Get With the Program! - B2B Referrals Mean Big Business!

We all seen the stickers. Maybe we've even used them ourselves... "We Love Referrals", "... Referral Only...", etc.  All that is great.  And if you read our previous blog on "Current Client Referrals", you'll see how powerful it is to actually go from a passive referral remainder-type campaign to a purposeful system for asking for and getting referrals.  But even after all that, there is a HUGE source of referrals that are even easier to get that most Realtors leave completely untapped -- "The Business to Business Reciprocal Referral".

My team got 10 Short Sale Listings in 8 months just from one relationship with a CPA.  How many times have you said to a client, "... please check with a CPA about the consequences of this transaction and how it may or may not affect your tax picture..." or something like that?  Now imagine being the trusted advisor in the relationship with that client.  The dialogue changes to something like, "... so John & Jane, while my team is preparing the package for submission to your bank, I want you to have a talk with Paul.  He's a world-class CPA and he deals with the intricacies of Short Sale situations all the time.  He'll call you guys in the next 48 hours to go over the details."  Sound good?

The key here is that, if you do it right, if YOU are the one who calls your referral partner with the contact information for the lead, if YOU get the leads permission for your referral partner to call, then YOU are the connector.  YOU are the one bringing the value.  It's not some unseemly quid pro quo relationship where you each keep track of how many referrals you get from one another.  But it absolutely results in TONS of business from your referral partner.  They WANT to send the business to you because they see the value in it.

Check out the upcoming FREE class at Nu Generation Lanes called "Double Your Business on 30 Days with Reciprocal Referrals" taught by Don Yoakum.  Click here for free registration: http://www.eventbrite.com/event/2830599399/REProResource

See ya there!

Current Client Referrals - If you're not getting them, you're missing the boat!

You work hard for your clients.  On your listings, you worry about them more than the Seller does.  For your buyers, you run around and tour property, set up tours, research comps and more.  You spend tons of time on your buyers.

Did you know that a Seller or Buyer is most likely to encounter someone who is buying or selling real estate DURING rather than after their experience with you? That's right!  Do you know why that is?  It's a psychological concept called the reticular activator.  Follow the link for a detailed explanation.  For our purposes it just means that your client is more tuned in to real estate in general during the time that they are working with you.

But few of you ask for referrals and many of those who do are ineffective in the way that they ask.

Your clients want to refer you but there are two issues that need to be addressed before they will:

1. They don't know how. - In The Tipping Point, Malcom Gladwell suggests that you need to find the "connectors".  I call these your "Advocates".  They are the people who will go out of their way to make sure everyone knows that it is foolish to do business with anyone else but you. But even these people do not know how to effectively refer you.  You MUST teach them.  Handing our your business cards won't cut it (see "Two Big Reasons Never to Hand Out Your Business Card" by yours truly).
2. They don't want to share you. - Even when you blow them away with your service, they will wait until after their experience with you is complete to refer you because they mistakenly believe that their business needs your full 24/7 attention.  So they will not refer you until after the deal.  But the benefit of the reticular activator is over by then.  So the likelihood that they will even notice when they encounter someone who needs your service is virtually non-existent.

So you need to implement two things in your business right now.  Not next week, not tomorrow, not when you have time... right now.  Think about it...  What better way to grow your business than to get two deals for every one you're doing right now?!?!?  You need a script that communicates both why it's in their best interest to refer you right now and how to refer you so that you get the referred prospect's contact information.

Kick your business up a notch.  Use our super-special, super-secret (shhhhhh, don't tell anyone), special sauce -- "The CCR (current client referral) Dialogue"!  Download the Google doc here for free.

BTW... Just like Clark Kent, with just a few tweaks this CCR dialogue becomes... wait for it.... "The PCR Dialogue" (past client referral dialogue).  AND it's a great reason to call through your database!

Happy hunting!

We Attack at Dawn! - or - Why Morning Lead Generation Wins Every Time

So, Tina and I were making our ritual morning feast and talking about our workout this morning when she forcefully blurted out, "We attack at dawn!"  By forcefully, I mean her words came from the diaphragm with all the resolve of a military leader committing her troops to battle.

When we first began our regular P90X routine we quickly noticed a trend.  When we planned our workouts for the morning, we consistently completed them.  The rest of our day was full of the energy we created in the successful completion of the workout.  But, when we planned our workouts for evenings after a day at the office, not only was the likelihood of completion much lower, but we seemed to lack that extra spark of energy throughout the day.  Which got me thinking even before my second cup of coffee (no small feat).  [Ok... those of you who know me and coach with me can probably stop reading here and finish this blog yourself.  The rest should read on.]

"WE ATTACK AT DAWN!!"  - That should be your lead generation mantra.  In the morning when you're putting on your makeup or shaving, look yourself in the eyes and say it.  Yell at yourself if you have to.  "WE ATTACK AT DAWN!!"  Get yourself psyched.

Owning your own business is a high-stakes game.  It's yours to win or lose.  If you win the prize is financial security and the means to achieve your BIG WHY!  If you lose you go broke.  There is no second place, no, "thanks for playin'", no wonderful parting gifts.  Business is war.  Everyday is a new battle.  In "The Art of War" Sun Tsu said, "...though we have heard of stupid haste in war, cleverness has never been seen associated with long delays."  Once you have a winning plan, implement it... ATTACK!

• Get up in time to get your workout and breakfast done and be at work by 7:30am at the latest.
• Clear and return email and voice mail from 7:30am to 7:55am.  Then follow your battle plan and...
• ATTACK!!!! - Hit the freakin' phones at 8am.  Make those calls!  Schedule with scarcity. Set those appointments with prospects, referral partners, and the people-connectors in your sphere.  Make those apology calls to the people in your database who haven't heard from you in a while.  Make those calls to your current clients and ask them who they know right now that should be talking to you about buying or selling.  Set your sights on how many times you need to hear "No" to get the right number of "yes's" (see ...No Goals).

The final benefit is this, When you "Attack at Dawn" you create fierce momentum that carries you through your day.  Your phone rings with call-backs after lunch from your morning lead generation activities.   Combine this with effective time blocking, hold this lead generation time sacred, and your strategy is unstoppable, your army invincible, your victory assured.  I don't know about you, but I have no remorse in the savagery of conflict.  Win!  Prevail!  Survive!...

WE ATTACK AT DAWN!!

Coaching?

Why should you consider business coaching? George Bernard Shaw said,

"No question is so difficult to answer as that to which the answer is obvious."

In our busy day-to-day lives, we often fail to see the solution to an issue when it's right in front of us. An experienced business coach can be the extra set of eyes, the separate mind that can bring the clarity and focus that leads to a solution and ultimate success.

Get a coach!

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!