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#6 – The Closely-Kept Secret Of A Top Producer Income…

How would you like to double or triple your hourly income in real estate in the next 3 months – spending less time and effort than you’ve ever used in your business?

That means…

If you make $40 per hour right now (about $80,000 a year), that would go to $80 per hour ($160,000 per year)…or even $120 per hour ($320,000 per year).

If you make $200 per hour right now (about $400,000 per year), that would go to $400 per hour – or $800,000 per year.

Does this sound like an impossible task for you?  It’s not once you understand how to maximize the efficiency of your marketing and service delivery.

See…the amount of money you make is directly related to how efficiently you can attract new prospects…capture them as clients…and close a transaction – thereby getting paid your commission.

I call this process “Throughput™.”

How does Throughput™ work?

Picture the revenue of your real estate practice as water flowing through a pipe.  To maximize the flow of water (i.e. your commission revenue) you can do TWO things:

First, you can increase the WIDTH of the pipe, thus allowing more VOLUME of water flowing through, and…

Second, you can increase the SPEED in which the water flows through the pipe.

Volume and Speed – that’s the secret.  Make sense?

The larger the volume and the greater the speed – the more money you make.

So how do we maximize revenue Throughput™ in your practice?

FIRST, to increase the VOLUME of revenue you need to have more quality marketing “systems” working to bring you clients.

Marketing “systems” are proven, predictable ways of bringing you prospects and clients without you having to spend your valuable time finding, sorting and sifting them.

Remember…your job is to do the highest paying tasks: working with clients, closing deals, and making money.

The more marketing “systems” working for you, the more client flow…and the more money you make.

Problem is…most agents’ marketing “systems” don’t work – because most agents don’t understand the marketing “efficiency” secrets you’re learning in PART I of this course: market selection, depth of relationship, and compelling, self-serving reasons to act.

Which brings me to…

SECOND, to increase the SPEED of revenue, you need marketing systems that work efficiently.

I’ll bet you spend a lot of time and money marketing your services.  And I’ll also bet a good portion of that time and money is wasted.  So anything new that requires you to spend money on your business is met with a skeptical eye.

But the problem you’re facing is NOT that you are spending too much money or time…

It’s That You’re Getting NO RESULTS!

If you knew for every dollar you spent in marketing you got back $3 dollars…or $5 dollars…or even $20 dollars, you’d spend marketing money hand-over-fist, wouldn’t you?

You’d spend as much as possible because it’s multiplying your investment.

So the real problem you’re facing is not the amount of money or time you’re spending…it’s the return you’re NOT getting on your hard-earned investment (time and money).

This is what I mean by efficiency.

An efficient marketing system will produce a strong, fast return on your time or money (like water flowing fast through a pipe)…and a poor marketing system will produce a lousy return.

The problem with most agents: They have too few systems (poor volume) producing too little business (poor efficiency).

The reason?  They simply don’t know the difference between an effective marketing system and an ineffective marketing system.  They blindly follow the advice their trainer or broker or “coach” tells them…

And the worst advice you will ever get…is BAD advice.

Well, that won’t be you any longer…

How to Evaluate and Select ONLY the MOST Efficient Marketing Systems in Your Real Estate Practice…Thereby Maximizing Your Throughput of Revenue and Profits…

Let’s look at 2 examples of marketing efficiency.

The first is a bit exaggerated (to make a point), but it’s what I call “The Dumbest Strategic Mistake”, and the second is “Smart, Effective Marketing.”

The Dumbest Strategic Mistake:

The other day one of our new Service For Life!® agents called me out of frustration.  She was really upset because she was in the process of creating her “house list” and relationship marketing system when her broker laid into her saying…

Quit messing with gimmicks. The ONLY way to build your business is to walk neighborhoods and cold prospect.  Everything else is a waste of time and money…

Hey…I understand the idea of not wanting to spend any money to get clients – especially if you have no money!

But this ‘dinosaur’ wanted her to sort through the no-call lists for any poor slob who hasn’t registered yet, and start cold calling and walking neighborhoods hat-in-hand looking for business.

Listen…thinking that there is “no cost” to cold prospecting is about the dumbest thing a broker could say.  In fact, cold prospecting is one of the MOST EXPENSIVE (least efficient!) way to generate clients – not just from the emotional drain, but financially too!

Want proof?  OK, let’s do the simple math.

If you want to be an “above average” agent, your time should be worth at least $100 per hour (and there’s no better time to begin valuing your time than NOW, right?).

And if you’re an “average” cold-prospecting agent, you’ll get ONE client for about every 100 calls you make (not to mention the mind-numbing humiliation and rejection you’ll endure in the process).

OK…let’s see…if you spend an average of 4 minutes per call (many will be longer), then it will take you, statistically, about 400 minutes to work through 100 people to get ONE client (that’s if you close 100% of them – which we all know won’t happen).

Divide 400 minutes by 60 minutes per hour, and it took you 6.67 hours of direct-abusive cold prospecting to get ONE appointment/client.

Multiply 6.67 hours by what your time SHOULD be worth ($100 per hour at least), and it cost you $667 to generate ONE client – not including the emotional drain.

Did You Know You’re Paying $667 For Every
Client You Generate Cold Prospecting?

At first glance you don’t think you’re paying anything because there’s no money flowing out of your pocket, right?

No so.  Just because you’re not spending money doesn’t mean it’s not costing you a bundle.

You’re paying through the nose in LOST BUSINESS – what you could be making with an EFFECTIVE marketing system…a system that attracts clients automatically while you spend your time doing the most productive things: working with clients, closing deals, and getting paid.

