Real Estate is a Numbers Game, What You Can Do to Hit Your Targets
There is a great chance that you have heard of the Real Estate Cold Caller’s Philosophy. For every one hundred calls that an Australian real estate agent gets, there is an excellent chance that you may book five appointments. For the five appointments booked, you may have only get one listing. Let’s say that you make 500 phone calls. Of that 500, you make 5 listings. Supposing that you have $5,000 as your average listing commission, this means that every phone call that you made is valued at $50, since you had to make a hundred calls to earn a listing.
You will then start to realize that for every yes you got, you had to swallow, 99 ‘no’s.’ For every ‘no’ that you get, you are sure that you are getting closer to earning a ‘yes.’ Some may have seen it as a game, but to some real estate agents that are always looking out for clever lead generation, it is far from fun.
To a lot of real estate agents, this is seen as a tedious way to earn an income. Having to call people for hours on end in a day, trying to find out if the person on the other end of the line may be thinking of either selling or buying real estate – or knows someone who is thinking about it – is timely and annoying.
It is important to note that the Division of Real Estate in all Australian states does not give you that real estate license for you to take the role of a professional prospector. That license is for you to try and satisfy your clients, rather than chasing prospective clients. It is vital that you take care of your buyers and listings.
Should You Suffer Yourself?
Who wouldn’t want to have a stream of lead generation that will lead to a steady flow of income? There are bills that have to be taken care of at home, and a greater expendable income is something most, if not all, want. Even if we love what we do, not many of us work for the fun of it and you that you didn’t start selling real estate out of the goodness of your heart. Everyone in the Australian real estate industry has the common goal of making sales and earning a healthy income.
Cold calling is definitely not the way to start. Going to knock on the door of a stranger is the wrong way to go. It may work out, but it is definitely not practical for lead generation.
A smart way to get things done as a real estate agent is to have the SOI expanded for your business.
SOI means Sphere of influence, and they are those people that are influenced by you. They typically include your friends, family, club members, business colleagues and so on.
Attends meetings, conventions, parties and other social events. Create social media platforms so your easily found by the connections you make. Expand your SOI; this will assist you in finding listings organically, and cause much less stress in your work life.
Smart agents have been known to rely on it for a large proportion of their business. You may have the luck of picking some clients here and there, but major of your clients can come from SOI. This is a smart way of lead generation because real estate listings come indirectly or directly from those you meet.
Every Client Should Be Special To You
Though you may meet some clients that are high maintenance, and whom you may feel like walking out on, it is crucial that you treat every client like they are special. They are the source of your large commission, as well as business. Their business is important to you. Treat them well because word of mouth have been known to help make or mar a real estate business.
When you notice that you have a large SOI base, hours don’t have to be spent daily making cold calls.
SOI business is the right business, and provides a strong foundation for the relationship. It is great for lead generation. It comes with a success rate, ranking from 50%-75%, which is better than the traditional lead generation with a range of 5-10%. This means that when you get 100 leads from SOI, you earn 50 to 75 closings, unlike the 5 closing from traditional lead generation system of cold calling.
How Does It Work Exactly?
Though your SOI may not always provide you with a lead every time, it is important to note that the leads are usually good, that may likely lead to a closing. Based on the real estate market that you are working in, and how the broker split works, every lead generated will usually bring thousands of dollars to your bank account.
Let’s say you have attended a lot of social events, and have made some strong networks. These networks promote your business via word of mouth. The stronger your positive social networks and connections, the more business you will generate.
What of your family members? Try to be on their good books. They are probably scattered around the country or district, and when they hear of a real estate deal, they’ll suggest you to cater to any real estate needs they may have.
Nurturing great relationships with those around you is always a positive approach to developing your business. Smile more. Attend social gatherings and network. Follow them up. Send them emails. Act like you are interested in their lives, and they will always bring business to you. This is a better lead generation system than the traditional one of cold calling.