I Am Your Realtor and I Want To Know...

Transcription

1 I Am Your Realtor and I Want To Know... Why Are You Not Calling Me! It's The #1 Question Agents Ask Themselves About Sellers & Buyers! By Randy Roussie Copyright

2 Table of Contents Introduction 3 Income Opportunity & Comparison Section 1 5 Understanding Your Real Estate Business Section 2 16 Understanding What Sellers & Buyers Want From Agents Section 3 20 Understanding How Sellers Contact Agents Section 4 39 Understanding How Buyers Contact Agents Section 5 49 Summary & Recommendations 2

3 Introduction Real estate sales is an exceptional opportunity when compared against other professions. First we need to look at education. Many years of education are required to become a doctor, dentist, accountant, engineer, or lawyer. Next we must add the financial burden most graduates face as they begin their careers heavily in debt due to student loans. Lastly we must consider the initial investment to begin their careers. Professional Income Opportunity In light of this investment of time and money these professionals make towards attaining their dreams, what is the yearly income potential they actually enjoy? 1. Average Family Doctor $131, Average Dentist $125, Average Accountant $46, Average Lawyer $88, Average Engineer $61,000 Now Let s Compare This To An Agent s Income Potential Agent Income Per Year Percentage of Agents Earning Income Less than $10,000 18% $10,000 to $25,000 13% $25,000 to $35,000 9% $35,000 to $50,000 11% $50,000 to $75,000 13% $75,000 to $100,000 10% $100,000 to $150,000 12% $150,000 to $200,000 6% $200,000 to $250,000 3% $250,000 to $500,000 3% $500,000 to $1 million 1% Over $1 million 1% 3

4 There is no doubt an agent enjoys a much better position considering the educational ease of becoming an agent, the initial start-up business investment, and the income potential it offers. Just Think About How Good Agents Have It! 1. It takes virtually no education to become a real estate agent. 2. It takes less than a $3000 investment to become a real estate agent. 3. The income opportunity is 100% dependent upon an agent s desire to succeed. 4. The business can make any agent a multi-millionaire. There Is Really No Comparison With Real Estate Sales! The income opportunity has absolutely nothing at all to do with education. Any agent can make more money than a doctor, dentist, accountant, lawyer, or engineer by simply understanding and implementing the principles of success. Then Why Are Agents Complaining? 1. They do not recognize the tremendous income opportunity. 2. They do not know how to harvest the income within the opportunity. What Is Needed For Success? 1. An understanding of the business itself. 2. An understanding of how sellers & buyers contact agents. 3. The marketing material required to excel at the business. 4. The communication tools to harvest the income of the business opportunity. 5. An accountability plan to do the follow up and follow through activities of the business. And that s what this book will discuss in a step-by-step process. By the time you have finished reading this book you will know (1) exactly what works, (2) what does not work, and (3) the systems needed to experience success. 4

5 Section 1 Understanding Your Real Estate Business 5

6 Chapter 1 An Understanding of the Business They Should Never Have Called It Real Estate Sales! Most agents enter the business with the wrong mentality. They think the business is about the selling of homes. This sales mentality causes them to invest into sales training programs. Of course they believe such sales training will naturally increase their incomes. However, nothing can be further from the truth. What Should They Have Called Real Estate Sales? Please read the following very carefully. Real Estate Referrals! Understanding The Success Numbers The statistics presented in this book are based upon our own internal research supplied to us by our clients over the past 22 years. Our statistics can be confirmed through the National Association of Realtors. They conduct yearly business studies on issues such as referrals, cold calling, open houses, etc. We encourage you to purchase their study as it will assist you in enhancing your success. How Much of The Business Is Done By Referral? You may be shocked by this number. 74% of the business is done by way of referral. How Many Agents Control This Large Referral Percentage? Once again, the number may shock you. 4% of agents collectively control the referral market. 6

7 What Percentage of The Business Is Non-Referral? Once again the number may shock you. Only 26% of the business is non-referral or what is called Open Market. What Do These Numbers Tell Us? 96% of agents to do not know how to capture the referral income found within the business Think About It! Why would 96% of agents invest money into sales training and then purposely compete with other agents in the smaller 26% open market when the business is 74% referral based? The only answer is they do not understand the business. Your Two Success Options Option 1. Compete with 4% of agents where 74% of the business is found. Option 2. Compete with 96% of agents where 26% of the business is found. Which Option Makes More Sense? Obviously #1 yet for some unknown reason the massive majority of agents reject referral marketing and rush into open marketing where failure is virtually guaranteed! What Would You Do If You Owned A Pizza Shop? Allow us to assume you are the owner of a pizza business. Based upon your sales history, 74% of your customers prefer a cheese pizza while only 26% prefer a meat-lovers pizza. May we ask you a question? Which type of pizza are you going to promote to drive business into your shop? Only a fool would priority promote the 26% meat-lovers pizza. Yet this is exactly 7

