How To Radically-Increase Your Production in The Next 12 Months

By Craig Forte, Founder - Posted on
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Because today I’m going to reveal one of the easiest, most powerful marketing secrets (a 100% proven system) for growing your production to any level you want, so you can finally make the money you want in real estate. I’m serious. This is one of the most important articles I’ve ever written, so take 5-minutes to read it right now and print it out to keep forever. The system is so easy a 7-year-old could do it. It works so fast, you’ll be seeing results within 2 to 6 months – maybe sooner. Best of all, it’ll work for any agent, in any area, and in any economy (even today’s challenging market) – AND it will keep working for as long as you practice real estate. Sounds like a lot of hype, I know. But over the last 18 years I’ve worked with over 25,000 and culled through hundreds of ideas and strategies, and THIS system is hands-down the BEST client-generation method I’ve ever seen. I’ve never seen an agent achieve significant, lasting success without using at least some form of what I’m about to show you. But there is a small “catch”… The “catch” is you need to be as consistent as the morning sunrise to make this work – and that’s going to be a problem for some “instant gratification” people. This is about making a dedicated investment into a lasting, ever-growing sustainable business – not some fly-by-night sales venture. (Quick Announcement: If you’d like to attend a free webinar training on how to create the type of system discussed in this article, you can register here: http://go.webinartrainings.com/pages/aic3.php) So let’s get started… I’ve often said that the most profitable strategies are usually the simplest. This one I can explain to you in 3 simple steps.

Step #1: Lock your Target Income in the Crosshairs

I know it sounds trite and cliché, but if you don’t know specifically what you want to achieve, then you’re committed to achieving nothing. So here’s what I want you to do… Write down the Gross Commission Income (GCI) you want to achieve the next 12 months. Just do it – this is important to learning this client-multiplier system as you’ll soon see. For example, let’s say you want to make $100,000 GCI. OK. Next, write down the average commission you make for each transaction you close. For example, if your average close is $150,000, and a co-brokerage of 3% means you make $4,500 for every deal. Now remember, this is GROSS Commission. If you want to figure your net, look at last year’s “net” as a percentage of gross and do the math accordingly. To keep things simple, I’m just going to deal with your gross. Now do the math. If you want to make $100,000 gross GCI, and your average commission is $4,500, then you need to sell 23 homes, right? ($100,000 divided by $4,500 = 23). OK, write the number you figured for yourself on a piece of paper. Let’s keep going…

Step #2: Build Your “Personal Real Estate Market”

You’re now going to build the most valuable asset of your entire practice – I call it your “Power List™.” What’s a Power List™? It’s a list of people who know you or know of you in a positive light: Your past clients, current clients, friends, family, acquaintances, suppliers, strategic alliances, and even your prospects. Why do you want to create this list? I could give you 40 great reasons, but here’s one that should get your “AH-HA!!” juices flowing… The NAR report, “Profile of Buyers and Sellers” reveals that 73% (nearly ¾) of all real estate transactions are achieved because the client either: 1) Already had an existing relationship with the agent (knew them or knew of them in a positive light) OR… 2) The client was referred to the agent from a trusted source. Do you want to make real estate infinitely easier? Stack the deck for your success up front, by focusing on where 3 out 4 clients come from. Most agents spend their time prospecting in areas with the LOWEST potential for success, completely neglecting the areas with the highest potential. Check out the NAR report if you want, and you’ll be surprised: 1% come from cold prospecting and only 4% from the internet (yes, only 4% of business comes from the internet without a prior relationship!). Yet 73% come from THIS single source – a “relationship.” Does this give you an idea of where you want to be spending YOUR time, energy and money for maximum success? Good. Now…at this point, you might be asking yourself these questions…
  • “How do I build a Power List™?”
  • “How BIG of a list do I need to build?”
  • “How do I harvest business from my Power List™?”
I have agents who’ve built their list to over 500 people their first year following my methods (and made big $6-Figure incomes in the process). So let’s figure out how big Your list needs to be. Do you remember back in Step #1 you wrote down the # of homes you needed to sell to reach your target? In our example it was 23 homes. Take that number and MULTIPLY it by the average length of home-ownership in your area. For example, nationally, the average time of home ownership is about 6 years. Your local board or MLS may have the number for your local area, but it’s probably a similar number. OK, so take your number from Step #1 and multiply it by the average home ownership time. In our example, take 23 homes and multiply it by 6 and you get 138. This means that, if you build a list of 138 people, 23 of them will sell their home (on average) every year. And remember, this is only direct sales – it does NOT include the referrals they could be sending you. QUESTION: Who’s going to get those deals? Let’s face it, you won’t get all those deals. Some will go FSBO. Some will go to “uncle Harry.” And some will go to another agent who’s just lucky to be there at the time. BUT…the person who’ll get the lion’s share is the agent with the deepest relationship with the homeowner…the agent who’s provided on-going value, who’s demonstrated their competence and professionalism…the agent whose NAME comes first when they think “real estate” (before any other agent). I call this…

