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31 Ways To Build a Profitable Business—Part SIX

In this installment of our series, learn how knowing the "lifetime value" of your clients can boost your income, how to recognize special events in your house list and how to tap the value of your top 20% "Power Player" clients.

26. House List Strategy #3: How Knowing The "Lifetime Value" of Your Clients Can Double Your Production. Most agents are so "single-transaction oriented" the lifetime value of their clients is whatever the original commission totaled.

Smart agents realize that, by having a client or a listing, they now have an asset to help generate more business for them in the form of buyer and seller attraction (magnet), referrals, word of mouth and repeat business.

Do business with someone once, and you make $5,000. Employ the strategies for maximizing Lifetime Value, and that $5,000 could turn into $20,000. Multiply that by the number of transactions you'll do this year, and it adds up to some pretty big money.

The secret is understanding the 4 "values" every client brings to you.

The first value is the single transaction value - the commission you make from completing one transaction.

The second value is the "Transaction Multiplier™". For example, taking a listing should bring you at least 2 buyers, when you use the appropriate sign tags, info tube flyers, "800 call capture" recorded messages, the "right" direct response advertising, and other "buyer and listing magnet" strategies (many you can find in our archives here).

The third and fourth values are the "Repeat Business" value and "Referral and Word of Mouth" capacity each client can bring you - IF you understand how to cultivate the relationship.

The average home ownership in the country is about 5.5 years. If you have a true back-end system to deepen your relationship, continue bringing value month-in and month-out, and position yourself as a true professional, who do you think will get your client's business when it's time to buy or sell?

And who do you think they'll refer for real estate services when their friends, family, co-workers or acquaintances need a competent agent?

That's why we created Service For Life - to create a ready-to-use marketing tool that acts as 7 tools in 1 to work to maximize the Lifetime Value of every client and every contact you make in your business.

Most agents are "single transaction oriented", forgetting about their clients after a deal closes. They let their "next" deal walk out with their "last" deal.

Smart agents know the value of cultivating relationships, and rather than playing the stressed-out, feast-famine, "where's my next deal" mentality, they have a long-term profit strategy that "steady's the ship" and brings them consistent business year after year.

Build the backend of your business with these house list strategies, and you could triple the value of each and every client you get.

And here's one more bonus: Working with your house list and their referrals is easy, the clients tend to be very high quality, and you work much less to make more money.

27. House List Strategy #4: Recognize Special Events in Your House List. Here's a quick one, but it's very powerful. People are "recognition and appreciation starved".

It sounds trite, but when you send birthday cards, anniversary cards, home purchase anniversary cards, you make a BIG impact on the relationship.

Start capturing birthday, anniversary, and home purchase anniversary information on your database and recognize these events. Your production will rise with very little extra work.

28. House List Strategy #5: Recognize Holidays. I've got several agents who send something to their house list for a holiday every month.

They even find strange or unknown holidays, like "all saints day" or "rose appreciation month" as an opportunity to send something special and unique.

Every contact has an offer for his clients, and subtly programs them to think of him for referrals, word of mouth and repeat business. By the way, their production is HUGE.

29. House List Strategy #6: Treat the Top 20% of Your House List (your "Power Players) Special. There will be about 20% of your house list who will be "hyper-responsive." That means they constantly send you referrals and talk about you to other people.

You treat these people special - very special! We have agents who hold golf tournaments, comedy club shows, exclusive movie premiers and other events just to recognize their very best clients/advocates. The impact is amazing!

One agent old me that, after hosting a comedy club party (for which other services she uses paid the cost), she generated over $60,000 worth of GCI business either directly from attendees or by referral.

Something you might want to consider doing yourself!

Next Article: Get Instant Clients and Grow Your House List Using the “Big Box” Stores…

Issue #1122