The housing boom of the last several years kept the money coming for many real estate professionals, who saw their paychecks rolling in bigger than ever and on a consistent basis. The market's return to a normalized state, however, means that income is likely to decline for most practitioners who could find themselves in a financially precarious position if they have not set up an adequate emergency fund. While the rule of thumb is for workers to keep three to six months of expenses in reserve for emergencies, the irregularity of Realtors' compensation and their sometimes high upfront costs for such outlays as advertising and errors and omissions insurance means they should generally have no less than six months of expenses on reserve. Agents who have not yet done so should examine how and where they are spending money and then come up with a systematic method for saving some of their income. The idea is to squirrel away extra money and resist the temptation to use it for everyday purposes, tapping into it only when in a real pinch. Therefore, agents should deposit the funds into an account that is not so easily accessible as a checking or savings account with a local bank, but one that is liquid enough that they can make withdrawals without a huge hassle should the need for that arise.

Most real estate professionals are interested only in generating qualified leads destined to eventually become closed deals, but some do not believe online technology is suitable for lead generation. Top-producing agents once depended on networking groups, mailings, professional branding, and lead generation firms before search engines, blogs, podcasts, and online communities were invented. While technological advancements have put a spotlight on Internet lead generation, Social Media Systems President Barry Hurd says online lead generation firms account for a large number of Web advertisements. These firms charge real estate professionals between 2 percent and 200 percent more than what they paid for the ads to generate leads, and Hurd believes it would be less expensive and more effective for these practitioners to eliminate the middleman. According to Hurd, real estate professionals should consider placing their own ads in magazines, newspapers, Web sites, and search engines.

Virtual home tours have evolved with the help of online, immersive 3-D modeling programs like Second Life. A Coldwell Banker office in Seattle spent under $50,000 on a Second Life presence as a means of marketing homes and directing buyers to the firm's Web site. Agent Suzanne Lane has made it possible for buyers to tour a $3 million home on Mercer Island via Second Life, allowing buyers across the globe to create graphics that resemble themselves and walk through the property just as if they were touring it in person. It remains to be seen whether the 5,700-square-foot home will sell as a result of Second Life, but Lane says 3,700 visitors have completed the virtual tour. However, Coldwell Banker Senior Vice President of Marketing Charlie Young says 3-D modeling is too expensive right now to become a mainstream marketing tool. Google SketchUp is another 3-D modeling program, and it allows architects and designers to showcase their projects. Prospective buyers can see how these designs would look using different building materials and in conjunction with landscaping and decks. According to Code4Software President Jared Freedman, "If you can have a mechanism to help a prospective buyer narrow down their choices for which homes they want to actually visit, you're saving the buyers gas and time, saving the agent gas and time and saving the homeowner an intrusion."

Real estate agents can boost traffic to their Web sites by focusing on content, especially since millions of consumers turn to the Internet for information. Adding content to their Web sites is not expensive, and it can help agents build relationships with consumers who are not yet ready to buy or a sell a home but who will consider them when that time comes. Fresh content enables agents to take advantage of Search Engine Optimization to boost their rankings on the search engines. They should post content that is unique, local, up-to-date and heavily concentrated with images and multimedia. The content also should prompt site visitors to share with others. Free content is available from such sites as Trulia, which offers data and widgets designed to boost site traffic.

"The Consultative Real Estate Agent--Building Relationships That Create Loyal Clients, Get More Referrals, and Increase Your Sales" author Kelle Sparta says most agent Web sites are in need of a dramatic redesign. Sparta underscores the importance of keeping prospective clients and their goals at the forefront when designing Web sites. Most practitioners use their sites to talk about themselves; however, she says this self-serving approach does little to secure business when clients do not yet care about the agent. Sparta urges agents to look at their sites through the client's eyes, making changes if clients' goals from day one through one year post-closing are not the site's primary focus.

A majority of real estate agents and brokers have Web sites, but Realestatecoach.com CEO Bernice Ross says they would be wise to enhance them with landing pages. A form of "give-to-get marketing," landing pages allow agents to provide free services--such as reports on a variety of topics related to the buying and selling process--to prospective clients willing to provide their contact information. Each time a site visitor finishes one report, another that might be of interest should be suggested. Rather than creating landing pages manually, agents have access to free, integrated solutions, such as Point2 Agent. In addition to offering Web sites with numerous landing pages at no cost, Point2 provides a blogging tool, syndicates every listing posted to the agent's site to Yahoo! Classifieds and a number of other real estate sites, and integrates with the social networking site Facebook. According to Ross, agents can succeed in the Web 2.0 arena by providing content, photos, and videos geared toward a particular community.

Snap.com's SnapShots no-cost utility can help Realtors jazz up their Web sites, enhancing them with links in a way that does not require visitors to move to another Web page. With PreviewShots, site visitors can preview links simply by moving their cursors onto them. Realtors can offer definitions of real estate concepts with WikiShots, display photo sequences with PhotoShots, and give visitors the ability to play videos with VideoShots. Additionally, MP3 files can be played via AudioShots, and visitors can be directed to useful books on Amazon.com with ProductShots. To add SnapShots capabilities to their Web sites, Realtors need only include Javascript code on the bottom of the relevant Web pages.

