continuing with flyer distribution due to the higher costs of engaging postal distribution services.
Mr Imran, 40, estimates that postal distribution services, which deliver advertisement mail through mailboxes, could cost 20 to 30 per cent more.
“It's always about risk and reward ratio. So a lot of us will think in that manner – whether it's still viable to reach residents via the traditional mode,” he said.
Related:
COSTLY DISTRIBUTION SERVICES
SIEA’s guidelines are not entirely new. In 2011, the Council for Estate Agencies’ (CEA) Practice Guidelines on Ethical Advertising stated that flyers must be properly distributed without being visible to members of the public other than the intended recipient.
This was to avoid the build-up of distributed materials within public view when owners are away, CEA said then.
Former president of SIEA Adam Wang, who was involved in developing the latest guidelines, said one reason the previous guidelines were largely overlooked was due to the cost of distributing flyers to mailboxes.
Delivering flyers, or ad mail, directly to mailboxes through postal distribution services can cost significantly more, agents noted.
Singapore Post charges S$0.16 for ad mail items not exceeding 50g during peak months between October and January. It is S$0.14 in other months of the year. The national postal service provider also sets a minimum charge of S$3,270, including Goods and Services Tax (GST).
In comparison, other printing and distribution services can cost S$530 for 10,000 flyers, which comes to about S$0.05 per flyer, said ERA division director Richmond Chia, 54, who previously used flyers.
He added that he has often received messages from freelance distributors – often students or foreign workers – offering to deliver 1,000 flyers for S$50.
But such distributors may not deliver flyers properly, which is beyond the agent’s control and can lead to complaints from residents, he said.
He decided to stop distributing flyers after two or three rounds cost him about S$8,000 and yielded zero callbacks.
“It’s a very old school method. It may work for some, it may not work for others. And you must have consistency, number one. Number two, you must have the financial resources,” he said.
With the new guideline, agents may seriously consider whether they want to continue flyer distribution, said Mr Wang, who is also a key executive officer of LandPLUS, an agency that is not among the five major firms.
From Apr 1, agents who breach the guidelines will face consequences.
A first offence will result in a letter of caution. A second offence will lead to another letter of caution and mandatory attendance of an ethical flyer distribution course conducted by SIEA.
A third offence will result in a six-month suspension from distributing flyers to HDB homes, with penalties escalating until the agent maintains a clean record for two years.
The five agencies will have to inform SIEA of agents who receive complaints from residents, and SIEA will maintain records of all reported breaches.
“I guess those who are serious in it, they will still engage maybe other vendors to distribute the flyers to the mailboxes, or otherwise they can actually do it on their own,” said Mr Wang.
“But those who are maybe not so determined, or they may find that it's a hassle to do it. They may adopt other means, especially electronic means.”
TRADITIONAL TO DIGITAL
Anecdotally, many in the industry have already moved away from traditional marketing methods such as flyers.
PropNex’s Veroy Chua, 39, said he started more than a decade ago using traditional prospecting methods such as mailers and door-to-door marketing.
But the industry has shifted over the years, and he has since pivoted to digital channels.
“I just didn’t want something that was so perishable in terms of printed media,” he said.
“Everything becomes digital. Then if I’m not adapting and shifting towards something that is going to be here for the longer haul, then I’m just worried that I will be phased out,” he said.
He added that cost is another factor, as agents typically need to commit to at least six months of a flyer campaign. This is to build familiarity and brand recall among residents.
“Mailers are something that, once you commit to it, you shouldn't stop, because it's about showing up every single day,” he said.
Mr Rechard Tan, 41, who is with OrangeTee & Tie, said he used to distribute flyers once a week. However, his team has shifted to distribution on an ad-hoc basis and is starting to scale down.
“I personally feel that the outreach via digital means is more effective for us, compared to flyers, whereby there are too many flyers for the consumers to be reading,” he said.
Digital marketing also provides his brand more exposure, leading to a higher chance of interest from clients, he added.
Also read:
WHY SOME AGENTS STILL USE FLYERS
While the new guidelines may deter some agents from using flyers, some still see value in them.
Mr Imran said that flyers are often more targeted and can benefit segments of the population that are less digitally savvy, such as the elderly.
“The internet has a vast amount of information. The only problem is, what will you do with that vast amount of information?
“So flyers still play a role in the sense where it gives targeted information,” he said, explaining that flyers can offer information tailored to the home owner’s neighbourhood.
But he added that he understands the frustrations that residents face and intends to reduce the frequency of distribution.
“Again, I cannot just diminish flyers at all because it does help some segment of the homeowners who rather receive information on paper,” he said.
Like him, Mr Terence Tee, 45, key executive officer of Iconic Realty, has used flyers as one of his marketing prospecting methods for the past 19 years.
“Flyers offer a more tangible presence in the community. It actually allows agents to target specific neighbourhoods,” he said.
Mr Tee has engaged SingPost for his distribution services despite it costing more than other distributors. As an independent realtor, he is not beholden to SIEA’s guidelines.
“I welcome this initiative by the five major agencies to promote a cleaner environment, and also enhance the real estate industry image,” he said, adding that it should be extended to the whole industry.
Currently, the enforcement measures only apply to agents under the five major real estate companies.
Still, boutique agencies told CNA they are unlikely to ramp up flyer distribution simply because they are not bound by the guidelines.
For one, most have more targeted marketing approaches and operate within specific niches, several agents from boutique agencies told CNA. As such, they do not rely on flyer distribution.
LandPLUS’ Mr Wang noted that most flyers are distributed by the five major agencies, as they have the largest number of salespersons in the industry.
“Hopefully we don't see any (flyers at doors) going forward, but we strongly believe that there will be a significant drop,” he said.
“Agents are agile – they will adapt to other means of advertisement fast.”
Continue reading...