Do you have some ‘peaks and valleys’ real estate agent in your office? Unwittingly, agents train themselves to have a ‘peaks and valleys’ business. Because of this, they never make much money.
Sally: Our Case Study
What do I mean? Let’s watch Sally, as she starts her real estate business:
Sally is thrilled that she has snared a real buyer from holding an open house. I’m using the word ‘snared’, because that’s how she regards starting her business: Find a buyer as fast as you can. Nothing wrong with that, but, it’s not the whole game. However, Sally thinks it is the whole game.
No Qualifying Needed
Sally is so thrilled that she’s found a buyer, that she doesn’t ask any qualifying questions. She doesn’t do an interview, even though this was in her training program. Why? Because she is afraid she might scare them away. So, she starts showing them homes without finding out much about them. Because she didn’t find out anything about these buyers, it takes her a long time to sell them a home. But, she’s tenacious. She’s got a buyer.
No Time To Find More Buyers or Sellers
Sally doesn’t lead generate while she’s working with this buyer. She’s just focused on finding them a home. Finally, she sells them a home! Now, comes the arduous task of following up. well, Sally makes it an arduous task, because she wants to provide great customer service. Of course, while she’s hounding the loan officer every day, she’s not finding any more buyers or sellers.
The Home Closes. Now What?
What a relief. The home closes and Sally gets her check. Now, she waits for another buyer or seller to find her.
Lead Generating as a Last Resort
After about a month, with no one turning themselves in to Sally, she decides she should do some lead generating. It’s three more months until she finds another willing client. Then, it takes her three months to sell them a home.
The Peaks and Valleys Business Has Been Created
Take a look at the time line and contour from my new book:
You can see how this agent creates more time between checks, finally falling into a real slump. Once that contour has been created, it’s really hard to break. I’ve coached dozens of agents who have practiced this kind of business. They seem to hold tightly to the principle below:
Only lead generate as a last resort.
Making a New Business Model: Proactive Lead Generation
Instead of looking at lead generation as a last resort, help your agents look at it as their business start. Do active, proactive lead generating (you go out and find people) rather than waiting for people to come to you. This will bring them out of their slumps. That creates a business that can grow on purpose. The result: Your agent will love real estate sales!
Re-training is really hard. As coaches, you and I both know that. One of the ways to get your point across is to use complimentary training materials.
Start in pre-license by providing Launching Right in Real Estate.
It has the principles above, plus so much more.
Launching was just honored as one of the top business books of 2021, by prestigious Axiom Business Books.