Focus on Listing Appointments and Net More Money This Year

Out of the top five dollar-producing activities you should be doing each day, going on appointments can mean the most profit for you by the end of the year.

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In order to learn how to block your time effectively, you first have to focus on the top five job duties you need to do in your real estate business in order to ensure your success. These top five duties are:

1.    Lead generating.

2.    Lead follow-up.

3.    Going on appointments.

4.    Negotiating contracts.

5.    Practicing what to say.

What I’d like to focus on today is #3, going on appointments. Let’s imagine that you went on one listing appointment per week and that getting that one listing appointment was your number one priority. In order to get that listing appointment, you might have to work five or 10 hours just to find the client that you want, then work a few more hours to prepare for that listing appointment.

One listing appointment per week equates to four listing appointments per month. Now let’s say that, conservatively, you could convert two of those listing appointments per month after a few fell through for any number of reasons.

Following this plan can net you close to $190,000 in your first year.

Two listing appointments per month would be 24 listings per year. Let’s say that only 75% of these 24 listings per year went to closing—18 total. If your average price on those listings is $400,000, for instance, that would equal $7.2 million in production. At an average of 3% commission, this $7.2 million would be $210,000 in gross commission income. What this means is that if you focus on making just one listing appointment per week, even poor results will yield six figures in your gross commission income!

At Keller Williams, we focus on this career growth opportunity, and our mission is to help you capitalize on these opportunities while adding value to your clients so that they work with you again in the future. We want to help you determine how to spend the least amount of money in the shortest amount of time in order to maximize that profit each year.

The best thing about Keller Williams is that the commission that we split with agents is capped at $21,000. This means that the money you would have made from the aforementioned year in gross commission would have been split 90–10 in your favor. This is one important reason that we teach our agents how to reach these goals each year.

If you’re interested in setting goals like this and finding ways to narrow down your focus in order to be the best at your top five job duties, give me a call or send me an email. I look forward to talking to you soon!

How to Perfect Your Lead Follow-Up Process

Lead follow-up is one of the most important duties a real estate agent has, and one that represents their best chance to achieve success. I have a system I want to introduce you to that will allow you to perfect your lead follow-up.

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Gary Keller tells us that there are a lot of things we can do every day, but only five jobs that move the needle at a high level. Those top five job duties are as follows:

1. Lead generation
2. Lead follow-up
3. Going on appointments
4. Negotiating contracts
5. Practicing what to say

Today, I wanted to talk about lead follow-up. I feel like this is one of the best opportunities for real estate agents to achieve success. I say this because in my own experience as a real estate agent, I always had a lot of random slips of paper with people’s contact information scattered all over the place. Many times, those people may not have gotten the callbacks that they deserved because I was not adequately following up with all the leads I was generating.

You may be doing that in your own business—cherry-picking specific pieces of business that are easier at the expense of other pieces of business that are longer-term or require more development.

I want to recommend, then, a great system for following up with leads. The first step is to get a binder to store all of your hot leads. Buy a tab for each month, from January to December. Have a separate sheet for your leads that has contact information and a little bit of other information on the lead. Every time you generate a piece of business, make a lead sheet that lists the lead’s name, contact information, motivation, and time frame. Those pieces of information will let you know whether or not it’s a hot lead.

Once you’ve got that contact information written down on your sheet, hole-punch it and put it inside of the month that they’re planning to make a move. This doesn’t mean you’re going to wait to call them until that time; it just means that you’re categorizing your folder (or ‘lead book’) by the date that these clients think they’re going to make a move. For each month, on one day of that month, you want to call through the entire lead book. 

If you’re not bugging them, you’re not helping them remember you.

In my conversation during this call, for example, I would want to know if the lead is still planning on doing what they said they were going to do when they said they were going to do it. Whether their answer is yes or no, I’d make it apparent that I want to keep following up with them and eventually schedule an appointment.

The reason I would want to keep calling them and telling them to follow up with me is that I want to be the person that they remember as their real estate agent of choice when the time comes for them to make to make a decision. It’s hard to be anyone’s real estate agent of choice if they can’t remember you. 