Real estate agents believe the Internet and such gadgets as iPhones, digital cameras, laptops, GPS systems and satellite maps have revolutionized the buying and selling process. With these technologies, agents can take interior and exterior photos of homes and post them on their Web sites or email them to clients. Virtual tours make it possible for buyers, particularly those living far away, to narrow down the number of homes they want to see in person. "It makes it possible for those with very little time and very little tolerance for looking to get the best possible information," says Barbara Malone of Jenny Pruitt & Associates. Virtual tours also have made it easier to sell units that have yet to be built. Coupled with 3-D technology, these virtual tours highlight floor plans and expected views. "We can take a virtual stroll through the building, and I can show you the view from the kitchen or the bedroom or the living room of each unit no matter what the floor or orientation," says Coldwell Banker the Condo Store Realtor Kelly Guidry.

FBS Data Systems President and CEO Michael Wurzer has developed a site, called Future of MLS Wiki, that aims to give real estate agents, brokers, Realtor associations and Multiple Listing Service officials a medium in which to talk about data sharing. The wiki aims to enhance transparency and spark collaboration when it comes to changes in the MLS on the state and national levels. Wurzer believes the U.S. Constitution and Future of MLS Wiki are similar, noting on the site: "We the Members of the United Listing Services, in Order to form a more perfect Union, better serve our clients and promote the sale and efficiency of the real estate markets in which we participate, do ordain and establish this Constitution for the United Listing Services." According to Wurzer, "It's that willingness to agree with each other on some fundamental principles--literally to draft a constitution . . . that people can agree on."

Web "office suites" from Microsoft, Google, Ximbra, and Zoho are becoming alternatives to Microsoft Office. Web-based alternatives offer small business a lot of the same functions as Microsoft Office packages, although they have some important differences, including the fact that they cost less. Google Apps, for example, is usually free. The current batch of Web office applications are much more advanced than previous versions. AJAX technology means working with a Web-based application is highly similar to utilizing a desktop application. Users get drag-and-drop, in-place formatting, interactive menus, and additional features. Vendors are also trying to overcome the challenge of online access to applications that are Web-based. This means that technology such as Google Gears allows users to obtain access to their documents even if they are offline.

Web-based office applications from such providers as Google, Microsoft, Yahoo!, and eBay are making it possible for entrepreneurs to work from home without any staff and minimal upfront investments in hardware and software. Small-business owners need only a computer or handheld device and an Internet connection to access these services. With Google Apps, for example, users can share documents and calendars and take advantage of e-mail, chat, and instant messaging tools and Web-site hosting at no cost. For an annual fee of $50 per user, they can get additional storage space, e-mail migration tools, and access to virtual conference rooms. Meanwhile, Microsoft Office Live offers many of the same tools as well as online banking, invoicing, and credit-card processing. The basic tools can be used for free, but more advanced functionality comes with a monthly fee of $19.95 or $39.95. Before selecting an online application suite, users would be wise to determine whether it is suitable for a growing business.

Small business owners would be wise to purchase an uninterruptible power supply (UPS) device to maintain productivity during power outages. A desktop computer plugged into a UPS device will provide five minutes to 20 minutes of work time, allowing users to save files and shut down. UPS devices can power network hardware--namely a DSL/cable gateway and broadband router--for a couple of hours so that necessary tasks can be completed via notebook computer; users should keep in mind that desktop computers use a lot more power than network equipment.

One of the most difficult issues for growing businesses is keeping up with rapidly changing technologies, experts say. While large firms can easily hire IT staff to handle upgrades, smaller companies must use alternative means to efficiently update technology. One tip from Ft. Lauderdale, Fla.-based CableOrganizer.com is to lease equipment, especially if it is likely to quickly become outdated. Not only can equipment be rented, but companies like CDW, CompUSA and Dell provide IT consulting on a pay-as-you-go basis to save on long-term expenses. Ken Sim, co-founder of Nurse Next Door, suggests that managers installing VoIP equipment make sure the technology is compatible with their business needs--a lesson he learned when his home healthcare firm lost an estimated $100,000 in revenue due to a poor choice of PBX phone systems. For telecommuters, GoToMyPC allows users to access a work computer from home, but experts recommend encrypting data or using biometric security tokens to minimize security risks associated with off-site computers. Internet warehouses like Carbonite, eVault and Xdrive back up data in case of a disaster, and OpenOffice.org 2.2 can be downloaded for free and used when Microsoft Office programs are out of commission. Staying on top of new technology can be pricey and time consuming. However, CableOrganizer.com CEO Valerie Holstein encourages other executives to push for zero downtime--an effort she believes helped her company break into larger markets.

For small and medium-size businesses that want to combine their voice and Internet connections on a single network, the decision to convert to Voice over IP (VoIP) comes down to the individual needs of the business. Whether the determining factors are cost or a shortage of IT service, experts say the decision to change phone systems ultimately comes down to the particular needs of a company. Steve Hilton, vice president of enterprise research at Yankee Group, says technology should not be the sole criteria when weighing whether or not to switch VoIP. Among the questions companies should ask, according to Hilton, is will VoIP help them grow, protect, simplify and support their business? Businesses should also consider cost savings and added features, and whether the voice quality and network performance of VoIP meets their needs. If companies choose to make the switch, they also need to decide whether they will manage VoIP in-house or outsource the function. Then there is the matter of financing the conversion. Smaller organizations tend to have fewer resources than large companies, which is why experts say it is better for small enterprises to spread out the cost-of-conversion as much as possible. "There isn't one kind of [small business] out there," says Hilton. "For some, skipping the capital expenses and going to a hosted model is the answer."