RFM Analysis

Getting face to face with your clients is the way you get listings, but to book those appointments your prospecting calls must produce results. The best way to encourage people to meet with you is to make that meeting relevant to them by knowing your client and their situation. Some of your best prospects are open for inspections attendees, and a lot of those are people you already know.

The first step is to get the data from your opens into your database and categorised quickly. Efficiency is key, because the people you see on Saturday need to hear from you promptly on Monday morning if not sooner. But if you are personally setting up and then gathering data at multiple open for inspections, there is no way you can get that data processed quickly. This is why successful agents often hire an assistant specifically for Saturday opens and data processing.

In addition, implementing RFM analysis yields results that will make your prospecting far more productive. Here is what you need to know:

• Recency: How recently did you meet this prospect?

• Frequency: How often have you met with this prospect?

• Monetisation: Is this prospect likely to spend money with you?

A client you have seen several times recently who has made an offer or bid on a previous property is going to score high on your RFM analysis. That client is likely to buy sooner than a prospect with a lower RFM score. Who do you think you should call first?

What you want is a structured callback list on your desk by 4pm on Sunday afternoon, ready for your Monday morning call sessions. That list will be categorised into buyers, sellers, market appraisals, landlords and tenants, which of them you know already, and what your last contact with them was about.

RFM analysis coupled with categorisation improves your prospecting by making each call relevant to that client’s situation. You will book more appointments if your approach is personalised and meaningful. Relevancy also allows you to set higher fees that customers are willing to pay. By making the decision to hire someone to produce a superior callback list for you, your productivity and profits will be through the roof.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Performance Management

No one enjoys doing performance management, but it’s the only way to identify and handle issues with your people that affect your business. In order to take some of the pressure and pain out of this process, today I’m going to share with you some very effective methods for staying on top of performance management in a way that is positive and supportive for everyone.

Your goal is to help your people reach their potential without hitting them too hard with their shortcomings. You have to talk about listings, sales and income – that requires hard people management skills. It’s developing your soft people management skills that will make discussing those numbers more productive and less challenging.

Your business should be based on a simple set of values, and everyone who works for you needs to know them. In our business those values include:

• We believe in people and their dreams
• We renew our energy
• We innovate and constantly improve
• We work for your time and space

Each week we ask our people to rate themselves on a scale of 1 to 10 on their performance at each of these values. We then review why our values are important, discuss why some of their ratings are lower than they should be, and propose ways that they can get back on track.

We also use more traditional tools, like SWOT (Strengths, Weaknesses, Opportunities, Threats), each month during team meetings. We use these evaluations to help our people make the most of their strengths and opportunities rather than placing emphasis on weaknesses and threats, and to review their numbers so we can help them stay on course before they get too far off.

Numbers of listings is, of course, the most important number for measuring results, but it helps to also look at their numbers of appointments and market appraisals. We use a system of acronyms – LAP, MAP and BAP – to post these numbers to every calendar appointment we book in order to quickly evaluate numbers of listings, appointments and market appraisals we have done during the month, and identify where improvements need to be made.

These are simple systems that can help you keep track of performance so you can guide your people to stay consistent, see and address problems they may be having, and coach them on improving their success rates.

As you progress in your business, make sure you look into our Josh Phegan Company membership, training events and coaching opportunities.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Getting Efficiency On Your Saturdays

Saturday is a big day for your business, but if you’re not making the most of it then you’re losing the game. In this Coaching Tip I’m going to tell you how to get the efficiency you need to do more open homes, gather more data, and target your prospecting for better results.

The key is to manage your time more effectively, especially on Saturdays. If you are going to each home, opening up, putting out signboards, turning on lights and setting everything up yourself, then you are wasting your time and expertise as a professional agent. These are tasks you should have assistants doing for you. Think how many more open for inspections you could do on a Saturday if you didn’t have to include that setup time in your schedule, as well as closing the homes and entering all the data on the clients who come through.

You should be wrapped up for the day by 4pm, with all data entered and reports generated on who came through, how many new clients you met and how many were people you already know. By 4pm on Saturday you should be ready to start your call sessions Monday morning with all the information you need to capitalise on your time.

You cannot do this by yourself – you need to hire assistants. That’s how the best agents become the best. They don’t waste their valuable time on menial tasks. If you think hiring assistants is too expensive, then think a little further. How many more listings will you get by doing more open for inspections every Saturday? And how much more profit will your business realise from those extra listings?

