Schedule with Scarcity

So how do you schedule yourself?  I don't mean "which contact management program do you use" or "do you make 45 minute appointments or 1 hour appointment".  I mean... what do you say to someone when you have agreed to meet and you are making the appointment?

I know that many of us are tempted to just do whatever it takes to make the appointment happen as soon as possible no matter what.  The call goes like this:

Bob Agent - let's get together at your home for about 30 minutes.  You can give me the tour and we'll talk about your options.
Betty Lead - Ok.  Sounds good.
Bob Agent - Great!  When can you meet?

Great!  Bob got the appointment right?  That's right.  But he had the appointment when the Betty said, "Ok. Sounds good.".  After that Bob screwed up.  There are at least two things wrong with saying, "Great. When can you meet.":

1. Once you ask when the lead can meet, you are not scheduling the appointment... the lead is.  What if Betty had said, "Well... I'll be home for the next 30 minutes..."?  Would you rush to the appointment unprepared?  Or, worse yet, what if Betty had said, "Well... let me ask my husband when he can meet and I'll get back to you."  Since Bob has now abdicated the job of scheduling the appointment to Betty, she is in control and it will be much harder to turn that situation around.
2. "When can you meet..." basically says to the lead, "I am not busy because my time is not in demand.  Since my time is not in demand, it must not be very valuable.  So it follows that meeting with me is not very valuable and it should not be a very high priority for you.  Oh... and I'm desperate."  Betty is much more likely to cancel the appointment or possibly not ever even fully commit to an appointment.

The solution to this scenario is to do what I call, "Scheduling with Scarcity".  If you do this, it completely changes the way the appointment gets made and it dramatically increases the odds of the appointment actually taking place.  Here is the new scenario:

Bob Agent - let's get together at your home for about 30 minutes.  You can give me a tour and we'll talk about your options.

Betty Lead - Ok.  Sounds good.

Bob Agent - Great!  I have some time this evening between 5:30 and 6:30 or tomorrow at 3:15.  Which one would work best for you?

Betty Lead - Oh... I don't think that will work.  My husband can't be home from work until around 7pm.

Bob Agent - I see.  I really want to meet with you as soon as possible.  Can you hang on for just a sec?  Let me see what I can do.

Betty Lead - Sure...

Bob Agent - [mute phone for 10 seconds]  Ok... I was able to move my other appointment so I can be there tonight at 7pm.  So, we'll see you then.

Betty Lead - Uh... ok.  See you then.

Now, Bob is in control the whole time. Additionally, not only his time is in demand and valuable, he values the opportunity to meet with the client.  In fact, he values it so much that he went out of his way to move another appointment to make this one happen.  Betty is now far less likely to cancel or re-schedule the appointment and there is no danger of Bob not having time to prepare.

When you "Schedule with Scarcity" you maintain control, you communicate the value of your time and your expertise, and you present to the lead in a far more professional manner.

6 Things Your Broker Won't Tell You

More Realtors think about switching brokerages around the first of the year than at any other time.  For agents with thriving, established businesses, a move can either be an expensive distraction and a bump in the road, or it can be the next big step in the evolution of their businesses.  For newer agents or agents who are struggling, it can either be a step toward a business worth owning, or the first step on their way out of the business.  For a Realtor, trying to make this kind of decision is sort of like running with your eyes closed holding a pair of scissors.  The problem is this - with one notable exception, brokers will not share the key information required to make a fully informed, sound decision.  With that in mind, here are 5 crucial pieces of information that brokers will not share:

Where will I be the most successful??

