6 touches to 6 figures

By Nikitas Kouimanis Maverick Funding Corp.

6 Touches to 6 Figures

How to Work Your Farm How effectively do you work your farm? Does it produce the expected number of listings for you each month? Are you an agent who works hard to get new listings? If you are not generating enough listings, it begs the question, “How much is this costing you?” Well, let’s say you would like to have just 2 more listings each month that turn into sales. If your average commission is $2,000 per sale, then not having enough listings is costing you $4,000 per month. But consider this: the leading real estate agents in the country say that for every listing sold, you should count on 1 new buyer. So now instead of losing $4,000 per month, you in fact are losing $8,000, which alone is nearly $100,000 per year. It doesn’t stop here. If you are servicing your clients correctly with a systemized Client Retention Plan, you should be receiving a great deal of repeat business and referrals, giving a tremendous boost to your future earnings and lessening your prospecting burden. When you think about it, there really can be no debate that becoming proficient at generating more listings will have a huge impact on your earnings and future earnings, success, and happiness. This is no secret to the top performers in the industry. They know the importance of listings.

The fact is that the top real estate agents in the country are “Listing Pros”. They know the value and leverage that listings deliver. Yet still, many agents that I consult with tell me they are a “Buyer’s Agent”. They tell me that it takes too long to farm an area, or they tell me that other agents already dominate the farm in the area that they work in, so they don’t bother to even try. Still other’s say they do not have the time to farm effectively, or lack the budget. What they are really saying is that they do not know how to work their farm! It’s really no surprise. Most agents do not receive very much, if any training. Preparing for and passing the real estate agent’s exam made you familiar with terminology and legalese and other important “need to know” information, but it did not prepare you to succeed. However, there is hope. Success in this business means hard work. If you are in it for the right reasons, then the work you see outlined for you in this report will, in fact, be fun. You will get to know people in your target neighborhoods. You will become someone they know, like, and trust. You will do more business and receive more referrals. And best of all, you will have found the key that will unlock the door to long-term success. 2


Organization

Choose Your Area

How much money do you plan to earn? In this market, there is no reason not to earn a high six-figure income. However, money should not dominate your life. Choose a goal that is realistic. Any campaign that you set out on will yield results in direct proportion to your effort. If you are a full time professional, you will plan to work more than the average 40 hour work week. Example Let’s say you plan to earn $100,000 per year. How large does the farm need to be in order to generate this income? Well, let’s make some assumptions and they may vary, based upon your commission arrangement with your Broker. Assumptions Nationally, people move every 3.7 years. To be conservative, let’s assume people move every 5 years.

Also, consider the national median existing single-home price is $227,500.00 1, and a commission rate of 2.5%. Your average commission per sale would be $5687. That means to earn $100,000, you need to have 18 clients annually from your Farm. Let’s assume that 80% of the people in your farm will work with a real estate agent when they sell their home. Of these people, you plan to help 80% of them. The formula works like this: Size of your Farm = # of clients / % of people who work with you / % of people who work with and agent x Average # of years people move. In our example, just plug in the numbers: 18 / 80% / 80% x 5 = 141 homes in the Farm.

Planning

You will need to choose an area that is large enough for your plan to work. Pick a neighborhood that you are comfortable. Some Agents work only “high end” neighborhoods. Others choose their own. Others choose

diverse ones. Consider the people who live there. Ask yourself, “Am I comfortable working with these people?” You need to be comfortable speaking to the people in your farm.

1 2006 - National Association of Realtors, 2nd Quarter Report

You’ll need CRM software to effectively work your farm. It will help you easily look up any of your contacts and help keep you organized.

It will also help you in the long run to keep in touch. Your Broker or top agents in your office should be able to recommend several different CRM solutions.

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Finding the Homeowner’s Information

First Touch: Letter of Introduction

Once you choose your farm, you’ll need to locate each homeowner’s name, address, and phone number (if available). With the “Do Not Call List”, you may not have very many phone numbers to enter. That’s OK

because you will ask for this later when you visit the homeowner face to face. Where do you get this data? A title company. Most title companies have a marketing representative who can give you all the data you

With your CRM software you can enter each homeowner. Enter their name, address, and phone number (if available). Next, plan to visit the homeowner the day after they receive your letter. Check with the local post office and ask how many days it will take to receive the letters you send. Please note: Only send the number of letters that you can reasonably follow up with face-to-face visits. Plan weekday visits during the time homeowners will

most likely be home. On weekends, you have all day to visit the ones you missed during the week. The number of letters you send out each day depends on the size of your farm and how efficient you can follow up. In this example with 141 homeowners in the farm, you can mail out 10 letters each day (Monday through Friday). At this pace, it will take you approximately 1 month to complete your first round of visits.

