You’re a poor salesperson if you take the first ‘no’ for real.
You keep getting rejected. People keep telling you ‘no’. Of course, you accept that ‘no’ and move on to a new—and hopefully—nicer prospect. Why do you just love ’em and leave ‘em? Because you believe them when they say ‘not interested.’ Your rationale:
I don’t want to be pushy. I hate pushy salespeople. I’m not like those other salespeople. I just let people make up their own minds.
You’ve heard all that. Maybe you’ve even said it. I don’t like pushy salespeople either. But, unfortunately, most ‘buyers’ need some help in moving their buying process forward. That’s what a salesperson is supposed to do. That’s your job. How you do that is a skill—a skill most of us don’t have. We have to be trained to keep the buying process going forward—if it should go forward. (I’d never advise you to use manipulative techniques to get someone to buy something they didn’t want or wasn’t in their best interest.)**
**Note: I’m working on the 7th edition of Up and Running in 30 Days, the new agent’s business start-up plan. I’ve been thinking about how to help new agents cut their ‘education’ (read rejection) time while being realistic about buyers’ buying habits and rejection ratios. That has been the inspiration for this blog.
Most Salespeople Get Only about Half the Deals They Could Get
If your sales ‘technique’ is to expect your buyer to make that buying decision without your asking, studies show that will happen about half the time. What happens the other half the time? Nothing. You have to ask to get that order!
John’s Closing Technique Got Results—But Not the Results John Wanted
John was a salesperson in the office I managed. I saw him frequently with young buyers—usually first-time buyers. They loved him. He found them great homes to purchase and educated them in the buying process. Then, it came time for them to make a decision. Here is how John handled that:
“This is a very important decision for you to make. I don’t want you to make it now. Go home, think about it, and call me if you want to buy.”
What do you think happened? They went home and either
- Decided not to buy (always safe in the moment; John scared them right out of making a decision)
- Called another real estate agent to buy because they thought John wasn’t interested in supporting them to a decision
I discovered John’s ‘method’ when he stormed into my office. He complained that buyers found another agent to purchase several times in the last few months. I asked him why he got them all ready to buy, then shut down the process by cautioning them and sending them home. He said he didn’t want to be ‘pushy’.
My Big Question to John
John thought he was working in the buyers’ best interest. But, since home prices generally appreciate, John was stopping them from getting into the game. Here was my question to John: “How many buyers have you prevented from buying with this mode of operation?” Unwittingly, John was taking many thousands of dollars out of those buyers’ pockets by putting the brakes on their buying a home!
How to Tell If You’re Getting Realistic Sales Ratios
Let’s look at your statistics. In the last six months, how many contacts have you made? How many of those contacts turned into appointments? How many buyers have you worked with (buyers are buyers of your services—sellers or buyers)? Of those, how many have made a buying decision? Do you know the process from ‘attention’ to ‘close’? Do you know how to keep that process going?
Note: In my new agent’s business planning book, Up and Running in 30 Days, I lay out suggested ‘conversion rates’ so the new agent has something to start with. Most important: Keep your own statistics and figure out your conversion rates.
What percent of contacts do you want to convert to clients?
What percent of ‘buyers’ do you want to convert to closings?
Now, compare these desired percentages to what the studies tell us about salespeople and buyers.
Some Statistics You Need to Know to Grasp those Realistic Conversion Rates
Getting to a meeting: According to RAIN Group research, it takes approximately 8 contacts to obtain a meeting. In prospecting studies, RAIN found that sellers averaged about eight touches to secure a meeting. These are contacts, not necessarily eight rejections. What does that mean to you? When getting to know a prospect, don’t think of ‘closing’ them. Think of starting a relationship. Tenacity is key!
From Prospects to Clients
Five or more attempts can improve conversion: A study reported by CallHippo found that representatives making five or more attempts converted leads at 2.7 times the rate of those stopping after one or two attempts. This is vendor-reported sales data, not specific to real estate.
**Note: This is why using a robust CRM to organize and contact your leads is of utmost importance in today’s sales world. My 7th edition of Up and Running in 30 Days emphasized how to grow your business fast with your CRM.
Tenacity always Wins
Early in my real estate career, I was going to present an offer to sellers who were moving out of state. (This was when we presented right to the seller). Before I went to the presentation, my manager told me to take three ‘nos’ before I gave up (the offer was lower than the list price). I got to the home, met the sellers, and presented the offer. Boy, were they offended. They refused to counter the offer. They said they would just rent the property.
I sat there, convinced that it was best for these sellers to come to some agreement with the buyers. Why? Because this was a property on acreage with large maintenance needs. It needed the care an owner would give it, and the sellers would be out of state and wouldn’t even know what was going on with the property. So, I started counting the ‘nos’ I was getting. After three, it got to be surreal—almost a game. Finally, after ten ‘nos’, I got a counteroffer. After much negotiating, I got the offer all signed. Result: This was the best solution for both sellers and buyers.
Knowing Human Nature Helps You Stay in the Game
Having tracked thousands of agents’ conversion statistics, I’ve found that the person who finally wins is not
The person with the best sales skills
The person with the best prospects
The person who’s the luckiest
No. It’s the person with the most tenacity.
If You’re Determined, You’ll Polish your Sales Skills
If you’re like most of us, you go into real estate sales without having honed sales skills. You have many disappointments and, as one of my favorite agents used to say, ‘mental cul-de-sacs’. The weak person gives up easily. The tenacious person stays in the game. She says
I may be taking a lot of hits, but I’m learning. If someone can do it, I can do it. I can get better. I will not give up. I will seek out coaches, mentors and training so this gets easier. I will be successful!
**Note: In my 7th edition of Up and Running in 30 Days, I provide the skills to go from old-school ‘close and answer objections’ to ‘build relationships, communicate consistently, and create long-term clients’. You’re still managing the sales process, but you’re doing it in a way that puts the greatest value on the salesperson/client relationship. And, you’ll never feel you’re being the ‘pushy salesperson’.
What were your expectations about converting contacts to prospects prior to reading this blog? What are your expectations now? How will you manage those expectations and get the training and coaching to turn more contacts to clients?
**Look for my 7th edition of Up and Running in 30 Days in the spring of 2027. Order at https://carla-cross.com.
Want to influence salespeople’s success? Take my survey to tell me what new salespeople should learn and do to be successful–and pitfalls to avoid. As my ‘thanks’, I’ll send you my Little Book of Big Ideas. It’s hard copy, so please include your physical address. I’m able to send only to the continental U. S.
Click here to get my quick survey. The profession thanks you!