1. Profitability - Is the brokerage profitable? - No matter how big they appear to be, businesses that are not profitable eventually close. Hanging your license at a brokerage is a high-level business partnership.  If you and I were starting an LLC where we were going to buy and hold property for example, we would both surely want to see personal financial statements that show we had the means to contribute to the success of the LLC.  Imagine going to the expense and hassle of making a move, only to have the brokerage close or declare bankruptcy soon after.  Could be a career-ender.
2. Are They a LEAD STEALER? - Independent national surveys overwhelmingly prove that company affiliation is NOT a factor in choosing an agent.  People choose to do business with YOU not company XYZ.  So why do most brokerages FORCE their agents to put the office phone on their panel sign, their cards and all the rest of their marketing?  Simple... so that the leads from your hard earned listing go to the floor agent.  The floor agent is generally a less-busy, lower split agent.  So the company dollar from the lead is greater if it closes with the lower split agent.  Some brokerages even charge a referral fee to their own agents for incoming leads.  So you go out, do the work, get the listing or the buyer lead, and if your lead calls the main office number, you're out of luck.
3. Do They Train or Educate? - All the major (and most of the small independent) brokerages will tell you they have great training.  The best... even world-class training.  Let's be clear about one thing.  Training is the functionary nuts and bolts, the step-by-step, the "here's how you fill out the purchase agreement" type stuff.  Is it necessary?  Absolutely!  Is it true high-level real estate business education?  Of course not.  Real education for a real estate business owner involves sharing successful lead generation concepts, business building techniques, hiring and accountability systems, winning business strategies and more.  It involves all of this along with coaching and consulting.  If the brokerage does not provide this (and I can only think of one that does), you'll need to go out and get it on your own.  And it's EXPENSIVE!
4. Commissions and Fees - For some reason, most brokerages will tell you about the commission and some of the fees while leaving the rest of the money details buried in their Independent Contractor Agreement and fee riders.  So your first commission check usually comes with an unpleasant little surprise.  In addition, most brokerages use fees for things like office rent, copies, and E & O insurance as profit centers.  My very first brokerage is a great example.  At this well-known national brokerage, the agents were charged $1,900 per year for E & O insurance.  The brokerage was paying what amounted to about $500 per year for the coverage.  At that same brokerage, there were agents who's production was well below mine who were on higher splits due to favoritism or whatever negotiations took place to entice them to stay.  In addition, the agents at this type of brokerage who are the top dogs often get marketing coops and kick-backs.  These deals are ridiculous. The top agents still pay far more than they should AND the coops and kick-backs create animosity among colleagues.
5. Do They Share REAL Profit? - Do they actually share a set percentage of the company dollar back to the agents?  This is critical for two reasons:
• Agents who share in the company dollar profit at a brokerage have a vested interest in the success of that brokerage and so it follows that the more successful their fellow agents are, the more profit there is to share.  At a brokerage which is sharing company dollar with agents, you will find the top agents are very willing to teach the rest of the agent population just what they are doing to generate and close so much business.  Profit share thus creates and environment of friendly cooperation between agents and their colleagues and between the agents and the brokerage.
• In order to truly share company dollar profit, the books must be open.  Any agent must be able to look at the books (the very same books that the owners use) any time.  You can see what the staff is getting paid, how much the building costs, the utilities, the paper, copier, FAX, etc.  So you'll know if you are getting dinged on the fees.  Open books keep the broker honest.
6. The "Split" Never Ends! - At the traditional brokerage, the split goes on forever.  The more business you do, the more you will pay the brokerage.  The last year that I was at my first broker, I paid them over $95,000 in commission splits just to be there.  I believe that it should not cost more than a fixed maximum amount of money in any 12 month period to be in business with a broker.  There are now several brokerages who cap the amount of commission at a set amount per year.  When you compare these houses, be sure you shop on value, not just on price.  If you are doing 30 sides per year and brokerage A's cap is $12,000 vs brokerage B's cap at $18,000 it might seem like a no-brainer.  But what if brokerage B's high-level coaching, consulting, and education could get you just 3 more deals per year?  What if brokerage A's semi-hidden fees and negative work environment started to add up?  What if brokerage A defaulted on it's building lease?

The real estate business has gone through some major changes in the last 12 years with respect to the value of the relationship between the broker and the agent  If you are thinking about making a move, you owe it to yourself to do your due diligence and make the wisest, most business savvy decision possible. Your career depends upon it!

Having No Goals Leads to Wild Success

It's the end of 2011.  It's the time of year where business people from all different industries take stock of last year's performance, set next year's goals, update and finalize their business plan for the new year.  But I'm here to tell you this, "Set No goals for 2012".

Crazy right?  Maybe not.  My business coach, Don Yoakum, has me reading a book by Richard Fenton called "Go for No".  The thesis of the book boils down to a few key points.

1. Yes Goals - Setting your goals based upon how many "yes"s you need limits your potential.
2. No Goals - Setting your goals based upon how many "no"s you need to hear does 3 things:
• Numbs you to the effect of "No"
• Makes "No" the goal and takes all the negativity and power away from the word
• Removes the limits placed on your potential by a normal "Yes" goal.

