Business Training - Real Estate Agents, Prospecting-Four Streams of Revenue

OK. Let me first start with the secret, there is not one when it comes to building a Real Estate business. Too often I read articles on the one magic prospecting technique, that if you implement now, will revolutionize your business. Hey, if it’s out there, I’ve yet to find it after twenty years of selling. That being said there are ways to increase your rate of return to make sure you are maximising the available tools and systems out there. The “Four Streams of Revenue” approach is one. Follow the initial four steps, then start to integrate the remaining steps and I can guarantee you will see your business not only survive a changing market but thrive.

1. Identify the forms of prospecting available to you. Sit down and write them out. Take your time. I can easily identify thirty nine in my area.

2. Acknowledge the ones you are good at. Look at the list and be honest with yourself, its OK to brag a little.

3. Check off the ones that you like to do (from step #2). This is the key, which ones are you good at AND you like to do? This is interesting, sometimes you might be good at something, but no enjoy it. If this is the case then do not write it down in this step.

4. Now, pick four (from step #3). Simple. You now have four types of prospecting that are available to you, you’re good at and you enjoy. This is the foundation.

The logic: If your business is coming from four different areas, you don’t have to panic if two of the prospecting methods are not producing or the market changes. With this model the other two will compensate and produce a steady stream of leads and ultimately, sales. Yes it’s that easy, but wait, there’s more. These are the basic steps to start to build the model. Lets go to Def-Con (level) two.

5. Ensure two of the forms of prospecting (from step #4) are warm lead generators. Important, why? Because you always have to look at rate of return. Am I being efficient and effective? Incorporate FSBO’s, Expireds, Farming-both geographic and demographic, PIK (people I know) list, Past clients-repeat and referral, Charity organisations, Sporting clubs, community organisations etc.

6. Make sure one form (from step #4) is cold. This is crucial to ensure you are always getting yourself out there in touch with new buyers and sellers (I refer to this as skimming). Nothing keeps you more grounded in Real Estate than cold prospecting. Focus on Cold doors, Cold calling, Ad calls, Sign calls, Open house etc.

7. Next, make sure the fourth one (from step #4) is adaptable. This one is a little tricky. When I say adaptable, what I mean is some type of prospecting that is unique to your market and could be considered unproven (though not necessary) and easily changed like Shopping carts, bus benches, direct mail, bill boards, joint ventures with affiliates and local businesses etc.

Now. There is logic and twenty years of evolution behind all of these steps. You want to build a prospecting model that has some serious thought put into it. Gone are the days of Glen Gary-Glen Ross (if you are under 35 years old that one will miss you) of begging for the “golden” leads. Today’s Realtor has to be a strategic planner with an understanding of the market past, present and future. Don’t just go out blindly and knock on doors (as I did for my first five years). Think about, plan it. If you don’t you WILL become a victim of the market. I see it all the time and there is always a common denominator, lack of understanding of the business you got into.

So there you have it. When I had this model up and running, it was generating over $30,000,000 worth of sales per year. Simple, yes. Easy, not always. Replicatible, absolutely. Effective, YES!

Business Training - Real Estate Agents, Prospecting-Four Streams of Revenue