February 9, 2017 by Jeff Lowen
There are 3 ways to get business. Yes, only three.
- Wait for it
- Buy it
- Go out and earn it
Don’t make it more complicated than it needs to be.
Of the three, which one do you prefer?
In my travels, I’ve noticed the majority of real estate agents, prefer to wait for it. Then when that dries up, it’s time to buy it. This is the crossroads. In other words, the money gets burned up and it becomes too late to sustain the business. For some, that means getting out of real estate altogether. For others, it’s time for the only option left… Go out and earn it.
But, wouldn’t it be easier to go out and earn it first? Hmmm… “Easier?”
Let’s define them a little more for your reading pleasure… Waiting for it is the easiest. Yes, that’s why most jump on this bus. You tell everyone you’re an agent and by some miracle, people will call on you. Family and friends, and an occasional referral. Over time, if you can survive, people tell people and you might even develop a following.
Note: Waiting for business is HIGHLY unpredictable.
The next one on the list is buying it. Internet leads, SEO, pay per click ads, expired and FSBOs from a lead provider, a referral company, and the list goes on. Causes deep gouges in business and personal bank accounts.
Note: Buying business is expensive.
Lastly, let’s go out and earn it! This is where you spend more time on your skills like scripts, dialogues, presentations, open-ended questions, conversion, communication skills and people management and leadership skills.
Note: Going out and earning business is sustainable, inexpensive and VERY sustainable and predictable.
Now, let’s look at a better progression of these three. A business strategy, if you will.
Forget about the, ‘wait for it’ and the ‘buy it’ methods for now. First of all, waiting for business should never be a strategy. This is where your income goes up and then it comes down, and then… Well, you get it. Buying business isn’t a bad thing, it’s just a timing thing. If you don’t spend the time and effort ‘earning it,’ by first working and practicing your skills, then the leads you get from buying it will come… And then they’ll go just as fast.
Going out and earning it isn’t posting on Facebook or Instagram that you’d love to help someone buy a home (I’ll admit the social media platform can be a source of business, but few master the art of using it effectively without manipulating the time you spend on it). Or spending tireless hours on the perfect business card. It’s prospecting, contacting and having a serious real estate conversation with a decision making adult, multiple time each business day you work. Period.
Yes, it’s calling expired listings, FSBOs, calling around just listed and just sold properties, door knocking, buyer and seller seminars, and purposeful open houses. Are there more ways to earn it? Sure, but let’s focus on these.
- Here’s a prospecting formula: The number of people you talk to on an average work day (say, Monday-Friday), will yield that number of closed transactions per year.
- A conversation is a conversation with a decision making adult.
- The average person can speak with 3 to 16 people per hour. For example: 10 contacts per hour + 2 hours/day = 20 contacts = 20 deals per year
In order to maximize your success…
- There should be no distractions while you’re making your calls.
- Practice/role play before calling.
- Set goals: How many people will you talk to? How many appointments will you set?
- Work on objections when you role play.
When I help a newer agent or one that’s been surviving with buying the business or waiting for it, I get the same aversion to calling people. Contacting people. And, BEING a salesperson.
If making sales was easy, then everyone would be successful at it (Notice I didn’t say everyone would have a real estate license… for obvious reasons!).
If all brokerages or team leads would ask the all-important question, “When you join our office, how will you get business; Waiting for it, buying it or going out and earning it?” How would you answer? Is what you’re doing right now sustainable?
Real estate is a contact sport. And yes, to be successful at it, you’ll need to practice…
- Practice scripts and dialogues
- Open-ended questions
- Conversion techniques
- Communication skills
- Your listing and buying presentations
- Negotiating skills
- People management and leadership skills.
Nowhere in here do I mention spending countless hours perfecting your business card or your brochure or how perfect your picture needs to be. Somebody somewhere is claiming these are old school techniques that just don’t work anymore.
And I say, you’re absolutely right. Now go out and get a W-2 job and leave the real estate success to those of us that are up for the challenge!
Okay, I’ll get off my soap box, now. 🙂