Presentation on theme: "Mike Devlin Keller Williams Realty Silicon Valley – San Jose Gateway Sphere Of Influence PROSPECTING PEOPLE YOU KNOW."— Presentation transcript:
Mike Devlin Keller Williams Realty Silicon Valley – San Jose Gateway Sphere Of Influence PROSPECTING PEOPLE YOU KNOW
Business Plan Establish Goals. What is it that you want? Make a plan to reach each goal. Can you see yourself working the plan? Have you set deadlines? Scheduling is the key to getting things done. Put the plan into action. Are you working the plan?
The 90-day Rule Whatever you are doing right now, today, will affect your business in 90 days. Don't get wrapped up in your sales and forget to prospect. 80% of your time should be spent prospecting when new.
Time The most important function of a salesperson is to get clients. 80% of time should be spent on this activity until busy servicing clients. 40 hour week x.80 = 32 hours per week divided by 5 days = 6.4 hours per day. 20 hour week x.80 = 16 hours per week divided by 5 days = 3.2 hours per day. We would be happy with 1 hour a day.
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Generate Leads with Your Database “No matter how you slice it, lead generation will almost always come down to a game of numbers.” Gary Keller, The Millionaire Real Estate Agent, page 136 “No matter how you slice it, lead generation will almost always come down to a game of numbers.” Gary Keller, The Millionaire Real Estate Agent, page 136
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships Haven’t Mets Mets General Public Target Group Your Contacts Allied Resources
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships Haven’t Mets Mets General Public Target Group Your Contacts Allied Resources Your Strategy Move people from outer circles to inner circles
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 MREA Strategic Model for Generating Leads and Building Relationships Haven’t Mets Mets General Public Target Group Your Contacts Allied Resources Everyone in your Met Group first goes into an 8 x 8 program, which is then followed by a 33 Touch Generate Leads with Your Database
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 MREA Strategic Model for Generating Leads and Building Relationships Haven’t Mets Mets General Public Target Group Your Contacts Allied Resources Put your Target Group on a 12 Direct campaign to create an awareness of your brand Generate Leads with Your Database
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 MREA Strategic Model for Generating Leads and Building Relationships Haven’t Mets Mets General Public Target Group Your Contacts Allied Resources Use a wide variety of prospecting and marketing techniques to generate leads from the General Public Generate Leads with Your Database
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Put MREA Model into Action with eEdge Consolidate your contacts in one place
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Put MREA Model into Action with eEdge Break Out Your Contacts into Groups Allied Resources Buyers Haven’t Mets Sellers
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Put MREA Model into Action with eEdge
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Put MREA Model into Action with eEdge
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Feed Your Database Every Day A Closer Look at Your Mets Inner Circle
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 A Closer Look at Your Mets Hidden Circles found by Social Media Feed Your Database Every Day
BREAKOUT CLASS TITLESLIDE Grow Your Business with KW TechnologyJuly 5, 2012 Your Mets Online Facebook Google+ Circles LinkedIn Twitter Feed Your Database Every Day
Business Development Cycle Meeting people. Eliminating rejection. Repeat. Promote
Meeting people You are the product that must be sold to the consumer. People who don’t know your product, will not use your product. People will choose you from among the hundreds of agents available because they know you, or at least know of you, and what it is you do for a living. Home-sellers and homebuyers most often use an agent’s services because they know, like and trust that agent.
Meeting people There is a direct correlation between the number of people you meet and the number of transactions you close. If you are getting your name and face in front of a lot of people, you win. If you are sitting in the office expecting the business to come to you, you lose. If you want to do more business, meet more people.
Understanding Prospecting Active prospecting, or making direct, two-way contact with potential clients provides the most leads per contact. Conducted via face-to-face or telephone conversations, active prospecting is valuable because you can gauge the prospect's interest and desire to work with you more accurately. Examples of active prospecting include door knocking, holding buyer/seller seminars, open houses and making telephone calls.
Understanding Prospecting Passive prospecting, or one-way contact, is a less effective method of obtaining leads. This includes paper mail, , online or through publicity efforts. Examples include sending direct mail letters to members of your farm, developing and releasing press releases, or distributing electronic newsletters.
Eliminating rejection The fear of rejection causes most agents to avoid meeting people and, therefore, most of the failure in the real estate industry. For an agent to be successful in making new contacts, they must do one of two things, overcome the fear of rejection, or eliminate the rejection so they no longer have to be afraid. It makes more sense to eliminate rejection, by eliminating its cause, than to learn to live with it.