Many times, people tell me, “Oh, we can’t call them that often—they already know to call me. I don’t want to bug them.” That’s a fatal mistake. By not bugging them, we’re actually not helping them remember us. If somebody tells me I don’t have to call them as often as I am, I tell them the reason that I follow up is so that they know they’ve got someone in their corner taking care of them. After that, I ask how often they would like me to follow up with them and how I should go about doing so.

Either way, I will still probably call them about once a month. If they’re getting closer to their move time, I’ll probably increase that to once every couple of weeks. Even if they tell me their move time has been pushed back a year, I would still call them pretty regularly. If you’re the guy who calls back, you will get the business. It usually takes between seven and 12 contacts to win business from someone.

What leads do you have laying around your desk that you haven’t followed up with recently? Try reaching back out to them and finding their motivation and time frame so that you can add them to your follow-up book. The reason I tell you to use a follow-up book is because I know that the best system is the one you’re going to use. Sometimes, the paper in front of you is the best way to get that done. I’ve used plenty of expensive software systems in real estate, and it’s easy to forget to insert data. In turn, we forget to use that data regularly. That’s not an effective system.

If you have any more questions about following up in your business or converting it, please feel free to give me a call or send me an email. I look forward to working with you soon!

What Should You Consider Before Choosing a New Office?

When you join Keller Williams, you don’t have to worry about working the area that is closest to your office. In fact, we encourage agents to work the market they see the best results in.

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A lot of people have been asking, “What areas can you work when you join Keller Williams?” The beautiful thing about this company is that we allow you to work the areas that you know best.

Whether you know the East Dallas market or Fort Worth better, we want you to work the area you specialize in. There are no territories, exclusive areas, or agents that have farm areas you can’t work. With Keller Willams, you are an independent business owner.

Our agents operate everywhere in the Dallas Metroplex.

Keller Williams encourages competition, which only makes us all stronger. If you are worried about being able to work a certain area of the city by joining the Uptown office, there is no reason to fret. Many of our agents live all over the Metroplex. From Frisco to Garland to Arlington to South Dallas to Oak Lawn, our agents are everywhere.

No matter where you live or operate in the Dallas metro, we can help you achieve more. If you have any questions at all, don’t hesitate to reach out and give us a call or send us an email. We can’t wait to hear from you!

Talent Acquisition Tips for a Growing Business

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Today I have Holly Priestner with me, and she is the Director of Talent Acquisition at Keller Williams. She stalks the best talent in the industry, and she is going to speak about how and when to make your first hire, and how to find the top talent for your team.

What are the top two qualities to look for in a good hire?

Holly likes to run her teams really lean, so she prefers hiring someone with lots of ownership, but she also has to find the right attitude. Talent is out there, but without the right attitude, it doesn’t mean a lot, especially in a team environment, such as the one that KW promotes.

"Hiring isn’t about finding talent, it’s about finding the right attitude for future growth."

What is Holly’s definition of talent?

Talent means a range of different things, but to Keller Williams, it means a strong work ethic and a fire in the belly to earn more and do better.

What is Holly’s advice on that first hire?

Number one is to have no fear, and number two is to have a plan. Career visioning is being rolled out by KW this year, so you need to hire someone that wants to remain with the company and that has a clear vision of the future. It’s also important to hire a coach, or someone that can help you and give you advice on who to hire. You also need to have an idea of what talent means to you, and this must match your career trajectory. What will your business look like in five, 10, or 20 years? Lastly, clearly define the role and the person that you’re looking for before you start bringing people in to speak with you.

Have you waited too long to make your first hire?

Many business owners debate for too long whether they need help, and they’re swimming in work by the time they hire someone. I hired my first part-time assistant a year and a half into the beginning of my business, and I found that it allowed me to do more dollar-producing activities. Sometimes, waiting will really hurt your financials in the long run.

How does the Group Coaching Course Work?

