I know. That is what I thought too. How can every person a Real Estate Agent contacts bring in an average of $1,000 in commissions per year?
I didn't believe it until I discovered there are agents who have actually done it!
Of course, something like that doesn't just happen by accident. There is a trick to it.
If you haven't seen my last post You should go there now and watch the video of a Keller Williams training session. When you see the numbers and what people have done, you'll be shocked.
Here is what it can mean for you...
Most agents that Farm an area reach out to 500 to 2,000 people or more per month. If these agents are consistent and persistent, they can do well.
However, I believe it is safe to say that most are not making $500,000 - $2M+ per year from it. There is an obvious reason why.
Think about it. Who is your best source of business and referrals?
Is it strangers or the people you have a relationship with? Most likely it is those you have built a relationship with because they know, like and trust you.
Now think about how those relationships are built. Good relationships, even professional ones, always have a personal element to them.
This is true with friends, past clients, co-workers and people within our community.
Now let's think about people in a Farm area. These are cold contacts.
Over time, they may become familiar with an agent through repeated contact and eventually some will become clients.
Yet, there is a huge opportunity that is being missed.
That's because the typical marketing pieces being used are commercial in nature.
Many agents want to put out pieces that present a polished professional brand and that's fine. The problem is their marketing often fails to build a personal bond with the reader.
The only time they actually get to bond with someone is when they talk with them and they don't have time to talk with everyone in their Farm area consistently.
You probably already know this, so what is the solution?
First, it is important to realize that marketing can be very personal in nature and each marketing piece needs to have a specific purpose.
When you are consistently marketing to a specific area, don't always push for the sale. Some people are not ready and pieces that are always pushing will just be ignored and thrown away.
Here's what you can do instead.
Mix it up! There are 3 basic types of marketing communications you can use when reaching out to your database/Farm Area.
1. Promotional: This is what everyone does. Promotional marketing is definitely important. After all the whole point is to get a deal. However, this does not work well for building relationships.
2. Helpful: This is where you just do things out of kindness. It is a great relationship builder and generates a ton of goodwill. As a general rule always give more than you ask. If you give, give, give then people will be trained to look at what you send them and they will also be happy to hear from you.
3. Informative: This is a very powerful form of marketing. If done right, it can move a person to take action without coming across as promotional. It is also seen as helpful and therefore builds goodwill. Finally it helps build trust by establishing your credibility.
One method I have used with good results is to send email with a helpful tip and a link to a blog post for the full story. Once they get to the post, I deliver on the promise.
The post and the email are not promotional at all, but the site has promotional elements surrounding the post.
No matter what you decide to do, the trick to getting results like Tony DiCello (who generated 100 transactions per year for 7 years straight from a database of 1,100 people) is to build relationships with the people you are reaching out to.
To get $1,000 in commissions per year from every contact, you will need to get 1 Transaction from every 10 people you market to with an average commission of $10,000.
Maybe you won't get that.
For Tony it was 1 transaction per year for every 11 people, but let me ask you something. If you only got 1 transaction per year for every 20 people you market to, wouldn't that be worth it?
That would mean that a farm area of just 2,000 people can bring you 100 transactions per year. If your average commission is $10,000, you would make $1M per year!
In my post Get More Deals & Referrals From People Who Are Not In The Market I introduce an automated system that you can use to help you achieve this.
I created the system and am building and installing it for free as away to prove the kind of results you can get from this.
If you would like to see how it all works just click here to register for the webinar.
