Let’s talk about growing your real estate business. There are no shortcuts, get successful overnight schemes or fast tracks. The answer to how to grow your real estate business is split into 6 major categories which we will unpack in this article.
- Prospecting and Lead Generation
- Follow up
- Work your database
- Delegating work
- Professional development
- Strategic partnerships
Prospecting and Lead Generation
The journey of a thousand miles begins with the first step. Prospecting is that “first step” to grow your entire real estate business. Prospecting and lead generation is the business that you’re in. If you’re not prospecting, or not generating leads for your business, you’re entirely reliant on a homeowner coming to you.
In an ideal world, you’d have a full pipeline of clients knocking on your door asking for you to help them buy or sell a home. The reality is that you have to truly work and work hard to find new clients. Fortunately, there are a variety of strategies that you can implement here. From cold calling and door knocking, to alternatives like social media or promoting the homeowners and local businesses in your community, there will be strategies for you.
If you’re already in the industry and are looking for alternatives to traditional methods for generating buyer and seller leads. Check out this article on the best alternative to door knocking and cold calling (It’s a strategy that most agents aren’t doing!).
Following up
Most people make the mistake of underestimating the significance of follow up in the real estate business. Their focus is almost entirely on the “new” or “hot” lead. And it’s a fair point. Following up often is associated with countless calls, texts, and calls that go unanswered.
You will find that your first contact with a prospect rarely results in a signed contract. Research shows that 50% of all sales take place after the 5th contact. On top of that 96% of salespeople stop following up after four attempts! Consistency of effort when following up typically determines whether or not an agent will be successful. Simply put, those who follow up, early and often get results. Those who don’t follow up will do fewer transactions.
Most people make the mistake of underestimating the significance of follow up in the real estate business. Their focus is almost entirely on the “new” or “hot” lead. And it’s a fair point. Following up often is associated with countless calls, texts, and calls that go unanswered.
In order to not only be successful with follow up but to simply make time to do it, you need a system. If you know that your follow-up is lacking urgency, creativity, and a method that you can actually stick to, check out this article on how to follow up quickly and easily without annoying people.
Work your database
One of the most important tools at an agent’s disposal is their database. Your database is all people that you know already. Whether they are a friend, family member, coworker, acquaintance, or someone that runs a business you frequent, they’re all relationships that you can nurture and serve.
People do business with those that they know, like, and trust. As all of these people know you already, they’re the perfect people to keep in touch with. All agents should put a premium on keeping the contact information of everyone in their database up to date.
On top of keeping accurate information in your CRM, top-producing agents will split their days into three segments.
- Prospecting and finding new clients
- Serving active/current clients
- Following up and nurturing their existing database
Now depending on your schedule, you may find that it’s not an equal split between all three. And that’s A-Okay! When you have a lot of clients all at once, it’s natural to drop off on the other two areas. At the same time, if you’re not working with many (or any) clients as your recent listings have just closed, you’ll have more time to focus on Prospecting and Following Up. So ask yourself, are you dedicating time for all three areas of your business like you should?
Use a quality CRM to track and manage your relationships
CRM stands for Customer Relationship Management. A CRM is a tool where you can view all information about every contact in your database. Whether they’re buyers, sellers, homeowners, or planning to be one in the future, their information needs to be here.
Agents should invest in a quality CRM with all the functionality that they’ll need. Email Marketing, Website Creation, and Social Media Integrations are becoming industry standard, so make sure that the CRM you select has all the bells and whistles you’re after!
Hiring an assistant
The goal is for your business to grow. And there will come a time where you will need help to get everything done. This is a good thing! Hiring an assistant who can help you organize your schedule, take on any minor and time heavy tasks, and keep you focused on the things you must do.
Remember, as your business grows, it’s natural to expand! Focus on finding the right fit. Whether that is someone that you can have on the front lines with you, in your office, or remotely there are valuable contributors for your business who are just waiting to get hired!
Professional Development: How to grow my real estate business
One of the surest ways to ensure your business grows is by improving the business itself. This includes working on yourself personally and professionally. Some of the ways you can grow your real estate business professionally are:
Being a More Effective Negotiator For Your Clients
There is no finer art when it comes to business than the art of negotiation. Your clients want you on the front lines for them, negotiating the best possible price for their offer. You’re representing them after all! So why not focus on becoming the best negotiator possible.
Consider this, do you want to come out of the negotiation knowing that you could have done more for your clients? No, of course not! Working on your negotiation skills is a must-do for any agent that wants to build a client-centric brand.
A great resource to start with is to check out Chris Voss. As the former head of FBI’s International Hostage Negotiation Team, it’s safe to say that he knows how to effectively negotiate the best deal possible. After leaving the FBI Chris has transitioned into applying his skills to negotiation in a business sense. Check out Chris’ talk at the 2019 Tom Ferry Success Summit below.
You’re not only Selling Homes, but you’re also selling yourself
As a Real Estate Agent, your success is dependent on your ability to sell homes. But before you can sell a home, you’ve got to sell your homeowner or prospective homeowner on why you are the best fit for serving them.
Finding a mentor is one of the most effective ways to help you grow your business. Someone who has “been there, done that” who you can learn from. Not only will you be able to learn how to effectively sell yourself, but you’re sure to pick up many other tips along the way.
When it comes to mentors, remember, the purpose of a mentor is to help you grow your business. You will hit a point where you may outgrow your mentor. That’s a good thing. Your next step would be to look for another person that you can learn from (and potentially position yourself into a mentor role for a new agent, yourself!)
Using Strategic Partnerships To Grow your real Estate Business
As you grow your real estate business, you’ll find that strategically building relationships with local vendors, professionals, and business owners will help you improve your offering of service.
There are vendors that you’ll naturally connect within your day to day operation of your business such as a lender, contractor, or architect. However, there are other professionals that can provide you with referrals as well as establish your brand as a trustworthy, connected agent.
Here is a shortlist of people in your community that we recommend building relationships with:
- A local business association leader
- The principal of a nearby school
- Popular restaurant owner
- Personal Trainer
- Landscaper
- Dentist
- Coffee Shop Owner
Not sure who to start with? We’ve curated a list of 30 Local Professionals that every Real Estate Agent should get to know. Within it, you’ll find the best ways to contact them, optimal reach-out times, their average sphere of influence, and breakdowns of the typical personalities of people in these roles.
Want your community relationships guide? Download the Free eBook here!
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