Friday, December 15, 2017

(It’s More Than Just Money!)what you lose by not staying in touch

By Julie Escobar

We frequently share the BENEFITS of building and maintaining a salable book of business or sphere-of-influence such as knowing where your next commission is going to come from, developing long-term friendships and relationships, solid referrals you can count on, etc.  What we don’t usually talk about is the flip side of that coin.  What is it COSTING you when you DON’T stay in touch and follow up with your sphere or farm?

What if ONE prospective seller or buyer fails to call you when they are ready to sell or buy because they ‘forgot’ you were in real estate since you didn’t stay top of mind?  Because you didn’t follow up when you said you would?  Because you stayed in stealth mode, waiting for the phone to ring?  Because you didn’t create a database to manage your lists, so they simply slipped through the lack of system?

We know that on average, top agents get more 66% of their business (or more) from their sphere.  (People who know you, like you, trust you, and you’re top of mind with.)  We also know that 1 in 12 will deliver a transaction or referral per year on average.  So let’s run SIMPLE numbers using our SOI calculator

If I wanted to make $200,000 per year in real estate and my average commission was $6,000 that would mean I would need AT LEAST 33 transactions in a year (plus whatever your fall-through rate is) to reach that goal.  If 66% of that is coming from my sphere – that means I can count on 22 of those transactions coming from the people I am staying in touch with. If 1 in 12 are sending me that business, then I’ll need at least 264 in my sphere to hit the numbers.

The reverse of that is this…22 commissions LOST. That’s $132,000.  But it’s even more than that-right?  Because let’s face it, if good news travels fast, bad news travels faster-doesn’t it? So, for every broken promise, lack of follow up, or poor customer experience you provide, that can mean a loss of not just a customer, but every referral they might send your way.  Add social media in the mix, “don’t use Agent X because they don’t follow through” – and you’ve got a slippery slope that’s tough to recover from.

  1. Commission loss per seller or buyer? _____________ (Average commission)
  2. Loss of referral?  ______________ (Average commission x let’s just say 2 referrals)
  3. Loss of re-list and future sale? _____________ (Average commission x average homeowner moves – lists, sells, and buys new – every 9 years)
  4. Loss of marketing dollars spent on those sellers and buyers not recaptured? ________________

Lastly, loss of reputation as a turn-to, stand-up, get-the-job-done agent.  That’s really too much to calculate, isn’t it? And that’s not YOU anyway!  You’re the stand-up agent-right?  Besides, staying top-of-mind is an easy, and affordable investment.  Remember that SEND-CALL-SEE + NETWORK approach I’ve shared in the past.

Start with how many you need in your sphere by heading over to our Sphere of Influence Calculator.  

SEND – let’s take our example from above – if I needed to stay in touch with my sphere of 264 customers listing-inventoryevery 30 days to stay visible, (and help earn that $132,000) – and I wanted to send a standard sized postcard first class, that would be 62¢ per card  or $163.68 per month.  Or you could choose jumbo cards, or newsletters, our Dominator, or even handwritten cards – or better still a combination of all of the above. See what your budget allows and start somewhere, but be consistent every 30-45 days.

CALL – you should call your customers every three months.  If you break down that 264 number over 12 weeks — that means you just have to call 22 per week to reach everyone.  Easy FEB-Dominator-FRONT-Largepeasy!

SEE – you should see your customers at least two times a year.  Many agents host open houses, holiday events, or even neighborhood block parties (with sponsors for each) which gives them a chance to see many customers at once.  Take that top 20% of your list – the ones who consistently send you business – and be sure to spend some one on one time with them.  Take them to lunch.  Drop by a gift. Deliver tickets to the movies for their family.  Our Master Marketing Schedule has some terrific ways to creatively connect each month.

NETWORK – In today’s hyper-connected world, networking has to be part of the equation. From social media to joining local groups, to developing a mastermind of like-minded people to share with — networking is a key source of knowledge AND referral business.

Don’t lose any more dollars, branding, or reputation to lack of connectivity.  You are your business.  The connection you have with each and every one in your sphere will determine whether they stay a client (and a referral source) or whether you take a loss.

Need help? Contact our team at 866.405.3638 today.

New Digital Magazine Filled With Tools for YOUMaster Marketing Magazine

by Julie Escobar

We’re thrilled this week to introduce you to the digital, online version of our all-new Master Marketing Magazine which started hitting mailboxes all across the nation last week.  The reviews and comments are coming in fast and the word on the street is that it is already being recommended as a tool agents can count on as they put their marketing in place to hit this year strong.

With 67 pages filled to the brim with strategic content, creative ideas, and tools you can use – you’ll want to be sure to get your copy as well!

Here are a few of the featured articles: 

  • 15 Facts About Every Door Direct Mail
  • Handling Objections (Like a BOSS!)
  • Putting the “Influence” Into Your Sphere
  • Gearing Up for Expireds
  • How to Track Your Marketing Results
  • Help Me Help My Agents (For Brokers and Managers)
  • Understanding the Value of Your List
  • The Market Dominator
  • Master Marketing SUCCESS Strategies
  • Just Listed/Just Sold Postcards:  NOT Just for “Old School” Agents
  • Four Tips to Building Your Listing Inventory
  • Five Ways to Use Done For You Content

And so much more…

How do you get YOUR copy?  If you are already a registered member of www.ProspectsPLUS.com, you should be receiving your copy in the mail very soon.

