I’ll bet you’re coming into real estate from a former career–a career where you knew the answers–where you were confident. I came from a two-decade career as a musician (I actually started playing piano when I was four). Then, I went into real estate.  I remember so clearly my first few months as a real estate agent. My favorite phrase was “I don’t know but I’ll find out”. In truth, I knew very little! Sometimes I was so humiliated and frustrated I almost quit.

So, how did I keep my spirits high? By remembering my ‘wins’ from my former ‘life’.

Keep a Journal of your ‘Wins’

In Up and Running in 30 Days, I advise new agents to keep a ‘motivation journal’, to remember their strengths and keep their spirits high when delving into this challenging–and exciting–new field. Remember, we were all new once! You will find more rejection in real estate sales than you thought possible. Yet, those who persevere create a career with almost unlimited potential. Remember, if you think you can do it, you CAN!

Gather Lots of Motivational ‘Muscle’

Besides remembering your strengths, gather quotes, books, videos, and podcasts to elevate your self-esteem. Every top performer I know does this. Why? Because, sometimes you need more than yourself to keep those spirits high. When your self-esteem is up, you’re willing to tackle the tough stuff.

What tools do you use to keep your spirit high when it’s tough out there?

P. S. I’ve provided lots of motivation and inspiration for you in Up and Running in 30 Days, too.

The Combination that Gets you Business

Here’s the answer to the question, “What is the one thing I should do to get business?” Yes, people are always asking me that. I think it’s because I’ve written two resources for would-be and new agents: Become Tomorrow’s Mega-Agent Today and Up and Running in 30 Days. Now, we know that becoming a skilled real estate agent isn’t just one answer. But, there is one thing new agents (and seasoned agents) can do that requires

No skill

No experience

No money

Little time

And, this one thing will make you stand out from the crowd better than any other one thing you could do! What is it? Simply:

Write a thank you note (a real hard copy note, not an email)

Why?

Because manners and ‘thank yous’ have gotten increasingly uncommon! You will stand out simply because you’ve taken the time, thought about that person, and cared enough to write—and put that stamp on it.

Write More Than One Note

I’m not going to tell you to write a certain number of notes per day. You can set your standard (that means the minimum you’ll do). However, the more notes you write, the more business you’ll get……

What to Say

Thank you. Thinking about you. I appreciate you. I used your advice. Here’s something for you that would be helpful. I found the information you wanted.

Note to managers: This is also one of the strongest motivational tools you’ll ever have–writing notes to your agents with encouragement, thanks, etc. Do you do enough of it? Set your own goals now.

Big important sales principle:

Contacting people is simply finding an excuse to write, pick up the phone, or go see.

My challenge: How creative can you get?

You are more creative than you think they are. Now, sit down and think hard about 5 people you’ve started to work with, but need to contact now. What about them fits into any scenario for you to write that note, pick up the phone, or go see?

Proof is in the Pudding

My first year in real estate, I sold 40 homes. Also, I sent more things in the mail than any other of the 30 agents in my office. Why? Because I wanted to create a ‘critical mass’ of people who thought I was wonderful. Yes, an agent can also do this with social media. But, you want to stand out. And, you will stand out much more if you write to one person than to many. After all, you are working with that one person who will pay you thousands of dollars. He/she is worth that special, individual effort! That’s the one thing you should do to get and keep business.

Why Tell Me Now?

Right now, I’m doing several things that I think will greatly impact the success of a new real estate agent. Here they are:

1. I’m making a new online version of Up and Running in 30 Days, to help new agents and managers assure that new agent gets started fast–doing the right things in the right order. I’ll be providing coaching, training videos, and accountability to show ultimate support for that new agent–and the broker enrolled in the program.

2. I’ve just been named New Agent Expert for a national real estate publication, which will interact with pre-license schools. So, I’ll have an opportunity to help agents prior to their coming into the business. 

