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Lesson #5: The Revenue Line

I've just about tapped the FSBO inventory here, as well as nearly every expired listing within a fifty-mile radius. I'm working now to build up my visibility in the area by meetin' and greetin' the local business owners. As a "new again" agent, I don't have unlimited resources to market and promote, so now what? Hmm...

That got me thinking. Is there something else I could be doing? Am I missing something that might produce better results? Is there a single formula that exists for success in this business?

Honestly, I don't believe there is an end all, be all formula that is guaranteed to work for every single agent, in every single market. Each agent has to consider his own strengths and weaknesses, as well as the dynamics of his local market. I bet you could take any top-producing agent out there and easily discover that his formula would be different (no matter how slightly) than the next agent's.

I'm sure every formula would go something like this.

Consistency + Persistence + Tenacity + (Some method of marketing and promotion) + Creativity = Success

Right now, I'm wondering about that one variable - "Some method of marketing and promotion."

There are agents who strongly advocate targeting FSBOs, while others hate the idea. Some are big expired fans, while some are afraid of the big, bad, lazy agent who lost the thing in first place. (Can you tell which side I'm on?) Some believe in direct mail, while others wouldn't stuff an envelope or stamp a postcard if their lives depended on it. There are newspaper and ad junkies, homes magazine fanatics, and search-engine-optimizin', bloggin' fools (in a good way).

Talk to any one of them, and they'll tell you how they always to this and never do that, yet each one of them has a different this and/or that.

The truth might really be that every agent must master his own formula. Otherwise, somebody would've already wrapped that mess up in a nice little package with a pretty red bow, selling it for a pretty penny, and since I haven't had the pleasure of running across one of those nice little packages, I expect they don't exist yet. It's part art, part science, and I don't think there is one single answer that will work for everyone.

Either way, I know that my success formula will come in time. I've selected my most probable route, and now all I can do is add the other things to the mix (consistency, persistence, etc.). I just wish I knew if what I'm doing is working. (Doesn't everybody?)

If I did, I could stay there, hour after hour and day after day, dancing on that revenue line (as Julie Morgenstern says). Since I don't know the answer just yet, all I can do is dance as close to it as possible, getting closer with every new listing and every closed transaction. I guess that's all any of us can do.

Posted by Amber Riviere on 02/13/2007 06:28 PM

Comments (28)

revenue line, fsbos, expireds, marketing, promotion, formula for success, success

28 Comments on Lesson #5: The Revenue Line

FEB

2007

Very well written post Amber. Funny, I almost wrote a post about the things I do that, work, today. I agree there is no cure all. I do a lot of different things:

1. Solicit expired and withdrawn listings.

2. Direct mail(post cards).

3. I advertise in 2 different very local monthly papers.

4. Build my web presence.

5. Stay in contact with past customers.

They all work over time. I've been doing all of these for years, consistently. If I get one listing, from each source, every month, that's 40-50 deals a year. So IMO it's a combination of a few different things, to the same market area, over a period of time, that works for me. Hope this helps:)

That's actually very reassuring, BB. When you narrow it down to the top 20% of activities, it really doesn't make a huge list, does it? Yet, that's where we should spend our time, on those few things that work without fail.

It seems so simple really. It's tempting to spread ourselves too thin and use a scattergun approach to our marketing and promotional efforts. All we have to do is find our FEW things, do them every single day, and (eventually) they will pay off.

I know I speak for many others when I say that hearing this from you makes it easier to stick to the plan, no matter how little it seems to be working right now. :-)

Interesting post, Amber, I think you raise some really good points about the many things agents can do, but that they vary with the person, personality, likes/dislikes, dynamics of the market, etc. Bryant's comment is very telling, and reassuring, as you point out - you don't have to do it all, nor should you. But it is important to know that what you are doing is effective for you, so you don't continue with things that cost you time and money and yield nothing. Tracking your successes is important, as we all know.

