After speaking with hundreds of Real Estate Agents around the USA. Yes, that includes bad Agents, good Agents, terrible Agents, Agents that are just getting started and Agents that are profitable and run large teams.
It is clear that the good Agents and the profitable Agents know something that the others don’t know. After analyzing the conversations let me share with you want I found.
If you want to become an Awesome Agent that is Profitable or want to increase your profit by maximizing your lead conversions schedule a demo with HelloAlex.
Here are the 3 secrets to being a profitable Real Estate Agent:
- It’s a numbers game.
- Follow-up creates Winners
- Busy kills sales and momentum.
Yes, these three secrets may sound simple but that’s where you are wrong. “The greatest leverage comes from the smallest pivot point.” You might say you have heard these secrets before or you know this stuff already. Or you might be thinking where is the new stuff, Ben?
But let me address the biggest reason why Real Estate Agents fail first. Based on hundreds of conversations with those Agents who are stuck under the $30,000 a year level. That means they are losing the game of being a Real Estate Agent and are trapped in a business cycle that resembles depressing chaos.
Agents fail to become Awesome because they fail to execute on systems and implement. They are afraid of the telephone and can’t control their lead guilt.
Lead guilt is that lousy feeling or knot in your stomach when you are getting leads but not following up with them. Allowing them to go cold because you are “busy” and not responding in a timely manner.
Failing Agents are busy but not profitable. These Agents don’t understand busy is not profitable. They don’t know how to focus their energy on dollar productive tasks rather than busy tasks.
Failing Agents spend their time bouncing from the new widget, or secret marketing strategy to next secret marketing strategy. Without implementing or giving the strategy time to work.
Profitable and successful Agents understand nothing works the first time and everything takes time. You need to have the time and systems inlace to follow up with your leads. Why?
Secret #1: It’s a numbers game
Only 3% of your leads are ready to buy right now. That’s right 3%! That means 97% of leads are displaying buying intent, however, are not ready to take action. (This could be buying or selling or renting. There is a customer journey for every lead. This means the time it will take for that lead to Act. Just because you are browsing properties does mean, you’re qualified and ready to sign a contract.)
That means you are buying leads and 97% of them are not ready to sign a contract today. So what do you do?
Tip: If you would like to know how you can increase the quality of your leads with better list (audience) segmentation. Contact our team, and we will be happy to show you how you can increase conversions and reduce CPA up to 70%. Targeting those leads in-market with buying intent can save you a lot of time and money. Schedule an appointment using this link: http://bit.ly/2shR6SG
If you are part of the Agents that are stuck you move on to the next lead or lead source. Bad Agents say “… Leads Suck” or “… Leads are bad.” However this is far from the truth. The best Agents know that Followup matters. Followup is all about creating touch points to continually engage all your leads in conversation. The great news is this conversation can happen online, in their head, or with your assistant or chatbot.
Profitable Agents know that it’s a numbers game to win. You work the numbers, and you will win the Game of being an Awesome Agent. Profitable Agents understand the 3% Rule and work the 3% Rule. This means continually making a connection with your lead to find today’s 3%.
Tips: Profitable Agents Know their numbers. They know their new leads, calls (Calls Outbound, Connections, Calls Inbound, Response Time Average), postcards, follow-up campaign sequence, is it 3 days, 30 days, 90 days, newsletters, Facebook Ads, Google Ads, Lead Referrals, Average Time to Convert based on Lead Source (Yes, each lead source provides different conversion cycle!).
For example, generating over $100,000 in Commissions takes 200 telephone calls per week. We call this the March to Awesome 100k Additional, where we have created the complete blueprint of how to generate $100,000 in commissions.
The Formula has not changed, and it is the foundation to sales. However, Bad agents want to skip the foundational basics, or have a belief that it does not apply to them.
Success Formula is all numbers. 1,000 touches a week, 200 Outbound Phone Calls results in 40 conversations. Which will be 4 appointments and 2 listings.
Why 1,000 Touches? Touches are everything that is not a conversation. This includes Facebook messages or social media posts, postcards, newsletters, letter mailings geo-farming to generate your 3%.
Touches are reasons for you to engage with your list on multiple channels. A touch can cause an inbound buying intent action. This means that your lead has the intent to do something with you or refer you.
Winning Agents are continually looking for systems and ways to engage. There is nothing better than an inbound phone call or conversation request via SMS, FB, or Web chat. However, this is further stimulated by outbound calls.
There is a difference between buying systems to use, and implementing them into your business. Implementing even the most simplest of simples beats complicated or fancy systems.
Yes, that’s right outbound calls! The telephone is still the best way to do business. Yes, there are other channels like FB, or Text Message, or WeChat but it is all related to the telephone. The more you call and have active conversations rather than passive the more deals you will close.
