Business is simple.
It may not always be easy, but the principles of success remain the same.
Most people think economic conditions dictate how well they will do, economically – i.e. times are good, business is good. When times are bad, they just know that business will suffer.
I’m sure most of us hear this from agents we know. In fact, some of you reading this right now think it’s true.
It aint. The truth is whether your local real estate market is booming or seeing more challenging times, you should be focused on three things consistently: Lead generation; giving phenomenal service; and becoming an expert.
If you commit to mastery in these three areas, you can gain market share regardless of the economic conditions.
Understand that you are in the Lead Generation business.
No matter what you provide or sell, your real business is Lead Generation. Your purpose in business is to find people to serve.
If you invented a widget that will change the world but you have no customers, you are out of business – and your widget won’t change the world.
The first key to improve your sales in any market is to get into the Lead Generation Business. Everyday spend time meeting new people and deepening relationships.
Most people love to help, but haven’t learned to love hunting for people to help. Ask for business, and be detached from the outcome.
Commit to lead generating every day, and you won’t care what part of the economic cycle we’re in.
Is your service and product the best they can be?
Often we think it’s all about price. Some companies slash prices to try to get more business. Maybe it’s a local agent that is willing to take a listing for a smaller professional fee than you are.
What we need to remind ourselves it that people don’t want the cheapest price, they want the best deal. If we all wanted the cheapest thing, we’d all drive the cheapest cars available, and judging by the parking lot at my local Real Estate Board’s events, that isn’t the case.
People want a good deal – that means value for their money. You can tinker with either side of that equation: Lower your price or Increase your value proposition.
Instead of making your services & products cheaper and less profitable, what if you made them better and more useful?
If you improved the quality of what you did for your clients, would they refer more business to you? Probably; if you cut your prices, you are sure to attract some customers – but they’ll leave you as soon as a competitor cuts their prices a bit more.
The problem with competing on price is that someone can always undercut you – and you can’t make that up in volume.
If you focus on providing more and more value, you’ll be making your product or service increasingly attractive to consumers. Providing more value is the 2nd step to growing your market share in any economy.
Become an expert in your area
Are you an expert at what you do, or are you one of many selling the same services and homes? If you’re one of many, then you’re a commodity.
You become a commodity when people perceive that they can get the same experience from a variety of sources – ‘an agent is an agent regardless of the brand name on the sign’ – and usually it also means that they’ll make a selection based on price & marketing.
BUT, If you’re an expert, people will come to you for what you know and the experience you have.
Be the market expert & they will seek you out.
How do you become an expert? Simple!
1) Find your niche – what part of the real estate business are you passionate about? For me, it’s helping people build wealth through buying and selling income producing real estate. Figure out what you enjoy selling, and focus on it. Specialist > Generalist.
2) Immerse yourself in the information you need, from people and books, to become an expert. Study, apply, repeat. Learn from those that have come before you, and you’ll save yourself years off of the learning curve.
3) Walk the talk. Show people that you can consistently produce the results you’re talking about, and you can do it for them.
That’s it! If you do that, and communicate to your target market that they should deal with you because you are the expert on helping first time homebuyers, or selling hotels, or whatever your particular niche is, they will want to deal with you instead of a regular agent. Why wouldn’t they?
I know some of our readers find themselves facing real estate markets that have seen large shifts, and the good news is that no matter what the market is like – whether its spring or winter, whether rates are going up or down – you can increase your sales by focusing on Lead Generation, Providing More Value, and Being your Market Expert.
I thought this sounded like a fellow Keller Williams agent. Good article.
Hey Ben — Lead generation is far more palatable then the idea of prospecting — i.e. talking to strangers all the time. You’re successful cuz to you it doesn’t matter what you call it, you just do it. Most agents fail due the their inability to, as you so clearly put it, ‘detach themselves from the outcome’.
Good stuff. The basics never get old.
Thanks Jeff! There are only so many ways to throw a fastball, right? Why reinvent the wheel!
Thanks Eric – must be something in the DNA
Exactly! Well said.
Cheers
Thanks Ken!
Yes! Be the expert! If you are the “dog lover” realtor, then be the dog loving realtor that has blogged all about their dogs and the dog parks in the city. Find great dog friendly walking trails and write about it. Whatever it is that makes you tick, there are clients out there that like the same things. Wouldnt it be great if you got a client who shares your passions? Live it and love it, make yourself a resource and make sure your website reflects that.
-Tyler
Ben,
Good post. I completely agree and have always said that real estate is a lead generation business. Unfortunate, but true.
Everyone has the exact same product and inventory (MLS). Some agents are much better than others in all regards, but after you get that client in the car, the agent shopping is typically over.
It’s a whacky business that brings out whacky people.
But the bottom is and shall be, if you have an abundant source of leads, you’re in business almost no matter what. If you have NO leads, you’re not!
RM
I thought I was reading MREA again! Good to be reminded of the basics.
But, of course.
Thanks Tyler – great point!
RM – very true. Tony Robbins once said, RE: making calls – the more you make, the more you make ($$)
Matt – that’s a great compliment; thanks!
I’d like to pick up on the comment that lead generation and prospecting aren’t necessarily the same thing. Prospecting implies cold calling strangers. An activity that delivers a decent ROI for very few agents and is a demoralizing waste of time for many more. The better alternative is lead generation by calling those people in your database that you already have some level of relationship with. These calls are focused on broadening and deepening the relationships you have with the people that can genuinely impact your business – past clients, referral sources and those with the potential to become one or the other (or both) with the right relationship nurturing. This type of calling usually has a much higher ROI and is the best form of lead generation.
A business directory is also a great way to establish yourself as the expert in all things home related in your area. It lets you add value after the sale by helping your client find the best home-related services in your area. The more you help them, the more they value their relationship with you. And those in your business directory that you recommend have a good chance to become clients themselves.
Of course, at the heart of either of these approaches is a solid contact management system. One that is easy to us, helps you keep in touch with contacts in a meaningful way. If you agree with this approach, IXACT Contact ixactcontact.com is worth checking out.
Wonderful post. Lead Generation Business is very important for being a successful real estate investor. All the points you detected are realistic and useful.