3. I’ll be providing brokers with coaching so they can stay on track with their new agents, and assure that everyone has the same focus–success quickly for that new agent.

So, I have two questions for you:

1. What does the new agent need to know to succeed?

2. What does the new agent need to do to succeed?

To answer those questions, think of the successful agents you know. What did they do in the first 3 months of the business? What did they avoid?

Training: What new agent training helped you? What was useless? What ought to be there?

Coaching: Were you coached as a new agent? What was good? What was not useful to you? What do you wish someone would have told you?

Your Opportunity to Help the Industry

Okay. Here you go. Comment on this blog and help the industry, so we can raise the level of expectations of new agents, give brokers some guidance, and help consumers think well of us. Thank you!

1. Do the work.
2. Don’t argue.
3. Don’t make excuses for not doing your start-up plan.
4. Don’t tell the manager you’ve been in the business two weeks and you have a better way.
5. Do thank your manager frequently.
6. Do tell other agents that you appreciate your manager’s efforts.
7. Do tell other new agents you meet in other companies that you have a great manager.
8. Don’t bug other people in the office to find another answer because you didn’t like your manager’s answer.
9. Don’t change the Up and Running plan because you “don’t like it”. (You just don’t like lead generating, do you?)10. Don’t miss a coaching appointment!

I’d love to hear what you think of my ‘ten commandments.’ Are there others you think are important?

Managers: Why not make your own ten commandments and discuss them in your interview process. Then, turn the tables and ask the agent about his expectations of you and the office.

Agents: Before you hire on, get in writing exactly what your manager is going to do to assure your success, so you won’t have disappointments later. Getting agreement on what we both expect before we decide to work together is key to a happy partnership. The only surprises I want you and your agent to have after you start working together are good ones!

Side note: Managers: My belief is that you owe it to your agents to coach each one, regularly and professionally, in starting his or her business. That shows your 100% commitment to each person’s success.

Managers study how to attract and keep agents. They learn how to do recruiting presentations that they hope are mesmerizing to their candidates—so mesmerizing that they’ll say yes when offered a position in the company. They don’t rest on their laurels; they hone their skills so they’re better managers, trainers, and coaches. So, I’m going to turn the tables, and ask you agents: Do you know how to get the best from that manager? 

Turnabout is Fair Play

My eighth grade teacher, Mrs. Taylor, had wonderful sayings that she would drop on us at opportune times. These either kept us attentive or scared the you-know-what out of us! They included, “Time passes. Will you?” and “to each his own, as she kissed the cow.” (Well, some were better than others). The saying I’m remembering now, though, was, “Turnabout’s fair play”. In other words, if you mess with Mrs. Taylor, you will get the appropriate treatment! And, if you cooperate and get your work done, you’ll get appropriate treatment, too. So, let’s apply that idea to the relationship and expectations of agents and managers.     

What Did You Find Out in the Interview about What was Expected of You?

The real estate industry is the only industry I know that hires with a “trust me” from both the manager and the agent. No mutual expectations here, just promises! It may have worked in the past, but it won’t work in the future. A challenging market means we’ll have to do things differently. Right now, managers, make a list of what you expect—and have a right to expect—from an agent. Draw up a Mutual Expectations agreement. Go over that agreement in the interview. Get it signed. Doing it after you’ve hired the agent is way too late! (There is an example new mutual expectations agreement in Up and Running in 30 Days, the new agent’s business start-up plan).