8 what the majority of agents do when it comes to promoting their real estate businesses. What Have We Learned? The business is not about becoming a more skilled salesperson but rather an expert at relationship referral marketing. How Is Income Earned? Agents must prioritize their businesses to match how income is actually earned. 74% of your income will come from referrals. 26% of your income will come from non-referral stranger marketing. You Must Have 3 Marketing Plans! 1. Referral Marketing Plan 2. Non-Referral Open Market Stranger Marketing Plan 3. Client Services Plan Your Success Task 1. To identify the components and participants of each plan. 2. To understand what marketing activities actually work within each plan. 3. To own the tools, systems, and presentations required to produce results within each plan. 8

9 Your Referral Marketing Plan Chapter 2 Referral Marketing Where 74% of Your Income is Found! Since 74% of the business is done by way of referral we need to fully embrace this reality by developing a Referral Marketing Plan. Why Is A Referral Marketing Plan A Must Have? The answer is the majority of sellers and buyers choose to do business with people they already know and trust. Did You Notice The Word Trust? Trust is the essential factor in generating referrals. How Is Trust Created? Trust is only created through two marketing initiatives. A. Stay-N-Touch Marketing By staying-n-touch with people on a monthly basis trust is gradually created through communication consistency. This process, in time, automatically positions you as their real estate professional of choice. B. Testimony Marketing You must include in your monthly communication testimony success messages from satisfied clients and line mentions of new listings and sales. It is through the positive experiences other people have had with you that creates trust within the minds of people in your referral database. 9

10 Referral Marketing The Top 4 Must Have Target Groups We will now identify must have targeted groups of people who fall under the definition of referral marketing. It is from these 4 groups where 74% of your income will be generated. 1. Personal Database Marketing A. You must have a database of at least 300 names. B. You must communicate with this database on a monthly basis. Why Do You Need Personal Relationships? 74% of all sales flow from a pre-existing relationship between seller/buyer and agent. Your Success Task A. To assemble a list of people to market to on a monthly basis. B. The list must include addresses. 2. Neighborhood Farm Marketing A. You must have a farm area consisting of at least 500 homes. B. You must communicate with your farm area on a monthly basis. Why Do You Need Farm Area Relationships? 82% of farm area sellers choose an agent who is familiar with neighborhood. Your Success Task A. To select a farm area, or areas, offering the most home style and price variety. B. To develop personal brand name recognition within the farm area. 10

11 3. Association Marketing Examples would be churches, chamber of commerce, golf clubs, schools groups, community groups, etc. Why Do You Need Association Marketing Relationships? 93% of social networking translates into business leads. Your Success Task A. You must develop name recognition within associations. B. You must have a database of no less than 200 individual members. C. You must communicate with your association database on a monthly basis. 4. Renovation Company Marketing A. You must have relationships with at least 5 home renovation companies. B. You must communicate with them on a monthly basis. Why Do You Need Renovation Company Relationships? 50% of sellers who are currently doing a renovation list their homes for sale within 90 days of renovation completion. By developing relationships with renovation companies you will position yourself for referral success. Your Success Task A. To identify and build mutually beneficial relationships with owners of renovation companies. 11

12 Chapter 3 Open Market Marketing - (Strangers) Where 26% of Your Income is Found! What s The Difference Between Referral Marketing & Stranger Marketing? The only difference is found in the timing of results. A. Referral Marketing You must appreciate referral marketing takes time to build and harvest income. How much time? At least 6 to 12 months is required before you will begin to see your hard work pay off in terms of listings and sales. B. Open Market Marketing With stranger marketing you will see results within 7 to 30 days, provided you are fully engaged in the prospecting required to experience financial rewards. Open Market Marketing Is Also Called Cash This Week! Marketing Through open market prospecting activities your goal is to source out sellers and buyers who are ready to do business with you this week. Allow us to now identify open market target groups. 12

13 Open Market (Stranger) Marketing The Top 4 Must Have Target Groups We will now identify must have targeted lead groups who fall under the definition of open market. 26% of your income will be found within these 4 groups. 1. For Sale by Owners - (FSBOs) Your Task A. To locate FSBOs. B. To offer FSBOs a free Internet website. C. To service FSBO while they are selling privately. D. To offer a free list of buyers interested in their homes. E. To book listing appointments. F. To secure listings. G. To sell the home. H. To assist the FSBO to buy another home. Why Do You Prospect FSBOs? 88% of FSBOs list with an agent within 45 days of first trying to sell privately. 2. Expired Listings Your Task A. To locate expired listings. B. To offer a free report on why their homes did not sell. C. To offer a free list of buyers interested in their homes. D. To book a MLS Listing Presentation and then a regular listing appointment. E. To secure the listing. F. To sell the home. G. To assist the Expired Listing lead to buy another home. 13

