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Breakthrough Ideas for Greater Real Estate Success!

An Easy Way to Build Your Sphere of Influence, WOW Your Clients, And Get Immediate New Business

Whenever a buyer closes, we all know the one thing they must do:

Change their address.

This presents a HUGE opportunity for you to help them with this chore and accumulate a lot of names on your database.

Here’s a quick and easy strategy to WOW your clients and build your business by sending out “Change of Address” notices.

Linda Denovan, a Top Agent from Lake Havasu City, AZ, understands the relationship-building power of this strategy first hand:

“As a closing gift for my buyers I create a note card with a photo of the front of their new home.  I make return address labels for the envelopes and add stamps.

On the back of the note cards is printed  “Made especially for …. from Linda Denovan” with MY phone number.

My information then goes out to all of their friends when they mail the cards showing off their new home.  In addition, I let them know they can “re-supply” their note cards or return address labels at any time.  Not only does it make a great gift but my clients think of me whenever they send a card AND the recipient does too!”

Let’s take Linda’s idea and “kick it up a notch”…

Use This “Change of Address” Post Card System
To Clone Your Best Clients…

Here’s how to execute this viral list-building system…

STEP 1: Get a great PHOTO of the home

Linda sends out note cards in envelopes but I’d suggest sending out a post card with an eye-catching photo of the home on the one side and the new address on the other.

If you really want to impress your clients, make it an outstanding photo.  Why?

Because it does TWO things:  First, it shows you care enough to continue to provide great service after the transaction (your clients will remember this and tell others).  And two, it demonstrates your skill at getting a great photo of a home.  This is a subtle way to have your buyers think of YOU when it’s time for them or their friends to sell their home.

If you’re strapped for time you could use an image of a house, with a headline, “We Moved.”  But remember, buyers want to show off their new home, not just their new address…so try to make it look good.

STEP 2: Make a great OFFER

Having your name and number on the cards will help you give you an “introduction” to your clients’ friends.  But an even better approach is to include an OFFER for free information on the card so you can maximize your opportunity for business from this strategy.   What could you offer?

  • A FREE market analysis for SELLERS
  • A FREE list of homes for BUYERS
  • A FREE report for “Saving Thousands When Buying A Home”

The possibilities are limitless…

STEP 3: MAIL the post cards

You’re best bet is to mail the post cards FOR your clients, this way you know they’ll get out.   And it gives you a reason to ask for the names and addresses of their contacts (which by the way you can use to start sending their friends your helpful and informative Service For Life issue every month).

Or, you can give a stack of the post cards to your clients.  One bit of advice:  make it easy for them to send it out by putting the stamp on the cards for them.  They’ll appreciate it and more importantly… the post cards are more likely to get in the mail so your offer gets seen.

Want an EXAMPLE post card?

OK, here’s a “Change Of Address Post Card” a number of agents are using with great success, along with my notes on what makes a great “direct response” post card.

ANATOMY Of A “Change of Address Post Card ”

(Note:  click the image and zoom in to see the detail)

 

QUESTION:  Can you e-mail the “Change of Address” notice?

ANSWER:  Yes, but with a few important caveats…

  1. Your buyer needs to send the email so their friends recognize the “From Name.”  Or, if you send the email to their contacts…include your buyer’s name in the “subject line” of the email so it gets opened and read.
  2. Still include a great photo of the new home in the email.  Use a system that can produce full-color HTML emails with the photo, new address, and your offer…or have a link to your website with the picture and this information.
  3. You could do both — email AND mail these notices to your buyer’s contacts.  Chances are your buyer clients can easily send an email to their contacts, but printing and mailing the physical post cards will be seen as a valuable service to them.

After a few weeks, ask your buyer clients if they got the post cards in the mail and if they need any more printed, or ask them if the emails were sent. Then continue to follow-up with your all your new contacts (now that you have their mailing addresses) with a monthly real estate newsletter that is not all about real estate – so it’s welcomed and valued instead of trashed.

Quick Summary…

Every time you have a buyer client close, get a list of their contacts and mail a change of address post card FOR them to all THEIR contacts.

This strategy leverages off the TRUST your buyers already have with their friends and family… so your mail is seen in a more positive light than when you show up uninvited (as in the case of farming for new clients).

Plus, studies show that people make friends and tend to associate with others just like them.  So, if you liked working with your buyer clients… you can use this strategy as a laser-targeted approach to find more great clients.

