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10/90 Rule

By
Real Estate Broker/Owner with Steele Realty

Back to the basics:

I have noticed a few changes in my local industry here in San Diego. The most shocking is how unmotivated a lot of the Realtors are in this Market. Almost as though they are on their deathbed just waiting for the death angel to come and take them away. I guess I just have a different work ethic or know what it will take to make money. I am not going to sit around and wait for a client to call me or walk into my office. I am going to go out and get them, remind them, play golf with them, go for a surf with them, invite them to a free lunch. I am not saying I know everything about Real Estate because I am always learning in this field. All I am saying is the slackers are getting left behind and the 10/90 Rule is coming back.

10/90 Rule: 10 percent of the Agents are doing 90 percent of the work! This not a story and is a reality...

I am sure you can go to a seminar and learn a bunch of great new techniques to try on your potential Buyers but, the reality is you need to get back out there and work. It is as simple as that!

Back to the Basics:

  1. Reconnect with your clients: Past - Present- Future
  2. Remind your friends that you are still in the business and would love a referral
  3. Start a farm in an area you know really well
  4. Do Open Houses
  5. Do Open Houses
  6. Do Open Houses
  7. Hold Floor
  8. Go on caravan to keep up on your market

I purposely repeated Open Houses three times because it works and nobody does it anymore. Seriously, free signage on a public street where cars drive by your name for 3-4 hours. Even if nobody comes in you are getting free press. Plus you get to meet the Neighbors and find out if they might want to sell.

I thought I would share these simple ideas on how to get more business but, I hope nobody listens because I don't mind being part of the 10 percent! Get out there people there are plenty of fish to catch... Don't sit back and be the Flounder...

Lexi & Jordan Ostlund
RE/MAX Professionals - Gillette, WY

Love the 10/90 rule.  You are exactly right in saying it is a REALITY!

Aug 14, 2010 07:36 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I have to agree to the ratio. Many of them are getting out of the business because it is getting to hard for them. All great ideas.

Aug 14, 2010 07:36 PM
Cody Steele
Steele Realty - Encinitas, CA

Thanks Guys, and I am glad you are part of the 10%...

Aug 14, 2010 07:41 PM
Jen Birmingham
Coldwell Banker - San Francisco's North Bay/Wine Country - Petaluma, CA

Excellent points! This is a very different kind of business than this industry has seen for decades. We now have to work HARD for every penny we make (and sometimes don't make).

And the Open House reminder is so valid. I have the reputation in my office for holding one every weekend. By Wednesday of each week I've usually received at least one call from a colleague asking me if I can hold theirs open for them. It seems that they believe, once you've "cut your teeth" in the business, there is no need. That's okay. I'll take those unattached buyers if you don't want them.

Aug 14, 2010 07:49 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Hi, Cody, my original broker in real estate told us about the 10/90 (I think he called it 90/10 rule, same principle).  So from the beginning I have been a go out there and get the business myself.  IMO, the 10/90 rule applies to our efforts and time as agents.  Training seminars and meetings are great, but if that is how an agent spends 90% of their time they will not be able to put in practice all those great tips they learned and will miss out on getting business.  So I agree with you 100%!!!!! Great post, thanks,

Aug 14, 2010 07:49 PM
Brittany Stewart
Luxe Realty Group - Plano, TX
Making Dallas Home

I agree! I was telling my agents today that all they have to do is a little more to beat out the competiton--one up them!  I need to work on reconnecting with past clients, thanks for the reminder!

Aug 14, 2010 07:51 PM
Michele Miller ~ REALTORĀ®, LMC, HSE, CHS, SRES, CMRS
ERA Key Realty~Worcester County Realty Group - Worcester, MA
'Helping You Make the Best Move"

Cody,

Staying positive in a down market helps too!

Aug 14, 2010 08:19 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Personally, I think with the market changes, it's more like a 5/95 rule.

Aug 14, 2010 09:09 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

In property management, the rule of thumb is that 10% of our clients give us 90% of our problems/take up 90% of our time.

The 10% who are working are workins SMART and working HARD!!!! NOT hardly working!

Aug 14, 2010 11:37 PM
Pat & Wayne Harriman
Harriman Real Estate, LLC (203) 672-4499 - Wallingford, CT
Broker/Owners, Wallingford CT Real Estate

What you are experiencing is not confined to San Diego, I assure you. We often hear sob stories from agents that they wonder when the business is coming back, nobody is calling me, business is dead, etc etc. Well, business is NOT gonna fall out of the sky into your lap. GO GET IT! Call your sphere; send out some postcards; work on some FSBO's and/or expireds; freshen up the content on your web site and write some new blog posts (you DO have a web site, don't you? You DO blog, don't you??) whatever it takes to generate business! Unless you get a lot of business from referrals or past clients, closings will NOT be handed to you. Success takes work! Be proactive, not reactive!

Aug 15, 2010 01:22 AM
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Morning Cody,

Thanks for the post. Have a great day.

Aug 15, 2010 01:43 AM
Cody Steele
Steele Realty - Encinitas, CA

You know you could be right! The 10/90 rule could actually be the 5/95 rule in this current market. So much has changed. Thanks for the responses!

Have a good day!

Aug 15, 2010 03:16 AM
Michael Bergin
Coldwell Banker Residential Brokerage - ABR - SRES - Alexandria, VA
Northern Virginia Real Estate

I have to agree with you about open houses.  The only time I don't do them is if it's a gated community or a community that restricts signs.

MB

Aug 15, 2010 08:28 AM
Cody Steele
Steele Realty - Encinitas, CA

Open Houses is the way to go!

Aug 15, 2010 10:13 AM
Stephanie Reynolds
Integrity First Financial Group, Inc. - Santee, CA
East County San Diego Homes 619-838-4408

This is so true Cody! I can not begin to tell you how frustrating it is to be one of the 10% working a deal with one of the 90%. No return phone calls, not doing what they say they are going to do or blowing smoke because they think that is what we want to hear. I love what I do and make it my intention to let that show in everything that I do!

Aug 16, 2010 12:10 PM
Josh & Julie Hambarian
Josh & Julie - Steele Realty. North County San Diego Coastal - Encinitas, CA

Very motivating Cody! Thanks for the post =)

Aug 17, 2010 01:01 PM