Holly is a big believer in MAPS Coaching and she recommends it for everyone. On July 11th, KW is launching Tapping Top Talent, which is a coaching course dedicated to fine-tuning the hiring process. Part of this course is finding who you are, and how you can attract the top talent to fit your career trajectory. Part of the course will talk about new technology and ideas as well. This course is a four-week program for a total of four hours and it only costs $139.

This is really inexpensive leverage that will allow you to tap into the mindset and the skills necessary to start hiring the right people for your business.

Thanks for tuning in, and please don’t hesitate to ask any questions!

What Are the Best Sources for New Leads?

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Often, in real estate, we stress the importance of making your calls. It’s not uncommon to step back and think: “But, wait -- who should I call?” Here are a few ideas if you’re stumped and can’t think of anyone to reach out to.

• Past clients: Maybe you’ve worked outside of real estate and have past clients you can reach out to, or perhaps you’ve been in real estate for a long time and you have a list of people you’ve sold a house to. Many of these people would love to hear from you, especially if you can provide some value for them.
• Center of influence: The people you maybe haven’t done business with, but who will pick up the phone when you call because they know you, are referred to as your sphere or center of influence. Give these people a call and give them something of value. Give them a quick update on interest rates or invite them to a client party you might be having.
• Open house leads: Did you know that open house leads purchase a home within three months? That’s a whole lot of active buyers who are ready to go right away! Most agents don’t follow up at all with these buyers. The key is to keep pursuing these buyers. Most agents will give up after only a few calls, if they reach out at all. It typically takes at least 12 points of contact to get their business, so be persistent.
• Neighbors in the area of the new listing: If someone in your office has just listed a great property in an area where you know there are a lot of buyers. This is a great opportunity to go talk to the neighbors and let them know that there are a ton of buyers in the area, and the house that was listed didn’t quite fit the criteria of those buyers. This kind of door knocking and talking is a great way to find potential buyers.
“You can’t control your closings, but you can control your daily activities!”

We can’t necessarily control how many closings we have, but we can control the activities we do in order to make more deals. Get out there, make some phone calls, and start meeting new people. If you would like more tips to help grow your real estate business, please don’t hesitate to reach out to us!

How Can You Create Huge Buyer Demand on a Home?

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Today we are going to talk about how to create a launch on a new listing to create a frenzy. When you list your home, the first seven days are crucial. Even if you are in a fast-moving area, you want to make sure you get the most exposure, which will equal the most buyers, and the most money for your home sale. Here are a few ideas and tactics to help your sellers early on.

Having a plan and process of how you are going to sell the home is key. Have all your marketing materials and pictures beforehand, have a plan and process ready, and get everything ready before you list on the MLS.

Once you list the home in the MLS, we advise you to put on the description that there will be no showings for the first two days. Don’t show it to any buyer clients or favorites ahead of time; you want everyone to have an open playing field.

The first time you should allow people in your house is at an open house a few days after you list on the MLS. This will give everyone an even playing field, and you can review offers at the open house. You want people to write offers that day, and create a sense that buyers have to move quickly to create a frenzy.

The reason we think you should wait a few days between listing and showing is to allow the marketing to work for you. We don’t want to limit the number of buyers that see the sold homes, we want that number to be huge. We hold the open house in a two hour window where all the buyers can come together. You want the house to be full so buyers start to get a little nervous about making a quick offer. That’s how you’ll create that frenzy.

Be ready to go at the open house with sign-in sheets, maybe an extra person assisting you, and make sure everything is taken care of beforehand. On the day of the open house, get there early. Once the launch is done, be prepared to write offers for your buyers, and receive offers from other agents.

There is an idea of how to create some frenzy in a launch. We are all about training and building great businesses. If you want to know more about Keller Williams, or if you just have some questions for us,  give us a call or send us an email. We look forward to hearing from you!

Operation Instructions for the Lead Machine

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Lead generation is like a machine. There are all these levers and buttons you can push to make leads drop into the funnel and create closings. The problem is most people think that you need to pull all the levers to get more leads. That’s not true.

You have to select a few key levers or else you’ll break the machine. If you are a brand-new agent, pick three levers. Those are three sources of business that you will focus on. Once you master those, you can consider adding a fourth.