[Ed note: Would you like to use a marketing system that costs nearly $0.00 and can bring you a steady flow of quality, motivated buyers — even during this slow economy?  Then click here to learn about one of the highest-return, lowest-cost marketing strategies you’ll ever use in your real estate practice.]

The “Three M’s” of Marketing Success

Have you ever spent hundreds of dollars and countless hours on an ad or mailing program, only to stare at your silent phone?

If so, you’re not alone. Most agents spend an enormous amount of time learning about “real estate”, but very little learning about the “elements” that turn your advertising (or any marketing or prospecting efforts) from a “sunk cost” to a true “money-maker”.

The truth about real estate success is this: Even the most competent and knowledgeable agent will go broke without a steady, consistent stream of qualified, motivated buyers and sellers.

So while knowledge about real estate is essential to being a competent agent, it’s not going to write your ticket to success. You also need to develop prospecting and marketing skills designed to create an on-going flow of leads and clients.

Money-making marketing isn’t difficult if you know a few basics. In fact, all successful marketing has three essential components. I call them…

The Three “M’s” of Marketing Success

The next time you set-out to create a successful ad, post card, or even if you decide to cold prospect (or the next time you’re perplexed as to why your wonderful promotion didn’t work), think about these three ingredients…

#1: Select the Right MARKET

It sounds rather obvious, but most agents fail with their marketing right here – they fail to target the “hungry crowd“… people who are “right now” facing a problem about real estate, and are motivated and interested in what you may be offering.

What do I mean by “market”?

A “market” is a group of people who share a common demographic (statistical description, such as location, occupation, income, etc.) or psychographic (belief wiring). Your goal is to select a market that has an immediate, pressing desire for your services.

Want an example?

About 6 months ago an agent called me because she had been farming a “high-end” subdivision for over 9 months, and her efforts produced zero calls or listings. When I asked her to hop on her trusty MLS system and take a look at the market, she noticed that only 2 homes had sold in the entire area over the past year!

She had been fishing in an empty pond.

I then told her to select 5 decent markets in her area based on casual knowledge, and using here MLS system analyze each market for # of homes sold, average sales time, # of dominant agents in the market and a few other statistics.

By comparing 5 markets based on these criteria, all of a sudden one of the areas stuck out as a higher-potential market than the others – an area with lots of activity, high turnover, short sales times, fewer dominant agents, etc. Within 30 days working these markets she had her first listing, and is now making a small fortune from her farming efforts.

So how do you find hot markets? How do you find the well-stocked ponds that will produce consistent business for you, year-in and year-out?

The secret is to pay attention to where the dominant activity exists for the type of homes you specialize in selling.

If you’re a luxury market specialist, do your homework and locate luxury areas with better activity than others. If resort properties or horse properties are your specialty, then analyze the best resort or horse property subdivisions to target.

If you’re looking for buyers, examine your market for segments where the highest volume of buyers exist (get cozy with your local board and you can find lots of market data). Between your MLS and a trusty Excel spreadsheet, the answers are right at your fingertips.

But you want to know the one “market” that will out-perform anything else as much as 16 to 1? It’s your “Power List”…your list of past clients, friends, family and acquaintances.

If you’re interested in building a booming “Power List” business click here to learn more.

To sum up this first “M”… go where the pond is stocked from the beginning, and your odds of success will be much greater when you cast your line.

Let’s move on to the second “M”…

#2: Select the Right MEDIUM

Once you’ve found your market(s), the next question you should ask yourself is: “Where does my target market get information that’s important to them?”

The secret is to tap into the lines of communication and information that your market already finds credible and helpful.

Most agents are seduced into finding mediums (magazines, newspapers, etc.) based on the highest circulation, but that’s a BIG mistake because you’re going to pay for exposure to people who have no interest in your services – it’s called “waste circulation” and it’s very costly.

Find a medium that reaches your targeted prospect and only your targeted prospect.

You might choose to use direct mail after performing an analysis like the example above. You might locate a homeowner newsletter to contribute a helpful article about buying or selling in the area. Or you might find a bedroom newspaper that specifically targets the area you farm.

Either way, the “secret” to success is in finding well-targeted, small ways to reach your prospect and only your prospect. That’s because every dollar (and minute) counts when you’re prospecting for leads and clients.

