A Powerful Real Estate Career   We Put The Real Back Into Real Estate

There is Only 3 Ways to Grow Your Real Estate Business


Contrary to all the coaching ‘guru’s out there, the real estate brokerage owners and managers, there are only 3 ways to grow a real estate business:

  1. Get more clients
  2. Increase the frequency that clients do business with you
  3. Increase the transaction size

Pretty simple isn’t it? That’s the problem, it is simple and we as human beings have a tendency to complicate things. And because of that, most jump on every ‘new’ do this, do that system, fancy this or that , new script, stand on one leg and whistle ‘Dixie’ group. You get my drift, max out your credit cards on trying all the ‘sure fire way to make a million bucks in real estate!

I am the first to admit there are basic fundamentals in being a successful real estate sales person and like gravity, it does not matter if you are in London Ontario, New York or London, England, they are the same.

I was going to list those fundamentals here but I’m not, I’m going to make you work! Yup! What do you think they are?

The first clue is this: If you are already successful, both in income and lifestyle, you already know those fundamentals. If you are not achieving the lifestyle you ‘think you desire’ ,  I bet you know why you are not achieving the success you deserve or don’t deserve!

Pretty harsh aren’t I? I see really nice, good honest men and women struggle in this business that end up leaving it, disheartened , broke , or, stay in, believing the next fad , technology tool or book will turn their business around.

In his book “Necessary  Endings”, Dr. Henry Cloud writes  about the harsh reality of ending something that is not working and moving on. That all of us have to give up under performing clients, underperforming associates, underperforming brokerages , underperforming marketing &  farming in order to move forward.

Look again at the 3 ways to grow a business, what are you doing day in, day out with those 3 ways?

  


A Mature Real Estate Agent & Struggling?


If you have been in the business for over five or eight years, chances are you are acting like a 'mature' agent.  You are getting most of your business from repeats and referrals.  You have built up a strong enough business that you do most of your business based on pre-built trust and confidence.  You are admired in your office (and perhaps your whole company) for your leadership and mentorship.

The challenges of the ‘mature’ agent.  Because the mature agent gets most of her business from referrals, she may not be prepared to compete against more aggressive agents—or agents trained with the latest presentation methods.  This happens. Let’s take a mature agent, Martha.  She was referred to George and Betty, who wanted to sell their home.  But, George and Betty also were referred to John Schlock, of ABC Realty.

Martha knows John Schlock, and she thinks his last name is appropriate…...  Of course, though, she cannot say this to George and Betty.  Martha's in kind of a bind here.  She relies on word-of-mouth for her business, and she relies on this word-of-mouth building her credibility to the point where she has no need to build it herself.  This works fine when she is not competing with another agent, and the sellers already think she is the best thing since sliced bread.  It does not work so well when she is competing with another agent—especially one who will tell the client whatever they want to hear!

Martha relies solely on her ‘known’ reputation.  Martha has no testimonials in writing, no Professional Portfolio, no visual marketing presentation, and no statistics systematized to teach George and Betty the principles of how real estate works.  Why not?  Because, Martha does not need these credibility-builders very often, like those newer agents need.  And, when she does, it is too late to create them. 

This ‘mature business’ attitude results in lost listings or over-priced listings.  This makes Martha mad, but, to do anything about it, Martha would have to admit she needs to quit acting like a 'mature' agent and push herself back into the growth phase.   Just like Taurus, she needs to 're-tool' herself.  You, dear reader, may be like Martha. 

Congratulations on taking the risk to even look at your business today.  Many ‘Martha’s’ in real estate are just waiting out the inevitable--their descent into decline.

What to be aware of if you are in the 'mature' career phase.  With real estate practice changing so dramatically--so fast--I think, for companies, offices, managers, and agents, this 'mature' phase is the most dangerous.  The danger of lulling ourselves into complacency in our 'mature phase' is that, without our knowing it, we have slipped into decline.  So, to find out if you are in the mature phase, ask yourself:

  • Am I relying almost solely on old customers and clients to send me referrals? (And am I waiting for them?)
  • Am I relying almost solely on my reputation to list properties at the right price?
  • Am I losing listings, or pricing them too high, when I do not have strong enough credibility with sellers?
  • Am I resisting putting my credibility statements in writing (and/or my marketing program) because I rarely need to establish my credibility? Do I even have a marketing program?
  • Have I introduced a new business practice into my business in the last two years? If so, what kind of return did I get?
  • Have I looked at my business as though I was a new agent--in the last two years?
  • What is my attitude about technology?  Twitter? Blogging? Farming?
  • If I had to sell my business tomorrow, could I?  (Do I have the systems in place that someone could take over?  Do I have my database in top condition?  Do I have all my marketing programs running at full speed?)

