(If you're doing less than 20 sales a year, or wish to add 20 sales this year, follow this post).
Depending on leads being given to you is a sure way to slavery and starvation. Although many of the real estate agents joining the industry do so with a dream to experience financial freedom, many are far far from it. According to National association of realtors more than 70% of the agents who join our industry end up quitting in the first 12 months. Quitting doesn't mean they give up their license. Quitting means they don't manage to do any deals and therefore can not afford to stay in the industry.
So why the statistics work against so many?
Real estate sales is an amazing industry allowing hundreds of thousands of individuals in the US to afford an amazing lifestyle making 6, 7 and 8 figures a year selling residential real estate. These are the top producers representing about 10-15% of the realtors population.
The difference between those who quit and those who thrive is very simple. The quitters have a dependency mindset, they're use to be passive individuals with have an employee mind set. That's why so many of them choose to work for the "brand name brokerages" hoping that the brand name will help them make money. But shortly after joining these "brand name" companies they realize the name is not as profitable for them as it is for the top producers.
Working in a Coldwell banker office made me realize the absurd reality of so many dependent realtors. Many of the agents in the office were volunteers for what is called "floor time". Basically they decide to work as secretaries (for free), answering the phones and taking on the front desk duties, hoping they'll get a LEAD while answering many phone calls (most aren't leads at all, but other realtors calling to schedule showings etc) and be able to work the hopeful lead and make some hopeful money. Some agents manage to do 1-5 deals a year this way, but they make way below a minimum wage income. These agents for some reason avoid what I call an A Activity. They were focused on the 80% that only makes realtors 20% of their income. These are the B, C and D activities. They lack sales skills and we're completely focused on the wrong activities. That's why so many of them end up quitting or doing no deals. This group also represents agents who close 1-10 deals a year working full time just to make part time income.
The top producers (on the other end) never voluntee to be the front desk secretary. They are busy with what I call an A Activity, an income producing activity. These top producers are focusing on the 20% that makes them 80% of the income in our industry and they delegate the rest (the 80%) to someone else (in most cases a part time or full time assistant).
So let's get down to it. Here is a list of the 20% A Activities top producers focus on.
Prospecting: This step includes: phone prospecting and door to door. Calling the following leads: sphere of influence, past clients, for sale by owners, expired listings, just listed (calling or door knocking around your listings), just sold (same as just listed).
Lead follow up: This step includes following up on the hot leads you create while prospecting (a hot lead is someone who's looking to sell or buy within the next 7-30 days). This step is crucial and separates the elite top producers from the rest.
Pre qualifying: This step includes calling back the lead before going on an appointment and asking key motivation questions (I listed these questions on Circle100 for agents tab). These are important questions to ask and determine the motivation of the customer to verify that they're ready to commit in writing.
The listing presentation & buyer presentation. This is where I see the biggest gap between the elite top producers (7 & 8 figure earners) and the rest. The elite are masters of their presentations. They use exactly the same presentation in every situation and they do it automatically without thinking about what to say. To be at this level and stay there, the elite practice their presentation DAILY, role playing it with different role play partners, following scripts and dialogs as well as handling objections.
Negotiating contracts. Top producers are masters in negotiating contracts. They understand in every market (buyers market, sellers market and no market), how to negotiate to the best of their clients needs.
Daily roleplaying of scripts and dialogs.
Top producers hire other people to do B, C and D activities for them. Of course when they started their career they used to do these activities as well, but they hired someone shortly after. Get this and you'll be able to do the same. Before you can afford hiring others, you'll need to do it all. BUT, for that to happen you'll have to focus 80% of your day to do A Activities and only 20% of your day to do B,C and D.
Here are some of the B activities:
Returning emails & texts.
Attending training seminars, reading related books, listening to audio and videos (on sales, motivation, inspiration, self improvement).
Sending contracts, faxing etc.
Preparing leads (fsbo info, expireds, etc)
Farming (this is an entire course, but for post sake I will just mention this includes preparations for door knocking).
Random Cold calling anyone who is not on the prospecting list above (on A Activity prospecting).
Systematic post carding (falls under farming).
Preparing for a listing presentation.
Here are some C activities:
Social media advertising
Social media prospecting (building relationships)
Sending postcards, newsletters, mail-outs, flyers, etc.
Promotions, networking events, sponsorships etc
Off line advertising
Installing for sale signs, lock boxes etc
Going to closings to pick up commission checks
Anything else inside administration, secretarial work, filing deals, making copies, etc.
Here are some D activities:
Everything else Non producing agents do.
Follow this plan. Spend 80% of your time on A Activities and you will surely become a top producer.
If you're a RI and/or MA real estate associate, please contact me personally at firstname.lastname@example.org for upcoming FREE training events near you, to learn more about each of the components of A Activities.