Consequences of the Mutual Expectations Agreement

A note to agents: Are you worried you may not meet the expectations of your manager? Yet, you don’t know what they are? Here’s the time to find out. Some questions to ask:

1. How much money do you expect me to earn my first year (or this year)?

2. What other expectations do you have of me? (meetings, training, coaching, etc.)

3. How do you expect me to contribute to the office?

How to Work with your Manager

After you’re hired, you need to find out how to get the best from your manager. Here are the areas you need to explore with the manager:

1. How can I (the agent) get the best from you (the manager)?

2. How do you want me to report/give input/be accountable to you for my daily/weekly/monthly work?

3. How would you like me to interact with you? (call first/email first/get on your schedule)

4. What DON”T you want me to do? (What annoys you?)

5. What behaviors from me would make you think I am really committed to success in this business?

6. How will I get referrals from you (or, will you get referrals)?

7. How do you expect me to work with the other agents in the office?

Readers: What questions do you wish you would have asked to your manager at the beginning of your relationship?

3.Build a marketing plan around your best source of business. Now, you’re starting to think big. When you consider old customers and clients, plus those who know and trust you, as sources of business, you can start creating actions (tactics) to capture referrals. How many actions can you think of now–off the top of your head? For dozens of tactics, see Beyond the Basics of Business Planning.

4. Check out your level of service to assure it’s high enough to expect a referral. It’s critical to create a marketing plan around your best source of business. But, let’s not kid ourselves. Unless your level of service is perceived by your customers as highly satisfactory, you can ask–but you’re not going to get! How do you know what your level of service is now? Survey everyone you work with. There’s an excellent survey used by top agents in my business planning system I referred to above.

5. Decide which is more valuable to you: The listing, the sale–or a referral.  Creating a marketing plan for your best source of business starts a paradigm shift in your thinking. Here’s the critical shift you must make to create a business based on referrals. You’re not after the sale. You’re after the referrals. You’re not after the listing. You’re after the referrals. Stop thinking about the immediate gratification–a sale. You must become a big, long-term, visionary thinker. What an order for a salesperson.

Give up immediate business? I can hear you arguing. A listing, even over-priced, can result in calls from would-be purchasers. You’re right. You’ll get a short term gain. But, you’ll also create long-term pain. Let me put that sales tactic in perspective to the real person out there who uses our services (our client and customer). Guess what real people call that sales tactic in automobile sales? “Bait and switch”. It hurts me to write that, but it’s true, isn’t it? The reason I’m laying it on the line here is that our consumers are threatening to leave us unless we clean up our act. We must become longer-term thinkers, looking out for a customer’s best interests, even if it doesn’t help us short-term.

6. Manage your referral business with the truism “behavior that’s rewarded is repeated”. That is, if you want someone to do something again, reward the behavior you want. (If you have children, you know exactly what I mean). To get more referral business, pay more attention to the customer after closing. The customer doesn’t think we deserved the commission unless we keep in touch after we got their check. If we ‘love ‘em and leave ‘em, the customer thinks that all we wanted was that commission. (You would, too….) That’s not an effective method to encourage referral business!

Are You a ‘Love ‘Em and Leave ‘Em Kind of Agent?

Even though you and I understand the “reward” concept, agents still try to save money by skimping in the wrong areas. Recently, I was teaching a business planning course, where agents analyze their businesses, choose their best sources, (target markets), and  decide on tactical actions to get the best return on their investments. One “under-achieving” experienced agent told the class he’d decided not to spend any money on his customers after closing. After all, he’d gotten the check. It was over. He thought that closing gift idea was a waste of money–and since he wasn’t making much money, he wanted to save what he did have for finding new customers.

It was really obvious that he was only after one check. He was practicing real estate the old way–looking for new strangers to close. To build his business with less marketing dollars and more satisfaction, this under-achieving agent should have made the paradigm shift. He should be building a marketing plan where he’s spending more of his time and money on that client after closing –than before. Why? Because, with a marketing plan targeting referrals, he could make that one sale pay off in at least five future transactions! (The rest of the story: This agent is out of the business).

Be generous with your ‘thanks’ for business and for referrals.

Be generous with your information, care, and support after closing.

Build a tactical marketing plan to continue communicating  after closing. Remember, “behavior that’s rewarded is repeated”.

Change your paradigm from ‘next’ to ‘love ‘em forever.