14 Why Do You Prospect Expired Listings? 98% list with a new agent within 30 days of listing expiry. 3. Open House Marketing A. To run an open house on Saturday and Sunday. B. To have an Internet based open house registry system. C. To place open house visitor on a home drip campaign. D. To book viewing appointments. E. To find the right home for them. F. To assist in the paperwork & negotiation of the offer. Why Do You Prospect At Open Houses? 64% of open house visitors buy a home within 120 days. The issue is not if they will buy a home but rather if you are going to be the agent they use to buy that home. 4. Google Adwords Your Task 1. To open a Google Adword account. 2. To select keywords to trigger your ads. 3. To direct traffic to landing pages. 4. To follow up by providing reports & information offered on landing pages. Why Do You Prospect With Google Adwords Landing Pages? 83% of leads use the Internet when first beginning to search for a home. Note Home buyers consist of two groups, (1) first time and (2) repeat. Internet leads include both groups. Through Google Adword marketing you are targeting both buyers and sellers. (Sellers are repeat buyers, therefore listing leads too.) 14

15 Chapter 4 Client Services Plan Where 100% of Your Referral Income Generation Is Found! Poor service will mean virtually no referrals and absolutely no repeat business. Therefore it is essential for you have a client services plan addressing the needs of your two client types. Your Two Client Types 1. Seller Services A. Listing presentation B. Pricing presentation C. Improvement recommendations D. Buyer showing updates E. Ongoing stay-n-touch service marketing during listing term F. Marketing updates G. Offer negotiation H. Closing services 2. Buyer Services Note A. Financing Pre-Approval recommendations B. Home showings C. Offer preparation D. Offer negotiation E. Closing services When you are in-service with clients you must demonstrate the quality and consistency of service to generate future referrals. This is why professional systems, presentations, and marketing material are essential. Only after the client has been positively impacted do they feel comfortable about referring people to you. 15

16 Section 2 Understanding What Sellers & Buyers Want From Agents 16

17 Chapter 1 Sellers What Do Sellers Want From Agents? Give Them What They Want & You ll Get What You Want! If you want to market successfully to sellers then you must discover their reasons for using an agent. Once you know what those reasons are you will simply make refinements to your marketing. You will also refine your communication style when personally with sellers so it matches their wants. 1. Emotional Reasons For Choosing An Agent These are the emotional reasons, not sales skill reasons, for selecting an agent. Most Important Emotional Factors For Choosing Agent 1. Experience of Agent & Company 71% 2. Reputation of Agent 42% 3. Integrity/Honesty of Agent 23% 4. Knowledge of Neighborhood 17% What Do These Numbers Tell Us? Sellers want: 1. Your experience. 2. An agent of integrity & reputation. 3. Your market knowledge. Note: Emotional number on neighborhood, 17%, varies greatly with what sellers want from an agent when on a listing appointment which is 82%. (82% of sellers want their agents to be an expert within their specific neighborhoods.) 17

18 2. Listing Service Reasons For Choosing An Agent This is what a seller wants from an agent in terms of service during listing term. Most Important Service Factors For Choosing Agent 1. Ease of availability of agent during listing term 94% 2. Weekly communication of sale progress 92% 3. Buyer viewing feedback 72% What Do These Numbers Tell Us? Sellers want: 1. You to be available. 2. To keep them informed during the sale. 18

19 Chapter 2 Buyers What Do Buyers Want From Agents? Give Them What They Want & You ll Get What You Want! If you want to market successfully to buyers, then you must discover their reasons for using an agent. Once you know what those reasons are you will simply make refinements to your marketing. You will also refine your communication style when personally with buyers so it matches their wants. What Buyers Want Most From Agents 1. Agent provides sufficient time to buyer during search 96% 2. Locate right home 53% 3. Confirm value of home 51% 4. Prepare and negotiate offer 31% 5. Help with financing 27% What Do These Numbers Tell Us? Buyers want: 1. Your time. 2. Your professional ability. 19

20 Section 3 Understanding How Sellers Contact Agents 20

21 Chapter 1 Sellers What Marketing Methods Cause Sellers To Contact Agents? Simply Find Out & You ll List More Homes! Marketing should never be a hit and miss kind of thing, especially when you consider the cost of marketing and the importance it has on your income. What Must You Know About Marketing To Sellers? There really are only two pieces to the puzzle. If you discover the components of each you will significantly improve your marketing results. (1) What works. (2) What does not work. By discovering what works and what does not work you will be able to fine tune your marketing, and your in-person communication, so it produces maximum results. 21

22 Sellers What Does Not Work With Sellers? Sellers Are Least Effected By The Following Marketing Strategies! Here's how to waste your time and money trying to get sellers to call you through using these various, and virtually useless, marketing activities. Do These Marketing Strategies If You Want To Waste Your Time and Money Prospecting For Sellers! Marketing Method Seller Responded With Contact Fridge Magnets 0.45% Calendars 0.49% Yellow Pages 0.52% Home Book 0.53% Newspaper Ads 0.62% Non-Targeted Direct Mail 2.9% Agent website 3.1% Relocation Firm 3.8% Yard Sign 4.5% Cold Calling 4.8% Office Duty 5.9% Virtually Useless Activities You are a business owner. Making smart advertising decisions determines your level of success. Any investment into the above marketing activities must be tiny, and targeted, as they do not produce significant results. 22