Your Personal Market Share™

Personal market share is the answer to the question: “When people think of real estate, how likely are they to think of YOUR name FIRST, selecting YOU without question and before any other agent comes to mind”? In other words, they’ve already made up their mind about you (not just “top of mind”, but much, much deeper). So we need to adjust the number of people in your Power List™ to account for your Personal Market Share™ (i.e. the % of people who will think of you first). By the way, right now you’ll estimate your Personal Market Share™, but in future years you’ll know exactly how many deals came from your Power List™. For now, I want you to understand an important dynamic happening here… It’s very easy to do – simply DIVIDE your list number from above by your “estimated” Personal Market Share™. Now, if you’re an “average” agent who does nothing to nurture their Power List™ and is clueless about “back-end marketing”, your personal market share is going to be quite LOW – probably around 10 to 20%. Divide your list size (138 in our example) by 20% (I’m being generous) and it turns out you need 690 people in your list to get 23 deals from them, everything adjusted for your “Personal Market Share” with that list. Holy Cow, that’s a lot of people! BUT…if you’re an agent who follows my guidance coming up in Step #3, your Personal Market Share will be much higher – maybe as high as 80%. Meaning that, because YOU did certain “things” to nurture your list, most of them will choose YOU to buy or sell (and refer to). So work the math: 138 divided by 80% (.80) is only 173 homeowners. Do you see the difference here? The HIGHER your Personal Market Share, the FEWER people you need in your Power List™ to hit your production goal. Make sense? And get this: You’ll also be spending LESS MONEY prospecting and generating clients, which means you’ll “net” MORE MONEY with every transaction. Here’s the simple analysis we just went through, so you can do this for your own practice…
  1. Enter your Target Transactions To Reach income Goal: (Example: 23)
  2. Enter Average Home Ownership: (Example: 6 years)
  3. Multiply #1 x #2 to get Power List™ Size Required: (23 x 6 = 138)
  4. Enter Your Estimated Personal Market Share™: (Example: 80%)
  5. Divide #3 by #4 to get Total Power List™ Size Required: (Example: 138/.8 = 173)
There’s good news looking at these numbers. You may already know enough people to generate a $6-figure income in real estate. You’re just missing a small piece of the puzzle. See…there’s something called a “Law of 250.” Studies have shown that every person you know has some kind of relationship, on average, with 250 people who could be clients of yours. All you need to do is create a “system” that nurtures the relationship, brings on-going value, positions you as a likable, unique professional – AND – subtly programs them to think of YOU when they think “real estate.” Which leads to Step #3 – How you can maximize your Personal Market Share™ to 80% or higher, and cash-in on your real estate business…