The more you target by selecting the right medium for your promotions, the more money you make.

And the final “M” is this…

#3: Create the Right MESSAGE

All of your advertising, mailings or any other marketing should have one and only one objective: Motivate qualified buyer and seller prospects to CALL YOU or hire your services!

If they don’t call or hire you, you’ve wasted your money.

But most agents believe that, if they throw up their photo with a “call me for more information” they’ve done the job. Wrong!

You will find volumes of books and courses about direct response marketing and ways to motivate prospects to call you, but here’s a quick 4-point checklist that will almost instantly improve the success of all your marketing.

  • Capture Attention with a Benefit-Rich Headline and Lead. Your headline is your “ad” for your ad or letter or even your listing presentation – no it’s not your name or your big company logo. It’s the specific call-out message that causes your reader or listener to stop and take notice, just like a headline in a newspaper article works. Your “lead” is what you say in the first 5 seconds that captures the attention of your reader and motivates them to read on.
  • Stimulate Interest by Harmonizing with Your Prospect. How do you get people interested in you? By talking about the problems they face and the desires they seek. It’s not about you; it’s about them! When you connect with your prospect and empathize with their situation (their immediate fears and desires), you instantly capture their interest and open their minds to be willing to listen to your solutions.
  • Create Desire by Matching Your Services Perfectly to Their Fears and Desires. When you demonstrate how your services solve problems or deliver benefits for your prospects and clients better than any other option – in a way that’s risk-free for them – you automatically make yourself a stand-out choice for their business. The art of persuasion is simply matching your solution perfectly to the problems and desires your prospect faces.
  • Stimulate Action with an Irresistible Offer and Call to Action. Remember this: No one will call you without a self-serving, almost irresistible reason for calling. So you need to give prospects reasons to call. For lead generation, offer special reports, preferred lists of homes and other “magnets” that will motivate people to seek you out. When closing a listing presentation, list out all the “things” you will DO for them, and make an offer that will have them saying, “we’d have to be fools to pass this up!” If you don’t include an offer, combined with an urgent call to action, chances are your prospects are going to procrastinate. And procrastination in this business means an empty checkbook!

One final note… these three “M’s” of marketing success are not magic bullet solutions.

It’s up to you to take action and put them in place in your practice.  Once you really understand each of these ingredients and USE them, you’ll have a reliable way of creating promotions that work instead of just a fizzle of response.

If you want your promotions to bring you a steady stream of commissions and clients, go and review every promotion you have right now against each of these ingredients of successful marketing.

You’ll be glad you did!

How To BUILD Your Power List In Size & Quality with the BIG LIST™

I’ve talked about THE single most valuable asset in your business before.

Not your cell phone… or your car… or your office… it’s your database — or what I call your “Power List” of past clients, friends, family, acquaintances, hot leads, etc., who have the ability to bring you new clients, referrals and repeat business.

Now that we have that foundation, agents often ask me…

“How Do I Create My Power List Big and
Responsive Enough to Generate Clients?”

My answer is… it’s EASY once you put your mind to it.  In fact, I have “wet behind the ears” rookies who… in just 6 to 12 months… following the process you’re going to learn right now… who are making more money than 90% of the agents in their areas – many of them making multi-$6-figures.

The very best place to start building your Power List (or quickly adding to an existing one) is by capturing names and contact information of people you already know.

That’s why I created The BIG LIST™ strategy.

The BIG LIST™ is designed to be a memory helper in adding names to your Power List Tracking System™ database. It’s very easy to use…and very complete.

You’re going to be surprised at how many people you already know who can be part of your Power List from day one.

Here are 3 tips to help you in the process:

  1. Start with your Highest Quality Contacts FIRST, and work your way down. You want to carefully select who goes into your database based on the “quality” of the contact.  Ask yourself: “Do I have a real relationship with this person?”
  2. Start with names only (at first) if you need to…
  3. Your Follow-up to get additional information (ex: survey letter/email, request for information, etc.) will automatically bring you new business – you’ll be getting paid to grow your Power List.

Your Goal is NOT To Have the Largest Power List…
But to Have the Most PROFITABLE List!

This process is very helpful even if you’re an established agent who wants to supercharge your database to start harvesting more new clients, referrals and repeat business.

OK, let’s start the BIG LIST™ process…

To start, take out a pen and piece of paper.