23 Sellers What Does Work With Sellers? Sellers Are Most Effected By The Following Marketing Strategies! Here s how to achieve maximum results when marketing to sellers. Do These Marketing Strategies If You Want To Be Effective With Your Time and Money Prospecting For Sellers! Marketing Method Seller Responded With Contact Referral by Family or Friend 74% Used Previous Agent 28% Farm Area Marketing 82% Renovation Marketing 85% Stay-N-Touch Marketing 83% Internet Marketing 83% Understanding The Numbers It is vital for you to know each of these marketing strategies since they represent the methods by which sellers reach back and contact agents. For this reason we will invest the remainder of this chapter discussing each method in detail. 23

24 Referrals Referrals By Family & Friends - 74% Building A Referral Base & Referral Network Sellers have pre-existing relationships with agents. When it comes time to sell a home 74% of sellers directly, or indirectly through a family member or friend, reach out and contact an agent. Building a (1) Referral Base & a (2) Referral Network Your task as an agent is to build a unique database for the purpose of harvesting your fair share of the referral market. 1. Referral Base This would consist of people you know on a personally and professionally level. It must consist of at least 300 names with contact information, including addresses, to produce consistent results and to populate the referral network. 2. Referral Network This is an indirect list of leads. You will not have a database containing names or contact information, nor will you market directly, but you will reach out to them through your referral base. 3. Size of Referral Network The average individual in your referral base of 300 personally knows 100 to 200 people but they only have direct influence over 3 to 7 people. This group of 3 to 7 people forms your referral network. You will only market to your referral base and never to your referral network. 24

25 Your Referral Income Potential It is easy to determine the income potential within your referral base & network. 1. Average Sell/Buy Times The average person in the USA sells/buyers a home every 6.49 years. 2. Your Referral Base Potential A referral base of 300 names will produce the following results. 300 divided by 6.49 = 46 sales per year. This means in year one 46 people will sell/buyer from the 300 size base, 46 in year 2, 46 in year 3, etc., until all 6.49 years expire and the process begins again. 3. Your Referral Network Size By having a referral base of 300 people, your referral network, based upon a direct influence rate of 3 to 7 people, would be 900 to 2100 people in size. 4. Potential Income From Referral Network 2100 divided by 6.49 = 323 sales per year This means in year one 323 people will sell/buyer from the 2100 size referral network, 323 in year 2, 323 in year 3, etc., until all 6.49 years expire and the process begins again. 5. Total Referral Sales By developing a referral base of just 300 people, the following is your yearly sales potential. 1. Referral Base 46 sales 2. Referral Network 323 sales 3. Total Sales 369 sales 25

26 Referral Summary When you consider 74% of real estate sales is done by way of referral it becomes obvious as to what your task is in terms of achieving success. 1. Prospecting, seller, fsbo, expiry and buyer presentations 2. Contact database 3. Internet marketing delivery system 4. Stay-n-touch system 5. Greeting card system You simply cannot expect to harvest the fullness of the income potential if you refuse to invest into and then implement referral marketing. Remember As an agent you own a business and success for any business requires an investment of time, money and ongoing stay-n-touch marketing. How Do Doctors, Dentists, & Lawyers Succeed? They each have built a database of clients and stay-n-touch with that database on a monthly basis. They understand their real assets are people. Therefore they invest into database marketing and stay-n-touch marketing. You Too Are A Professional! Real estate sales is not a job but rather a business opportunity. If you refuse to perform database marketing and stay-n-touch marketing you are simply making the wrong business decision. Once you come to appreciate you are a professional just like a doctor, dentist or lawyer yet with an income potential far exceeding their averages you will embrace referral marketing. Once the decision is made to perform referral and stay-n-touch marketing, the fullness of your income potential is released. 26

27 Referrals Used Previous Agent - 28% This is a rather revealing statistic. It seems to suggest most sellers are disappointed with their agents and refuse to contact them again when they require additional real estate services. This cannot be further from the truth, as 91% of sellers stated they would use their previous agent on their next real estate transaction. What Is The Reason for This Difference? Sellers could not use their previous agents since 93% of agents had quit the business before the 6.49 year cycle began to repeat itself. Now we know the reason why so many agents fail at this business. They simply refuse to implement effective database and stay-n-touch marketing into their businesses. Summary Developing a stay-n-touch plan with your database and past clients virtually guarantees they will contact you again. Add to this their influence network of 3 to 7 people and you will have positioned yourself for referral success. Tools Required 1. Prospecting, seller, fsbo, expiry and buyer presentations 2. Contact database 3. Internet marketing delivery system 4. Stay-n-touch system 5. Greeting card system 27