Thanks for sharing. I often feel the same way, especially being in a fairly new market for me.

Jeff

You're absolutely right, Jeff. You have to track everything and make sure what you're doing is working. I guess the key thing there is not to make a call too quickly and move away from something that just hasn't had time to work. Ah, another unknown! BB, any thoughts on this one?

Hi Amber... :)

Well...My husband beat me to saying that to you :)

From a woman's stand point I would say double up on the tenacity :)

Oh, you know we gotta have the tenacity, TLW, and maybe even a little attitude! ;-)

Great post! I agree with BB about doing different things. If you depend on one avenue for business you won't be able to contact the number of people you need to to make your bottomline. To me it is a numbers game. Consumers find their agents in all different ways. You want to find the ways that work best for you and concentrate your efforts there.

I agree with the tracking, many agents I know don't have a good grasp of what really is or is not working for them. They get so busy with the actual activity that they tend to forget where it all came from. Review your marketing budget at least quarterly and see where your new clients came from in relation to dollars spent. That is really important. And remember to ask for referrals, that is a big one for me.

Amber, I would not do ANY marketing plan unless I was able to commit to it for at least 1 year. The biggest mistake folks make is searching for the magic fix instead of just doing something and sticking to it. It's not so much what we do as how often and how long we do it.

Amazing how the message never changes - only the method in which we present it does. Consistency and knowing your area I find are the two most important things.... great comments everyone

One of the things I love about what am doing as an agent (newer) is that I know I have a unique vision of what I want my business to be, and I am not having to "dance" to a corporate tune anymore! Of course my "Martha Graham" interpretation is not yet paying all my bills, but I persevere (my version of persistence) and know that it will!

My revenue line will be a chorus line of high kickers! : )

Thanks for the great post Amber!

You are doing the right thing. Find some willing mentors -- like the ones here at active rain. Find out what has been most successful for them. Then choose those things that you are the most comfortable with -- and then track the success. Some people may be great at cold calling, for instance. I hate it - I'm bad at it and it is not a good fit for me. However, I really am a people person -- so I do well taking past clients to lunch and bringing by surprise treats for various holidays and saying hi to my past clients and sphere of influcence. I get a lot of lead in this way. That is not to say you shouldn't try something a bit out of your comfort level - but some things just don't fit one's style.

Okay, after writing individual comments to everyone and attempting to spellcheck before posting, the dang page froze up, and I lost everything! AARRGG!! Dang spellcheck!

Anyway, thanks to everyone for commenting. I know I can't rephrase everything I had to say to each of you, but I guess we're coming up with some favorite themes here - consistency, persistence, and "dancing to our own tunes." ;-)

Thanks for commenting, everyone! I really appreciate all the feedback.

Amber,

It may be wise to join some local organizations and network. Networking is key and give everybody you meet your business card. Good luck, and keep perservering.

Hi Amber,

I am a 27 year veteran in real estate and have trained over 50 Realtors in my career. I sold my company after 17 years and then worked at developing my own clientele and systems. I have no assistants and no buyer agents and closed over 14 million dollars in sales volume last year (I was #8 in the State of Idaho in 2006 for Re/Max) and have earned over 2.5 million in my career to date. Out of 65 Realtors in my office last year, I was #2. I have never sent out a post card nor do I do open houses or purse FSBO's. I am not saying don't do these things I am simply saying I don't do them and have never done them.

What I do is give my clients what they don't expect to get and what they don't get from anyone else. This means I call active clients weekly (if not bi-weekly) and even call my past clients on a regular basis. II have some clients I closed ovedr 5 years ago and I still call them at least monthly. I have even had several past clients thank me for not sending a recipe post card and caring enough about them to call them! Also, when a transaction goes pending I have systems in place that blow the competition out of the water. If you want a copy of one of my systems I use that has been so successful just email me at george@tallabas.com and I will be happy to send it to you.