Active conversations are moving people toward contracts. Passive conversations talk about social topics and don’t have any commitment or obligation to act. Without a commitment to take action there is no commission cheque. It is like telling the person the check is in the mail!
Flipper Investors know that for every 10,000 postcards is 1–2 contracts for a property. Remember this is a cold marketing approach of a postcard to generate a call, call to convert to contract. The tipping point for this approach is 10,000 postcards. That’s why some people are mailing ten’s or hundreds of thousands of direct mail per week.
There are multiple ways to create engagement and dominate a local market. When you think about a local market, it should be 2,000 rooftops. This allows you to dominate your consumer’s mind. Top of mind awareness, without breaking the bank. As soon as you start to expand into a marketing radius that is larger than 2,000 rooftops you need to increase your budget significantly.
However, before you start to blitz your market, you can focus and optimize your spend with Audience Segmentation. Who are you targeting? What type of client, property?
Taking a few minutes now to answer these questions will prevent you from generating a list of the wrong people.
How to dominate a local market:
- In-Market Leads aka the 3% Searching online
- Facebook Retargeting your leads
- Google Retargeting your leads
- Postcards based on known behavior Triggers
- Postcards based on seasonal events
- Recent Sales, Just Listed.
- Letters based on known behavior Triggers
- Newsletters based on known behavior Triggers
- Sending one every 3 weeks creates engagement.
- Facebook Events (Open Houses, Local Training)
- Live Streams
- Open Houses
- Street Parties
To remain top of mind for your market your audience needs to engage with your message 7–13 times. Then you need to engage them when they are ready with buying intent. This means you don’t know who is close to taking action, and who is ready to take action.
The results from a print newsletter campaign start to be experienced from the 3rd month. This means sending three issues to your list, and then continue to engage. This gives your newsletter enough time to re-engage your audience as long as you are delivering value with your content.
What we do know is that your followup is important and you need to leverage “omnichannel” touches.
2. Follow-up creates Winners
This sounds simple but it is far more complicated than you think. This is the golden rule for any salesperson. To be clear let me define it in detail.
Get leads, then follow up with leads until they are ready to take action.
This sounds simple and like something you don’t have to worry about. However that’s the difference between Awesome Agents and Real Estate Agents that are losing the game.
The Real Estate Agents that fail are constantly chasing new leads. They apply the speed to lead principle and attempt to contact the lead in less than 5 minutes. However it is shown that contact is made with less than 75% leads for various reasons.
This means you are going to make contact with 1 in 4 within 5 minutes. To continue this 24/7 is impossible and at some point you are going to have more new leads coming in than you can respond to in 5 minutes.
What we have noticed is that the average Realtor will drop a lead if there is no response within 3 days. However this approach does not support the buyers journey theory.
The Buyers Journey Theory assume that every lead has a path they are going to take to get to their destination. This means there is a timeline and motivation sequence of events that needs to occur for them to take the action of buying or selling. This timeline varies based on their buying intent and the urgency of required action.
- If there is no buying intent with no urgency to take action no matter what you do the lead will not sign a contract.
- If there is buying intent with no urgency to act it is harder to motivate the user to act.
- If there is urgency with no buying intent the lead will leave it to the last possible minute to act. You just need to be in the right place at the right time.
- If there is urgency with buying intent you have commission cheques.
This just reinforces the Rule of 3%. Only 3% of your leads are ready to sign today. But isn’t the answer to just get more leads?
Well yes an no. Because each lead has a price for acquisition. Even free leads are costing you. What you might realize is that your “free leads” are your most expensive type of leads.
You are buying leads from your lead source each month. If they give you 100 leads per month, that means 3% of them are ready to take action today. The question is at what point will the remaining 97% take action. What you can expect is that there will be another 3% of the 97% within 30 days. Then another 3% within 45–60 days. This is assuming you are regularly connecting with these leads. Yes, it means you need to activate touch points every 24–72 hours on multiple channels.
Tip: If you are buying leads every month and don’t have a campaign that follows-up with your leads for at least 90 days you are leaving money on table.
FACT: 40% of leads convert with long term follow-up.
The problem with this fact is that in Real Estate that can be 18 months of engagement before a lead is ready to purchase. Buying a house requires multiple variables that influence the decision.
- Does the person have children?
- Are they waiting until end of school year or semester?
- Are the moving for work and what is the new start date?
- Did a family member die?
- Do they have finance approval?
- Do know where or what they really want?
The Realtors that are failing also jump to the assumption that leads are bad too quickly. For example let’s talk about a specific lead source of Expired listings. This is something we have tested.
With an expired listing it is possible for the owner of the property to receive upwards of 300 calls within the first 48–72 hours. Imagine that experience of the homeowner, they listed their property with a Real Estate Agent and the house did not sell. Then they get bombarded with calls from Agents wanting to re-list the property. Talk about emotional roller-coaster.
