Step #3: How To CULTIVATE Your House List For Endless New Clients, Referrals and Repeat
Business…
What you’re about to read will article be the most important marketing information you’ll ever learn in your real estate career.
I know that sounds like “hype,” but give me the benefit of the doubt for just a few minutes…because after reading it I’m confident you’ll agree.
But first an important review…
Over the past few articles, I’ve covered 2 of the 4 Essential Steps in creating your $7-Figure “Endless Clients” Real Estate Marketing System.
In Article 8, I covered Step #1 of the process, which is how to create the “foundation” of your marketing system with your “House List Tracking System™.
Then, in Articles 9 thru 13, I covered Step #2 in the process, and gave you 5 proven strategies for quickly building your House List in both size and quality.
I also gave you powerful, ready-to-use letters and client contact tools you can put to work in your practice tomorrow morning.
In this article we’ll begin Step #3 in the process (you can see the 4 Steps in Article #8 located at the left sidebar of this page). This step is where all your efforts turn into cold cash. Today we begin the…
7 Essential House List Cultivation Systems™
I have a rather bold prediction for you: Once you learn these 7 upcoming Systems, you will never worry about your production level or income again. Employ each of these strategies…and your business will transform into a supercharged client-generating machine.
I’m not kidding. I’ve (literally) watched hundreds of agents employ these systems, and almost overnight…
…their production (literally) multiplies…
…they never-again worry about the commission “yo-yo” effect – one month feast, the next famine…
…they practice real estate in a “competitive vacuum” because no other agent has a clue how they get to the client first and final…
…they never cold prospect or face the dictates of abusive or unmotivated prospects or clients – all their business comes to them, and they choose whom they work with…
…because of the efficiency of their marketing systems, their stress levels and working hours and efforts become just a fraction of what most agents face.
So let’s begin our (Step #3) cultivation process by first covering the most important element of your $7-Figure Real Estate Marketing System. I call it…
The Real Estate Success Pyramid™
Let me explain the Pyramid with a quick story…a story I’m sure you’ll relate to the minute you start using Service For Life!® or any real estate prospecting or marketing system…
About 10 years ago when we were originally testing Service For Life!® in the field with my “beta testers,” I encountered a startling situation.
There was an agent from a Phoenix suburb who took the tool and sent it to over 2,000 of her ‘closest friends.’ And after doing this for 3 months, she had received NO BUSINESS from it.
A few calls and nice comments – but no commission checks.
Quite frankly, her results shocked both her and me.
Yet at the very same time, there was a husband and wife team out of Orange, California who had a small list of about 300 people, and were getting between 4 and 7 transactions PER MONTH using Service For Life!®.
Let’s get this straight: One agent sends it out to 2,000 with no results, and another couple sends it out to 300 and is now averaging over $250,000 in annual commissions.
I wondered what in the world was going on?
I spent almost a full month in “detective work” trying to figure out why one agent gets amazing results…while another gets almost nothing. And I discovered THREE revelations that made the difference between glowing success and frustrating failure.
And because I want you to succeed like never before…to have all the knowledge and tools at your disposal…I want to share these essential revelations with you…
The FIRST revelation I discovered was that the first agent made the mistake of thinking Service For Life!® was a “magic bullet.”
She thought that…if she just hurled it out to anyone with warm blood and a heartbeat, they’d all come flocking to her for business. As much as we all want ‘magic bullets’ in our lives…
They Don’t Exist!
See…the biggest mistake most agents make with any marketing is they think the “secret” is in the ad…or the newsletter…or the recipe card…or the classified ad wording…or the sales letter.
They think 100% of the “success factor” is in the marketing piece…and they are WRONG! That’s the first mistake I don’t want you to make – and I’ll come back to it in a minute.
Now…the SECOND revelation I discovered was something very difficult to pinpoint, but made all the difference in the world…
It turns out that the first agent (who got no business) had an “attitude problem.” After talking confidentially with agents who know her, I discovered that she was rather pessimistic and cynical in life.
She had a haughty, elitist attitude. She never connected well with clients. Her real estate services were rather sub-standard. And she was not a particularly friendly person.
And worst of all…she never truly believed in the marketing. She decided Service For Life!® wasn’t to “her” liking. So she took it upon herself to rewrite articles, change response offers, re-work the client recognition, appreciation and other 7 elements of the newsletter.
And you know what happened from all her effort?
Actually nothing happened – nothing at all: No prospects. No new Clients. No Referrals. No word of mouth. No repeat business.
Listen…this is important…
You can never expect to receive new clients…referrals…word of mouth…or repeat business if you are not (what I call)…
A “Business-Worthy Personality”
I know I sound like a broken record about this…but when someone sends you a referral, for example, they’re putting THEIR reputation on the line for a positive outcome.
If they’re not absolutely certain you’ll treat their referral with first-class, friendly, competent and professional service…
They’ll Keep Their Mouths SHUT
Now…the THIRD revelation I discovered is the MOST IMPORTANT COMPONENT in building your $7-Figure “Endless Clients” Marketing System. It’s the secret of making your marketing all come together…and bringing you 3 or 7 or 20-TIMES your return on marketing dollars invested.