What we know from Gary Keller’s Millionaire Real Estate Agent is that most top real estate agents have four or five lead sources that drive 80% to 90% of their business. You don’t want to spend too much time and effort on the wrong sources of business. You also don’t want to pick too many and spread yourself thin. Pick the lead levers that will work best for you.

I recommend that you should start off with your sphere, also known as your database or list of past clients. For most agents, this is their number one source of business. Market to your database systematically.

The other levers can be whatever you want. If you’re just start out, I recommend focusing on prospecting. That way, you can leverage your time rather than your money. At Keller Williams, we encourage you to lead with revenue. Once you have some revenue built up, you can enhance your marketing approach. When this happens, you spend money to attract leads to you. I would also recommend focusing on open houses and farming.

Finally, if you are a brand-new agent, I recommend only worrying about three lead levers. Master those before adding another. If you pull more than three levers, the machine will break.

If you have any questions, give me a call or send me an email. I would be happy to help you!

The Economic Model to Reach Your Real Estate Goals

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Today, I want to talk to you about our Keller Williams economic model, which helps you plan all the activities you need to do to net the income you want to make.

When I talk to new agents, all of them say they want to make six figures. Let’s say you’re a new agent who wants to net $100,000. If you hit $100,000, you’ve exceeded the $2 million production cap at our office. Now, $21,000 goes to our office. I'd mark that as an expense because you’re going to pay it and wind up with 100% of your commissions at some point in this theoretical year.

You will also incur other expenses during the year for things like licensing costs and marketing. Let’s assume you have around $10,000 in expenses. That means you would need $131,000 in GCI to net your $100,000. The average commission is 3%, so you would need to do about $4.4 million in transactions.

Let’s say your average price was $250,000. That means you need 18 closings to reach your goal.  For the sake of these numbers, I’m not going to include any lease money and instead, focus on listings and buyers. Brand new agents may want to focus on buyers, but you should aim for a 50/50 split on buyers and sellers. That means you want to shoot for 9 closings on each side.

Even in this good market, anticipate some pending sales will fall out.  Maybe the buyer can’t qualify, or the appraisal doesn’t come out. Plan for 10% to 15% to fall out, so try to get 10 deals on each side to pending.

Before you get to pending, you need clients that agree to work with you. On the listing side, about 80% of listings will make it to pending. That means you need 13 listings. On the buyer side, only 60% of buyers will make it to a pending sale. That means you need to get 17 buyer agreements.

In order to get those listings and buyer agreements, you need to set appointments and buyer consultations. If you’re brand new, you might only convert 50% of your appointments or consultations into actual listings or buyer agreements. That means you should set 26 listing appointments and 34 buyer consultations. These are the steps you need to take to reach your net income goal.

All told, that’s 60 appointments you need to go on in a year. Don’t wait until the end of the year, or they won’t close until the next year. Frontload those appointments in the first 10 months of the year, and go on 6 appointments a month. Even with bad conversion rates, you will hit that net goal of $100,000.

In order to get these appointments, you need leads and nurtures.  A lead is ready to do business in the next few weeks, while a nurture won’t be ready to do anything for another 12 months. Maybe only 1 in 10 leads follow through and set appointments. That means you need 260 leads for listings and 340 buyer leads. Now, this might seem overwhelming, but these are worst-case scenario numbers. As you track your numbers, you will know what you need to hit your goal.

Finally, in order to get those leads, you need to focus on contacts. Again, let’s assume that only 1 out of 10 contacts will go on an appointment. You will need 2,600 seller contacts and 3,400 buyers. That means you need to make 150 contacts a week.  Those 150 contacts will take awhile. You may spend 15 to 20 hours a week on that, which is one reason why it’s so hard to be part-time in real estate.

Again, these are worst-case scenario numbers. As you keep working through these steps, you will get better at conversion. You may only need to call 50 people a week to get that $100,000.

Our goal is to get you into production within the first 30 days of business. These are the steps you need to take to reach your own net income goals.

If you have any questions, give me a call or send me an email. I would be happy to help you!