Last Updated on April 9, 2017Because today I’m going to give you the easiest, most powerful marketing secret (a 100% proven system) for growing your production to any level your “greed glands” can tolerate. It’s so simple a 7-year-old could learn it. It works so fast, you’ll be seeing serious results within 2 to 6 months. Best of all, it’ll work in any economy (even today’s humbling market), any area, and for any agent – AND it will keep working for as long as you practice real estate. Read this article like your life depends on it…because I’ve never seen a real estate practice achieve significant, lasting success without using at least some form of what I’m about to show you. But there is a “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 most “instant gratification” people. This is about making a dedicated investment into a lasting, ever-growing sustainable business – not some fly-by-night sales venture. 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 in the CrosshairsI 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 you want to achieve the next 12 months as a result of applying this system. Just do it – this is important. As an example, let’s say you want to make $300,000 GCI. Next, write down the average commission you make for each transaction you close. For example, if your average close is $250,000, then a co-broker of 3% means you make $7,500 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 $300,000 GCI, and your average commission is $7,500, then you need to sell 40 homes, right? ($300,000 divided by $7,500 = 40). OK, hold that number in your head – in this case you want to sell 40 homes.
Step #2: Build Your Personal Real Estate MarketYou’re now going to build the most valuable asset of your entire practice – I call it your “house list”. What’s a house list? It’s a list of people who know you or know of you in a positive light: your friends, family, acquaintances, suppliers, strategic alliances, and (most importantly) your past clients and (yes, 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 74% (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. 74% come from just one source: Relationship! Most agents spend their time prospecting in areas with the LOWEST potential for success, completely neglecting the areas with the highest potential. Go to the NAR and get the report and you’ll be shocked: 1% come from cold prospecting, 3% from sign calls, 7% from the internet (yes, only 7%!!), etc. etc. Yet 74% come from THIS source. Does this give you an idea of where you want to be spending your time, energy and money for maximum success? OK…so how do you build a house list? It’s easier than you think. Go to page 67 of the FREE marketing system, “The Ultimate Real Estate Success Secret” by clicking here and I give you SIX easy, ingenious ways to grow your house list. Just go to the site and download (and read) the system, you’ll be thrilled you did. Now…at this point, you might be asking yourself, “How BIG of a list do I need to build”? Good question. 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 40 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 40 homes and multiply it by 6 and you get 240. This means that, if you build a list of 240 people, 40 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). OK…so we need to adjust the number of people in your house list to account for your Personal Market Share™. (By the way, in your first year you’ll estimate your Personal Market Share™, but in future years you’ll know exactly how many deals came from your House List. I also 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 House List and is clueless about “back-end marketing”, your Personal Market Share™ is going to be incredibly LOW – probably around 10 to 20%. Divide your list size (240 in our example) by 20% (I’m being generous) and it turns out you need 1,200 people in your list to get 40 deals from them. 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™ could be as high as 80%. So work the math: 240 divided by 80% (.80) is only 300 homeowners. Do you see the difference here? The HIGHER your Personal Market Share™, the FEWER people you need in your house list…the LESS MONEY you spend nurturing the relationship, and the MORE MONEY you “NET” with every transaction – that’s money you put into your pocket! Here’s the simple analysis we just went through, so you can do this for your own practice…
- Enter your Target Transactions: (Example: 40)
- Enter Average Home Ownership Time: (Example: 6 years)
- Multiply #1 x #2 to get House List Size: (40 x 6 = 240)
- Enter Your Estimated Personal Market Share™: (Example: 80%)
- Divide #3 by #4 to get Total House List Size Required: (Example: 240/.8 = 300)
Step #3: Create a Systemized Relationship-Nurturing SystemDid you notice that I said “Relationship Nurturing” and not “stay-in-contact” system? There’s a good reason for it… Nothing differentiates you over any other agent than having a deep, nurturing relationship with your House 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. So here are 4 elements for creating a “Systemized Relationship Nurturing System”…