28 Referrals Farm Area Marketing - 82% Agents can take a lesson from grocery stores when it comes to effective farm area marketing. Grocery stores focus their marketing dollars within neighborhoods impacted most by store location. They know people from across town are not going to drive a country mile to shop at a specific store. This is why grocery chains seek out local locations to service neighborhoods. Unfortunately farming is considering a waste of time for most real estate agents. Yet the facts indicate otherwise. 82% of sellers prefer to do business with an agent who has proven experience within their neighborhoods. Agents focusing on farm area marketing average 27% of every listing generated within the farm. What Do These Statistics Tell An Agent? If a farm area produces 100 listings over a 12 month period, the agent focused on farming will list 27 of those 100 homes. This is a significant statistic. It proves without doubt farming is a must do daily action. Summary It would be wise for an agent to have multiple farm areas based upon price, housing type and location. Farm Area Recommendations 1. Low end priced homes 2. Medium priced homes 3. Expensive homes 4. Townhome exclusive community 5. Condo exclusive community 28

29 Referrals Renovation Marketing - 85% The renovation market is the least understand and most overlooked prospecting lead type for agents. 50% of homeowners who are currently doing a renovation will list their homes for sale within 90 days of renovation completion. This statistic is impressive. It proves to any agent the significant benefits to be enjoyed by developing relationships with renovation contractors. Direct Seller Contact To Agents 85% of renovation sellers contact agents directly once the renovation is completed and the time to list has arrived. This statistic informs us referral marketing is the key to secure this lead type. Only 15% of the 50% is open to non-referral marketing strategies. Therefore it would be wise to develop renovation contractor relationships considering 85% of renovation sellers choose to do business by way of referral. Summary This opportunity simply requires an agent to build relationships with renovation companies as 50% of their clients will list their homes for sale. When you consider only 0.7% of agents actively market to renovation companies you will quickly realize the income potential for this lead type. Renovation Recommendations 1. Provide free web site to renovation companies. 2. Provide free web site to the homeowners currently doing a renovation. 3. Provide pre-listing buyer service kits to renovation homeowner. 4. Produce targeted list of buyers for renovation homeowners. 29

30 Referrals Stay-N-Touch Marketing - 83% It does not matter what sales business you re in, stay-n-touch marketing separates the winners from the losers. The more proficient, proactive and professional a stay-n-touch plan is the more income will be earned. 83% of sales are earned through effective stay-n-touch marketing systems. When Are Sales Made Within The Prospecting Process? When you come to appreciate the sales process you will want to quickly get yourself on an effective stay-n-touch system. 48% of sales people never follow up with a prospect 25% of sales people make a second contact and stop 12% of sales people make 3 contacts and stop Only 10% of sales people make more than 3 contacts 2% of sales are made on the 1st contact 3% of sales are made on the 2nd contact 5% of sales are made on the 3rd contact 10% of sales are made on the 4th contact 80% of sales are made on 5th to 12th contact You Must Become A Stay-N-Touch Expert Stay-n-touch marketing is the real business of sales people. It is the one business skill that will separate you from the competition. It will allow you to achieve the various dreams you have as an agent. When you consider the above numbers, it is clear your competitors are not even in the game when it comes to performing stay-n-touch marketing. Since stay-n-touch marketing is of such significance allow us to make a few recommendations on effective stay-n-touch website marketing strategies. 30

31 Must Have Systems for Effective Stay-N-Touch Marketing! 1. Communication database Internet integrated 2. Internet database integrated with newsletter website delivered by 3. Free Internet StartPage service to all in your referral database 4. Monthly greeting cards to top 100 in your referral database Newsletter Website Internet StartPage Greeting Cards 31

32 Referrals Internet Marketing - 83% Here s lies the problem with Internet marketing. 83% of leads when first considering a home sale or purchase go online. They invest 7 weeks online before contacting an agent. Once contacted, they invest 2 more weeks before placing an offer on a home. What Is The Problem? You do not know if an Internet lead is (1) a first time buyer or (2) a seller who will buy once their home is listed and sold. Therefore you cannot assume 83% are exclusively sellers or buyers. This perspective demands you to have an Internet marketing strategy with tools to target both sellers and buyers. Internet Tools For Seller Marketing Here s a list of must have websites to ensure maximum number of sellers reach back and contact you. FSBO website marketing Landlord website marketing Home seller information reports CMA website Listing information report website Sold report website Auto Sale website Yard Sale website How to Net More Than Market website How to Sell In Less Than 30 Days website How to Stop Foreclosure website Expired Listing lead website 32

33 Live Site Examples Simply visit each website to view a live sample. FSBO website marketing Landlord website marketing Home seller information reports CMA website Listing information report website Sold report website Auto Sale website Yard Sale website How to Net More Than Market website How to Sell In Less Than 30 Days website How to Stop Foreclosure website Expired Listing lead website Summary Allow us to clarify Internet leads once again so you understand our position. Studies prove 83% of leads use the Internet when first beginning the home buying or home selling process. Therefore you MUST HAVE an Internet Marketing plan reaching out to both sellers and buyers since this 83% statistic obviously includes a percentage of first time buyers and a percentage of move up & move down repeat sellers. 33