To do your job as a professional real estate agent you need quality data and reporting, and a list of the top people you need to prospect with. You will get a lot more of your own work done if you don’t have to enter that data, produce reports and compile call lists yourself. You can focus on prospecting and doing the work that’s most important.

Get smart about how you run your Saturdays. Streamline your operations, focus on doing what you do best, and you will become a much more successful agent.

As you progress in your business, make sure you look into our Josh Phegan Membership, training events and coaching opportunities.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Getting Back On Track

If you’re not getting the listings you need to reach your goals, then you’re off track. I’m going to share a simple system with you today to kick you back into place and get your momentum going again.

You have to set a goal, and that is based on knowing your numbers. You need a target number of listings per month that you must reach because you can’t sell if you can’t list. If you have no target you’re just winging it, and that kind of inconsistency is not going to move your business forward. You have to have a system, and you have to follow it.

This is not complicated. In fact, having a system will make it much easier for you to know what to do and get it done. First, determine how many listings you need to have by end of month. Break that down into quarters; this is your weekly target. Now go get that number of listings each week. Depending on your success for that month you can either maintain or raise your target numbers for the next month. It really is that simple.

If you find you are behind on reaching your goal for the week, then you know you are off track and need to get focused. Step up your prospecting. Eliminate distractions. Change your tactics. Take control. Most of all, get clear with your thinking.

We all have months when reaching our goal seems impossible. Three-quarters of the way through, your numbers are down. You might be thinking, “Well, that’s it, I’m not going to hit my target this month.” As soon as you let that idea take root, you have defeated yourself because now you will fail to take action. But if you instead start thinking, “My numbers are too low – What can I do to take charge and get back on track?” you are now in a mindset to make progress, and you will get results.

Maintaining momentum in your business requires consistent action towards a clear goal based on realistic expectations. It all comes down to having a system, knowing your numbers, and thinking like a winner.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Doing the Basics

You want to be a great agent, but what are you doing to make that happen? Wishing and hoping won’t get you listings. Neither will doing what everyone else is doing, because they are content with fewer results than you want to achieve. You have to do the work that’s most important, and you have to do it every day.

Have a directions meeting every morning with your assistant to get clear on what you must do to succeed that day. If you are working alone, meet with yourself. Make a task list of all the people you need to call, deals you need to make and appointments you need to meet. Then review appointments you have set for the next few days. Know what you’re going to do and why.

Keep track of your numbers. You must be measuring calls and connects, but most important are appointments and face-to-face meetings because nothing happens inside of your business without them. And those appointments don’t get booked if you don’t make those calls every day.

Use your database to find the people you need to contact based on new properties in your area that were listed and sold within the last 24 hours. Call them to let them know what has sold in their area that is similar to their own property, and what the final price was. Then make an appointment to appraise their property to determine what it’s current worth is. Offer them information they can use and they will meet with you.

Some days you just don’t feel like making calls. Do it anyway. Set your schedule and follow it. This is how the best agents operate and if you want to be one of them, do what they do. Three dedicated morning call sessions every business day. And then go meet the people you are scheduled to meet in the afternoon.

One more task is to check in with your office around 2pm each day to see what has been happening and what still needs to be done. Always know what is happening inside of your business so you can deal with potential issues and seize fresh opportunities.

Success in real estate is simple, yet most agents don’t do what it takes to achieve their potential. You will easily top your competition by making those calls and booking the appointments, but you must make the decision to do what it takes to become the agent you can be.

As you progress in your business, make sure you look into our Josh Phegan Membership program, training events and coaching opportunities.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

That One Key Number

Knowing your numbers is vital to measuring your success, but there is one key number you need to focus on to maintain consistency in sales and income. That number is different for each agent.

Depending on your level of business, you will want to focus on one of these:
• Open for inspections
• Appointments
• Listings
• Size of your database

Most agents need to set a number of open for inspections per week because that drives your lead generation cycle. The more openings you do, the more neighbours, potential sellers and potential market appraisals you meet, and therefore the more prospecting you can do each day.

If you are just starting out in your business you might want to set a goal for the number of appointments you make. It doesn’t matter how many hundreds of calls you make per week if those calls don’t result in face-to-face appointments. Appointments get you listing presentations, and some of those result in listings, so focus on booking those appointments.

You may be at a point in your business where you can focus more completely on the number of listings you need each month to be profitable. Your best goal may be to reach a key number of market appraisals.