Let's look at these two examples, both of which are based upon the need to set 3 appointments per week.  Assume for the sake of the example that, in your business, 20 calls = 4 contacts = 1 appointment.  So to make 3 appointments in 1 week, you would need to make 60 calls.:

• Example 1 - The "Yes" goal
• It's Monday.  You start making your calls at 8:30am.  For some reason, everyone is home.  You're thinking that maybe there's something in the air or the water because, in your first 10 calls, you reach 3 people and they all say "yes" to an appointment.  Awesome!  You're done for the week.  You can go home.
• Example 2 - The "No" goal
• If 20 calls = 4 contacts = 1 appointment, that means that 3 of the 4 contacts said "No" to an appointment.  So it follows that 3 "No"s = 1 appointment.  (Stay with me here... it's worth it!).
• So, using "No" goals, in order to make 3 appointments in 1 week you need 9 "No"s.
• It's Monday.  You start making your calls at 8:30am.  For some reason, everyone is home.  You're thinking that maybe there's something in the air or the water because, in your first 10 calls, you reach 3 people and they all say "yes" to an appointment.  Awesome!  Wait... You're not done.  In fact, you haven't made any progress toward your goal.  You still need 9 "No"s.
• You keep calling, going for the "No".  Eventually you hit your goal of 9 "No"s. Now you're done and you've made 12 appointments.  And it was fun!  You're fired up!

Still afraid of the word "No"?  Does it make you feel rejected?  In "Go for No",  Richard Fenton talks about a magic word that they teach doctors in medical school to prepare them for the reality that they will eventually lose a patient.  So here it is for you.  It's magic and it works every time.  The word is... "Next!"

Many thanks to Don Yoakum for turning me on to this book!  Get "Go for No" by  Richard Fenton, read it and join me in setting No goals for 2012!

Two Big Reasons NEVER to Hand Out Your Business Card

You've been there before.  Your having a nice conversation with someone at the bank or maybe at a store.  The conversation turns to real estate.  They tell you they're planning on making a move soon.  You talk to them about the move and ask them for their contact information so you can get with them later to help them out.  They say, "no problem.  Just give me a card and I'll give you a call."  You hand them a business card and they go away, never to be heard from again.  Or, are you one of the really pro-active card agents?  I mean the ones who give their card out to anyone and everyone who might have a real estate need.  If so, you would not have asked them for their contact information.  You would have just handed them a card and told them to give you a call.  In any case, the result would have been the same.  Ever wonder why?

Let's look at what I call the two BIG reasons to NEVER hand out your business card:

1. Once the prospect has your information, you don't need theirs. - Always look at every exchange from the prospect's perspective. - So the conversation was good.  You seemed nice and knowledgeable.  They have your information.  They'll call you if they need you.  Thus your business card's final odyssey begins.  If it's in the prospect's pocket, it goes through the wash and into the trash.  If it's in the prospect's wallet, the next time they look at it, it's a year later.  They're cleaning out their wallet and they throw it away because they have no idea who you are or why they have your card.
2. You could have had a lead.  But now you don't. - You only have a lead if you have legit contact information.  YOU have to have it... not the prospect.  The person with the contact information is in the driver's seat.  They are the only ones in control of whether on not you ever speak again.  In sales, that always needs to be YOU!

Always remember - The object of any exchange is to make an appointment.  If you can't get an appointment, the fall-back position is to get the prospect's full name, phone number, and email address (that is a lead).  Just practice saying this: "Oh wow... I don't have any more cards with me.  Let me get your email and phone and I'll get in touch with you tomorrow."

Be the card-less Realtor!

The Zen of Timeblocking II - How to Get Started

Congratulations!  If you're reading this then you've taken the first big step - admitting (like all of us) you have a problem.  The problem; Not enough time in the day to get everything done.  So let's see how to get started with the solution.