34 Lead Marketing Decision Chapter 2 Sellers Easy-To-Find Seller Leads You have a decision to make when it comes to marketing for seller leads. You can choose to prospect for hard-to-find leads or easy-to-find leads. We recommend only easy-to-find lead marketing. Easy-To-Find Seller Leads There are only two easy-to-find seller lead types. 1. For Sale By Owners If you give careful thought to this lead type you will quickly realize the tremendous income potential they offer to your business. A. No need to do cold calling to locate this lead. B. No need to advertise to locate this lead. C. Lead is motivated to sell. D. Lead is spending money on advertising just to let you know they want to sell. E. 88% of FSBOs eventually list with an agent. 2. Expired Listing Leads Once again, this lead type is easy-to-find. A. Most MLS board inform agents of expired listings. B. No cold calling is needed to locate lead. C. Lead is motivated to sell. D. 98% re-list with an agent within 30 days. E. Most times this lead type will re-list at a reduced price as compared to initial listing, resulting in a quick sale. 34

35 How To Market To Easy-To-Find Leads (1) FBSO Free Website Marketing One of the more effective methods of prospecting to this lead type is to offer a free Internet website the FSBO will use when selling privately. Test Drive Sample Site Visit this website address to test drive this powerful prospecting approach. When there simply pretend you are a FSBO, complete the online form, and you will be given a free FSBO website. Why Use This Approach? It offers the FSBO a free service of real value. This causes the FSBO to view your professional abilities in a very positive light. When you consider 88% will need to list with an agent this tool certainly positions you to ask for a listing appointment when the time is right to make the request. How Do Buyers Find The FSBO Website? Remember FSBOs are spending their hard earned money on classified advertising. All FSBOs does is insert the free website url into their classified ads. When buyers read the FSBO s ad they will notice the website address and visit it online. Please Note: You Will Harvest Buyer Leads Too! On the FSBO s free website there is an form the buyer uses to contact the FSBO. You will receive a copy of all buyer leads the FSBO receives from the free site, including the buyer s name, address and exact message sent to the FSBO. It is your decision as to how and when you follow up on the buyer leads. 35

36 Think About The Power of Free Website Marketing! Allow us to suggest you gave away 50 FSBO sites. Here are the many benefits you will receive with this marketing. 1. You would have 50 FSBOs advertising for buyers at their expense. 2. You would harvest buyer leads without having to spend money on ads. 3. You can follow up with every buyer lead, book showings, and make money. 4. A percentage of the FSBOs will also list with you, allowing you to make even more money. Are You Excited? There is simply no other prospecting system delivering the best of two worlds to you for seller and buyer leads. 1. It allows you to prospect for seller easy-to-find leads. 2. It allow you to harvest buyer leads. A percentage of those leads will have homes needing to be listed and sold. It s Called A Win-Win For All! FSBOs win, buyers win, and most importantly you win! Sample Sites FSBO Request Site (Belongs to agent) FSBO website (Belongs to FSBO) 36

37 How To Market To Easy-To-Find Leads Continued (2) Expired Listing Marketing The prospecting issue you face as an agent is how to address the top 4 questions the expired listing lead will ask when you make first contact. Allow us to discuss those 4 issues now. Question 1 Where were you when my home was on the MLS? Question 2 Why didn't you bring a buyer to see my home when it was listed with my first agent? Question 3 What makes you any different from my first agent who let me down? Question 4 Do you have a buyer for my home? How Do You Answer These Questions? You need a system allowing you to prospect expired listings via the Internet and direct one-on-one. A. Internet Marketing Allows you to run a Google Adword campaign targeting expired listings. When leads read your adword they will click on a link to access your landing page website where you will offer a free report providing the reasons why their homes did not sell. 37

38 B. Direct Contact Marketing 1. Recommend Internet Site A. By Phone Simply ask lead to visit the website to access the free report. B. By Direct Mail Simply ask lead to visit the website to access the free report. 2. In Person Contact Simply follow your 4 Step expired listing prospecting system. The 4-Step Expired Listing Prospecting System Sample Site The key to success with expired listings is to effectively answer the 4 questions, with the buyer question closing the deal. The most effective listing strategy is to produce a list of targeted move up sellers for each expired listing prospect. *** Note *** The free report will show you how to answer the 4 questions. Please go to this site, pretend you are an expired listing lead, complete the form, and then review the free report. Expired Listing Report Website 38

39 Section 4 Understanding How Buyers Contact Agents 39

40 Chapter 1 Buyers What Marketing Methods Cause Buyers To Contact Agents? Simply Find Out & You ll Sell More Homes! Marketing should never be a hit and miss kind of thing, especially when you consider the cost of marketing and the importance it has on your income. What Must You Know About Marketing To Buyers? There really are only two pieces to the puzzle. If you discover the components of each you will significantly improve your marketing results. (1) What works. (2) What does not work. By discovering what works and what does not work you will be able to fine tune your marketing, and your in-person communication, so it produces maximum results. 40

