The #1 reason most agents are struggling or leaving the business right now is that they have not taken the time to build a strong business. The best thing about a strong market is that it is easy to earn a lot of money selling homes, but the downside to a great market is that it is too easy to float along with the market and forget the basics which are the keys to sustaining you through any market.
2006 was not a bad year, but it was the first time in 15 years, for most markets, that the real estate industry made a substantial adjustment. 86% of all agents, according to NAR, have been in the business for less than 15 years and have not experienced a market adjustment. 58% have been in the business for less than 5 years, and have only seen a strong market. For those who are still experiencing a great market, your market will make an adjustment as well. The question is, will you be prepared? If you take the time to build a strong business while the market is strong, you will be fine, regardless of market conditions. If you are currently struggling in your real estate career, then try implementing the following steps. Every agent who follows this formula will have a strong and consistent real estate career, regardless of market conditions.
#1 Work your sphere of influence: In this business, your business is as strong as the base of people that you have to work with. Until you have an established base of business, you will need to rely on one or more of the basic types of prospecting to build your business. If you will spend four years building your business, you will have a strong business for many years to come. After four years, you will have enough clients to generate enough referrals and repeat business for you to feel comfortable in your career.
The more people that you know and that you add to your base, the more likely you are to succeed. Your job is to consistently stay in contact with your past clients, customers and sphere of influence. Many top producers have great databases but many of the agents that we talk to are not utilizing that data and staying in touch with their clients.
The 2006 Home Buyer and Seller Profile shows how important it is to stay in touch with your clients on a regular and consistent basis.
The same survey also show that marketing, magnets, and newsletters have proven far more effective with existing clients, customers and sphere of influence than generating new business. Less than 5% of buyers and sellers found their agent through direct marketing, advertising, newsletters, magnets, etc. But if you send the marketing pieces to people who you know, then 85% of them would use you again or refer their friends and relatives to you.
You should stay in touch with your sphere every 4-6 weeks via email, newsletter, postcard and/ or phone calls. Some ideas are:
For additional steps in The Formula for Success in any Market, be sure to read our future articles throughout 2007! Each article will feature tips and articles on how to take your career to the next level!