OK... times are getting tougher in today's market. Are you feeling the sting yet? It's time for us to get back to the BORING basics. :)
It is nearly impossible to overemphasize the importance of maintaining and reaching out to your past clients and sphere-of-influence (family, friends and folks you know). Last year, over 40 of my listings came by way of referral. Few things can be compared to the joy I feel when I receive a recommendation from someone in my database.
Just this week I was coaching an agent who has been in the business for five months. For many years, he has owned and operated a thriving seasonal tax business. As a result, he has built relationships with over 300 customers, who trust him enough to provide sensitive and confidential information. These same loyal clients come to him year after year.
Upon his foray into the real estate arena he vowed to turn those hard earned contacts into easy cash, by marketing his realty services to them and their extended families. Now, five months later, he has yet to send out even one letter.
According to research done by Gary Keller, and reported in his book ‘The Millionaire Agent', 1 in every 12 people (who know you) will result in a referral, if properly marketed to. That means this agent could be harboring 25 unrealized referrals. With an average gross commission of $4,500, that's potentially $112,500 in unearned income. How much are you loosing by not keeping in touch?
Are you maintaining a database of your clients? If not, you are certainly loosing out on lots of business, and robbing yourself of thousands in unearned commissions. Yes, you could double your income by maintaining a database and keeping in contact with the folks therein. Don't let procrastination and apathy cheat you out of easy money. Set up your database today and start reaping the financial and psychological rewards.
Here are four simple tips for contact management:
- Start a database today. Make a mental commitment and begin your database today. Begin gathering all your contacts and set a deadline for when you will have your database completed. An electronic database works best. There are many online database products out there, such as Top Producer or MoreSolds.
- Hire someone to help you. If you still can't psych yourself up enough to get your database started, hire someone to help you. Pay a family member or the teenager next door $7 or $8 an hour. Databases are easy to maintain once they are initially set up.
- Maintain your database: Once your database is all set up, make sure you update it and add to it daily. Keeping good, accurate information is important.
- Stay in touch. Start sending your clients something on a regular basis. A monthly email newsletter works well and is cost effective. Staying in touch with your contacts will reap word of mouth rewards.
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