Getting Started

Sample Letter of Introduction Dear _______________, My name is _______and I represent ABC Realty. Our focus is helping families in the neighborhood learn how home ownership adds to their prosperity. In the next few days, I’ll be stopping by to briefly introduce myself. I look forward to meeting you. Warmest Regards, 4


Second Touch: Knock on the Door

Before leaving your office, print out the list of homeowners you plan to visit. You will be able to ask each one by name, which adds warmth and professionalism to your visit. Carry a Homeowner Survey (see sample on final page) with their name on it and dress professionally. This is your first face-to-face contact, and the impression you make is important to shaping their perception of you. We all make judgments about people we meet. It’s important that your attire and personal grooming be perceived favorably if you hope to someday work with these people. Introduce yourself with a smile and tell the homeowner you are

stopping by to meet their acquaintance. Let them know that you represent your Company in the area and that you would like to ask them a few survey questions about the neighborhood. Without hesitation or waiting for their approval, begin asking questions. Be careful to pay attention to their demeanor. If they seem the least bit annoyed at any point, stop questioning. Thank them for their time and wish them a good day. You can ask them more questions the next time you pop by. After each visit, you should immediately write down all notes of the conversation for later use.

Third Touch: Deliver a Neighborhood Restaurant List

A simple and cost effective gift to give every homeowner is a Neighborhood Restaurant List. You put it together by getting familiar with the local eateries. You can find the business name and phone number by either visiting the business in person, or by using the local phone book. On your PC, you can create a cover page that contains your name,

company name, and contact information. Attach one of your business cards to the cover. Place it in a nice binder for the homeowner for your face-to-face delivery. On your next visit, hand them your Neighborhood Restaurant List as a gift, then ask them a few more questions from your survey. 5


Fourth Touch: A Small Gift

When you visit the homeowner again, bring a small, inexpensive gift. You can be as creative as you like, after all, it’s the thought that counts. After they answer the door, greet them warmly and mention that you really appreciate them taking time to answer the survey questions. To show your appreciation, present them with the small gift. Explain that you are nearly finished gathering data, and that you will soon have some interesting information to share with them about the neighborhood.

Keep an eye on what they are communicating to you, both verbally & non-verbal. By this point, the homeowner is familiar with you and likes you. If they are open to conversation, engage socially for a short time. However, do not wear out your welcome. After a few minutes, you should break away and continue with your other homeowner visits. Remember to write down all the notes of your conversation on their contact sheet right away.

Fifth Touch: Survey Results

At the conclusion of your data gathering, prepare the results of the survey for delivery. All this requires is sitting down at your PC and compiling your data. Of course, you should not include any of the homeowner’s names or contact information in the report. Prepare one and memorize interesting points. For example, count the number of Professionals who live in the area (i.e., Doctors, Lawyers, Real Estate Agents, etc). When you see the homeowner, you can say, “I’ve got some good news! The survey results show that 37% of the home occupants have a professional designation like a doctor or a lawyer, and did you know that home values have

increased on average ___% annually over the past ____years. That’s great for you if you ever decide to sell. And it’s wonderful for people who want to buy a house, knowing that this is such a great neighborhood!” You can add, “According to my research, 80% of the residents move every 3-5 years. Isn’t it amazing how often people move?” Your goal is that some of the people will open up to you in conversation and you can uncover some details. Perhaps they are expecting a baby, or they be preparing for a promotion and big pay raise that will motivate them about moving. Don’t be surprised if this round of visits generates some business for you.

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Sixth Touch: Survey Results

On your sixth visit, you have earned the right to ask for their business. You are someone who they know, they like, and they trust. Tell them, “I’m excited to be representing my Company in such a wonderful neighborhood. I’d like to continue providing you with valuable information about the area. Would you mind if I sent you information periodically, with the hope of one day having the opportunity to serve you?” Next, ask for their email address so you can keep them up to date. It will be more cost effective to start an email campaign, along with periodic phone calls. Your CRM software will make it easy to track.

Also, ask if they belong to any social clubs. Assuming they say yes, ask if there is someone in their group that might be thinking of selling or buying a home. Ask them for their name, phone number, and permission to contact that person. This is a more effective method for generating referrals. For instance, if you ask someone if they know “anyone” who might have a need to buy or sell their home, they will often have trouble thinking of anyone. By asking about a social group or club, it will help them narrow down the list of people they can tell you and make it easier to come up with a name.

Summary

Use this approach in developing your farm carrying out the six touches over a period of one year. You will see a steady increase in listings, just from your activity alone. Someone once said “Activity yields Productivity”. I have always found this to be true. Good things happen when you are walking in the neighborhood meeting people. You never know when the next person you meet will become a client. The key is to be professional and prepared.

Furthermore, you should find it easy to continue staying in touch and keeping “Top of Mind” with everyone. Your CRM software will make the entire process easy and efficient. With the extra time you gain, you can work other sources of business, like “For Sale By Owners.” Now go ahead and get started! If I can be of any assistance, please do not hesitate to give me a call.

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Nikitas Kouimanis Maverick Funding Office: 646.801.2228 Mobile: 516.206.0000 Email: [email protected] Website: www.mylendernikitas.com

About Nikitas Kouimanis Nikitas Kouimanis service focuses on providing clients with a stress-free lending experience and helping real estate agents build loyal clients. If you are searching for ways to increase your referrals and improve client loyalty, contact him to learn how his strategies can help make a difference.

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Homeowner Survey Homeowners: Children’s Names: Pet’s Name:

1. Do you think this neighborhood is improving or regressing?

2. How long have you lived in your home?

3. What is your opinion of the shopping in the area?

4. Where do you buy your groceries?

5. Not including pets, how many are in your family?

6. Do you both work outside the home?

7. Where are you employed?

8. How do you like the school system here? Is it doing a good job?

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