The primary growth matrix for any real estate business is the size and quality of your database. A well maintained and categorized database helps you see the level of success you have reached. It also allows you to follow up on all your customers regularly. Working with people you know more than people you don’t generates referrals and keeps you relevant.

Determine the key number that best suits your needs, set that goal and work towards it. This will get you the results you need to be consistent.

As you progress in your business, make sure you look into our Josh Phegan Membership and training events.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Is the Vision Big Enough?

If you’re going to build a thriving business, you have to have a vision for it that inspires you. If your goals are too small there’s nothing rewarding to work towards. And if your thinking is too limited you won’t be ready for growth when it happens. Growth without planning will bury you.

Start by deciding what you really want to achieve, and then plan for it in detail. Don’t limit yourself to what I call “version one thinking” which is basically one office and minimal fees. Is that really all you want out of your business? It’s much more exciting to stretch yourself to a higher expectation for the future. Instead of 2 salespeople, how about 200? Do you want to manage 60 properties or 6000? Think beyond your current marketplace – what kinds of opportunities could you realize from a much larger market?

Not only does thinking small keep you from gaining more satisfaction from your business, it also prevents you from managing your infrastructure for growth. You will be playing catch-up instead of staying ahead of the curve, and that will destroy you. All of your income will be tied up in expansion you did not expect, and you will have no real profits. However, if you set a five-year plan for larger office spaces, multiple offices, more agents, better marketing, and other essentials, then you can budget for all that ahead of time. Knowing the numbers you need to reach in five years will help you set goals for the current numbers you need to see each month, and make the right decisions right now.

You can’t rely upon passively accepting random opportunities. You have to decide to go after a higher level of success. Actively seek and create opportunities for your business according to a structure that you build and control. Define the steps you must take, and get a business coach to show you how to build momentum and maintain it. Most of all, you must base your actions on a greater vision that you feel passionate about.

I hope you’ve enjoyed this month’s Growth, Leadership and Management Tip, and I look forward to seeing you here again next month.

Why your marketing isn’t working

Seth Godin is the author of a series of sharp, relevant marketing books. One of his philosophies is, “What are you shipping?” His point is that you may know the mechanics of marketing inside out. But what are you effectively doing with your resources and capabilities? Specifically, what are you sending out to all of the people inside of your database?

You know the importance of being consistent with your daily prospecting calls, but the quality of those calls determines whether your prospecting is actually productive. The best agents don’t just randomly call people – they target their contacts to people who own properties in those areas where there are new listings and sales with specific information that is relevant to them. Not only do they contact potential buyers, but also potential sellers, market appraisals, and past clients who own similar properties in that postcode area. Current listings and sales is information clients can use because local property sales affect the value of their own properties, so they are more likely to meet with you for an appraisal than prospects you call randomly.

In the same context, the best agencies regularly send out targeted information to everyone in their database using a variety of mediums, including emails, video and mailings that contain open for inspection schedules, images of homes, listings and sales, graphs and monthly reports. Be mindful that everything you send out represents your brand, so this is not an area where you want to spare expense. Your marketing budget needs to support high-quality material that people want to look at, so hire professional graphic designers and videographers, and know what you want to communicate to each of your database categories.

Consistency in marketing is vitally important as this is also a reflection on how you do business. Present an attractive overview of the current market that people want to interact with. Make your information relevant and visually interesting to the people who receive it and they will look at it. Always be marketing and do it well.

Reliably shipping high quality product is what makes great businesses, and real estate is no exception. Presenting current, relevant marketing that your customers want to see, with a regularity that they come to expect, will put you far ahead of your competition by establishing your brand as active and on point.

As you progress in your business, make sure you look into our Josh Phegan Membership and live training events coming to your area.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Just Starting- What To Do

Every real estate agent has been a beginner. This Coaching Tip is especially for you if you are just starting out in the business, and it’s a great review for seasoned agents as well. Following are ten tips to get you going in the right direction and build a foundation for doing business that will take you to the top.

Tip #1: Know Where To Start

Make a list of 100 people you know who own property and live in your area. Now, if you don’t know 100 people yet then you may need to start as an assistant rather than an agent. This decision could mean the difference between success and failure in your career.

Tip #2: Build Social Proof

Social proof is vital to being successful. You need a visible track record of sales and auctions, and that means lots of sales stickers on sign boards in your marketplace.