41 Buyers What Does Not Work With Buyers? Buyers Are Least Effected By The Following Marketing Strategies! Here's how to waste your time and money trying to get buyers to call you through using these various, and virtually useless, marketing activities. Do These Marketing Strategies If You Want To Waste Your Time and Money Prospecting For Buyers! Marketing Method Buyer Responded With Contact Direct Mail 2.8% Relocation Firm 2.2% Billboards 1.4% TV Ads 1.0% Cold Calling 0.2% Sponsorship 0.19% Discount Marketing 0.17% Car Sign Advertising 0.14% Virtually Useless Activities You are a business owner. Making smart advertising decisions determines your level of success. Any investment into the above marketing activities must be tiny, and targeted, as they do not produce significant results. 41

42 Buyers What Does Work With Buyers? Buyers Are Most Effected By The Following Marketing Strategies! Here s how to achieve maximum results when marketing to buyers. Do These Marketing Strategies If You Want To Be Effective With Your Time and Money Prospecting For Buyers! Marketing Method Buyer Responded With Contact Internet 83% Send Referral to family or friends 64% Referral from family or friends 43% Open House Marketing 64% Yard Sign 59% Newspaper 51% Home Book 31% Understanding The Numbers It is vital for you to know each of these marketing strategies since they represent the methods by which buyers reach back and contact agents. For this reason we will invest the remainder of this chapter discussing each in detail. 42

43 Buyers Internet Marketing - 83% Here s lies the problem with Internet marketing. 83% of leads when first beginning to do something about homes go online. They invest 7 weeks online before contacting an agent. After contact they invest 2 more weeks before placing an offer on a home. What Is The Problem? You do not know if an Internet lead is (1) a first time buyer or (2) a seller who will buy once their home is listed and sold. Therefore you cannot assume 83% are exclusively sellers or buyers. This perspective demands you to have an Internet marketing strategy with tools to target both sellers and buyers. Internet Tools For Buyer Marketing The following is a list of must have websites to ensure maximum number of buyers reach back and contact you. Home Buyer Report Marketing Top 5 Home Deals Report Listing Information Report How to Own A Home For $x per Month How To Buy A Home For $x Down How To Find Foreclosure Homes How To Find Fixer Upper Homes Master Open House Marketing Buyer Marketing There are only three types of buyers: 1. First Time Buyers 43

44 2. Move Up MLS Sellers 3. Move Down MLS Sellers Live Site Examples Simply visit each website to view a live sample of the websites you ll use to drive buyers to so you can harvest buyer leads. Home Buyer Report Marketing Top 5 Home Deals Report Listing Information Report How to Own A Home For $x per Month How To Buy A Home For $x Down How To Find Foreclosure Homes How To Find Fixer Upper Homes Master Open House Marketing Summary Your task is to market to the 3 buyer types through these marketing strategies. 1. Google Adwords 2. Apartment targeted direct mail drops. 3. Farm area marketing to move up and move down MLS sellers. 4. Database marketing Note Obviously database marketing will produce the greatest results. Therefore it is essential for you to develop a contact database of at least 300 people. By marketing to these people you will harvest your fair share of buyer leads. 44

45 Referral Marketing To Buyers Stay-N-Touch Database Marketing To Buyers - 64% & 43% Most buyers select their agents by way of referral. This once again proves you must have an effective stay-n-touch plan to harvest buyer referrals. Allow us to outline effective stay-n-touch marketing strategies. Newsletter Website Internet StartPage Greeting Cards Recommended Delivery Schedule 1. Newsletter Web Site Send to your database every 2 weeks. 2. Internet StartPage Your most important task is to get them on it. There is no need to send it to them on a monthly basis since they use it every time they go online. 3. Greeting Cards Send a card every month to your top 100 contacts in your database. Summary Referrals never happen by accident - you must make them happen. You do so by developing and implementing an effective stay-n-touch marketing plan with tools designed to stick the contacts to you. Your Stay-N-Touch Goals 1. To have contacts remember who you are. 2. To have contacts remember what you do. 3. To have contacts remember how to contact you. 45

46 Buyers Open House Marketing - 64% Currently only 19% of agents regularly hold open houses. Most agents take open houses for granted. They consider them a waste of time. There s no doubt many agents would change their opinions if they knew the following statistic. 64% of leads will buy a home within 120 days of first attending an open house. What Does This Statistic Mean? The issue is not if they will buy a home but rather when they will buy it and if you are going to be the agent they use when buying it. 1. There is virtually no competition as 81% of agents do not hold open houses. 2. Buyers drive neighborhoods where they are most interested in living. 3. Buyers use open houses as information gathering sources. Your Open House Goals 1. Fill your lead pipe. 2. Place every lead onto a MLS listing drip. 3. Get as many leads as possible on a StartPage service. 4. Send lead a greeting card every week for 5 weeks. 5. Inquire if lead is a first time or repeat buyer. 6. If MLS move up or move down, inquire into their listing needs. 7. Ensure leads know of your Open House website. 8. Ensure leads have a buyer kit. 9. Book a buyer s presentation appointment to determine exact home needs. Summary It takes 120 days of open house marketing to begin to experience success. A general rule of thumb is to maintain a prospecting pipe of 40 leads. Open House Marketing Website 46