Step #3: Create a Systemized Relationship-Nurturing System

Did you notice that I said “Relationship Nurturing” and not “stay-in-contact” system? There’s a good reason for it… The single greatest reason why someone will do business with you is because they know you, or know OF you in a very positive light. Nothing differentiates you over any other agent than having a deep, nurturing relationship with your Power List™. Problem is, most agents completely underestimate the DEPTH and TYPE of contact required to nurture a relationship to the point where you become the stand-out choice. They’re “missing the boat” entirely. 2 parts to creating a “Systemized Relationship Nurturing System”: FIRST, you must commit to making contact every 21 to 30 days. Why? Because for every 30 days you neglect your Power List™ 10% of them forget you exist. What does that mean? Well, according to NAR, 66% of buyers and 68% of sellers work with the very first agent they contact. If you’re not contacting people at least MONTHLY, some of them will work with the next agent who calls them. You can’t send out out pumpkin seeds every few months, or a calendar at the end of the year, or some kind of recipe card every quarter and build the type of relationship that actively brings you clients and referrals. You need to commit to EVERY month making deep, nurturing, welcomed contact. That’s how you build relationships worthy of people seeing you as the expert who can help them, and reminding them of your value so they choose you when the time is right to buy, sell, or refer. SECOND, what you send each month must be welcomed and valued, not a blatant promotion. People are busy and don’t want to be bothered with junk mail or “look at my photo and production numbers” pitches. So you need to get under their “advertising radar” and engage them. Whatever you MAIL or EMAIL each month must be content your readers will welcome:
  • Valued in it’s own right – your Power List™ sees it as important, fun, and is eager to read it,
  • Nurtures relationship – not just “stay in contact”,
  • Positions YOU as a likable, competent professional, and…
  • Gives people meaningful, specific reasons to contact you first, and send you active referrals.
This is completely different than what you’ve been taught and what most agents do. What Happens When You Use The “Right” Systemize Relationship Nurturing System? The NAR reports that a “contact” system should take about 12 months to start working. With the Service For Life!® Personal Newsletter System (for example), we’ve been able to cut that time roughly in half – and in some cases we’ve had agents get up to 8 transactions on their first month’s issue. If you’re a new agent, or you’ve never cultivated your Power List™ in the past, you need to be patient and know this is a winning strategy that will pay off big. From working with thousands of agents, here’s what we’ve found likely to happen: Month 1 to 3 – Not much will happen unless you’ve been working your list in the past and have accumulated some Personal Market Share™ (but things are happening behind the scenes, so keep going). Month 3 to 6 – You’ll start to hear people talking to you about your contact, and you’ll probably get a deal or two – enough to finance your contact system for the next year or two. You’re starting to make traction, keep it up. Month 6 to 12 – You’ll start generating consistent transactions from your Power List™: new transactions, referrals, word of mouth and repeat business. Following Month 12 – If you’ve been consistent in growing your Power List in SIZE and QUALITY, the system you’ve established will start to generate so much business it will most likely be your biggest source of revenue in your business. Many agents report it’s so successful, they abandon all other forms of personal marketing. Remember that Personal Market Share™ (and responsiveness) increases over time and cumulative contact – so BE PERSISTENT, because once your Power List™ starts spinning off clients, it continues for as long as you cultivate it. And the great thing is it takes only minutes a month to make it all happen, and you can do it spending little or no money. Top agents I’ve spoken with, who made big money during the boom times, are still pulling in a multi-$6-figure income today. Some even doing it part-time. It just makes sense, doesn’t it? This system is how agents go from 6 deals a year, to 12, to 24, to 48…and it keeps growing as long as you are consistently adding people to your Power List™ and making valuable, personal, monthly contact. Ed. Note: If you’d like to attend a free webinar training on how to create a relationship marketing system that takes less than 30-minutes a month to manage, you can register here: http://go.webinartrainings.com/pages/aic3.php  

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Craig Forte
Craig Forte has helped more than 32,000 real estate professionals over the last 22 years, helping them generate more clients, more referrals and repeats, and grow their production with less stress, time and effort – all by using innovative marketing training, systems and tools.
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