I can't say enough about good ole fashion knowledge and communication. If I had an office in this day and age and were training Realtors I would say 1) Know the market and know what properties are bringing and how many and what kind of properties are on the market. 2) Build an awesome website and nurture it and give consumers what they are looking for and don't build yourself up at all! This about information, not about how wonderful you are. I haver worked on my site for 7 years and it now gets over 60,000 hits per month and generates over $75,000 in income annually. 3) When you get a listing or a qualified buyer, keep in touch with them once or twice a week and when they go to contract, blow them away with your communication and systems.

You will be surprised what this does for you and the referrals this will bring. I have many more ideas but don't want to drag this out. Take good care and "Happy Selling".

Amber: I cannot top or even come near what Mr. Tallabas has accomplished, but I did try something last year that has produced some income for me. First, I live on a lake, and I noticed many undeveloped lots on one peninsula, so I went to the Assessors Office and looked up the owners. Most were not local, so I sent out approximately 20 letters asking if they would be interested in selling. I got 3 sales from that effort last year, and today (a year later) listed another lot.

Ozarks Joan

Amber,

Great post and a conversation we all have with ourselves.

You can't be everything to everyone and that goes for marketing too. In Chicago, for me personally, responding to Internet leads and working open houses consistently can make a career.

I do these two activities exclusively and spend ZERO dollars on marketing (outside my brokerage split on sales). That split pays for our great brokerage site that I don't have to manage. In my first year I had 16 transactions for $5 million totally green to sales. This year I'm on pace for 30 transactions for $8 million to $10 million just based on the numbers of pending transactions and lead generation I have already. Most are buyer's representation, but I get my listings this way too. For insatnce, I converted a random Internet lead that registered on our site... I found them a $550,000 condo on our first day out and listed their current home for $300,000. One Internet lead turned into $850K in business.

The key is working with a brokerage that believes in quality open houses and the capturing and converting of Internet leads. We always have sessions working on this strategy. I assume all these leads will work with me and treat them as clients right away. The numbers end up taking over and my Internet lead conversion rate is high. All my marketing effort is on free websites.

Of course the first steps are knowledge of the market, legwork, professionalism (although I have a casual style) and a brokerage that cares and mentors. Having energy for this career and having a blast really shows with clients. After these building blocks, you work the system.

The great thing about this system is you can actually set times for certain activities (Internet activities and open house follow-up can be done anytime, anywhere). For instance, two hours every morning working Internet leads (in my boxer shorts at home!). An hour a day blogging and writing Internet ads. Work 30 open houses a year and have a personal and direct follow up system to the best leads. Ask direct questions to determine who wants to work with you and who doesn't. Ask everyone for showing appointments early and set schedules.

I work crazy hours because I love this gig, but I know any time I can take several vacations a year and work half days because I'm guaranteed a pipeline of clients if I do a certain amount of these activities. With my real estate blog doing well at www.chicagorealestatelocal.blogspot.com , our brokerage site www.chicagohomeestates.com I'm open 24 hours, 7 days a week... even on vacation. Even in my first full year last year, my wife and I took three vacations to Boston, New York and Branson (with the family).

After you do these activities consistently and are around long enough, the easy deals and referrals pad your income too. Now I am in a situation where I have to worry about client management and not where the clients are coming from. We know, by the numbers, if we contact x Internet lead registrants to our site directly and personally with value (not newsletter crap!), and work x open houses and meet x consumers there... we will make x dollars (give or take). When your skill takes over and you work higher end open houses, you make more.

I may never be a "monster listing agent", but $8 to $10 million in this system a year affords me a six figure salary with flexibility and "being myself". Zero marketing dollars... just Internet marketing for the local market, open houses and follow up with direct, personal contact and value.

FEB

2007

Hi Amber,

So many great ideas, I've loved reading them all.

Most of all, don't give up, and I commend you for asking for help, being coachable. I would try to focus on several of the items mentioned, those you feel would be most likely to work for you. Mentor with (hopefully) someone in your office and work closely with your broker or manager.