Know Your Business

Do you know where the majority of your business came from last year? Do you know what percent (or even how many) of your marketing dollars you spent in creating that business? Some agents know the answer to the first question. Very few agents know the answer to the second. A few months ago, I was a speaker at a large regional company convention on business planning. I found that about half the agents could answer the first question. They knew their best source of business was referrals. However, only one out of 400 knew what percent of his total marketing budget he had spent generating this best source!  Why? Agents take referrals for granted. They don’t build a marketing plan around this best source, so they have no way of allocating marketing dollars or measuring results. Their approach to their best source seems to be, when you’ve been in the business for awhile, you get referrals, don’t you?

 Are you Mining Referrals or Just Waiting for Them?

Assuming that referrals automatically come to you as a result of being in the business for awhile is a costly mistake. Smart salespeople in other fields today know that planned, purposeful business networking for referrals is the best way to increase your business at small cost. No matter how many referrals you get now, here’s how to increase that goldmine. An added bonus: Your business experiences will be less stressful, for you’ll be working more with people who know you’re wonderful–or have heard you’re wonderful. Here’s how to systematize your ‘goldmine’ to assure that getting referrals is not just a great idea–it’s a major part of your business plan.

Two of the Six Goldmine ‘Moves’

1. Find out where your business came from last year. This is a very important, though usually left out, part of your business planning process. My new business planning program, Beyond the Basics of Business Planning, has a system for analyzing your best sources of business (as well as analyzing all of the most critical areas of your business) . 

After discovering where your best sources of business were last year, add the number of marketing dollars you spent on each source of business. Compare sources with outlay of marketing dollars. Are you allocating more of your marketing dollars to your proven sources? What’s your return on your marketing investments? Are you, as many agents, spending too many marketing dollars chasing the wrong sources of sources of business?

According to marketing research companies, it costs five times more to get a new customer than to keep an old one! But, you say, why should you spend marketing money on people who won’t buy another home from you, or list their home, for another five-fifteen years? Because you’re not after just the sale. You’re after referrals.(insert figure here)

2. Start thinking of your best source of business as a “target market”. Who gives you referrals? Your most important source are old customers and clients. Your second source, in that same category, are people who know and trust you. Have you ever thought about these two groups as a specific “target market”? Looking at them that way changes your whole view on their importance to growing your business.

A word of caution about concentrating on getting referrals as merely tactical moves. It’s bigger than that.  To grow your goldmine with referrals, you must integrate this referral concept into your business plan. This is a specific market, one that’s much more important than for-sale-by-owners, first-time buyers, or other markets. Why?

What insights did you get reading this blog? How much money did you spend on your best source of business last year? What changes are you going to make?

“If nothing else works, I’ll pick up the phone.” 

So, their lead generating efforts are too little, too late—and done without much skill. In fact, they spend too much time and energy negating various methods of lead generation. They say things like,

“It won’t work for me in my area.”

“I tried that once. It doesn’t work.”

“Isn’t there something new?”

“I’ll wait for people to come to me.”

“I am going to company that provides leads.”

“I’ll join a team and they will provide me as many golden leads as I want.” 

In your dreams.

Don’t Listen to the ‘Seasoned’ Agents…. 

If you’re a newer agent, you’ve probably heard some of those quotes above. You may have even gotten that kind of advice. Don’t listen! Why? Because this isn’t the era of the ‘given lead’. That era was over about 3 years ago! Yet, many agents are still waiting for those ‘good times’ to come back–and they will continue to wait a long time!

Instead of spending countless hours, energy, and money trying to avoid lead generating, you’ll want to make lead generating the cornerstone of your business, not the exception to the rule.

Stay in the Busness Cycle to Get Results

 The business cycle, as explained in Up and Running in 30 Days, is: 

It all starts with lead generation (prospecting).

How Much Lead Generation to Get a Sale or Listing? 