And it has to do with the QUALITY of your list.
What do I mean by “quality”?
I know we’ve talked about this before, but this is so important I want to delve deeper into the subject so you really “get it” before we move on.
“Quality” is the answer to the question: What is the potential of your house list (or target-farm or whatever medium) to send YOU business WITHOUT you calling them first?
It’s the Depth of Relationship you have with them and the level of Motivation they have to want to work with YOU and YOU ALONE.
It’s your Personal Market Share™ with your list – whether it’s your House List, a target farm area, or an ad publication.
See, most agents have no idea what I’m talking about. That’s because the entire concept of QUALITY simply isn’t taught in any marketing training to agents.
You’re sent out into the cold to manually sort and sift for anyone willing to speak with you (which most would prefer you didn’t exist!)
The LIST is the most important. Not the ad. Not the sales letter. Not the recipe card. Not the glossy magazine with the “huge, hungry” circulation.
Think of it this way: An outstanding sales promotion sent to an unmotivated prospect will always bomb…but even a mediocre sales promotion sent to a Hyper-Motivated prospect will always succeed.
That’s the first step in marketing. The “promotion” comes second (yes, it’s important, but second behind “quality” of your list).
The LIST Comes First!
So what does this mean for YOUR marketing?
Your Goal in Real Estate is NOT to Have the
Largest House List or Farm, etc., But to
Have THE MOST PROFITABLE ONE!
My Orange County agent friends had a list 1/7th the size of our Phoenix agent, and they creamed her with their commission volume.
How did they do it? They understood the importance of “The Real Estate Success Pyramid™.”
What is The Real Estate Success Pyramid™?
It’s a graphic description…an epiphany (that means “a sudden intuitive leap of understanding”) for growing your business to become a steady six-or-seven-figure income generator.
It applies to real estate or any other business. Do yourself a favor: Print out the following graphic and hang it on the wall above your desk so you can see it every day.
Why? Because it represents a ROAD MAP to lasting success for you…
How does The Real Estate Success Pyramid™ work?
Let’s take a look. Most agents think they’re in the business of listing and selling real estate. And while that is the ultimate result of your efforts, it does not describe “the business” you’re actually in (forgive the ‘dangling modifier’ all you grammar editors).
The reality is you are NOT in the real estate business. You are actually in the business of GENERATING AND KEEPING CLIENTS FOR THE LIFE OF YOUR BUSINESS (read that again – it’s important!).
There’s a big difference here. I’ve seen thousands of agents who were great agents…knowledgeable, competent, professional, etc…but they were going BROKE because they didn’t understand the true nature of their business.
The goal of your business is to generate as many clients, and keep them for as long as you practice real estate. And your ULTIMATE JOB is…
The Progressive Ascension in Quality of
Everyone You Meet in Your Business
(see the blue arrows to the left of the pyramid)
Imagine having several hundred advocates of your business who work like a giant sales force sending you non-stop referrals, word of mouth and repeat business.
Wouldn’t real estate be easier?
Well, I now have hundreds of agents who are in that position – and they work less, make more, and truly enjoy their business and life. But they didn’t get there without understanding The Ultimate Real Estate Success Pyramid™.
So let’s work the pyramid from the ground-up – so you’ll understand it too.
The reality of real estate is this: Because 96% of all agents have no understanding of Market Quality, they spend their time doing the least efficient and effective tasks: prospecting for real estate clients from the…
“General Population”
You can generate leads “OK” from the General Population, but because you need to be an expert in the field of direct response, most agents fail miserably at it (dang…there’s that dangling modifier again!).
These people don’t know you. You don’t know their real estate motivation. And I’ll bet if you ask them, they’d prefer you just leave them alone – hence, the “do not call” lists.
Why is this? Because people love to buy…but they HATE to be sold.
Yet, ask most brokers how to prospect in real estate, and this is where they’ll send you – to the lowest potential in the pyramid.
So most agents spend their time manually shoveling, sorting and sifting through the cold, brutal market…only to face rejection, humiliation, frustration and ultimate failure.
Very few can survive in this arena, as evidenced by the failure rates in real estate.
Now…you’ll observe that, as you go UP the pyramid, the quality starts to increase, and the area (the number of people you need to sort and sift through) DECREASES.
Just up from the General Population, is groups you may OUTBOUND market to: Target Farms, FSBO’s, Expireds, hot demographics and target publications. I call these people…
“Fertile Niche Markets”
These folks are higher quality than the GP because you have a little bit more information about how to target the (more) motivated buyers or sellers in this group.
For example, if you understand farming correctly, you’ll select fertile farms by hopping on your trusty MLS system and comparing average sales time, turnover, number of homes for sale, average home ownership length, and number of agents in the market for various farm areas.
Knowing this information will help you target motivated prospects better so you’ll be spending your time and money more effectively. But most agents don’t put much thought into these areas, so their farming fails as well.
Another example: By working FSBO’s or Expireds, you already know they’re in the market for real estate services – but that doesn’t mean they want YOUR services.
So this group is higher quality than the GP, but not much higher. You can effectively prospect here if you’re persistent and/or have a good marketing system in place to capture and persuade these folks.
