Some further thoughts on Ilona's blog post:
Ilona mentions the 10% return on calling just 3-4 people a day out of a 200 person sphere of influence. I have a slightly different way of calculating the value of a Realtor's database - assuming they practice effective contact management as you're suggesting - that shows how incredibly valuable even a small "A" List of 50 high quality clients can be. Here it is:
• Assume you have a database with 50 contacts on your "A" list
• And each contact will move on average once every 10 years, and you represent the client on both ends
• And each "A" list contact knows at least one person who will move each year, but you won't get them all, so assume you get one referral every three years from everyone on your "A" list
• Your average commission on a purchase or sale is $5,000
Based on these conservative assumptions and simple arithmetic, your database - if properly managed and nurtured - will provide you with $125,000 of commission income per year, or $1,250,000 over a 10 year period.
So that's the "hidden value" in a database of just 50 "A" List clients. Depending on the size of your "A" list, it could be a bit less or considerably more. But regardless, your database represents a true gold mine and a tremendous opportunity for income and wealth. For this reason alone, Ilona, I hope everyone reading your post takes your suggestions to heart and starts practicing what you're preaching TODAY.
Of course, practicing effective contact management is far easier and more efficient with an easy-to-use contact management system to build upon. Anyone looking for a simple yet powerful real estate contact management system might want to check out IXACT Contact - www.ixactcontact.com .
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