Real Estate Is Not A Numbers Game... Or At Least It Doesn t Have To Be
You"ve heard the cold caller"s philosophy...for every 100 phone calls you make, you"ll get five appointments; for every five appointments you go on, you"ll get one listing. Therefore, if you make 500 phone calls, you can count on five listings as a result. If your average listing commission is $5,000, then every phone call is worth $50 since it takes 100 phone calls to get a listing. Supposedly you will actually start to enjoy each rejection, because you realize that every 99 "no"s" equals a "yes" which leads to a paycheck, since every "no" means you are one step closer to a "yes." Sound fun?
Not to me. In fact, it sounds like an awful way to make a living. Pestering people for three hours a day asking the poor sap who answers the phone if he "knows anyone who"s thinking of buying or selling real estate? Being rejected 99 times out of a hundred, voluntarily? Ick. Phooey. Blech.
So tell us how you really feel, Jennifer!
Okay, thanks for asking, I will.
The State of Colorado"s Division of Real Estate did not grant me a real estate license so that I could be a professional prospector. I have to assume that good old DORA intended for me to spend a significant amount of my time serving the clients I am honored to have today instead of tracking down the ones I hope to have tomorrow. Taking good care of my listings and my buyers. As my first priority. Not as an afterthought when I can squeeze them in around my prospecting and networking efforts.
But, but, but....!
Yeah, I know. As self-employed types, we have to ensure ourselves a steady stream of business to keep the home fires burning in the style to which we intend to become accustomed. Hey, believe me, I never took a vow of poverty and I don"t sell real estate out of the goodness of my heart. I"ve had $50,000 months before, more than once, and I could happily get used to that!
But you know what? I have never cold called, I have never knocked on a stranger"s door... in fact, I"ve never even asked a stranger for business. Ever. No, not even FSBO"s or expireds.
For ten years I have depended on my SOI for 100% of my business. And they have generously delivered. Sure, I"ve picked up the odd client here and there from floor time or open houses; maybe two or three a year, which is nothing to sneeze at. But the vast majority of my business comes directly or indirectly from the people I know or meet.
When you depend on your SOI for business, you bow out of the numbers game. And it"s wonderful. No more dragging yourself to the phone for your daily cold calling session. No more searching the real estate ads for your next FSBO target. No more beating yourself up because you"d rather take a nap than finish up your 10 HouseValues CMAs that are due today.
When your pipeline is running low, you have a little Super Bowl party. Or send out some friendly personal emails. Or ratchet up your "take-a-friend-to-lunch" campaign. You don"t need 20 more clients today; just two or three good ones will restore your mood. And your bank account.
SOI business is good business. It"s loyal business. It"s fun business. The success ratios are more like 50%-75%, compared to 5-10% from traditional lead generation (and that"s being optimistic!). So if you get 100 leads from your SOI, that will result in 50-75 closings from you.
And the best part? If you spend a few years building a strong cheering section (i.e. your SOI), you can coast through the rest of your real estate career. NO prospecting, NO marketing budget, NO sleepless nights worrying about where your next closing is coming from. Now, that"s a lifestyle I could get used to (and I have).
Jennifer Allan, author of Sell with
Source: http://ezinearticles.com/
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