In previous posts I’ve looked at some of the symptoms of poor contact management, and some of the ways good contact management can make a Realtor’s life easier and less stressful. Today I want to outline three more reasons why contact management is critically important to your success as a Realtor.
First, I know it’s a cliché but it’s true – most people do business with people they know and like. It really *is* all about relationships!
Secondly, research has shown again and again that successful agents – those that earn six figures consistently year in and year out – get 80 to 90% of their business from existing clients and referral sources.
The third and final reason is one I’m going to spend a bit more time on, because it’s so important that you understand it. I think you’d all agree that when you get right down to it, as a real estate agent, you have only three real assets: your knowledge and expertise in real estate sales, your reputation for the good work you’ve done, and your contacts database. And of those three assets, only ONE is a tangible asset, and that’s your database.
Most agents have no idea of the true value of their database, so let me give you an idea. For illustrative purposes, let’s make some very conservative assumptions:
- You have a database with 50 contacts on your “A” list
- Each contact will move on average once every 10 years, and you represent the client on both ends
- 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.
That's a pretty stunning return! So what's the investment required?
- Select an easy to use contact management system such as IXACT Contact - $35/month
- Make a commitment to work on your database a little bit every day and to keep in touch with clients in a relevant and personalized way - 10-15 minutes/day
So let's see. For an investment of $35 per month and 10-15 minutes per day, you could create for yourself $1,250,000 in commission income over 10 years. If that's not the most compelling Return on Investment (ROI) you've ever seen, let me know what is!
Try IXACT Contact FREE for 5 weeks - www.ixactcontact.com.