Eliminating rejection Most rejection is caused by the simple fact that when we interrupt people, to ask if they have a need for our services, we give them nothing of value in return. It is a win-lose situation. We win. The consumer loses. We have the opportunity to generate a lead. They have the inconvenience of having their private time interrupted.
Eliminating rejection What is a win-win prospecting method? You, the agent, have the opportunity to meet a potential buyer or seller. The homeowner receives something of value. You both win! Something of value for the homeowner can be as simple as information, a unique handout or flyer, home maintenance tips, a calendar of local events or anything that would be perceived as a fair exchange for the use of the homeowner’s time.
Dynamics Of Expanding Sphere Make contact with 10 new people a day, 5 days a week, 50 weeks a year. 50 per week x 50 weeks = 2,500 contacts Divided by 15 years = 166 transactions a year 10% = 16 transactions Not include expose to their sphere of influence
Dynamics Of Expanding Sphere You know or come to know 100 people. They let you know of others wanting to buy or sell property. Say that each of them know as least 20 people. 100 x 20 = 2,000 people in your sphere of influence. People move once every 15 years. 2,000 divided by 15 equals 133 potential transactions. Assume that each listing or selling commissions is worth $7,500 to a salesperson. That's $15,000 potential per transaction. $15,000 x 133 transactions = 1.9 million potential yearly income from your sphere of influence. 10% of 1.6 million is $190,000 per year! 5% of 1.6 million is $100,000 per year!
Sphere of Influence in Real Estate Definition: A group of people upon which you have influence because they know you. Includes family, friends, those with whom you do business, fellow organization or club members, etc. Increasing your sphere of influence should be an ongoing goal that will pay off in business over time. Also Known As: SOI
Finding an Agent The most common way for both buyers (40%) and sellers (38%) to find an agent is when a friend, neighbour or relative refer someone. This reinforces the importance of Staying top of mind with your past clients and sphere of influence, and Asking for referrals Profile of Home Buyers and Sellers (NAR)
Sphere of Influence You already have a sphere of influence. You have family, friends, schoolmates, business associates, soccer buddies, etc. These are people that know you, and because of that, you have some influence on them. You should always plan to grow this group. This will become a huge source of repeat and referral business over time.
Sphere Of Influence People would rather do business with someone they know and trust than with a stranger. Most people use the same accountant, car repair shop and doctor again and again. The same people who know you and like you automatically comprise a network that represents the strongest base of potential clients. Not only potential clients, but referral sources.
Sphere Of Influence We encounter new faces visiting clients, attending social gatherings, and waiting in line for a cup of coffee. Always have your business cards with you. May want to carry notebook or so you can write down names and contact information. Wear KW career apparel and/or name badge.
Business Cards 1,000 cards handed out 5% respond = 50 responses 10% of responses result in a transaction = 5 transactions $10,000 commission x 5 transactions = $50,000
Make contact the way you usually do. You could produce a nice letter in envelopes and mail via first class mail. If you're making a really large contact list, many of them will be people you usually talk to via , text messaging or phone. Contact them the way you always have; split your list into groups by contact method.
Categorize by how you know them. You want to have certain common types by which to identify contacts. If you're using Outlook, you can use the "Categories" function for this. You would have categories for Friends, Family, Vendors (doctor, lawyer, local grocer, etc.), Buyer Prospect, Seller Prospect, etc. The buyer and seller prospect categories are for those new ones you're about to get.
Plan ongoing contact and do it! Make a plan for how often you want to contact them. This can vary by type, such as family will not need a lot of follow-up, etc. Follow the plan and make regular contact. There's nothing worse than finding out a good friend bought a home elsewhere because they forgot about you.
Do some quick list-building activities. Get involved in community activities, go to homeowner association meetings, give out your business card to the person behind the dry cleaner counter. If you go for coffee in the mornings alone, stop getting a table and sit at the counter. Strike up a conversation with the person next to you.
Define and Rate Sphere of Influence A = someone likely to refer to you B = someone who with a little more contact with you, would refer to you C = Questionable D = Delete
Send an Item of Value each month What do you send to your sphere of influence? Is it something you would want to receive and find valuable? How many creative Items of Value can you come up with?
