HomeVestors® of America, Inc. is a network of franchises that makes up the largest and longest-running for-cash homebuyer in the U.S. By Patty Horansky
HomeVestors® of America, Inc. is a network of franchises that makes up the largest and longest-running for-cash homebuyer in the U.S.
Its iconic We Buy Ugly Houses® billboards dot the country from coast to coast and are a large part of the brand’s success, with over 1,100 franchises purchasing more than 140,000 houses quickly and for cash since the brand’s founding in 1996.
The billboards, however, are only part of a larger advertising strategy coming out of HomeVestors’ Dallas-based headquarters and designed for franchisee success.
Each month, franchisees pool their advertising dollars and decide how many shares they want to buy, said Kevin Culkin, brand development agent. As calls come in, they are distributed in rotation and then recalibrated.
“Everybody gets their pro rata share of leads,” Culkin explained. “We’re basically an ad agency in Dallas – a co-op on steroids.”
Collectively, franchisees can afford more advertising than they could on their own, resulting in higher revenue.
In addition to its billboards, HomeVestors uses TV, direct mail, the internet and social media to advertise its service to homeowners to sell fast and as is. Its in-house agency assesses the cost-effectiveness of its advertising.
Also, unlike other franchise models, HomeVestors’ franchisees work as a team – reaching out, sharing advice and even selling houses to one another.
“Not only do we not compete with each other, but we’re a benefit to each other,” Culkin said.
In one case, a man in Florida was watching The Weather Channel as a storm brewed in Texas. Behind the forecaster was a billboard for HomeVestors, paid for by its Dallas ad council. The man dialed the toll-free number on the billboard, punched in his ZIP code and was immediately connected to the HomeVestors franchise in his Florida locale.
Typically, the people who call HomeVestors call for personal reasons, Culkin said. It’s not so much about ugly houses as ugly situations, and franchisees strive to help homeowners out of difficult situations.
“It’s a business with a heart,” Culkin said.
HomeVestors’ model works in any economy and is growing, with territories available across the country.
“We believe we can still double in size,” Culkin said.
Patty Horansky