There are 10 categories of contacts I’m going to walk you through. Under each category, I will list out people you should consider. Remember, if you don’t have full contact information right now, just write down the immediate information you have on these people.

One more tip: with each person, you can also write down the “Category” of the contact (for example, “C” for client, “S” for supplier, “P” for prospect, “R” for other REALTORS® who can send you referrals).

Also, you should write down the “Quality” of the contact (for example, “A” for highest quality contact – someone who’s referred to you in the past which I call your “Power Players”, “B” for past client who could refer in the future, and “C” for your general Power List member).

Category #1: List People Who Have Already Sent You a Referral:

  • Past clients who have sent you a referral…
  • Close friends who have recommended your services to another…
  • Suppliers who have referred to you…

Category #2: List out People You ALREADY Know – Closest Contacts:

  • Current and past clients…
  • All family members…
  • Immediate friends – this includes friends of your family and people you associate with…
  • High school and college associates…
  • Current and former co-workers…
  • Spouses current and former co-workers…
  • Spouses friends and acquaintances.

Category #3: People You Meet or See in Your Practice on a Regular Basis: Each day you meet and see people who could go in your database if you make a habit of remembering to ask them. Make a point to get them on your database.

  • Leads and Prospects you’re currently working with…
  • Leads who have called your hotline or made contact with you…
  • Open house attendees – get names off registration sheets
  • Sign calls
  • Ad inquiries
  • Audiences you’ve spoken to, or made presentations to…

Category #4: People Who Provide PROFESSIONAL Services to Your Practice: These people can be very influential in generating new business because you’re already working with them and/or sending them business. So there’s a natural tendency to reciprocate with you. Remember, you get what you give – actively make referrals, harvest the professional relationship and you’ll see more business coming your way.

  • Mortgage lenders you work with…
  • Appraisers you work with…
  • Escrow and title officers you work with…
  • Attorneys you work with…
  • Accountants you work with…
  • Home inspectors you work with…
  • Architects you work with or know…
  • Pest control services you work with…
  • Home insurance representative…
  • Ad representatives you work with…
  • Graphic artists you work with…
  • Printers you work with…
  • Sign suppliers you work with…
  • Movers you work with…
  • Builders you know or have referred to…
  • Remodelers you’ve referred or worked with…
  • Plumbers you’ve worked with…
  • Roofers you’ve worked with…
  • Electricians you’ve worked with…
  • HVAC or Mechanical companies…
  • Lawn care and maintenance companies…
  • Pool maintenance providers…
  • Landscapers…

Category #5: People Who Provide PERSONAL SERVICES to You:

  • Your Hair Stylist…
  • Florist…
  • Doctor…
  • Chiropractor…
  • Dentist…
  • Pharmacist…
  • Veterinarian…
  • Optometrist…
  • Stock Broker/Investment Advisor…
  • Retirement Account Manager…
  • Insurance Agents (Auto, Life, Casualty, Disability) – here’s where you can trade network lists and build strategic alliances (more on this shortly)…
  • Banker…
  • Auto Mechanic…
  • Home Maintenance: pool, lawn, landscape, roof, HVAC, electrician, etc.)
  • Dry Cleaner…
  • Restaurant Owners you frequent…
  • Mail and Packaging services you frequent…
  • Retail Stores you frequent…
  • Grocery Stores you frequent…

Category #6: People Who Belong to the SAME ORGANIZATIONS as You: Here’s an opportunity to leverage your database very large, very quickly. Remember this: your best strategy is to be considered part of your “Network’s network.” The secret is to gather names of other members in organizations you belong to, and create a common connection with them.

  • Civic Organizations…
  • Your Religious Organization…
  • Clubs You Belong To (gold, tennis, hiking, cycling, gardening, sewing, card, travel, etc.)
  • Children’s Activity Organizations: PTA, Day Care Provider, School Teachers, Intramural Sports, etc.
  • Chamber of Commerce…
  • Better Business Bureau…
  • Fundraising Organizations you belong to…
  • Local Boards: YMCA, Big Brothers/Big Sisters, etc.
  • Fraternal Organizations (Masons, etc.)…
  • Alumni Organizations…
  • REALTOR® Association…
  • Breakfast Clubs…
  • Toastmasters…
  • Networking Clubs in your area…

Category #7: People Who Can Send You Business BEFORE Anyone Else Knows: Think about who some sellers and buyers contact before they list or hire an agent? If you have a relationship with those people, you’ll be first in line for a referral (some are duplicates from earlier).

