In economics and business, a network effect is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service is dependent on the number of others using it. Pacific Listings has incorporated this idea into our leasing blue-print, and the results are tremendous. Maximizing the benefits of the network effect is central to every step of everything we do.
Our system allows our clients’ vacancies to work together intelligently. This is a luxury not afforded to individual owners that only have one or even a few vacancies. We always have hundreds of vacancies in our system, and they are spread throughout many desirable neighborhoods. We keep records of each person that expresses interest in each unit on our site, and have all relevant contact information. We use the massive amount of information available to us to lease units with unprecedented efficiency.
The following is an example of how we put the network effect into practice:
On Monday January 15th, we are asked to advertise a new vacancy for an owner in Beverly Hills. We shoot his unit immediately and the advertising begins. His vacancy is a high-end 1+1 for $1,950/Month. We instantly recognize that his vacancy is very similar to another high-end Beverly Hills 1+1 apartment that we shot on January 3rd (12 days prior). The unit we began advertising on January 3rd was successfully rented on January 13th at $2,000/month. Over the course of our 10 day advertising campaign for that 1st unit, we had 46 tenants request to view the unit. Obviously the individual unit was only rented to one tenant or one group of tenants, so that leaves 45 relevant leads for us to funnel towards the new vacancy. The moment the new Beverly Hills vacancy has been entered into our system, we e-mail the 45 relevant leads a link that allows them to view the Full Listing of the new unit on our Free Site. The units are very similar and most tenants that initially inquired about the first unit are still actively looking for a high-end Beverly Hills 1+1 apartment for rent. It is extremely common for this system to allow us to rent our clients’ vacancies within a few days. We often have your ideal new tenant in our network before we even shoot your new vacancy!