These are 2 very important aspects of this business.
I call these explanations: Training Modules.
Module #1: Lead Generation.
Lead Generation basically means finding a group of people who may agree to work with you in the future. You’re trying to find people who might be interested in buying or selling or renting real estate. Once you find somebody like this, you put them into your “pipeline” which means that you stay in touch with them periodically. Most beginner agents start to build their pipeline with their family & friends. You can also include your acquaintances, like the waitress at a restaurant or the check-out clerk at a grocery store. Once you get better at this, you can start to train your your “Sphere of Influence” to mention you to their “Spheres of Influnce”. In other words: not your next door neighbor, but your next door neighbor’s cousin who you don’t know. But your next door neighbor will only recommend you to their cousin if you have “trained” them to do so.
Building a pipeline is like a funnel. You need a lot of people in your pipeline to find a few who will actually agree to work with you.
Once agents become more experienced, they start to work with strangers. You can find strangers who are interested in buying or selling or renting real estate in many ways.
Here are some examples:
For Sale By Owners
Landlords advertising apartments on Craigslist or the Pennysaver
advertising for buyers on Zillow.com or other websites
Here at Grand Lux Realty we are lead generation machines for our agents & we provide leads to our agents for free. We have an easy-to-use database for our agents to access leads & manage their pipelines. Agents can access our database & their pipelines anywhere they have an internet connection. We spend between $3K-$5K/mo. attracting leads for our agents.
Module #2: Lead Conversion.
Lead Conversion may be the most difficult part of this business. Lead Conversion is the process of whittling your pipeline down from a list of names & phone numbers into a smaller group of people that you have created relationships with who will be willing to buy or sell or rent real estate with you. Lead Conversion is all about staying in touch & creating rapport with your pipeline. Most of the leads in your pipeline will say no & that’s ok.
How good you are at Lead Conversion will designate how much money you can earn in this business.
Staying in touch: This part seems to be very difficult for agents. If you spend most of your time making initial contact phone calls or “touches” to your Lead List & not following up, you won’t have much success. The win comes between the 5th-10th contact (or more). Rarely do these leads agree to work with you after just 1 phone call. The majority of agents give up too soon. And the frequency for staying in touch is also tricky. If you call too frequently, you’re hassling them. If you call too seldom, they’ll forget about you. And the schedule is different for every lead. Here’s an idea: Ask them when they want you to call them back. Then be sure to call them back when you said you would.
Adjusting your behavior: This part could be the most important of Lead Conversion. It means adjusting your behavior to match your potential client or customer, while still being authentically yourself. You want them to think you are speaking their language.
The better you get at reading people’s behavior type & adjusting yourself to match up with them, the more money you’ll be able to make in this business.
Here are some behavior types. They are based on ego: what makes a person excited or proud of themselves.
People whose egos are boosted by their experiences.
Words to use in conversation with Action types: freedom, flexibility, spontaneity, action, opportunity, excitement, attention, stimulation, competition, winning, fun, image.
Actions to take with Action types: Give a high-five. Talk about beating the competition.
People whose egos are boosted by the level of organization in their lives. Frequently OCD or borderline OCD types fall into this category.
Words to use in conversation with Blueprint types: stability, structure, systems, planning, processes, predictability, responsibility, duty, rules, credentials, titles, tradition.
Actions to take with Blueprint types: Don’t be late to a meeting. Go through the steps of buying or selling in order with them.
People whose egos are boosted by what they have learned or their education. You can tell these types by the framed diplomas hanging behind their desks.
Words to use in conversation with Knowledge types: learning, intelligence, logic, self-mastery, technology, research & development, science, universal truths, expertise, competence, accuracy, the big picture.
Actions to take with Knowledge types: Explain the dynamics of their market segment, including: Standard Deviation, Absorption Rate (demand), Inventory Analysis (supply), Negotiability Analysis, PPSF Analysis, etc.
NURTURING: People whose egos are boosted by their relationships.
Words to use in conversation with Nurturing types: relationships, authenticity, personal growth, significance, teamwork, involvement, community, charity, ethics, harmony, morality, contribution.
Actions to take with Nurturing types: Give a hug. Tell them they won’t be alone throughout the process. You will hold their hand.
Remember in all cases to still be authentically you. You’re acting, but still as yourself.