1. © 2011 Cengage Learning

2. Lead Generation or Prospecting for Clients & Customers Chapter 5 © 2011 Cengage Learning

3. RATIONALE FOR CHAPTER Without clients & customers, the agent has no one to represent. This chapter stresses the important role that systematic prospecting plays in creating new business for the agent. It also stresses the need to create and follow a business plan and how an agent’s attitude toward prospecting can directly affect his or her income.

4. © 2011 Cengage Learning Focus of Presentation Fear of rejection is a basic human emotion. Many agents are so crippled by it that they are afraid to prospect. The vast majority of the fear that agents experience is not real & the agents need to learn to overcome it to succeed.

5. © 2011 Cengage Learning Focus of Presentation Importance of the agent’s attitude and how it can make or break a career.

6. © 2011 Cengage Learning Focus of Presentation Doing adequate research before preparing a business plan is important.

7. © 2011 Cengage Learning Focus of Presentation Types of prospecting that are available & effective.

8. © 2011 Cengage Learning Focus of Presentation Safety rules for prospecting activities conducting an Open House showing property going door-to-door.

9. © 2011 Cengage Learning Focus of Presentation How you build & sort a database & the effectiveness of an e-mail database.

10. © 2011 Cengage Learning Focus of Presentation The reluctance of agents to get actively involved in prospecting activities is the biggest single reason for failure of new licensees, do everything possible to help gain a positive attitude about it.

11. © 2011 Cengage Learning CHAPTER FIVE OUTLINE 5.1 WHAT IS PROSPECTING 5.2 DO YOUR RESEARCH FIRST 5.3 FORMULATING A BUSINESS PLAN 5.4 THE DO-NOT-CALL-LIST 5.5 FOR SALE BY OWNERS

12. © 2011 Cengage Learning CHAPTER FIVE OUTLINE 5.6 EXPIRED LISTINGS 5.7 YOUR SPHERE OF INFLUENCE 5.8 GEOGRAPHICAL FARM 5.9 OPEN HOUSE 5.10 BUILDING YOUR DATABASE

13. © 2011 Cengage Learning WHAT IS PROSPECTING Prospecting is the systematic process of locating buyers and sellers to do business with. Benefit of obtaining listings and how they attract buyers. Benefit of systematic prospecting.

14. © 2011 Cengage Learning ATTITUDE IS EVERYTHING Effect attitude has on prospecting. Realities of rejection when prospecting. Benefits of having a systematized prospecting plan to keep focused on the prospecting style that best suits you and keeps you focused.

15. © 2011 Cengage Learning DO YOUR RESEARCH FIRST Benefit of doing some detailed research about any group you decide to use as a prospecting source. The risk/reward ratio way of tracking how much business each prospecting source is likely to bring and what that business will cost in dollars and time.

16. © 2011 Cengage Learning FORMULATING A BUSINESS PLAN Re-state the risk/reward ratio research that is required. Set up a calendar of daily and weekly prospecting activities. Set up a budget that will provide enough money for the required activities. Go over the sample Weekly Prospecting Plan shown in Figure 5.1(p. 150).

17. © 2011 Cengage Learning FORMULATING A BUSINESS PLAN Importance of constantly tracking prospecting leads. You should know- where they are coming from what the conversion rate of each source is how much time is spent on each source Be sure you understand you must give each source sufficient time before evaluating its effectiveness as you are building relationships, and that takes time.

18. © 2011 Cengage Learning THE DO-NOT-CALL-LIST Provisions of the Do-Not-Call List and the penalties for violating it. As many agents have abandoned telephone prospecting due to the DNC list requirements, there is much less competition and cold-calling is still fertile ground.

19. © 2011 Cengage Learning FOR-SALE-BY-OWNERS FSBO’s should really be referred to as unrepresented sellers. Agents are afraid to contact. Fallacy of this and how the market wears most of them out and they call an agent they have come to know and trust. How to locate FSBOs.

20. © 2011 Cengage Learning FOR-SALE-BY-OWNERS How to make the initial approach by writing them a letter which includes a list of helpful hints, then following up two nights later with a phone call to set an appointment to see the property. Importance of researching the neighborhood prior to visiting the home, and how to conduct oneself while at the property.

21. © 2011 Cengage Learning FOR-SALE-BY-OWNERS Importance of asking for the second appointment before leaving, and the importance of sending a hand-written thank you note shortly after the visit. The “30-second follow-up visits” until they list or sell.

22. © 2011 Cengage Learning EXPIRED LISTINGS Difference between FSBOs and expired listings. Reasons why listings expire. How to find expired listings in the MLS. Benefit of reviewing the MLS listing prior to any contact with the owners in order to spot any potential troublesome areas.

23. © 2011 Cengage Learning EXPIRED LISTINGS How to call and ask for an appointment, after checking DNC list. Importance of getting the appointment & getting off the phone immediately. Importance of doing the proper homework. Importance of “asking for the order” (ask for the listing).

24. © 2011 Cengage Learning YOUR SPHERE OF INFLUENCE What is sphere of influence? People already in your sphere of influence? Benefit of building a sphere of influence database throughout an agent’s entire career.

25. © 2011 Cengage Learning GEOGRAPHICAL FARM Long-term benefits of this type of prospecting source. How to identify a farm area that has enough turnover to support sustained farming activities. How to get the owners’ names and addresses. Advantage of sending an introductory letter first, then other types of mailings.

26. © 2011 Cengage Learning GEOGRAPHICAL FARM Advantage of constant cold-calling. How often to mail to a farm area and what to send. When do owners in your targeted areas start to remember you?

27. © 2011 Cengage Learning OPEN HOUSE Dual role of an agent who is conducting an Open House. Importance of location when holding an Open House. Use of directional signs to direct traffic. Importance of researching the neighborhood’s sales and listing activity (it’s a credibility issue).

28. © 2011 Cengage Learning OPEN HOUSE How to greet people, make them feel at home, and get a name, phone number, or e-mail address. Importance of asking visitors if they have signed a buyer/broker listing agreement with someone. Safety issues and the importance of letting someone know where you are.

29. © 2011 Cengage Learning INTERNET SITE Where can Internet site be effectively referenced. Benefits of adding links to your Internet site. Benefits of having a web site or web page linked to the local MLS.

30. © 2011 Cengage Learning ABSENTEE OWNERS Two types of absentee owners: rental property owners second home owners How can local title company help you identify lists of absentee owners? Benefit of sending mailings to the absentee owners on your list.

31. © 2011 Cengage Learning ABSENTEE OWNERS Effectiveness of checking the For Rent section of the local newspaper and calling owners to see if they might be interested in selling or exchanging while the property is vacant and easy to show.

32. © 2011 Cengage Learning BUILDING YOUR DATABASE How to build a database, then how to sort it for effectiveness. Identify the categories.

33. © 2011 Cengage Learning BUILDING YOUR DATABASE Effectiveness of segmenting an agent’s database into various e-mail categories.

34. © 2011 Cengage Learning BUILDING YOUR DATABASE Effectiveness of sending an e-mail of each new listing that an agent obtains to his or her entire e-mail database, asking if anyone would like to see it. E-mail protocol. Social networking.