The Mature Agent’s Need?  Re-generation and Motivation*

How does someone re-generate oneself and motivate oneself again?  For the mature agent, it is putting those talents and skills to work for others.  You need appreciation and compliments.  You need to know you are needed.  You need to know you are making a difference. (I believe it is really sad because you can really make a difference for a seller or a buyer, yet they are working with someone who cannot supply the expertise, care and honesty that you can!)

  It is time for you to flex those dormant  skills, which will re-energize you and your career. You don’t have to be a tech expert, learn fancy stuff and spend a fortune.

In today’s market, both buyers and sellers want good advice, help and experience. How are they going to find you? How are you going to set yourself apart? They are willing to pay for great service if you know how to demonstrate that you are worth it.

Let me show you how!

 

 

  


Real Estate Business Models Are Changing




Why Real Estate Franchises Need to Change

There is no doubt about it, as real estate professionals we are experiencing a perfect storm. A collision of For Sale by Owner sites, 1% commission agents, discounters, non-licensed real estate websites and resistance to 5-6% commissions. Canada is literally reinventing itself. Unfortunately, given the magnitude of these events and the policies that must be instituted to reshape them, we are reinventing ourselves reactively rather than proactively. Future generations will reference the events that have shaped the real estate community during these recent years as the most tumultuous in decades. As a result, the business model that is still adopted by today’s real estate brokerage will have to be reinvented as well. The old real estate brokerage model is still dominant in today’s society. The saddest thing is that most agents will not take the effort to look at the newer models that in a few years will make large branded companies not cost effective.


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We are Different


Dear Ty,
  
Thank you much for the generous piece of correspondence today concerning home buying. I certainly wish I had you around during my various moves during my banking career. I think....I take that back. I know you would have made our home buying and selling process so much smoother in many instances. I have your website saved in my Favourites under "New Homes".

I know that there is a wealth of information in your site. But that is only part of you. From the few conversations that we have  had together I can sense that you are a first-rate businessman who knows his subject matter to a"T" and the most important  part of the business even better...."The Customer". 

 I don't have to tell you about how many in the Retail line of business who pay lip service to Customer Service. Anyway, I could go on and on about the positive feedback I have about you but then you'd have those dam logistic problems of getting your head in the car and into the office the next day and I don't care to be responsible for those.
  
My wife and I have done some serious soul searching on the subject of renewed home ownership and the condo development we have previously discussed. We've come to an agreement that we're not ready to go back into serious mortgage debt at this time.
We do wish to find a condo unit at some point in time but at a point where our ownership position is much stronger. 

We have no plans to deal with anyone else in the future. You are our Man!  So for now we're officially going to take a pass on things until  our situation changes.
  
In closing I wanted to say that in this brief exchange I have already learned 1 new thing from you. I never knew that you could  bring your own agent into a new home site like Auburns. I thought you always had to deal with their Sales Team. The fact that
your expertise can be called into play from start to finish with the purchase was such a revelation to me.

I know you are thinking "blissful ignorance" on my thinking process but just another reason to have "The Pros from Dover" i.e.. "You" in our corner.

Thanks  for the refreshing eye-opener.

Roger

Note: I had asked Roger if I could use the above testimonial in my marketing and here was his reply:

TY,
 
More than welcome to use my comments, they come from the heart.  I would like very much to be kept in the loop of things with your newsletter. Thank you. With respect to referral opportunities I will be more than pleased to share your name. I'll do you one better if you send me a few business cards of yours I'll be sure to put them in the hands of anyone I can send your way.
 
Wishing you continued success always.
 
Roger 


 

Ty Lacroix Ty Lacroix 519-435-1600 Email Ty