Prospecting – The Numbers Guarantee Phenomenal Success!
With any business, the most difficult part of being successful usually involves figuring out how to generate new business. In many industries, the people that are best at building a customer or client base are rewarded with high level positions such as partnerships. They also are the people that make the most money. For example if you work for a law firm or accounting business, you can be brilliant at your job, but will not be as valuable as the associate or junior partner that brings new clients to the firm. Real Estate is no different, if you’re the most knowledgeable agent at your company, it won’t make much difference if you don’t have buyers or sellers to work with.
We would argue that it’s not really that difficult to become a successful prospector, or “Rainmaker”. The key is using the law of averages to take the shots. When you apply the numbers or law of averages to your prospecting strategies, prospecting will become one of the easiest parts of your success in business. Consider the following:
- On average, people move once every seven years. This includes people that are renting, so it may be a little high for our purposes.
- If you evaluate the number of residences that change hands within a specific neighborhood, it is usually 5-12% of the total number of homes within the neighborhood.
- If you look at any group of people, it’s likely that at least one in ten people associated with that group (or neighborhood) will be moving.
Now, look at the percentages above in another way. If you talk to ten people in any environment about real estate, at least one of them will have a real estate need, and that doesn’t even count the people they may know that are thinking about buying or selling. When you apply the numbers or law of averages above to your prospecting, you can’t miss. For example:
- If you’re at a social event and the subject of real estate comes up with 25 people, with the right strategy, you’ll have 2-3 people that you have a chance to represent.
- If you call 50 people in your sphere of influence or past clients, 5 of them would benefit from your services this year.
- If you were to drive around your farm area or walk your dog (great exercise, too!), and stopped to chat with a dozen people, 1-2 would become hot prospects.
Of course, when you’re using a direct mail campaign or e-mail campaign, the percentages drop dramatically because they aren’t as high-touch as phone calls and face-to-face communications, but they are still effective because 1 in 10 people who receive the information have a real estate need.
They key to success with all of the above is to “Take the Shots”! The numbers will lead to great success!