Think you’re doing everything right with your leads? Think again. What you believe to be true might be costing you thousands every month, and 5 years of relaxed, rich retirement…
Myth 1: Most leads won’t convert
If I had a nickel for every time I’ve heard this one I would’ve retired years ago! The truth is that everyone in the world needs a place to live, and the vast majority of people you speak to will buy one or more homes during their lifetimes. Check out these statistics about home ownership in the developed world (number of households who own their home):
- Ireland: 83%
- Italy: 78%
- Australia: 69%
- United Kingdom: 69%
- Canada: 67%
- Finland: 67%
- United States: 65%
- Belgium: 65%
- Japan: 60%
- Sweden: 60%
- France: 54%
- Denmark: 53%
- Netherlands: 49%
- Germany: 43%
The only truth to this myth is that most leads won’t convert right away. Top Producers take advantage of this by collecting contact information and staying in touch with a huge number of people and closing multiple deals with them over a period of years and decades. Of course doing this properly isn’t necessarily common-sense, which leads us to myth 2…
Myth 2: Realtors® don’t need a CRM (Customer Relationship Manager)
“Huh? What’s a Customer Relationship Manager?”
A Customer Relationship Manager (CRM) is a type of software that ALL successful Realtors® (and businesses) use to keep track of their Spheres of Influence. A good CRM allows a Realtor® to keep track of (and keep in touch with) thousands of leads and past customers. A Realtor® without a CRM will always be living from deal-to-deal.
One of the most important aspects of a good CRM is often overlooked: retirement nest egg. Imagine the Top Producer in your office standing up at the next Monday-morning-meeting and announcing that he/she is retiring, and selling his/her book of business to the highest bidder… Guess what? He/She will be able to retire 5 years earlier!
Myth 3: Closing deals is an art, not a science
Sure, closing a deal involves a degree of artistic finesse, but improving conversion rates and decreasing conversion times requires strict application of the scientific process.
A quick review (from our junior high science fairs) of the scientific process (source):
- Define the question
- Gather information and resources (observe)
- Form hypothesis
- Perform experiment and collect data
- Analyze data
- Interpret data and draw conclusions that serve as a starting point for new hypothesis
Most Realtors® think they know how to close deals because they manage to do just that from time-to-time. The truth is that regimented trial and error with documentation and analysis is the only way to improve.
Conclusion
The most successful Realtors® I know understand that their professions operate according to the same rules as all other businesses. They take care to keep in touch with people, invest as much time in maintaining a customer base as they do building it, and they look at each process scientifically.
This is something we all are awere of but don’t do. Because we get in a false sense of security that the business will always come to us. We have to plant the seeds to make it happen.
Comment by Toby Gilbert — February 17, 2010 @ 7:57 am
Hi Toby, thanks for the comment. The main thing I encounter is Realtors who believe they need to do everything themselves. For example, I meet hundreds of Realtors using tools like Outlook to manage their leads manually, which is incredibly cumbersome, time-consuming, and essentially ineffective. A good CRM and a couple of hours spent designing a “lead-pipe” can build a business and not just next months paycheque.
Comment by Sam Prochazka — February 17, 2010 @ 11:36 am