Make it a daily ritual Calling daily some people out of your sphere of influence is essential. Even one a day is OK. Call several times a day if you want your income to raise quickly. Decide when to make calls and keep at it until you’ve reached the people you were trying to call. Several weeks after doing this, it will feel a lot easier.
Overcome your blocks to calling “I don’t want them to think I want something from them” “I’m afraid they won’t like me” “I don’t want to be like a telemarketer”
Overcome your blocks to calling If you send an Item of Value, you are giving, when you chat with them and listen to what’s going on in their lives, you’re giving again. At the end of the call, say something like, “Oh by the way, if you hear of anyone even whispering about buying selling a home, please give me a call with their name and number.” “I’ll be happy to send referrals to your business, as well.”
Overcome your blocks to calling After calling monthly (after mailing Items of Value) you’ll begin to know your sphere of influence and they’ll know you. You’ll learn which are A’s, B’s, C’s and which ones to delete. You’ll be in their stream of consciousness; the first one they’ll think of when they think of real estate. Don’t be surprised if you get referrals in the first few weeks.
Making Contact Ask them if they currently have any personal need of a professional Realtor in either the area of buying or selling their own residence. Any friends, relative, neighbors or acquaintances that have a need of a professional Realtor? Don't use the words “real estate agent.” “Professional Realtor” sounds better.
Tips For Working A Sphere Of Influence 1. Meet people. Whenever you talk with someone, let them know you are in real estate. Make it a habit to work it into your conversation. "The only way people in my profession come to know about people buying or selling real estate is through people kind enough to let us know when they hear of someone. Could you help me out? Do you happen to know of anyone who might be considering buying or selling real estate ?" If the person says "no", give him or her a business card and say, "Here is one of my cards. If you happen to hear of anyone thinking of buying or selling real estate, will you keep me in mind?" If they say "yes" to this question, they have just committed themselves to helping you.
Making Contact Don't just give people a business card; make a specific request of them to help you. Rather than saying “please send me some referrals,” let your friends, relatives, acquaintances and contacts know that you are out to “build your business.” Make this a specific request of your sphere of influence and look them in the eye and ask “can I count on you for it?”
Making Contact When you see the same people again, they are going to have a sense of wanting to do something to help you. When they say “Hey Susan, how is the real estate business going?”, you have a response of “Well, it's going all right. By the way George, I want to make sure that you still have my cards and my promotional brochure. Do you need some more ?”
Making Contact Must hear from you six times prior to remembering you on a conscious level. If you mail to people six times, they still may not automatically refer people to you. Better to send professional letter and personal brochure to all the people that you know, and then follow up with a telephone call.
Tips For Working A Sphere Of Influence 2. Put them into your eEdge Database. Keep a record of names, addresses, phone numbers, and personal data on each person for future reference. This file should be updated with personal data to help develop future conversations. 3. Send each person a "thank you" note. In the note, write: "...I just want to say thank you for saying you will keep me in mind when you hear of someone interested in buying or selling real estate. I really do appreciate your consideration. Hope to talk to you soon."
Tips For Working A Sphere Of Influence 4. Get back personally to each person within two weeks of the first contact and at least every 30 days thereafter. Try to accomplish the following in this order. A. Work to build a friendly relationship. This can be done by talking about them. Don't spend more than a couple of minutes or you will become a nuisance. B. Thank them again for remembering you. "I just wanted to say think you again personally for saying you would keep me in mind if you hear of anyone considering buying or selling real estate. The only way I can be successful in my profession is through people like you considerate enough to keep me in mind when they run across someone considering buying or selling real estate.“ C. Remind them of their commitment to you. "Since the last time we talked, have you run across anyone considering buying or selling?"
Tips For Working A Sphere Of Influence 5. Get back in touch with each person, either face to face or via telephone, at least once every thirty days. Use each visit to build the relationship, educate, and to ask if he or she has come across anyone interested in buying or selling real estate since your last meeting. You will not get a lead unless you ask. Follow the format (a, b, and c) above.
Tips For Working A Sphere Of Influence 6. When you get a lead from one of these people compensate them with gratitude and appreciation. Give each prospect referred to you 100% of yourself. Ask your customers and clients to thank the person who referred them to you. When someone gives you a lead shower them with gratitude. "You know, we never would have met if it hadn't been for Bob. Would you do me a favor and make it a point to let him know I was able to help you and thank him for introducing us?" And then to Bob say, "I wouldn't be successful in my career if it wasn't for people like you helping me. Thanks for your help. I appreciate it."