I'm also a huge believer in communication, exceeding expectations. It's worked for me for 30+ years in r.e. I love it more now today than ever.

My best to you,

I'm sure your next marketing idea is just at your fingertips. Just think and observe a little more.

It may sound corny but we just opened a new office and it is designed to look and feel like a coffee shop. We grind and brew different types of coffee and have the syrups etc to mix with it. So the agents place "X" number of transparent coffee mugs on the backs of their business cards and tell people they meet to come buy for a free cup of coffee. The mugs represent how many times they can get a cup with that card.

What do you think? Just a gimmick or do you think it will work? If it works we plan on opening a series of offices similar. The walls are bright colors, the floors are stained concrete just like in a loft. We have lounge chairs, coffee tables and the higher tables to sit at with a huge flat screen TV on the wall. We are completely wireless if anyone wants to come in and sit.

Amber, you're doing just fine. Keep doing it. People don't register until they've seen something multiple times. After 6 or 8 touches, the FSbo or Expired might remember you.

Over the last dozen years in this neighborhood, I've received farming materials from many agents - but can count on less than all the fingers on one hand, any who have sent more than half a dozen mailings, and few who have even sent six.

If you have more time than money, make personal calls and visits instead of mailings.

"Everyone must master their own formula." How true! It is impossible to mold ourselves around our competitors ideas. I really enjoyed your post.

Thanks again for all the comments!

Timothy ~ I also believe in networking. This past year was great in that respect. I think the best thing is to really let people know who you are. In other words, be more personable and approachable. Be real. I think everyone is so busy now that when they find a way to relate to someone, they tend to jump on the opportunity to simply interact with another human being, rather than a computer screen. Personal connections is one of my main goals this year.

George ~ Where do I start? Wow! Thanks for sharing! I appreciate solid figures and numbers so that I can wrap my mind around what's really working for you. You're right, it really is all about personal service and communication. It's easy to want to NOT call a client when there's nothing to report, but that's the time when you should pick up the phone. They are in the middle of a huge transaction and want to know everything is moving along without a problem. I'm also a big website fan, and I'm working now to make it very "community based." My "About Me" page is very short, because I don't want to bore anyone with "how wonderful I am." ;-) It sounds like you have a great website, so I'll be moseying on over there to check it out and get some pointers. Oh, and expect that email shortly, too! ;-)

Joan ~ That's a great idea! It amazes me how much property sits vacant, growing up in some cases. It would only take a little legwork on our parts to investigate and contact the owners. That's really a great return on such a little investment of time and effort. Congrats!

Eric ~ As I told George, I really appreciate the numbers. I know many agents will love reading that you spend zero dollars on marketing and can still make a six-figure salary. (Count me in that group.) I'll be checking out your blog and company website! :-)

Lynda ~ I'll be coachable until the day I retire! ;-) I think there's always (or at least usually) a better and faster way to do something, so I'm always open to new ideas and suggestions. "Constantly improve." I don't know who said it, but they were right.

Danny ~ I love the "coffee shop" idea. What better way to get some real face time (several times) with prospects?! I love the atmosphere in coffee shops, as I'm sure many others do, so I can't imagine anyone not taking you up on the offer. Out of curiosity, how does it seem to be working so far?

Sharon ~ You're absolutely right. We tend to want to give up when we don't see immediate results, but really you have to be persistent in order to make an impact on someone and really stand out. I have a FSBO program set up to last 90 days, with many "touches" over that period. Although I know it will take a while to come back around, I can't wait to see the results. I'm really confident that it will work out in the long run.

Diane ~ Thanks! I'm glad you enjoyed the post. I never really did fit the mold, I guess, and believe me, I've caught my share of heat over it. Yet, I think that's what makes me stand out, too. I make people wonder! ;-) It pays to be unique and stand out, I think. Who wants to be like every other agent out there? (I think I made a comment about that earlier.)

Thanks everyone for all the wonderful comments!