Here’s what it’s all about…

There’s an insidious disease that has infiltrated our profession. It’s a “mindset” ailment, perpetuated by most sales professions and it’s responsible for costing agents millions of dollars in lost income and tragically failed businesses. I call it…

“SingleTransactionitis” (or “STI” for short)

What is STI and how does it work?

You spend a fortune in time, energy and money getting a client. And yet, once a client has been found, sold and closed, chances are you’re back on the treadmill looking for the next deal in the same cold, harsh market.

If you’re like most agents, you see one transaction as just “one client – one commission” not realizing the many ways you could be generating multiple transactions from each client. So you’re constantly chasing one deal after another, not realizing the many ways that every “past” client could be bringing in 2, 3 or 4 “next” clients.

STI is a brutal scenario, forcing you to live a vicious cycle of high stress, feast-famine, hit and miss “constantly chasing the next deal” throughout your career. Don’t feel too bad, because you’re not alone – industry statistics say it’s a cruel reality for 96% of all agents.

But a few smart, savvy agents practice real estate differently – and reap huge profits as a result. They understand that…

While “Average” Agents Generate a Client to Make a Sale…

Smart Agents MAKE A SALE TO GENERATE A CLIENT

Most agents measure their success by the number of transactions they’ve closed, or by gross dollar volume sold. Agents interested in creating consistent long-term profits also focus on the Lifetime Value of every client and every transaction they bring into their practice.

They realize that, by having a client or a listing, they now have a valuable asset to help generate more business in the form of buyer and seller attraction marketing, referrals, word of mouth and repeat business.

They are “making a sale to generate a client” because they know how to get the greatest Lifetime Value from the “transactional” and “back-end” of every relationship.

Do business with someone once and you might make $7,000 GCI. Employ the strategies for maximizing the Lifetime Value, and that $7,000 could turn in to $28,000 or more. Multiply that by the number of transactions you do each year, and it adds up to some pretty serious money.

So what is the “Lifetime Value” of a client?

You hear the term a lot, but few teaching it know how to back-it-up with real-world strategies. As a pure definition, Lifetime Value is the TOTAL dollar value every client and every affiliation brings to your practice over the lifetime of your relationship.

But it’s more than an academic concept. It’s about using simple marketing and prospecting systems to multiply your income with little or no extra work. Now that’s what I call “Leverage.”

So let’s get started building the Lifetime Value of your clients…and multiplying your income. Here are…

4 “VALUES” to Maximizing the Lifetime Value of Your Clients

Next time you generate a listing or a buyer, think about the following 4 ways in which you can maximize the income (the “Lifetime Value”) you make from every listing or buyer, and watch your production grow and grow.

The FIRST value is the “Single-Transaction Value” every client brings you. That’s pretty easy to understand – you’re already doing it. Problem is, for most agents the “single transaction value” IS their Lifetime Value.

The SECOND value is what I call the “Transaction Multiplier™” value. How does the “Transaction Multiplier™” work?

Just by creating a transaction (listing or buyer), you now have a valuable asset working to bring you more clients – if you know how to use it.

For example, taking a listing should bring you at least 2 new buyers, and frequently another listing in the area. How? By using important buyer and listing “magnet” strategies with every listing (or buyer)…

• Use “800” hotline number SIGN TAGS or RIDERS (“Free Info About This Home – Call 800-xxx-xxxx”) providing information about the home. Program your hotline to page you or a buyer agent anytime someone calls for information on a home. This way you can immediately call the lead back and either talk about the home (very few buy the home they called about) or sell them another home.
• Use Home Info Tubes with Flyers about the listed home and feature other homes on the back with similar features, area, size, etc. Use the same hotline strategy as above. You can also attract new listings by offering Consumer Guides for prospects interested in selling.
• Run frequent classifieds or even display ads in proven publications. The secret is to understand the direct response strategies that make qualified buyers and sellers call. The “Classified Ad Secrets” book you got as a new member gift will give you everything you need to know.
• Whether you’re working a listing or with a buyer, make sure you use direct-response “just listed” and “just sold” communications throughout the area where you took/completed a transaction. I walk you through this strategy step-by-step in the 3-Steps System.

The THIRD value is the “Repeat Business” Value. Most agents neglect this value because they think it’s going to be 4 to 6 years before the client buys or sells again, or that the buyer or seller will “think of them anyhow.”

If you’re thinking this way (be honest, most agents do), you’re suffering from “SingleTransactionitis” and it’s costing you a fortune.

The average home ownership in this country is about 5.5 years. That’s not a very long time for someone interested in long-term profits. And remember, 5.5 years is the “average.” Many homeowners sell much sooner.

But to make the repeat business value work, you need to look at your closings as the beginning of the relationship, not the end. If you have a true back-end system to deepen your relationship, continue bringing value month-after-month, and position yourself as a stand-out professional…

Who Do You Think Will Get the Client’s

Business When it’s Time to Buy or Sell??

The FOURTH value is the “Referral” value. Do you want to know something amazing about referrals?

They’re easy to get once you know the secrets that cause people to refer. Clients who are acquired by a referral are very high quality (i.e. they are easier to work with, easier to close, and provide the fewest problems), and they refer others just like themselves.

AND, generating referrals requires much less money and work, thereby “netting” you more money and time.

But many agents naturally assume their friends and clients will automatically think of them – and they underestimate the type and frequency of contact required to deepen the relationship to a level worthy of referrals.

Remember, if someone is referring your services, they’re putting THEIR reputation on the line too. They need to be 110% assured you are the #1 choice to provide the highest quality, best value and most competent services available.

That’s why we created the Service For Life!™ direct-response prospecting and referral marketing system – to provide agents a ready-to-use marketing tool that acts as 7 tools in 1 to maximize the Lifetime Value of every client and every relationship you make in your business.

So if you find yourself endlessly “chasing” deals, or suffering from “SingleTransactionitis”, think about this article. Don’t let your “next” deal walk out the door with your “last” deal.

Smart agents know the value of leveraging every transaction and cultivating relationships to provide a true “back-end” to their business.

So rather than playing the stressed-out, feast-famine “where’s my next deal” game most agents endure, they have a long-term profit strategy that “steady’s the ship” and brings them consistent business year after year.