But why work so hard when there are more motivated people around, right? Which brings us to…
“Transactional Leads”
Have you ever received a sign call? Have you ever received a call from a homes ad?
I’m sure you have – and I’m also sure that you took a few minutes, answered a few questions, and…unless they threw themselves at your feet…you hung up the phone and forgot about them (sorry to sound so sarcastic!).
Or you put them in your database or contact manager, but got “too busy” to follow-up. It’s happened, hasn’t it?
Why does it happen? Because unless you have a “system” that allows you to easily and predictably follow-up on what I call “Transactional Leads”, chances are the “crazy-ness” of business will get in the way.
Transactional leads are higher quality than Fertile Niche Markets or the General Population, because they’ve not only identified that they’re “interested” in real estate (by calling your sign, ad, etc.), but THEY CALLED YOU (hence, the word ‘IN-BOUND’ on the pyramid).
They took the initiative to pick up the phone and call you. And that’s why…if you have a simple follow-up system with these folks you’ll make lots more money in real estate.
In fact, there are simple, easy ways to “motivate” hot prospect calls and create a steady stream of leads calling you day-in and day-out. You can learn them for Free by joining our Agent Network at…
And they’ll make you a lot of money. Almost as much as you’ll make from your…
“House List”
You already know the power of your house list. I’ve been talking about it for the past dozen articles.
It represents your Personal Market Share™ in real estate. It represents the future production of your business. And it’s your most powerful “market” in real estate.
But it’s not nearly as powerful as your…
“Top 20% Inner Circle Power Players”
These are “House List” folks who have proven their value by actually sending you a referral in the past. They are…BY FAR…the most important asset you hold in your business. And you need to treat them as such.
If you’ve been paying attention to this pyramid, you’ll realize that people don’t buy similarity…they buy difference. Clients want to work with an agent they perceive as unique, competent and different from the rest.
And the single greatest way to “differentiate” yourself from the sea of agents out there…is to have a quality relationship with them.
A Solid Relationship + a Positive Perception + Frequent Programming = Market Dominance!
Does this make sense?
And the question you need to ask yourself right now is…
How Many People Know You Even EXIST?
The good news is you’re about to learn 7 of the most powerful “marketing systems” for cultivating your House List, and igniting your production like a raging volcano.
And you’ll be seen as so beneficially different, when people think “real estate” the only name they’ll think is YOURS.
Employing these 7 EASY systems will create a dynamic I call…
“Residual Value™”
What’s residual value? “Residual Value™” is the answer to the question, “What Is the Value of My Business Without ‘ME’ Attached to It?”
It’s the dynamic that puts your real estate practice on autopilot – because your business is “systems” driven, not “person” driven. It maximizes your income. It minimizes your stress and gets your life back in balance.
And it can even give your business a true “saleable” value.
Today’s Action Plan:
The great Zig Ziglar once said…
Little Hinges Swing Big Doors
Today, I want you to take 2 small steps…install “2 small hinges” in your business – hinges that will make an enormous difference in your production and income.
The FIRST is…I want you to open your House List and IDENTIFY those people who have sent you a referral or spread your word of mouth or basically helped promote your business in the past.
Then, in the “quality” field in your database (do you remember from article 8?), I want you to make them an “A” quality.
Why do I want you to do this?
Because those “A” quality people will soon become the most valuable asset in your business. They are truly worth a gold mine if you know how to identify them and deepen the relationship – and I’m going to show you how to treat your “A” list people shortly with our “7-Systems.”
And when you treat them as “special,” they’ll reward you with HYPER-RESPONSIVE behavior.
Now, the SECOND thing I want you to do is this: I want you to create a CONTACT MANAGER system for the inquiries and leads you get in your business.
Whether they’re hotline leads, ad calls, sign calls, or any inbound calls, you can make lots of money on your IN-BOUND Transactional Generated Leads™ if you have a systemized follow-up program.
So get those inquiries/leads into your database (even if that database is 3 x 5 cards), and get them into a regular follow-up and contact program.
There’s an old saying in business, “90% of success is just showing up!”
Just “show up” for these people. Be there with great service…and you’ll quickly watch your production multiply.
Promise me you’ll do those 2 small things, OK?
Coming Up Next…
Do you ever find yourself overwhelmed with so many tasks and so little time in your business?
Maybe you fell behind with your client follow-up. Maybe you forgot to include an important part of your marketing program, such as your sign tag, hotline flyers, classified ads, etc., with your last listing…
With so many tasks we have as REALTORS® it’s easy to forget something important.
Problem is, forgetting is costing you LOTS of business and potentially lost clients who don’t get to enjoy the very best of your services.
That’s why, in my next Article 15, I’m going to share with you a very simple way to build your business based on “SYSTEMS”.
There are 2 types we’ll talk about, and once you learn them, your business will run smoother, and you’ll be able to get many more things done (at a higher standard) with a lot less effort.
It’s critical you learn how to create “systems” in your practice, so you can easily implement the 7 Essential Cultivation Systems we’re going to talk about shortly.
So keep an eye out for Article 15 coming in just a few days…