As a newly licensed agent in any American State, you may notice that you will find a lot of training on how to fill out a contract properly and how to calculate closing costs but very few training opportunities available that show you how to actually generate business and make money as a licensed Real Estate Agent. It appears that most brokerages actually have taken a step back from training the business generation activities that will create a successful agent because it tends to scare off a lot of would-be agents before they even get their license.
Well, if you want the truth of how to make money in Real Estate Sales, you have come to the right place!
Sphere-of-Influence Lead Generation in 4 Easy Steps
Ouch!!! If you have the behavioral profile of a top-performing real estate salesperson, you probably just got bummed out by the word "database". For many top-performing Realtors and agents, the creation, feeding of and the continual upkeep of a database is not very fun and often avoided, but guess what? The "cream-of-the-crop" agents feed and service that database every day! So if you want to be successful, here's what you do...
Create a list of 100 people you know (or more). Input the names and contact info in to a spreadsheet. Organize it so it works with your email server's import/export format. We want; first name, last name, mailing address, email address, phone number. Once finished, import the spreadsheet in to your email contact system and label the Group "Sphere of Influence". Import the same spreadsheet into your CRM/Database Management system (ie. Top-Producer, eEdge, Boomtown, etc). Tip: You do not need a CRM in order to get started. Just an email account will work. I suggest GMail.
Already lost you with all the lingo? Would you prefer to join up with a team or broker who will do most of this for you and guide you along?
Don't want to bug your friends and family for business? Here are 2 more options to develop Real Estate business faster.
For those of you who actually enjoyed creating the database, I may have just ruined your day... Now you actually have to make human contact! If you are dreading this step then you may want to reconsider the career you just elected, but...
Have no fear though (or at least pretend you are not afraid). When I first started as a Real Estate Agent in Pittsburgh, I HATED human contact. If you know me well, you will know that I'm still not so fond of it actually. I quickly became one of the top agents in our marketplace however so too bad! It's your job now. Like it or leave it. Simple as that.
Ok. If you haven't quit yet, here is what you say when you call:
"Hello [Insert Name], it's [Your Name], how have you been!?" If you're calling your friend who likes to talk a lot, you're going to keep rolling to prevent an hour long run-around conversation with him/her ;)
"Great! So this is just a real quick call about business, I'm just giving you a call to check up on your Real Estate world. Do you have any Real Estate-related needs at the moment?"
"Awesome. I have a bunch more calls to make today so I'll have to cut this short but hopefully we can meet up again soon! Before I go, who do you know who is looking to BUY, SELL or INVEST in Real Estate this year?"
They will likely say "no one" or "I'm not sure". That's when you say: "Anyone from school, work or church maybe?"
If they say "no" again, then you say: "Awesome. Well it was great talking with you let's talk again soon when I'm not 'on the clock' (laugh)."
If they say "yes" then you say: "Great! Do you mind if I tell them that you referred me when I give them a call?"
They will then usually respond, "no, that's fine" and: you should ask for the contact information.
If they say "How about I just give them your info and have them call you," then you can follow up with something like this: "Well, how about you give me their contact info and then you can give them a call today and just ask if they would mind if I called them? As you know, this business is all about referrals, I would greatly appreciate any help you can give me here."
If they are your friend, then they should help you out. If they don't help you out, you may want to reconsider your relationship with them. After all, we are the average of the 5 people we spend the most time with. If my friends don't want me to be successful, then they aren't my friends!
If it's your mom, you can say something like "What the h*ll mom!? Don't you want me to be successful!!!?"
...all joking aside, these scripts work. Use them. Every day.
Would you love to work for a company that offers weekly coaching and script practice?
This can also be fun for the social-butterflies. Go out there and meet people. Anytime you meet someone new, ask them "Have you seen that new Real Estate development at [blah blah blah]!?" They will then start talking about real estate and you can hand them a card and ask if they mind if you keep in touch because you so happen to be the local real estate expert. Ask them, what's the best email address for you? Also, how can I get in touch with you via cellphone?
Don't forget to ask before you part ways: "Hey by the way, who do you know who is looking to BUY, SELL or INVEST in real estate in the near future?" And then stick to the above-mentioned script if they know someone.
Finally, go home and input the info into your Database. This new contact should become part of your quarterly phone-call routine.
I am often asked; "When do you stop following up with a prospect?" And I always answer; "That depends on who dies first. You or the prospect?"
Want someone to feed your database for you so you can focus on the important stuff?
Repeat Step #3 every time you meet a new human.
Repeat Step #2 every quarter (that's every 3 months for the business-illiterate). Classify your top-referrers into a top 20% and you may want to contact those people every month. Those are probably the people you should hang out with more as well.... remember, "birds of a feather flock together!"
CONGRATULATIONS! You are ready to rock!!!
- When you have a database of 300 Sphere-of-Influence contacts and/or past clients, you should be able to close 40 to 60 transactions a year on personal referrals alone!
- This amounts to only 5 phone calls made per day.
- If you average a $250,000 sale price, that's $10,000,000 to $15,000,000 in volume closed annually.
- That's $300,000 to $450,000 in GCI (Gross Commission Income).