We’ve all sat on chairs that have one leg shorter than the other. Not only is it annoying, but it can also be unsafe. A three-legged stool, on the other hand, is rock solid, assuming the legs are all relatively the same length.
For this reason, many have used the analogy of a stool when building a business: There are three key legs that all must be mastered to lock in a successful and strong platform upon which to launch your career.
In real estate, these are foundation, activity and growth.
1. Foundation
When building a home, the foundation always comes first. It’s the same in real estate; here are the key components to a successful foundation:
Choose your brokerage wisely
Regardless of what they might say, all brokerages are not created equal. When I started my career, I was pointed to a desk and told, “Good luck!” I had to find learning systems on my own, and the costs came out of my own pocket.
Today, many brokerages provide intense training for new agents at significantly subsidized costs. You should join a company with strong training, mentoring and a culture that meshes with your own.
It’s important to note that it’s not about the split; agents who go shopping for the “best split” or “best deal” are looking for the wrong thing.
Study your local market
Start previewing homes immediately to get acquainted with local inventory. Track prices, analyze market trends, learn neighborhood boundaries, visit local builders and more.
Master the tools
To begin, plug into the tutorials provided by your local MLS to master their system as quickly as possible.
Second, most brokerages provide a CRM (customer relationship management) program; take the training necessary to master it. I’m flabbergasted by the number of agents who never use their CRM; it is your lifeline.
Learn how to use your lockbox key, familiarize yourself with all the required forms, and get your electronic signature software up and running. Practice, Practice, Practice.
Write a basic value proposition
Be prepared for when people ask, “Why should I hire you?” Have an elevator speech ready for when someone asks you what you do. Instead of “I’m a real estate agent,” how about, “I help people manage and grow their wealth through real estate.”
Set up your database
The magic number to begin is 200 contacts (name, address, phone number and physical address). List every person you know (friends, family, colleagues, neighbors, hairdresser, dentist, etc.) on an Excel spreadsheet, and then upload them into your CRM. Make sure you tag, label and categorize them from the beginning.
Start calling them to let them know you are in business, and enter their birthdays, children’s names, anniversaries and so on into the CRM.
2. Activity
A smart person stated, “Real estate is a contact sport — the more meaningful conversations you have, the more deals you’ll do.” If you are looking for a “secret sauce,” that is it. Here are the key activities:
Daily lead generation
Time-block a minimum of two to three hours every morning for calls, texts, door knocking and other lead gen activities. Do follow up in the afternoons, and meet with clients evenings and weekends.
Attend networking events
Attend your office weekly meetings, local marketing meetings, business mixers, service clubs, open houses, community events and as many other venues as you can.
Master open houses
Do not show up, sit on the couch and watch TV. This is showtime, and you are there to perform. Circle prospect, knock neighbors’ doors to hand out invitations, post the times and dates on the MLS so they syndicate to all the major web portals, and show up with state-of-the-art marketing, area trends, activity, and analysis.
As people come in, get their contact info (there are many systems to help with this), enter them into your CRM immediately, send a thank-you text or email with your contact information the same day, and then follow up the next day to see if they need additional information. If your CRM has the capability, put them on automated Market Reports and drip campaigns.
No one showing up? Use that time to call through your database; there should never be a wasted minute at an open house.
Leverage social media
The key is consistency. Share local market tips, current trends, helpful hints and key news items.
Follow up
It is your job. Just do it.
3. Growth
You are building a business. This is not a hobby, so run it like any other successful businessperson would. Implement systems to generate leads. Learn your numbers. Review your financials like a pro, including P&Ls, balance sheets and so on. Do not get sucked into spending money on frivolous systems or lead-gen schemes.
Create a referral machine
Stay in touch with your sphere, and touch each one a minimum of 36 times a year with calls, texts, pop-bys, regular mail, email, market activity reports, listing alerts, client events and more. The key is touch, touch, touch and then touch some more. Keep pinging them until they tell you to stop or give you some business.
Invest in education
There is no end to the number of skills you can learn to maximize your business. Budget time and finances for ongoing training. Hire a coach.
Know your numbers
Track everything. If you do not know your numbers, you do not have a viable business.
Develop a niche
Become the “go-to” agent in some segment of the market so that you are top of mind whenever that segment comes up in a conversation.
Manage your money wisely
Set aside a specific percentage of your income as a buffer for lean times. Develop a budget that allows for increased marketing and systems. Do not waste your money on flashy clothes, bling, cars, boats and other depreciating items; instead, keep driving your old car, and start investing in real estate.
Once you have developed a flow of passive income, then you can start thinking about a better set of wheels.
It will take three years to get your business up and running effectively. However, if you do these things consistently, you will be in the top 5 percent of agents and will be on your way to building a profitable business.
Carl Medford is the CEO of The Medford Team.
