Below are FOUR strategies that will help you generate more clients, and build a long-term viable business.
1. Prioritize Your Marketing Time, Money and Effort According To the QUALITY Of The Prospect/Market
“Quality” is defined as how well the prospect already knows you and how predisposed they are to use you over any other agent. You never want to chase cold prospects at the expense of higher potential prospects. So here’s how I believe you should prioritize your marketing:
- Build a “Power List” and market to them on a monthly basis (this is your “market share,” where 70% or more of your business should come from – more on this later).
- Market off “Transactional Leads” (from your listings for buyers) and other listings (once you have them).
- Work hot leads – follow-up is essential. At the very least, you know they’re in the market to buy/sell, and most agents hopelessly ignore follow-up.
- Do your research to select market niches that have the most promise, and work them (i.e. fish in a stocked pond). This includes geographic markets (farms) and specialty markets (resort, golf, vacation, etc.).
- Work FSBOs and Expireds – but notice the low quality of this group. We both know the reason, and here’s a revealing fact. The National Association of REALTORS® produces an annual research report called Profile of Buyers and Sellers. It’s filled with lots of facts and figures, but the most startling fact they’ve discovered is that over 70% of all real estate transactions occur because the client either 1) knew the agent already, or 2) was referred to the agent from a trusted source. This means that 3/4 of all transactions happen because of a relationship. Yet only 4% of all agents have any “systems” to harvest deep relationships and build market share. So about 4% get the lion’s share of business and 96% wrestle each other over the scraps. THIS fact alone is why I told you (above) to create a “Power List” of friends, family, past clients, acquaintances, etc., and market to them first and foremost. They already know you and will trust you to represent them when purchasing or selling a home. This is why we created the Service For Life!® real estate newsletter as a ready-to-use tool to capture this “easy” business- start building your profitable real estate practice now- check it out!
2. When Starting Out, Spend 80% of Your Time Prospecting
Cold prospecting because it has a terrible return on investment if you value your time. Not to mention makes you feel like a sleazy person, always begging for business. There are much easier, more effective ways to generate new clients.
However, if you’re new to real estate or starting over, and have no money, you have to get the ball rolling. So, until you establish marketing systems (read this article for more info) focus your time and energy on meeting new people and getting business.
Don’t allow distractions (self imposed or otherwise) to interfere with this task. And remember, don’t neglect establishing other marketing systems so you can quickly stop manual prospecting.
3. Product-Ize Your Real Estate Services
The real estate industry is a mass-commodity of agents all screaming the same thing to prospects — professionalism, dedication, integrity, blah, blah, blah. You need to be seen as DIFFERENT. And in ways that are important to your target prospects. So, create unique “products” out of your services.
- For example: “Your Maximum Value Home Marketing Plan,” or “Preferred Buyer Program.”
- Another example: Rather than give CMAs, agents will offer a “Maximum Home Value Audit” to examine and determine ways to maximize the value of a home and sell in least time.
The secret is to weave the greatest benefit for the client into the name. Then, make a simple list of everything you do for the client as part of your program – even if other agents do it, it’s likely they don’t promote it, so you have the advantage.
4. Make Yourself A Self-Proclaimed “Specialist” in Your Market
Farming a resort area? Make yourself a “resort property specialist” and title your product specifically to it: “Ventana Canyon Golf Property Specialist” and “Ventana Canyon Maximum Value Golf Property Program.” Use your creativity and match your services specifically to the market or type of property you sell. Your success requires intense focus on your highest priority activities. This list will get you started down the right path of where to make changes to grow your real estate practice this year, and for the future.
Have you used any of these tips in your own practice to build a profitable real estate business? Please share your story with us below, in the comments!