Tips For Working A Sphere Of Influence 7. Never forget to stay in touch every 30 days. The best source of referral leads are past customers, clients, and people who have referred you to others. If you don't stay in touch they will soon forget you and the quality of your service. If you want to get and continue to get referrals from these people you must stay in touch at least once every 30 days. It is not their job to remember you, but your job to remind them. 8. Evaluate each person in your sphere of influence and stop talking to those who haven't given you a lead within a reasonable period of time, maximum 6 months. Always recruit more people into your sphere of influence to replace the unproductive ones.
Lead Generation Ideas Main Ideas 1. Consider the many possibilities. 2. Choose three methods. 3. Create an action plan for each one. 4. Identify an accountability partner.
Lead Generation Ideas 101 Ideas to Consider 1. Garage sales 2. Car dealer 3. Furniture sales 4. Mortgage companies 5. Title companies 6. Inspectors
Lead Generation Ideas 101 Ideas to Consider 7. Appraisers 8. Moving companies 9. Facebook 10. Twitter 11. Chamber of commerce 12. Airlines
Lead Generation Ideas 101 Ideas to Consider 13. High school/Middle school/Elementary 14. PTA 15. Volunteer for school trips 16. Band 17. Choir 18. Sports/Booster clubs
Lead Generation Ideas 101 Ideas to Consider 19. Teachers 20. Principals 21. Divorces 22. Judges 23. Charities 24. HOA associations
Lead Generation Ideas 101 Ideas to Consider 96. Hair salons/Nails 97. Blood banks 98. Golf courses 99. Banks 100. Gas stations 101. Lamaze classes
Lead Generation Ideas Step 1: Your Top Three Picks Choose three methods best suited to you. You can try others later, but focus on these first. Make these avenues your top priority every day.
Lead Generation Ideas Time to Act “To accomplish great things, one must not only think—one must ACT.” The Beginning
Lead Generation Ideas Step 2: Action Plan Create an action plan for each method.
Lead Generation Ideas Step 3: Accountability Find a partner who cares about your success. Their job is to hold you accountable.
Lead Generation Ideas Ideas into Action 1. Decide which three methods best suit you. 2. Create an action plan for each of them. 3. Get support from an accountability partner.
Online Customer Relationship Marketing Repeat business and referrals remain your most profitable source of business. Customer relationship marketing (CRM). Lifetime Value is the TOTAL dollar value every client and every affiliation brings to your practice over the lifetime of your relationship.
Lifetime Value The FIRST value is the “Single-Transaction Value” every client brings you. For most agents this is the Lifetime Value. The SECOND value is “Transaction Multiplier” value. A listing should bring at least two new buyers and another listing in the area. The THIRD value is the “Repeat Business” Value. The average home ownership in this country is about 5.5 years. The FOURTH value is the “Referral” value. Clients who are acquired by a referral are very high quality (i.e. they are easier to work with, easier to close, and provide the fewest problems), and they refer others just like themselves.
Strategies to Build Referrals and Gain Repeat Business Communicate regularly with your past clients, and others in your sphere of influence. Take advantage of all available online and offline methods to express your professionalism and continued interest. At the end of each communication, always ask for a referral, and don't be bashful about it.
Repeat and referral business Strive to average at least one new referral client per transaction. Don't be shy. Make it your policy that closings are never truly closed until you have asked for referrals from all the players. Activate a business-building campaign after each closing that includes s, faxes, phone calls, and follow-up-letters to the buyer, the seller, friends, co- workers, neighbors, etc.
Follow-up is critical Your ultimate objective is to pull as many referrals as possible into the "Lifetime Marketing Cycle." This all-important cycle begins with lead generation and acquisition, moves on to prospect follow-up and conversion, and long-term contact and retention, which, in turn, provides more referrals. Effective customer relationship marketing calls for quick follow- up at each step of the lifetime marketing cycle. The biggest mistake you can make after asking for, and getting referrals is the failure to follow up with a series of targeted communications.
Online Professional Worksheet Current Position Company Name, Title, Time Period, Description. Professional Summary Your professional “headline” Your primary industry of expertise Specialties you have in your industries of expertise Summary of your professional experience and goals Prior Experience Company Name, Title, Time Period, Description Education School, Years Additional Information Websites, Groups/Associations, Interests