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Do You Know? Do You Really Know?

By
Services for Real Estate Pros with The Real Estate Investment Institute 1retiredsage

Do you know? Do you really know what it takes to succeed? Perhaps the most generous teacher on Active Rain, certainly on closing short sales, my friend Melissa Zavla recently wrote an article on determining median commissions per closings How to Set Your Income Goals for 2014. She goes on to determine how many closings per month you need to meet your income goals.

Now that you know how many closings you need to meet your goals you need to know what to do to what to do to create the closings you need!

I had hoped to find Melissa’s approach to prospecting. You need/must know what to do to generate the required closings.

It’s all well and good to know you only need 1.58 (Use her work sheet and your own numbers) closings each month to meet your goals, but it’s all for naught if you don’t or can’t determine what you have to do to generate that many closings each month!

I can presume to know why Melissa stopped short. Her approach is irrelevant, she’s wonderfully unquiet! My approach to prospecting was equally different after I left the Westdale Company (before many of you were born) but there are repeatable formulas that work and are repeatable! 

When I started in real estate at the Westdale Company they had the biggest advertising budget (Pre-internet) in the state, (In ‘74, 1974 not 1874!) they knew how many ads it took to generate a phone call. Their salesmen kep records to know how many phone calls it took to get an appointment and how many anointments it took to get a sale. They also knew how many business cards we had to pass out (3-400 a month at $0.02 each)) to get an appointment and how many cold calls we needed to make near new listings (20 in each direction from the listing on both sides of the street!) To generate another listing and a sale. I was privileged to be one of only 30 salesmen at The Westdale Company in Kalamazoo. The 30 of us represented 1/3 of all real estate sales in our market except for those months when we did over half of all business. At the time The Kalamazoo Board of REALTORS® went from 1,000 members to 1,500 and yet the 30 of us dominated the market. We knew what we had to do and we did it. That’s 0.03% to as low as 0.02% of the local Board being either the listing or selling agents, offen both on 1/3 to ½ of all real estate closings! Only 30!

We had a repeatable system and it worked! A more diverse group you couldn’t find, our numbers varied greatly from person to person and as we gained experience an expertise, but the system remained the same.

When I left Westdale I started teaching real estate and real estate math for the local college they paid me $15.00 an hour, but my net was huge! You wouldn’t believe it. I did that for 11 semesters until my investment sales business didn’t leave me the time! The investment business had it’s own requirements including 5 days a month away from home with FLI and CCIM marketing groups.

When I opened a mortgage broker/banker office at Lake Tahoe it didn’t take long to discover what it took to get the referrals I needed, later it worked at Las Vegas, too. I’ve written about that on AR in a series starting in May of 2007, Two and a Half Days To Success / A Mortgage Sales Blog 

Many are going to ask "If it’s so easy why aren’t we all rich?"

The answer is simple, most salesmen get a little success and become to big headed to continue doing what the newbies are taught!

If you don’t know what you’re making per-closing, how many closings you need and how to repeatedly get them good luck!

Posted by

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org      Cell 832-259-7078,      Houston 832-582-8415,       Las vegas 702-516-1569

     http://www.reii.org  Back Cover One House At A Time http:www//reii.orghttp://www.flippingforfunandprofit.info/ http://www.billarchambault.com   

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

http://www.reii.org

©William J Archambault Jr   ©The Real Estate Investment Institute   ©REII

Comments(28)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bill it is great to know how many sales of loans we need to have yearly, monthly, and weekly to achieve our goals but without having a plan for how we are going to get the number of sales or loans the knowing how many does not do us much good.

Nov 26, 2013 10:28 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Bill - good reminder that it is important to have a good plan and to stick to it!

Nov 26, 2013 10:30 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

You got to have systems that you will work.  Having policy and procedures that you won't do are worthless.

Nov 26, 2013 11:01 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

George,

The great thing about such a program is they don't work! If you follow them you can't help, but to exceed all your desired success!

The problem with most sales people is when they start ripping what the sow, they think themselves above such simple labor. Some go at it hit and miss, but every time you miss it's harder to come back!

Bill

 

Nov 26, 2013 12:26 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX
Thanks Joan! Bill
Nov 26, 2013 12:26 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Evelyn,

Absolutely!

Continuing to do what you did to get successful is the often harder than succeeding in the first place.

Bill 

Nov 26, 2013 12:30 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bill - you had a terrific system.

Nov 26, 2013 03:31 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jon,

I was mentored by the very best. I've been lucky that way! We become who we surround ourselves with, I had Westdale then the CCIM's the best educated REALTORS and FLI the best people-people in real estate. I try to pass it on.

There system was simple and repeatable, hire only the best (I had the least education of the 30 in Kalamazoo) train them well, support them, continue their education weekly. Our clients loved and trusted us, you can't have one with out the other.

Bill

Nov 26, 2013 07:11 PM
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

I really enjoyed your post Bill. I am a firm believer that sales is a process. The moment you stop any part of that process, the results change dramatically. I tried to tell the sales people I taught that when ou are going great, prospect more. Most forget to prospect and when they finished closing all thos esales they came back to an empty pipeline. The old roller coaster ride of sales. Not a very fun one. Great reminder. Thanks!

Nov 26, 2013 08:24 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Thanks Jeff!

What your system is doesn't matter if it works and is repeatable.

Systems have to keep up with the times, but in the 39 years since I joined Wesdale the only real change has been the advertising, now days you can get better exposure nearly free on line. But, the rest of their system, the people part is still a great system.

Bill

Nov 26, 2013 09:44 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The age old adage 'If it ain't broke, don't fix it'. That doesn't mean it can't be modified to allow for a bigger wheel, however

Nov 26, 2013 09:50 PM
Drick Ward Property Management / Broker Assoc
NEPTUNE REALTY - Virginia Beach, VA
"RealtorDrick" - Experienced Representation

Thanks for sharing your system

Nov 26, 2013 10:27 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

William, it shows that getting back to basics still works. Real Estate 101!

Nov 26, 2013 11:00 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Simplicity and being available is still producing results in my neck of the woods..

Nov 26, 2013 11:19 PM
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate
Bill, Gone are the good days. We use to be able to get on the phone and cold call to generate all the business we wanted.
Nov 27, 2013 12:33 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Ed,

Of course.

But, the fundamentals never change except newspaper ads.

Bill

Nov 27, 2013 01:18 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Drick,

You're welcome.

Bill

Nov 27, 2013 01:19 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Michael, Absolutly! Bill

Nov 27, 2013 01:20 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Richie, I knew you'd understd. Bill

Nov 27, 2013 01:23 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Bill & Maryann,

Cold-calling never made for a good day for me, but the paydays it generated were great!

Those days aren't gone, just our beloved Bresser's crisscross directories.

Bill

Nov 27, 2013 01:28 AM