First, understand that your timeblocking schedule is going to be a continuous work in progress.  Initially you will be changing it often to fit your real daily activities.  Over time you will make changes far less often.  Here is the step-by-step:

1. Look at your 2012 calendar and put in all of your major vacation time.  Get your family and personal vacation time on the schedule now.  Here's a tip - if you don't book your vacation trips way ahead of time, you will not have the vacation that you want and deserve.  Life gets in the way and short-term business activities tend to supersede last minute vacation planning.
2.  Now, start with next month.  Put in all of your personal weekly recurring activities - Friday night date night with your significant other, kids games and school appointments, daily workout time, weekly days off.  Don't skimp on the days off.  The truth about off time is that, if you think you will work 6 or 7 days per week, you're wrong.  You may maintain this schedule for a few weeks or even a few months.  But eventually you will self-destruct.  When this happens it's not pretty.  When you're burning out, your clients seem to make you angry or frustrated more frequently, your business runs your life, and you are FAR less effective in all areas both business and personal.  Take at least one regular day off per week (same day each week).
3. Put in all of your weekly recurring activities starting with lead generation time.  Look at our Monday, Wednesday, Friday timeblock schedule.  Think of the things that you do in your business semi-regularly like fixing broken deals, update calls to Buyers and Sellers, working ON your business (like new mailings and marketing ideas).  Now make those activities into regularly scheduled activities on a weekly, monthly, or quarterly basis.
4. There are many, many great timblocking resources available to you to aid in getting a handle on your time.  Try them out.  See how you like them.

Remember - your timeblocking schedule is a work in progress and you will need to tweak it.  If you find that you are consistently starting your lead generation at 9:30am instead of 9am, go ahead and change your schedule to a 9:30am lead generation start time.  As long as you move the end time 30 minutes later as well, there's nothing wrong with it.  That is the little secret of timeblocking.  The blocks are movable within your day.

You can do it.  It DOES work for you.  Your day is NOT busier or different in some ethereal, mystical way that make it impossible for you to timeblock.  ALL highly effective business owners and leaders timeblock. The ultimate gift of timblocking will be a more productive business day, more consistent income, more personal time, and a more satisfying life!

The Zen of Timeblocking & How Your Out-of-Control Schedule Kills Your Chi

So you woke up this morning determined to have a really productive day as a Realtor.  You got your morning workout in and breakfast was yummy!  You walked into your office, started pulling down your email and clearing your voice mail.  You're writing your daily action list (to-do list) and getting fired-up for your lead generation time coming up from 9am to 11am when you hear it.  That crackling monotone voice over the speakerphone.  You can only pick out every two or three words.  But the gist of the message is that your deal on 123 Main Street that is supposed to close by 5pm today has an issue.  Something about the loan docs being held up in final review.  What do you do?

Over-Kill!

For a lot of us, dealing with this would consume the major part of the day.  We would be blasting out calls and emails, and having discussions with the parties until at least 2 or 3pm.  After that (and be honest with yourself here) you would never get to your lead generation for the day.  Ok... ok... If you want to lie to yourself and tell yourself that you would still do it, let's take a look at how that would work:

• It's 3pm... you're pi$$d-off, hungry, worried and drained from dealing with morons.  Yeah... that's the polar opposite of the mental state you should be in for effective lead generation.  Heck, if you're really honest with yourself, you know you wouldn't even be effective at answering a sign call right now.  If you got one, it would sound like this
• You ~ Hello this is me
• Lead ~ Yeah... I'm out in front of the house you have on Main Street and I...
• You (interrupting) ~  That's sold.  Have a nice day. [click]

The problem is this - Your chi is dead!  Your mojo is gone!  You spent your whole day putting out one fire.  All of your experience, your intelligence, and your energy went into solving one problem.  You put out a candle flame that might have gone out on its own and you used a huge fire fighting bomber plane to do it.  Oh... by the way... 90 days from now your family is 'that much' less likely to eat since you didn't get any meaningful lead generation done.

There is one way, and one way only, to avoid this trap.  It's called TIMEBLOCKING.  I know... It's not a sexy topic.  But here's the little secret... IT WORKS!

Let's take a look at my 'Monday, Wednesday, Friday' timeblock schedule here.  You back yet?  Did you see it?  So what would my day have looked like if this had happened to me on a Wednesday?  Let's run through it:

1. 8:40am - I get the message.  After listening, I determine that the docs are going to be late because the underwriter has not gotten to them yet.  Because of my timeblock schedule, I am only allowed one return call on this message.  Who should I contact that would be the most likely to solve the issue? - The Buyer's Loan Officer.  They are in sales.  They value their relationships with the Buyer and with my team.  Is it their fault?  Probably not and it really doesn't matter.  Can they fix it?  Maybe.  But I know that if they can't fix it, it can't be fixed. (in case you're counting, so far it has taken me 2 minutes to hear the message and decide on this course of action)
2. 8:42am - I place the call to the LO.  The message sounds like this; "Hey Greg it's Roy at KW calling you about the deal we have scheduled to close today on Main St with our buyer Mrs. Smith.  I know you have been working super-hard on this and the Buyers and I have been really impressed.  Something just came up on your end and I think it's a great opportunity for you to really show-up as a lender and blow our clients away.  I just got a call from Cathy over at the title company.  She says that docs are held up in underwriting and we may not fund in time to close this evening.  I know nobody wants that to happen.  Can you please take care of this right away?  I really appreciate it and I know our Buyer will as well.  Please call me at 1:10pm today on my cell at (530) 555-1234 and let me know how you are handling it so I can update our Buyer.  Thanks... (that message took 2 minutes at the outside).
3. 8:44am - I'm back on schedule clearing my messages.  Lead generation starts at 9am like clockwork baby!

Because my schedule is timeblocked, I look at my days like this - My lead generation time from 9am to 11am as well as all my other timeblocks are appointments.  They are just as important as my $400K listing appointment (lead generation is how I got that appointment in the first place) or the appointment for me to have dinner with my family.  So, for me, I could not choose to blow off the appointments to handle the issue (you would not blow off a listing appointment to handle this issue... would you??).  I needed a way to delegate the task to someone who would be just as motivated to solve the issue as I am.  It's easy to figure out who that person is.  They are the people who have a financial incentive to see the deal close and who have one or more relationships to nurture in the deal.  Simple.  Greg will do as good a job as I would if not better.  If not, he doesn't get paid and he damages two valuable relationships.  Can the problem be guaranteed to be solved?  No way!  But what I know is that, if Greg can' t solve it neither can I.

As a real estate coach, a real estate team owner, and CEO of a residential real estate brokerage I have heard all the reasons, the excuses, and the "special situations" that lead us to believe that timeblocking doesn't work.  Or, at least, it doesn't work for you.  Guess what... TIMEBLOCKING WORKS!  The sooner you give into this fact, the better off you will be in all aspects of your life.

5 Productivity Mistakes that Make You Look Like an Amateur (Part 1 of 5)

Significant Other - So... how was your day to day honey?
You - Ugh!  Don't ask!!
Significant Other - Why?  Were you slammed?
You - Yeah.  It was just crazy!
Significant Other - Really?  What did you get done?
You - Uh... well... uh... er... I don't remember now.  But I was buried all day!


If this sounds familiar, you should know two things:

1. You are not alone.  And...
2. You are not as "Busy" as you think you are.

That's right!  I said it!!  YOU ARE NOT AS BUSY AS YOU THINK YOU ARE!!!  The 'all-caps' and the 'bold' type should get the angry responses going.

Here's the thing.  The word "busy" means that you are occupied with the tasks required of you by your business.  But you have a choice:

You can either be busy being busy,
or you can be busy being productive.

In order to be productive, you have to plan your daily work and work your daily plan.  There is no other way.  If you do this correctly, the necessary tasks of your daily work become organized appointments that are just as immovable as that $300,000 listing appointment, or the appointment to pick up the kids from school.

So here is number 1 of the 5 productivity mistakes.  If you are busy getting nothing done, chances are you don't use a daily written to-do list.  Stephen R. Covey wrote a book entitled, "The Seven Habits of Highly Effective People".  In it he found that highly effective people "begin with the end in mind".  Whether they are planning their life, their decade, their year, their month, their week, or their day, a highly effective professional uses a hand-written to-do list.  In fact, if you are one of those people who has a hard time getting to sleep at night, it's probably due, at least in part, to you laying there, going over in your mind what you need to get done.  Try this tonight:

• Take a pen and a legal pad to bed with you.
• Before you close your eyes, write down everything you can think of that you need to get done tomorrow.
• Set it on your night stand and go to sleep.

Chances are good that you will sleep like a baby.  The second part of that same habit is this:

• Start each day at 8:30am or earlier with a new to-do list.  
• Carry over items that did not get done from yesterday's list
• Add the items from your night stand list
• Put your least favorite tasks first
• Clear your voice mail and your email as you are writing the day's to-do list
• Keep your list with you as you are running around and check off the items as you complete them

Remember this... busy days lead to sleepless nights, busier tomorrows and stress.  Productive days lead to checks and more personal play time.

In part 2 we'll look at time-blocking and break it down into a few simple steps that will have you wondering why you didn't do it sooner and how you ever got anything done without it!