Yes, you read that right 300 calls within 72 hours. We have spoken with people who have turned off their phone, taken it off the hook, changed their voicemail.
However the statistic is that the average expired listing is ready to re-list the property for sale 45–90 days after the expired listing. This means based on this math you are better to skip the follow-up with this lead within 72 hours. And start contacting them 14 days and continue to contact them for 90 days after the date of their expiry.
Why 14 start after 14 days?
Because this allows the noise from all the other real estate agents to completely fizzle out. Most agents will have given up within the first 72 hours where you can stand out from the noise.
Follow-up allows you to win the Game. The advantage is for those Agents who want to win there are plenty of tools you can use for follow-up. Tools like HelloAlex.io but the list is long and you can choose your preference.
What is clear from all the noise in today’s market is. The Agents that continue to show up, and show up using omnichannel touch points are the agents that win. You need to be top of mind when your leads fall into the 3% category.
You can no longer just you one channel of communication with your leads. You need to use all or as many of these channels as possible.
- Facebook Retargeting -(Running advertisements that only target your leads, based on their lead status and run campaigns for at least 90 days for lead status.)
- Google Retargeting - (Running advertisements that only target your leads, based on their lead status and run campaigns for at least 90 days for lead status.)
- Bing Retargeting - (Running advertisements that only target your leads, based on their lead status and run campaigns for at least 90 days for lead status.)
- Ringless Voicemails - (This sends a message directly to the voicemail of the person.)
- Text Message (You need to be aware of Text Message laws and always gain consent for the conversation.)
- Direct Mail. This includes Postcards and Letters. What you should do is vary the types of postcards and letters that you send and always send them as part of a 3–7 part sequence.
- Print Newsletters - As much as people want to go digital and email only. Print Newsletters stand out and get attention. An email lives of 3 seconds and then is dead. However a newsletter can sit in front of your lead for weeks. They can engage with the crossword or recipe cards for weeks or months.
- Outbound Phone Calls - Your goal is 200 new telephone conversations per week, with your new or old leads.
The good news is that technology today allows you to create campaigns. This is just automating the sequence of events that happen based on the lead source or lead type. That allows you to know you have a baseline of communication that happens with your leads. To become an Awesome Agent that Wins the game of Real Estate establish a baseline of 90 days to dominate your market.
Remember humans and in this case Not Profitable Real Estate Agents are looking for any excuse for a shortcut or ways to self-sabotage their success. One simple shortcut is to not worry about setting up a system to follow up with your leads.
You don’t want to take the Hours or Days to set up that system now as there is much better things you can be doing. Even though if you do set it up now, it will save you 1,000’s of hours later and generate endless commissions.
Tip: HelloAlex provides all clients with a Concierge who personally works as your marketing system to configure any of your marketing campaigns that function on the HelloAlex system. This is just another way you can take a shortcut and have someone else do the work for you. www.HelloAlex.io
3. Busy kills sales and momentum.
Hundreds of conversations with Real Estate Agents always result in the same conversation related to time. Not having enough time and being shackled to your telephone.
Profitable Real Estate Agents understand the power of systems and creating the right team.
Poor Real Estate Agents believe they need to do everything themselves. This is a scarcity mindset.
Profitable Real Estate Agents understand the “Dollar Productive Tasks.” What are your most profitable and important tasks you need to complete? And everything else can be given to an assistant.
Becoming a profitable Real Estate Agent requires you to have systems in place to run a business. Not just have a job. If you understand this concept now it can transform your life for the better.
A business is made up of system that people monitor and interact with. Jobs are part of a system that people work.
Most of the Poor Real Estate Agents are focused on a “Job” rather than a “Business” and wonder why they are not getting the result they want.
Just because you are busy does not mean you are profitable.
Take an honest look at how you spend your time each day, or for the last 72 hours. What did you achieve? What did you do that is moving you closer towards your goals? How did you leverage your time?
Just because you are busy does not mean you are dollar productive!
Running around doing errands or tasks that can be down by others is not dollar productive. Use technology to your benefits for tools like Calendly to automate the scheduling of appointments, or digital document signing.
Getting an assistant, setting up systems that will engage with your leads and clients gives you leverage. Leverage allows you to win.
It’s clear that profitable Real Estate Agents know how to leverage time, and the time of others to build momentum. They understand that it takes a lot of work to get the Real Estate Business train moving. However when it is rolling all you need to do is keep it on the tracks.
Action Item: If you want to become an Awesome Agent that is Profitable or want to increase your profit by maximizing your lead conversions schedule a demo with HelloAlex.
If you are looking for a Real Estate Assistant that can help you automate your marketing campaigns for only 41 cents an hour schedule your demo with HelloAlex
HelloAlex can help you automate your marketing follow-up with ready to use multi-touch omnichannel campaigns.