I just got a question from a trainer, wanting to know: 

“How much prospecting will one have to do, to generate one sale? Is there a formula? Is there an average?”

I wish I could give you a tight, proven formula. Yet, there are variables that make specific formulas difficult to pin down.

On numbers: I set the goals for the Up and Running in 30 Days program based on my experience on the number of contacts it takes to get a lead, then a sale. But, it also depends on several variables, as explained in Up and Running:

1. Type of contact–how warm or cold is it? How much trust has been established?

2. The agent’s sales skill, competency, and tenacity

3. The market–buyers and sellers are more hesitant to ‘turn themselves in’ today

How can you tell the numbers it takes? Track your numbers for each target market and track your and conversion rates. Now you know the specific work it takes for you to generate a lead, create an interview, work with buyers and sellers, and get sales results.

The problem: Most agents work way too few lead generation numbers and sources. In fact, they have so few, it’s impossible to extrapolate ratios. That’s why Up and Running and On Track To Success in 30 Days System have such big numbers–it’s an insurance plan.

What are your lead generating ‘conversion’ numbers? If you don’t know, find out now, so you can either increase your lead generation or sharpen your skills to reach your goals.

Your Attitude about YOU is Much More Important than Your Talent or your IQ

Malcolm Gladwell actually said this in the chapter in Outliers about proverbs. Study after study shows that, if you have the big “T” (tenacity), and you believe you can do something, YOU CAN!

I’m a graduate of the University of Oregon, and I always read the alumni magazine. In a recent edition, there’s a fascinating study by a couple of physicists (sounds like those physicists just can’t stop themselves from studying this, that, and the other). They found that students with lower American College Test (ACT) or SAT scores could compensate through hard work. So, don’t let anyone tell you that you can’t achieve what you want to achieve. Unless you’re trying to become an NBA center, and you’re 5’ 10” tall, you CAN achieve great things in real estate.

By the way: Another study showed that IQ doesn’t pay a role in real estate success!

Tenacity is Key

Here’s my favorite quote by one of my favorite leaders, Winston Churchill:

Give In?  Never!

Never give in!

Never give in!

Never, never, never, never

- in nothing great or small,

large or petty –

Never give in except to

convictions of honour

and good sense.

– Sir Winston Churchill

Speech at the Harrow School

October 29, 1941

Achievement Can be Yours

Work the hours it takes. Be honest with yourself about your work ethic. Use my analysis, Time and Activities, to check that your hard work is really the work that counts. Take the attitude that YOU CAN. You don’t need great height or great musical talent to do well in real estate. You need the values that you already have: Caring for people, wanting to do right by them, and putting the client above your best interests. Now, go and have a great rest of 2012!

we believe what others say about us, not what WE say about us.

Are you sending out your surveys regularly, at least at closing? At the end of this blog, I’ll give you a link to get a format for a survey, if you need one.

According to Stefan Swanepoel, in his 2010 Trends Report,

Consumers are looking much harder at ‘proof of experience’ in the form of comments from past clients.

If you are sending surveys at closing–congratulations. But, what are you doing with them? Are you reading them, then putting them in the drawer? Not so fast. You need to publicize them. You need to let others know that clients believe you are competent.

Watch Those Websites

Take a look at 10 agents’ websites–at random. How many of the ten have posted testimonials or evaluations? I’ll bet not more than one or two of them. So, you can see how easy it is for you to stand out. Just start by posting 5-10 of your testimonials on your website. By the way, always have a place on your evaluations where your clients can check that they will let you use that evaluation publicly.

Take Advantage of LinkedIn and Facebook Endorsements

It’s getting to be a really big deal–evaluations and endorsements. So, get in the habit of asking for endorsements on these sites. There’s just too much information today available for the potential client to know who to choose. Help them.

Check Out Evaluation Webites

These websites offer clients an opportunity to provide feedback on their agents. Take a look at this feedback: 

After the Sale Survey