Rule #1: Your Database is Your Most Valuable Asset

By
Real Estate Agent with Keller Williams Advisors

There is a difference in a database and a list of contacts!

Open any real estate book or listen to any real estate coach and you'll quickly discover that the language of success is similar. Real estate is a contact sport and who better to stay in touch with than people in your sphere of influence AKA your "Have Met" database.

According to models from the Millionaire Real Estate Agent written by Gary Keller, top real estate agents systematically contact the "Have Mets" in their database 33 times per year through a series of emails, notes, letters, social media, and approximately 4 phone calls per year. This strategy of mixed prospecting and marketing over the course of 12-18 months yields a rate of 2 transactions per year for every 12 people in your campaign. 

When forecasting and business planning, take the number of transactions you need for your year and multiply by 12 then divide by 2 (Shortcut would be to just multiply by 6). Example: You determine that you need to sell 40 homes per year in your market to achieve your desired income. 40 x (12/2) = 240 Have Met contacts are needed in your database (as long as you're contacting them in some way about real estate 33 times per year). 

I'll also mention that in the example above the 240 contacts are needed if your only source of business is your have met database. If you lead generate by way of open houses, FSBO/Expired marketing, and other proactive prospecting/marketing efforts that improves your number of transactions significantly. Most real estate agents mix in prospecting outside of their database as part of their lead generation strategy. 

Unfortunately, many people have a list of names that they call a database and they are not using a systematic way to stay in touch with their contacts. For the sake of real estate conversation, there is a difference between a DATABASE and a LIST OF NAMES. Your database only has value if you're strategically prospecting and marketing and adding people to it. If not, the value of your contact list is vastly diminished. 

Take a look at the Millionaire Real Estate Agent Lead Generation Models starting on page 133. 

Lead Generation Model

 

Posted by

Aaron Smith
Keller Williams Realty Cincinnati
Aaron.Smith@kw.com
C 859.360.9997

Comments (2)

1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Aaron, using proven methods to generate business has to be a no-brainer.  

Nov 03, 2015 08:11 PM
Aaron Smith
Keller Williams Advisors - Edgewood, KY
Northern Kentucky Agent & Investor

For many it IS a no brainer, and for most it isn't. I hate seeing agents fizzle out because of lack of attention, confidence, and motivation. 

Nov 03, 2015 08:27 PM