47 Buyers Yard Sign - 59% Yard sign marketing is essential if you want to harvest buyer leads. But how do you make it more effective? Yard Sign Recommendations 1. Talking Signs This gives the buyer the opportunity to listen to the details of the home. 2. Call 800 Capture This gives you the opportunity to capture lead information while providing the buyer with home information. 3. Internet Open House Website Rider Sign This gives the lead the opportunity to visit the home online. 4. Promotional Rider Sign Allows you to be imaginative with promotional strategies designed to capture lead information. Examples 1. Free moving allowance 2. Free decoration allowance 3. Free closing expense allowance Summary You can also consider doing cross promotions with mortgage companies, furniture stores, and home improvement centers as a way to entice leads to contact you via a yard sign. 47

48 Buyers (1) Newspaper - 51% & (2) Home Book - 31% When it comes to newspaper & home book marketing most agents simply advertise listing inventory. But is this the best way to reach out to buyers? Market To The 3 Buyer Types! Instead of simply running a listing inventory ad, focusing your advertising on what the 3 buyer types would be most interested may produce better results. 1. First Time Buyers 2. MLS Move Up Sellers 3. MLS Move Down Sellers Market To Investors 1. Foreclosure 2. Fixer Uppers Market To Open House Leads 1. Master open house website 2. Individual open house website Recommended Websites Home Buyer Report Marketing Top 5 Home Deals Report Listing Information Report How to Own A Home For $x per Month How To Buy A Home For $x Down How To Find Foreclosure Homes How To Find Fixer Upper Homes Master Open House Marketing 48

49 Section 5 Summary & Recommendations 49

50 Sellers What Does Not Work With Sellers? Do These Marketing Strategies If You Want To Waste Your Time and Money Prospecting For Sellers! Marketing Method Seller Responded With Contact Fridge Magnets 0.45% Calendars 0.49% Yellow Pages 0.52% Home Book 0.53% Newspaper Ads 0.62% Non-Targeted Direct Mail 2.9% Agent website 3.1% Relocation Firm 3.8% Yard Sign 4.5% Cold Calling 4.8% Office Duty 5.9% 50

51 Sellers What Does Work With Sellers? Do These Marketing Strategies If You Want To Be Effective With Your Time and Money Prospecting For Sellers! Marketing Method Seller Responded With Contact Referral by Family or Friend 74% Used Previous Agent 28% Farm Area Marketing 83% Renovation Marketing 85% Stay-N-Touch Marketing 83% Internet Marketing 83% 51

52 Buyers What Does Not Work With Buyers? Do These Marketing Strategies If You Want To Waste Your Time and Money Prospecting For Buyers! Marketing Method Buyer Responded With Contact Direct Mail 2.8% Relocation Firm 2.2% Billboards 1.4% TV Ads 1.0% Cold Calling 0.2% Sponsorship 0.19% Discount Marketing 0.17% Car Sign Advertising 0.14% 52

53 Buyers What Does Work With Buyers? Do These Marketing Strategies If You Want To Be Effective With Your Time and Money Prospecting For Buyers! Marketing Method Caused Buyer To Contact Agent Internet 83% Send Referral to family or friends 64% Referral from family or friends 43% Open House Marketing 64% Yard Sign 59% Newspaper 51% Home Book 31% 53

54 System Recommendations You Must Have These 2 Systems To Produce Results Your 2 Must Have Systems See Systems Here (1) Home Sales Generator (2) The Top 36 Presentations Contact 80 Your Image 54

55 Conclusion The Ball Is Now In Your Court! You now know exactly what works, what does not work, and the systems you need to prosper in your business. Will You Invest Into Your Business? This really is the only question remaining as to producing maximum results in your business. Real estate sales is a referral based business. There is simply no way for you to experience significant success without an investment into building a referral database and communicating to this database each and every month. Which Agent Group Will You Choose To Join? Success is nothing more than a choice. It is a decision to do what is required to produce results. This is why any agent can achieve success. It is not a gift given to a chosen few. All of us decide for ourselves the level of success we ll enjoy. Group 1: Top 4% Close 74% of the Business They know they must have referral tools and presentation systems to achieve their dreams. They fully embrace referral and stay-n-touch marketing. Group 2: Bottom 96% Close 26% of the Business They think they can get by without a commitment and dedication to systems. Unfortunately the statistics prove otherwise. Every successful business, from McDonald s, Google, to top real estate agents use systems... and so must you! Now It s Your Turn To Succeed! 1. Simply put yourself on a daily action driven success system. 2. Commit and dedicate yourself to the components of the system. 3. Systems are the only proven entrepreneurial method for achieving dreams. 55

56 International Speaker & Trainer About The Author Randy Roussie Mr. Roussie has been helping entrepreneurs experience lasting success since His many programs, presentations, seminars and software make it easy for anyone to implement success principles into their businesses. To learn more, visit him online at the following website. 56