Everything in your active listing inventory is your choice.

Everything in your pending inventory is your choice.

Everything in your bank account is your choice.

What are you choosing?

Or, do you even know you’re making a choice?

I hate to say it, but you are.  You are making a choice every single second of every day.

In your business, you are either choosing to do the things that will bring in business, or you’re not.

This is a business where you have to try to get fired.  Most agents don’t have a boss that looks over their shoulder.  The accountability factor is very low.  You can come and go as you please.  No one really questions you.

So, it’s easy to get caught up in the minutiae of the business…the stuff that really doesn’t help you get leads and sell real estate.  It’s easy to take a half day off, go home early, come in late, or whatever else.  It’s easy not to make phone calls, or not to door knock for business.

The computer sucks you in, like some sort of black hole.  I love the computer, I created this blog post on one, and I’m happy you’re reading it.  But, I’d love it if you scheduled some time in your day to read it, rather than read it on a whim.  The computer has a way of taking hold of you, all under the guise of “being busy.”

You might think that if you post a Facebook status change, blog about the market, create the perfect flyer, do lengthy email responses to unmotivated potential buyers and sellers, make detailed pre-listing packages, perfect that thank you note to someone you met on the at your child's ball game, spend 3 hours doing the best darn CMA you can do, that you’re actually working.

The harsh news is that you’re not.  You’re actually just being busy…busy with activities that don’t help you sell homes.

First of all, do you really think that someone’s going to choose you to buy a house because of your Facebook status?  Besides, they’re your friend, so hopefully they’d likely choose you anyway.  But you need to call them regularly in order for that to happen.

And, honestly, do you know how much and how long and how regularly you have to blog in order for search engines to put you at the top of the list so that potential buyers can find you?  And that’s if you hit the right keywords.

I’m sort of digressing here, but the point is…what you do, or don’t do every day is your choice.  You choose not to generate leads (hopefully, you’re actually choosing TO generate leads!).  And you choose how many listings and pendings you have.

Ultimately, by your activities, whatever they are, you choose how much money goes into your bank account.

Choose wisely, and while at it, have you chosen the right real estate brokerage for you? 

  If there’s one thing you can bet your money on in this economy, it’s that people are looking to save money. Drive by The Bay then swing by a Wallmart and see which parking lot has more cars.

You can’t really blame people. Times are tough for many. But regardless of what kind of economy we find ourselves in, or what the Dow Jones is doing, or who’s announcing layoffs, you can rest assured of this fact: consumers always want value.

And no matter what the product or service, value reigns supreme. That’s something  as a real estate agent or broker, to never forget, because that’s the only way you’ll be able to save your commissions when a potential client wants you to lower your rates. Believe me, they’re not paying top dollar because they like the way you look or the kind of car you drive or because you support the local little league baseball team.

Plain and simple, they want value. And if you can show your value, you’ll be head and shoulders above the competition. If they don’t see the value you offer, one of two things are going on: 1. You haven’t done a good job of explaining your value; 2. You’ve met a consumer who won’t listen to reason and that means it’s time to move on to another prospect. Don’t waste your time.

But more often than not, if you communicate your value in the right way, you’ll protect your commission.

So how do you share your value? We know emotion sells, but with those concerned about price, flat out objective evidence – such as numbers – often does the job.

One technique is to explain your value in terms of cold hard cash. This only works if you are indeed worth your salt in your marketplace. That is, if you’re landing selling prices at or very near asking price.

If that’s the case, hammer this point home by telling the seller what that average is. Let’s say your listings sell on average for 99 percent of their asking price. Simply ask the seller if he wants to get the most money from your property. Of course he does. Then explain what the average agent yields – let’s say 96 percent or even lower. That way you can explain that by paying you only one percent more than he wants to, he actually make 3 percent more on the sale. Then say something like, “That’s like me paying you a 2 percent bonus, correct?” They have to agree.

What you’ve done is clearly demonstrate your value based on your experience of past transactions – that you’ve delivered a better price for the homes you’ve sold. You may be asking for a higher commission, but the price you get for the seller more than makes up for it.

There’s no excuse for not knowing average days on market, list to sell-price ratios, home amenities and all the other basics, but it also helps to know, for example, a buyer’s motivations (are they moving with a job, do they like the school district, etc.).

And it all really boils down to being informed. I can tell you without exception that the person who always wins in a negotiation is the person who has the most information -- and who uses it wisely.

And I know what you are going to say, “But Ty, everybody is reducing their rates!” Are they? You know what I think? I’ve been guilty of this, dropping my rate without having to! 

I was talking to an agent with another brokerage here in London the other day and she was complaining that her business was slow. She even said to me:

"Ty, business is so bad that I need to get a part time job somewhere...”

I asked her "Why don't you just hire yourself?"

"She says what???"

My point is that we tend to make a routine out of our lives, and not even realize it. There are BAD ROUTINES that we all do every once in a while and they don't accomplish anything for us.

Most are burning time, and time is very much needed if you are broke!

I challenged one of my agents one day when I heard him complain about money and he was hardly using his phone when he was working at home or the office.

"What? You don't have anyone that you can call?"

"Your phone is not ringing because you are becoming a secret agent!"

Stops clicking and clacking that keyboard and start calling and you will see the change.”

