3 Ways to Generate Real Estate Commissions Now and Build a Stable Business
Here are three proven strategies that I will cover in 3 parts. They Are
- A great way to generate commissions (and sell your listings faster) with a great buyer marketing strategy,
- How to create a “Customer List” that brings you consistent clients year after year, and…
- How to understand your Return on Investment with your marketing.
#1: Need to Generate Commissions Soon?
First, renters do not have a home to sell and can purchase within 30-60 days. Find apartment buildings or townhouses, study the demographics and start postcards, door knocking, blogging and blitzing for 30-45 days consistently.
What will 3-5 trades look like to your bank account?
#2: Create a “Customer List” and Make Them Your Primary Market
You already know that research says 77% of all real estate transactions occur from a relationship – they know the Realtor or are referred from a trusted source.
Here’s something you don’t know: If you built a “Customer List” (database of personal contacts) with 300 people (homeowners) (See my “How to Farm The Right Way” report). For example, the average home ownership period is seven years (nationally, it’s 5.8 years), then 42 of those people will buy or sell every year – good market or lousy market.
Wow! Is this getting your attention?
There are six hundred people on your database and 84 transactions every year from that list—900 people and its 128 deals a year – and so on. And don’t forget, that doesn’t include referrals they could send you – it’s just the number of direct transactions that come from that group.
Now hold on. Before you start thinking, you just hit “easy street,” there’s something you need to understand. These are not just “random” people, and I’m talking about people who know you or know OF you.
The higher the “quality” of contact on your list (i.e. the better they know you), the more responsive they’ll be to your regular contact. This means the more inclined they’ll be to think of YOU FIRST when they think real estate
So the “real” question is: WHO will get all those deals?
ANSWER: The agent who farms the best.
The one who’s stayed in contact (at least once a month, every month), deepened the relationship, provided lasting value to their list, and demonstrated they’re a true professional committed to the relationship for the long haul and worthy of the client’s business over any other agent.
Are you willing to become that Realtor, the one who captures 77% of all transactions and holds such a high personal market share that they generate colossal income regardless of market conditions?
Are you? OK, good because next, I’ll show you…
How to Build Your “Customer List”
Building a Customer List is easy if you put your mind to it. Here’s the best way to go about it.
STEP 1:Start with all the people you know and create the “My List.”
STEP 2: Put every new and old client on the list.
STEP 3: Put leads you to generate on your list. Many successful agents make it a point to add two people a day and soon have 500 contacts their first year (and got 10 to 20 deals just by putting people on the list).
STEP 4: Also, the other parties to any transactions you complete go on the list (hint: their agent will forget about them, so they’ll quickly be yours when they buy or sell again).
STEP 5: Create “strategic alliances” with professionals who have clients that could be yours and get a “host endorsement” of your services: accountants, insurance brokers, etc. Consider reciprocating by introducing them to your clients as well. The credibility of the existing relationship is transferred to the endorsed person.
Final note: purge your list every six months to remove lower-quality people. Within 12 to 24 months, you’ll have a small, highly motivated group of people sending you consistent business month-in and month-out.
How Often Do You Contact Your “Customer List”?
It would be best to plan on monthly contact to make any inroads. Commit to monthly or don’t even start. The Direct Marketing Association reports that the optimum contact time is every 21 days. There have also been studies out there that say you forget about your Customer List; you lose 10% of them – another reason for monthly contact.
Finally, CREA reports that the “average” contact program takes between 8 and 12 months to “start” working. (Side note: You can cut that time in half with some programs that have worked for me, but even if it takes ten months to start the “market share engine” producing, that’s still a great deal, and considering most agents never get it going).
Want to learn more? Want to build your business the right way? Contact Ty Lacroix, Broker of Record, at 519-435-1600 or go here