So what would I do if I were a new agent just getting started or if last year I didn't close at least $2m in sales?
First, there are so many ways that you can decide to work your business. You need to find your own grove and do what works well for you. Some may like cold calls and knocking on expired and FSBO doors, others may prefer to write blogs and work with a small group of people. BUT, you've got to do something. As a parent you may tell your kids that after they TRY a veggie and they don’t like it they get to pick two veggies that they don't have to eat, but all the other veggies the must eat. Same thing here. If you don't do something, you'll get the results that you put into it... NOTHING. So eat your veggies.
These ideas are not in any particular order. And just because you've done some of these things, it doesn't mean you'll be selling $2m from day one. You've got to work your business for your business to work for you.
KNOW WHERE YOU’RE GOING: Before you can get to where you're going you need to know where you want to get. Do you know what you want? One of the easiest ways to track how well you're doing is to pick a dollar amount in either sales commission or sales volume. So you want to gross about $50k in commissions a year, you'll need about $2m in sales ($2m times average commission less your split). That would be about 6 sales per year (depending on the average sales price of the properties you want to work with). What's important in figuring out what you want, you need to know what can get in your way of getting it and then figuring out how you're going to overcome these obstacles. Some obstacles you can prepare for, others jump at you when you least expect it. But as you get started, you know what's in your way. If you're experienced, you can look back and see some of what got in your way.
There are people thriving in this economic environment, so you don't get to use this economy as your excuse, but it is something to be aware of and figure out how you will be a value to others.
OK... Here we go
LEARN MORE: If you're new or not making $2m a year, you need to learn a thing or two. Attending classes at your office, with RMLS, PMAR, title companies, etc. are IMPORTANT. Just being around other agents that are doing things will help you as you are trying to find business or deal with the business you get. You can never know too much.
BROKER OPENS/TOURS: If you're new or haven't been out in a while, it's time to got to some broker opens. These generally happen on Tuesdays from about 10am until 2pm. Some have food :o) something good for new agents that are starving (or if you didn't sell $2m you're probably starving too). If there is a neighborhood you like that's the neighborhood to go to broker opens. If you're working during the week, then go to the open houses... just let the agent know you're an agent and don't bug them when they have real business there (even if you’re in the middle of a deep conversation). Some opens are so dead agents will eat up your time because they're bored to death. This is business... not social hour so check out the place ask about whatever it is you want to know about and then move on. Many open houses are only 2 hours... but run anywhere between 11am and 4 or 5pm on Sundays. When you go to open houses it's so you will get familiar with the current market and activity. How long have the homes been on the market, are they getting good or bad feedback, what's good and what's bad about the property/neighborhood? Everyone should be able to accomplish this task.
OPEN HOUSES: Hold open houses in the neighborhood you'd like to work in (or property types you'd like to work with). It does not need to be your listing for you to hold an open house. It is better if the property is listed with the company you work for, but that's also not a requirement so long as you have the listing agent and owner's permission. Make sure all of your marketing has who actually has the listing (or what ever other requirements there may be). You'll find buyers and sellers that like the neighborhood or property type you like. Now, to make open houses work for you, you can NOT just stick a sign in the yard and hope a bunch of buyers/sellers will show up. The more you work this, the better the results. For more about holding open houses read the blog about open houses.
WEBSITE: If you don't have a website, you need one. Even if you have no money, you need a website. If you go to Godaddy.com you can buy your domain name for $10. If you go to promotionalcodes.com or promotioncodes.com you can find $3 off most days. If you set up a free wordpress.com blog you can then direct your domain to wordpress or other blog account (like blogger that is also free). While this may not be the perfect solution, you can at least have a website, let people know you exist and that you're a pro. While most profession canned websites run about $50-80 a month (depending if you have IDX or not), you can have a presence without the $600-1,000 annual expense. If you already have a website, you should also have a blog. If you're not busy doing sales then you should be figuring out ways to make money and having people discover you. There are forums you can join and answer people's real estate questions. Many are free and you can get your name out. Be sure you always post a link to your website so you can increase your SEO visibility.
DATABASE: If you haven't listed everyone you know in a database, this makes for a great project. You can open a free batchblue account and hold up to 200 people in it for FREE. Start putting in their name, phone number, address, email address, facebook/twitter accounts in your system (you can add more stuff to it like the birthdays, kids names, etc. but don't get overwhelmed with all the stuff!). If you're afraid of a system, then put it in an Excel or other spreadsheet (a free spreadsheet system is available at openoffice.org). Think about what you want to send them 3-6 times a year. Since you have all this time on your hands right now, go ahead and start creating the pieces - email and hardcopy. When you look at them down the road when you're ready to send them, you'll see how much you've changed, grown, learned since you put the pieces together. This database is vital to your business. Keep adding to it and keep it up to date.
RECONNECT: If you're new or have been out of touch to your sphere, it's important you let them know what you're doing these days. Let people know you are interested in being introduced to people that are interested in buying a home or selling their current home... or for any of their real estate needs. How do you let them know? Send them a letter and include your business cards (it helps to have one in the envelope that has your card attached to a magnet). Send them an e-blast (make sure you use something like mailchimp or other email system that allows you to see who's opened your email). Invite them to your blog for information about the housing market or other useful information (if you are in fact offering a useful blog). Knock on their door and say hi. Invite them to coffee or to see your new office. Post on Facebook, linked in, active rain and let people know what you're doing.
HOBBY: What do you enjoy doing? Find a club or group that you can participate in that is not real estate related. You can find groups at meetup.com (free), craigslist, and other online communities. Just type in what you like and add the city or zip code and something will pop up. Make sure it's in person. If you like poker, don't do online poker, get out and play with friends or others. If you're a mom or cyclist or hiker/biker, there are tons of activities you can get involved in and have fun with and also expand your database. If you've not read the Power of Who or the Tipping Point, these are some good books to read so you can see how important it is keep in contact with people and meet new friends. Networking is important, both on a social level and a business level.
MILLION DOLLAR PRODUCERS: Every year they post who the million dollar producers are. If you’ve not already met someone who produces more than you (or produces what your goal is) then it’s time to meet one. Talk to your principal broker or some of the agents in the office until you find one that is willing to talk to you. Take him or her out for coffee or lunch and pick their brain. Ask them for three things they think you should be doing right now… and then do them!
This is a long blog and there is more that can be done… but you’ll just have to stay tuned for the next round… for now, do at least one of the above, and then another.
Then check back to TackleRealEstate.com for more stuff as it will open more doors.
Sunday, February 21, 2010
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