Tip #3: Create Opportunities

Do a great job for each individual you work with, because that person will become a referral for you. Each listing that results in a satisfied client is an opportunity for you to gain multiple new customers.

Tip #4: Know Your Lead Sources

Your two primary lead sources are open for inspections and the Internet, but if you are working inside of a business you also have a database full of potential clients that your principal and the top sales rep have already met, and who need to be contacted again.

Tip #5: Do One Thing Well

There are a lot of ways to do real estate, but the best agents focus on prospecting and appointments. Set a discipline now to make phone calls in the morning and meet appointments in the afternoon every day. Remember, there is no business if you’re not meeting people and listing properties.

Tip #6: Track Your Numbers

You must understand your numbers to know if you are doing well. Listings, sales and income determine your level of success, so make sure you outline a schedule and set target goals, then use the numbers to help you improve your performance.

Tip #7: Find A Mentor

Set up a challenge log and use it to note areas where you need improvement. Then use these notes to get guidance from a more experienced agent with a proven track record who is willing to help you build your skillset.

Tip #8: Learn How To List

The way to be good at prospecting is to be great at listing, because you have to know the right questions to ask when you are calling clients. The better your questions, the better your leverage.

Tip #9: Accept Rejection

In this business you are going to hear “No” often, so learn how to handle rejection. Every time you lose a listing or a sale you have to deal with it and keep going to the next opportunity, so prepare yourself now for that reality.

Tip #10: Remember Why You Are Here

When you first decided to become a real estate agent, chances are you wanted to enjoy the benefits this career can offer you in your life without your life becoming all about the business. Make sure you schedule time off, put systems in place to maintain the business while you are gone, and then take that time to really relax. Having a good life above all else is the definition of true success.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Fee Defence

Setting your fee is one of your most basic decisions for your business, and is often the hardest. This task is complicated further when your competition includes fee discounters. Clients will often ask you why you charge more than another agent they have spoken with. You need to be clear about why you charge the fee you do, and what your services are truly worth.

You justify a higher fee than other agents by providing a level of service that is demonstrably better. If the customer can’t see a difference between you and your competition then they won’t be willing to pay you more. But if you can prove you deliver the higher value then you can command a higher fee. First you have to know what you are worth and believe in your own worth at that price.

Many agents set their fees according to an evaluation process they learned when they started out. The degree of success your principal maintained informs your own expectations now. For example, if the principal you learned from was a successful agent you probably learned to set your fee according to what you are worth and stand by it. However, if the agent you learned from was a poor performer you may have learned to charge less or lose business. Your own success rate also sets your ongoing fee standard.

There are two mindsets that drive your expectations. Scarcity mode is defined by insecurity arising from insufficient backup funds as well as diminished confidence from failed transactions, lack of sales and minimal listings. When you are in scarcity mode you feel desperate so you lower your fee hoping to secure business. What you don’t realize is that your lowered fee actually devalues you in the eyes of your customer, and you are even less likely to gain their business.

Abundance mode is assured by a sense of security based upon financial worth as well as a demonstrated ability to complete transactions, negotiate sales and list high numbers of properties consistently. In abundance mode your self confidence is high, and the idea of lowering your fee doesn’t make sense because you know you deliver a level of service that warrants the fee you have set.

When Australia put the D Regulation in place and lifted fee limitations, many agencies began to compete primarily on price. However, competing on price alone instead of quality of service effectively lowers standards of performance and results for everyone. You simply cannot realize higher earnings by lowering your fees.

The way to command a higher fee percentage is to provide value to customers. It may seem that service levels in real estate service are too intangible to define, but it actually is not difficult to prove your worth to your customers. Using a tactical approach in your listing presentations, you can readily produce visuals and case studies that quantify your services and success rate in relation to your competition.

You must mentally put yourself in abundance mode in order to effectively negotiate fees. Set realistic expectations for your clients using the fee approximation close. Start by defining the average range of fees in the current marketplace, show your position within that range of fees and put a dollar amount on your proposal relative to their estimated sales price. Next, bring up any objections they might have before they do. Explain how a discounted fee actually lowers their sale price and document the success rate your agency has proven in realizing the best possible prices in property sales. You thus defend your fee by demonstrating the overall value of the service you offer in relation to other agencies.

Your goal is to learn how to become an effective negotiator by delivering your listing presentation from a place of absolute certainty of success. Achieve this and you will consistently command and receive the fee that you’re worth.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.