To make a point, I challenged him with a direct question. I will pay you $10 an hour for 3 hours everyday and you turn OFF the computer and just call MY clients, my buyer leads and website sign-ups just looking for listing appointments.

And I will even make it better deal for you. I will pay you an extra $20 for each appointment you make for me!

And then he asked me. "Are you going to give me anything if you close from one of these appointments?"

I said "no!”

He thought about it and politely refused and soon after I hear him calling and calling and calling to HIS SOI the rest of the day.

My point is that anyone can hire themselves to doYOUR REAL JOB by focusing on results with no distractions 

You will not get paid $10 an hour.  You will get paid a lot more down the line if you apply yourself today!

Here are some tips you may use, if you are broke today.

• 3 Hrs per day to Lead Generate. It's the core of your business
•  Look at your last 6 transactions, see where they came from and pinpoint your attention to this area to duplicate.
• Sellers buy your image. . . Buyers buy Houses.  Use your time accordingly.
• Only applied knowledge into action MATTERS!
• No matter how talented you are . . . untalented people with action will BEAT YOUR Butt every time!
•  Business are like relationships . . . they are either going UP or DOWN. . They never stay the same. .your calls are good upward motivators.
• The number of appointments you have every week is in direct proportion to your bank account!

3 Ways to Generate Real Estate Commissions Now and Build a Stable Business

Here are 3 proven strategies that I will cover in 3 parts. They Are

1.     A great way to generate  commissions (and sell your listings faster) with a great buyer marketing strategy,

2.     How to create a “Customer List” that brings you consistent clients year after year, and…

3.     How to understand your Return on Investment with your marketing.

 #1:  Need to Generate Commissions Soon?

First, renters do not have a home to sell and can purchase within 30-60 days. Find apartment buildings or townhouses, study the demographics and start post cards, door knocking, blogging and blitzing for 30-45 days consistently.

What will 3-5 trades look like to your bank account?

#2: Create a “Customer List” and Make Them Your Primary Market

You already know that research says 77% of all real estate transactions occur from a relationship – they know the agent or are referred from a trusted source.

Here’s something you don’t know: If you built a “Customer List” (database of personal contacts) with 300 people (homeowners),(See my “How to Farm The Right Way” report)  and the average home ownership period is, for example 7 years, (nationally it’s 5.8 years), then 42 of those people will buy or sell every year – good market or lousy market.

Wow!  Is this getting your attention?

600 people on your database and its 84 transactions every year from that list. 900 people and its 128 deals a year – and so on. And don’t forget, that doesn’t include referrals they could send you – it’s just the number of direct transactions that come from that group.

Now hold on. Before you start thinking you just hit “easy street”, there’s something you need to understand. These are not just “random” people. I’m talking about people who know you or know OF you.

The higher the “quality” of contact on your list (i.e. the better they know you), the more responsive they’ll be to your regular contact. This means the more inclined they’ll be to think of YOU FIRST when they think real estate

So the “real” question is: WHO will get all those deals?

ANSWER: The agent who farms the best.

The one who’s stayed in contact (at least once a month, every month), deepened the relationship, provided on-going value to their list, and demonstrated they’re a true professional committed to the relationship for the long haul and worthy of the client’s business over any other agent.

Are you willing to become that agent…the one who captures 77% of all transactions, holds such a high personal market share they generate huge income regardless of market conditions?

You are?  OK, good because next I’ll show you…

How to Build Your “Customer List”

Building a Customer List is easy if you put your mind to it.  Here’s the best way to go about it…

STEP 1:Start with all the people you know and create what I call the “My List”.

STEP 2: Put every new and old client on the list.

STEP 3: Put leads you generate on your list.  Many successful agents make it a point to add 2 people a day, and soon have 500 contacts their first year (and got 10 to 20 deals just by putting people on the list).

STEP 4: Also, the other parties to any transactions you complete go on the list (hint: their agent will forget about them, so they’ll easily be yours when they buy or sell again).

STEP 5: Create “strategic alliances” with professionals who have clients that could be yours and get a “host endorsement” of your services: accountants, insurance brokers, etc. Consider reciprocating by introducing them to your clients as well. The credibility of the existing relationship is transferred to the endorsed person.

Final note: purge your list every 6 months to remove lower quality people. Within 12 to 24 months you’ll have a small, highly motivated group of people sending you consistent business month-in and month-out.

How Often Do You Contact Your “Customer List”?

You must plan on monthly contact to make any inroads. Commit to monthly or don’t even start. The Direct Marketing Association reports that the optimum contact time is every 21 days. There have also been studies out there that say for every month you forget about your Customer List, you lose 10% of them – another reason for monthly contact.

Finally, CREA reports that the “average” contact program takes between 8 and 12 months to “start” working.  (Side note:  You can cut that time in half with some programs that have worked for me but even if it takes 10 months to start the “market share engine” producing, that’s still a great deal, and considering most agents never get it going).

As soon as I mention budgeting and planning to other REALTORS®  I get a deer in the headlights stare, or a glazed look and from a few, a nodding smile.

  Guess who I get the nodding smile from? Yes, the REALTORS® who are doing quite well in their business.

         Even the very best REALTORS® have only a “guess” about their cost of sales generation.

There are 8-10 things you should be tracking and if you do, watch your business grow. If you don't know what to track, ask around or your Broker/Owner.