If you’re NOT yet a registered member of www.ProspectsPLUS.com – sign up today for your FREE account and we’ll send a copy right out to you!  There’s no cost and you can start using your account right away!

Ready to start reading NOW?  Click here to read (and bookmark) our Digital Master Marketing Magazine today!

To help celebrate our new publication, we are also hosting a fun, interactive Sweepstakes – where YOU could win a $250 ProsectsPLUS.com Gift card!  Find us on Facebook and click the Sweepstakes tab to enter! Winners will be drawn February 16th! Enter as often as you like, and share the sweepstakes to earn MORE chances to win! Click here to enter! 

We’d love to hear from you!  Leave your comments below and let us know what you think of the magazine! 

Will YOU Cut Your Commission?commission objection handling brochure

By Julie Escobar and Jim Morton

Oh boy.  Things are heating up out there and competition is getting pretty intense.  What we know is that nothing lasts—not the good times or the bad times.  But one thing that ALWAYS seems to rear its nasty little head during the GOOD times is that the discount commission agents start coming out of the woodwork.  And that means it’s time for savvy agents to get down to business and know how to handle objections well before a seller even has the chance to utter the question, “Will you cut your commission?”

To help you head that objection off at the pass, I sat down with ProspectsPLUS.com Company President Jim Morton to get some 5 Star dialogue for handling that oh so common objection!

The truth is that listings are (and always have been) the name of the game.  So, what are you seeing RIGHT NOW?  Agents want LISTINGS.  Why?  Because they’re SELLING. What HAVEN’T you seen in recent years?  You haven’t seen a lot of discount brokerages, or sell-it-on-your-own type companies. But they’re back – and they’re back big. And FSBOs are getting a little cockier as well.  So be PREPARED.    You’re going to get hit with objections.

The best thing to do in this market?  Is to get prepared.  Know that there are really only a few common objections when you get down to it.  And you’ll probably be hit with quite a few in the next year or so.  See if any of these sound familiar?

  • “The other broker said they would list it for less commission.”
  • “I want to try to sell it myself to save the commission.”
  • “I have a friend in the business and they said they’d take less commission.”

When you are hit with one of these – or any objection, remember this.  The way to change another human being’s feelings is VISUALLY.  A few well-chosen words with a correct visual will always take you further than the words alone.  So having five or six commission handling brochures in your briefcase at all times.  That does a couple of things for you.  First, it lets the sellers know that you are prepared, and you’ve handled this before.  Secondly, it will give you a track to run on.  There’s six reasons why another agent might take less – and how that can be COSTING that seller money.  Your job as the professional is to visually show them these six reasons with a few well-chosen words and have the ability to handle that objection without stress.

How do we get started?  First go to the website, download a pdf of the commission handling brochure, fold them up and keep them in your briefcase as part of your presentation tools.  If you’re using an iPad or notebook for your presentation you can display the pdf on that as well.

Next, use the five-step objection handling process:

  1. Agree with them.
  2. Ask them open-ended questions.  (They usually start with:  Who, What, Where, When, Why, and How).
  3. Isolate the objection with a sharp-angle close.  “Well what if you knew ______________, would you _______?”
  4. Show them something.
  5. Use an assumptive close.

Here’s a little dialogue: 

Mr. and Mrs. Seller, you know if there is a way to save money — I don’t blame you.  I’m always looking for ways to save money as well.  In today’s world it just makes sense-right?  And you know if in fact you could save money going with that other broker, I’d recommend that – but I guess let me ask you this:  What’s more important to YOU?  Is it paying a lower commission or is putting the most money in your pocket?

Oh, OK, so it’s putting more money in your pocket?  Is there anything else?  Any other reason you would want to go with someone else other than the commission?  — Ok – so just the commission.

Well let me ask you this – what if you knew that by going with that other agent you wouldn’t be saving a dime?  As a matter of fact, you might be costing yourself five or six thousands of dollars out of pocket, would you still go with them?  I guess, here’s what I mean.  What if you knew that by paying a lower commission that you’d put less money in your pocket when it’s all said and done.  Would paying a lower commission still be important to you? What’s more important? Paying a lower commission or putting more money in your pocket?

What if I could show you beyond a shadow of a doubt, that sure, I may charge a little more, but if I could put more money in your pocket would you go ahead and put it on the market with me? If putting more money in your pocket is really what’s most important, you’d almost insist right?  Well let me show you some things that will save you a lot of time and aggravation – and even a lot of money.  Would that be OK?  There are six reasons that a broker or agent will charge less commission.  Let’s go through them – let’s start with what could be the most important one — reducing their commission…

The truth is — a 1% reduction of commission results in 20% of their income.  Let me ask you something – if your agent is so good at letting you negotiate a 20% reduction of their livelihood – how well will they do at protecting your interest with a buyer who wants to reduce the price of your house?”

The commission handling brochure has six great reasons why the OTHER agent is willing to reduce their commission – and frankly – why they SHOULD.  It’s a powerful tool to have in your toolbox when facing pricing objections in what is sure to be a busy and competitive market ahead.

Hope the dialogues helped!  Get your copy of the commission handling brochure today by clicking here.  Need help with your marketing needs as we speed into the new season?  Call us today at 866.405.3638!  That’s what we do best!