We all get paid by the hour.  And the question is: How much money do you make with your time?

But wait.  You may be paying much more than $667 per client cold prospecting.  For example, one of our Service For Life!® agents, Linda Fogarty from Tinley Park, IL now makes nearly $300 per hour.

This means…if she wanted to subject herself to such torture…cold prospecting would cost her over $2,000 per sale!

And if you walk neighborhoods, it’s gets much worse, because it’ll take you almost 8 minutes per “call.”

The moral of the story?

The More You Value Your Time, the More UN-
Profitable Manual Prospecting Becomes!

Let’s take a look at how to generate clients for a fraction of that cost – more money in your pocket – by using…

Smart, Effective Marketing:

Do you remember the simple “Critical Mass™” calculation we did in my last article (If you didn’t see it, click on the link in the right side-bar near the top)?

We learned, for example, that a “house list” of 280 people who own their home 7 years on average, will produce 42 transactions each and every year.  The % of those YOU receive depends on how well you’ve nurtured these folks.

A house list of 500 produces 71 transactions per year on average (500 divided by 7 years = 71 transactions per year – not including referrals).

Are you following me?  Good.

So let’s test the efficiency of marketing to a “house list” with a proven prospecting, stay-in-contact, and referral producing marketing system like Service For Life!®.


The less you spend (in time and money – and hassle!) to generate a client, the more commission you put into your pocket, right?

Let’s try an easy analysis…

You can send Service For Life spending $0.00 when you use either our Email Marketing System or our Sponsor System (we give you everything), but let’s suppose you decide to send it by good-‘ole-fashion mail…

Depending on how you send it, you’ll spend between $.55 to $.85 per issue to send Service For Life!®.  So let’s take the high side, and suppose you’ll spend $.85 to send to 280 people, or $238.00 printing and mailing each issue each month.

So how do you calculate your COST PER CLIENT GENERATED?

Well, first and foremost, it DEPENDS on your Personal Market Share™  percentage (as we talked about in last article).

Let’s work some easy numbers.

If you harvest a measly 20% Market Share of these folks each year, that means…

You’ll spend $2,856 for the entire year sending 280 issues per month (to make 3,360 impressions)…

If you harvest 20% of the 42 transactions, that means you’ll get 8 deals from the list.

DO THE MATH: $2,856 divided by 8 transactions means you’ll spend $357 per client (NOT $667 to $2,000! as you would from cold prospecting – not to mention the torture and rejection you’d save yourself in the process!).

But wait!

WHAT IF…because of your relationship systems (i.e. Service For Life!®), you harvest 40% of these folks?  Then your cost to generate the client just dropped to $178 per client ($2,856 divided by 16 transactions).

And if you harvest 50% of these folks, then your cost of sale just dropped to $136 per client.

And that’s against a commission of $5,000…$8,000…$12,000 or more!

Do the math yourself and see.  Have fun with it.  This is why I say you can make your success in real estate a Mathematical Certainty!

But hold your horses…

There are 2 more important points you need to know about all this…

ONE…the numbers I mentioned here DO NOT include the referrals these folks could be sending you.  Our Service For Life!® clients report getting as much as 30% referrals from their house lists – which means you’d get up to 12 additional transactions per year from these folks…

TWO…the LONGER you make contact, bring value, deepen the relationship over time…the MORE RESPONSIVE your list becomes.  This means your Personal Market Share™ may start out at 10 or 20%…but over time it grows and grows.

That’s how our Service For Life!® subscribers go from harvesting almost none of their house list (when they start)…to getting 20%…40%…even 80% or more of these deals.

It’s how you carve out your own Personal Market Share™ and build a consistent, ever-growing income in real estate.

And the bigger your House List grows…and the more responsive they become, the more your income grows and grows (like the snowball I talked about in my last article).

Still not convinced this is the MOST PROFITABLE marketing?

Let’s look at your BREAK EVEN…

Take your monthly investment to send Service For Life!® and multiply it by 12 to get your annual investment.

Next, divide that amount by your average commission.

In our example, your annual cost to send 280 issues each month is $2,856.  And if your average net commission is $5,000, then you need just .57 of ONE transaction to pay for your contact program ALL YEAR!

Your break-even is about ½ of one transaction!

Think about that.  You need only ONE transaction out of 42 to double your investment using Service For Life!®.  Try to get that in the stock market.  Heck…try to get that with any other form of prospecting or marketing!

Does all this make sense to you?

Ask any long-term top producer where they get their business, and they’ll tell you it’s from: referral, word of mouth and repeat business.

Ask any “coach” worth his or her salt what’s the best way to grow your business – and they’ll tell you: referrals, word of mouth, and repeat business.

But none of them has mastered the complete, detailed system you’re learning right here and in future articles.

Today’s Action Plan:

In Article 2, I asked you to list out all the ways you generate clients in your business.

Did you do it?  If so…GREAT!  But if not, here’s a chance to evaluate your practice and STOP doing inefficient, unproductive marketing…and replace it with productive, super-efficient marketing.

Your bank account will swell like the Goodyear Blimp and you’ll work less than ever once you change your focus to high-efficient marketing.

So go ahead and list out all the things you do to generate clients (see “Todays Action Plan” from Article 2 if you have questions – the link is in the left side-bar at the top of this issue).

Then, using the simple calculations in this article, evaluate the Cost per Client Generated and your Break-even for each.

Finally…eliminate the things that take too much time, money and stress on your life and business…and replace them with more effective marketing.

You owe it to yourself and your family to get the most out of everything you do and continue to build your automatic market share – that’s how you make lasting profits in real estate.