3 Ways to Generate Real Estate Commissions

3 Ways to Generate Real Estate Commissions Now and Build a Stable Business

1.     A great way to generate commissions (and sell your listings faster) with a great buyer marketing strategy,

2.     How to create a “Customer List” that brings you consistent clients year after year, and…

3.     How to understand your Return on Investment with your marketing.

 #1:  Need to Generate Commissions Soon?

First, renters don't have a home to sell and can buy within 30-60 days. Find apartment buildings or townhouses, study the demographics, and start postcards, door knocking, blogging, and blitzing consistently for 30-45 days.

What will 3-5 trades look like to your bank account?

#2: Create a “Customer List” and Make Them Your Primary Market

Research shows 77% of all real estate transactions come from relationships; people know the Realtor or are referred by a trusted source.

Here’s something you don’t know: If you built a “Customer List” (database of personal contacts) with 300 people (homeowners). For example, if the average homeownership 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.

Is this getting your attention?

You have 600 people in your database and 84 transactions a year from that list. And don’t forget, that doesn’t include referrals they could send you!

Before you think you've hit “easy street,” you need to understand something. These aren't just “random” people; I mean 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 they’ll be more inclined to think of YOU FIRST when they think real estate.

So the “real” question is: WHO will get all those transactions?

ANSWER: The Realtor 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.

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 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 get 10 to 20 transactions 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. 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”?

Plan on a monthly basis, whether that's an email, snail mail, a text, a call, or coffee. Mix it up, but don't chase; be valuable, and be their source for the right information and trends.

Finally, CREA reports that the “average” contact program takes between 8 and 12 months to “start” working.  (Side note: Some programs I've used have cut that time in half, but even if it takes 10 or 24 months for the “market share engine” to start producing, that’s still OK, since most agents never get it going.)

Systems over flash is for Realtors who want to separate themselves from the pack!