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Posts tagged ‘prospecting’

17
Apr

Should Prospecting Be Painful?


Well its good to be back. As I mentioned in the video it has been tough getting out over the last few months but the weather has finally turned. Seriously, not running made me completely squirrely. It’s one thing to work out but running gave me so much more. Basically, I have a busy life. I truly need those few hours of meditative time to put everything into perspective, think about what I need to focus on, and flex my creative muscles. So, back to running. This run was one of the early ones I did in March so I was feeling the burn in my legs. It made me think about this topic.
Do you know the pain you get after a hard workout? All your muscles hurt. Usually its a sign that you “done good”. Prospecting pain is kind of like that. All the prospecting you’ve done is paying off and you are exhausted from being so frigging busy. You complain about not having a moment to yourself but secretly you love it. The truth is prospecting should never really hurt but you might want to consider that it should at least be painful. Like exercising, you have to shake it up from time to time. If you exercise the same muscles over and over again the gains you make start to diminish. Think about door knocking. Sure it works but you can’t really do it in the dead of winter. The snow and cold gives you the opportunity to try something different. The point of all this? While prospecting has to be a daily routine, you can’t just use one channel. Shake it up, try something new. Naturally I would love your input on what you do to “shake it up”. Have a great day!

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

10
Apr

What Does It Cost To Farm A Neighbourhood?

farming So you want to be a Realtor? Well most books you read out there will tell you that you need to farm a neighbourhood. Hey, I’m not saying that rule is written in stone because in this day and age you can prospect from your social groups or by targeting a particular age or demographic through tools like Facebook. But there are advantages to working one neighbourhood…especially one that you live in. Obviously you are familiar with it. People see you out and about (maybe with your dog) so there maybe some recognition. You go to the local stores and of course you tour properties in the vicinity to gain expert knowledge. Your geographic farm is only as big as you determine, but the realities are that the bigger the area, the more expensive it is to farm it and promote it. I like to tell new agents that you should target one or two buildings or about 500 homes before taking on more. So, last week we did a little noodling in our office about just how expensive farming can be. We outlined the action and the cost associated with it. Here’s what we came up with;

farm 2

farm 1

As you can see there is a healthy mix of the good old tried and true techniques that I believe should not be disqualified. They still work and provide the public with name recognition. They include newsletters, flyers, local paper ads, door knocking, cold calling. Add into the mix some ideas, like joining local BIA’s and neighbourhood committees, holding buyer or seller seminars and sponsoring kids teams and you have the making of a fairly substantial marketing program. On top of those more traditional approaches, social media has given the savvy realtor even more tools. Agents are creating neighbourhood channels, websites and Facebook groups, to speak with authority about what’s happening in the area. They are using video to promote local attractions and businesses and are tweeting out the latest gossip. They aren’t mentioning that they are Realtors right away though. It’s a round-about marketing technique that aims at gaining trust before asking for the business. It’s about proving to buyers and sellers that you are more dialed in to the nuances of the neighbourhood than the next guy.
You do all these things are for the sole purpose of networking (prospecting in real estate parlance). For the most part the things that you do take more time than money, but when you are starting off, you’ve got nothing but time.
Add it up and you have an idea on what it’s all going to cost you. About $20,000 per year. That falls in line with our company’s belief in spending about 10% of your earnings on marketing. The cost associated with the actions we came up with were based on actual costs that agents in my office spent and we tried to limit the size of the farm area to 1000 doors. Obviously there are some economies of scale in farming. For example, the cost to produce a video isn’t going to change depending on the size of your farm but the cost of gifts, newsletters and flyers will. There is one other factor to consider and that is location. A billboard in Rosedale (one of Toronto’s most affluent neighbourhoods) is going to cost a lot more than one in Kingston Ontario. Don’t let these numbers scare you. In a perfect world you would accomplish all this and more. For now though it’s important to recognize that some of the best things you can do is get out there and shake some hands. That’s the most cost-effective farming you can do!
Is there any downside to geographic farming? Sure. a Client you’ve taken out a bunch of times decides to look across town and thinking that you don’t know anything about it hires another agent. The best defense is a good offence so while you are out, let the clients know that you are familiar with all the neighbourhoods of the city.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

7
Jan

Selling Houses to People Who Aren’t In The Market.

thinkingHappy New Year and welcome to another year of Mastermind. We kicked off the year with a bang, talking about our hopes and dreams and aspirations for the new year, oil and interest rates, the power of Facebook ads and their new policies and we talked about billboard and bus shelter ads. All good stuff.
But the one topic that garnered the most interest was a round the room discussion about where the agents find their clients. Naturally you would expect answers like Facebook, socializing, friends and family, door knocking and open houses but one agent talked about her unique approach. She looks at a lot of houses and condos. She goes out all the time, often with a buddy. They look at everything, all over the central core. Some of the time she is looking for her buyer clients but sometimes she walks into a house and thinks “oh, I know who would love this house…”. Then she calls her friends and tells them to drop everything and come and see this house. You would be surprised at her success rate. Now, she has one of the largest social circles of anyone I know and she is a trusted and likeable person so when she tells people to drop everything…they often do.
This approach goes beyond just touching base with your past clients, because she does that too. This is as targeted an approach as I’ve ever heard. A lot of the time the clients aren’t ready to pull the trigger on such short notice, but if they are she negotiates the transaction and then gracefully coordinates the sale of their home. The process is so seamless that often the clients don’t know what hit them. It’s like they jumped ahead two months and woke up in a different house.
I loved this approach. It goes to re-iterate the point that buyers, and for that matter sellers, can come from anywhere. They can even be people you never thought were even in the market. So next time you are out visiting open houses and see something that would be perfect for (insert name here) give them a call right away. At the very least, you have made a connection or sparked an idea.

Happy Selling!

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

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