The Powerball Meeting Part 1(billion)
Sometimes you just have to use current affairs as a springboard to your next meeting. A few weeks ago I sent out a simple email to the team. It read; “So the news is out. I was the sole winner of last week’s Powerball draw in the US. I’ve decided to start my own country and as a gesture for you NOT to leave I will be giving everyone who attends tomorrow’s meeting $10,000 in Marco Currency ( which is tied to the US dollar). There is one caveat; you must spend it on real estate related things. Have I piqued your interest? Also I will be importing bagels and cream cheese from distant shores (Roncy) for your further enjoyment”.
My message worked. The next day my meeting was packed, thus proving the point that good titles are as important as good content. I learned another interesting lesson too; When you are printing fake currency don’t try to photocopy real money, even if it’s significantly doctored up. Modern printers won’t let you (but that’s a story for another day). So to start my meeting I asked people what they spend their money on in order to promote their business. We came up with about 16 things ranging from website maintenance to client gifts.
I wrote each suggestion on a piece of paper and then handed out $10,000 (in $500 increments) in Marco Money. I asked each agent to “spend” their money as they wanted. There was a bit of mayhem in the office for the next few minutes as agents jockeyed to get their money distributed but their was an added bonus to the madness as I watched some agents explain their logic on why they placed certain amounts on each pile. While at least one agent put the whole $10K on online lead generation, others distributed it more evenly. No surprises coming from a bunch of peacocks like us, they spent the most money on entertaining ($34,500), followed by website ($33,500), awesome listing packages ($29,500), online advertising ($24,000), gifts ($22,000), networking events ($19,500), education ($18,500), productivity tools like CRMs ($12,500), sponsorship and community events and seminars ($12,500), flyers ($12,500), direct mail ($11,000), image ($11,000), newsletters ($6,500), bus shelters ($5,000), videos ($4,000) and finally billboards ($2,000).
Why $10,000? Simple math really. Several years ago our firm hired a company to conduct a survey on our agents and verify all their responses. One of the questions was “how much do you spend on marketing?”. The other question was “how much should you spend on marketing?”. Not surprisingly there were two different answers but the message came through loud and clear. 10% of your earnings, at the very least, should be designated towards marketing. Presuming your goal is to earn $100K then $10K seems like a good place to start.
In my next meeting (part 2) I’m going to reveal how much the agents spent on each category and then I’m going to ask them to explain their logic. Stand by for the follow-up.
mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President of the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.