  • Divorce and Probate attorneys…
  • Accountants…
  • Carpet Cleaners…
  • Painters…
  • Remodelers…
  • Roofers…
  • Electricians…
  • Flooring Contractors…
  • Landscapers and Lawn Care…
  • Pavers…
  • Pool Maintenance…

Category #8: People Who Have the Ability to Send You a Large Volume of Business: Around your community there are people who have the ability to give you a lot of business – they’re in contact with clients you want to work with on a regular basis.

  • New home sales reps – if their leads and visitors don’t buy from the subdivision, perhaps they can be referred to you to buy a home…
  • Custom home builders – someone has to sell their spec homes…
  • Developers…
  • Relocation companies/Corporate relocators…
  • Human resource departments of local companies – they always know who’s moving to town…
  • Bird dogs – someone who refers clients to you and vice versa.

Category #9: Targeted Residents in Your Farming Areas: If you target farm correctly, over time you’ll create relationships with many of these folks. When you speak with someone in a farm area, and you’re confident they’ll know who you are, you should get them into your Power List. You’ll be amazed how much business you can get from this activity.

Category #10: Build Relationships with Other REALTORS®: Many agents are hesitant to cultivate relationships with their “competition.” But there are many agents you don’t compete with who could send you business. They include…

  • Land and Lot representatives who generate leads outside of their specialty…
  • Subdivision site sales (see “new home sales reps in #8)…
  • Specific Area Specialists – frequently they get leads outside of their sales area. Shouldn’t they call you for a finders fee?

Whew! That’s a pretty long list.

It’s long because I wanted to give you as many possible “memory triggers” for adding folks into your database.

Don’t get overwhelmed. The most important point is that you simply START the process. You’ll see, very quickly your list will grow larger and larger – once you make the commitment.

Remember, you’re building the most valuable asset in your business. And when you employ a Monthly Calendar Contact System, like the Service For Life!® real estate newsletter system… your list starts producing regular new clients, referrals, converted leads, and repeat business.

Believe in the marketing – it’s worked for thousands of agents who are making real estate a fantastic, hugely-profitable career.

And sure as spring flowers bloom… it will work for you too.

Action Plan:

Every day I meet agents who either have no Power List… or they have a Power List with whom they never communicate – except for a calendar at the end of the year or some other occasional contact.

And that’s not going to cut it in this business.

So let’s get your Power List started – or if you have a Power List… let’s get it tuned up and ready for action.

Take 30 minutes right now and go through The Big List.  Add as many people as you can think.  If you don’t have their contact information, don’t worry about it – just get their names on the list.

I’ll show you how to follow-up and get details on your Power List shortly, but for now, just get it started.

Oh… one more thing. I need another commitment from you. Commit to me (actually yourself) that you will make the process of managing your Power List a lifetime priority.

This means you’ll need to commit to regularly adding folks, purging names, and progressively increasing the quality of people throughout the life of your business.

Focus on this simple process and give it priority, and your production will grow and grow automatically.

In future articles, I’ll give you easy ways to HARVEST more business from the relationships in your Power List.

So keep an eye out for my articles to help you make COMMISSIONS FOR LIFE.

IMPORTANT:

If you start adding folks to your Power List, you’ll find a lot of missing information on your list.

It’ll be things like birthdays, kids names, home anniversary dates, etc.

Would you like a simple resource to help capture this information…and in the process get new listings and buyers?

Then let me help you get it done.

Here’s a pre-written letter that will: 1) get you re-acquainted with your Power List, 2) help capture important information you’ll use for your Power List Tracking System™, and 3) most likely get a bunch of new business in the process.


<< Click Here To Download This Letter >>

When you download this letter, you’ll notice there’s something very special about it…

It’s sent out before using the Service For Life!® Relationship Marketing System.

If you’re looking for a proven system that automatically builds such a close relationship people will think of you (and only you) for referrals, word of mouth and repeat business… then become a member of the best direct-response prospecting and referral producing system on earth:
www.ServiceForLife.com

It’ll be the easiest way to harvest more business from your Power List you’ve ever seen.

 

3 Ways To Generate Quick Commissions And Build A Stable Business

Today you’re going to learn three things:

  1. A great way to generate quick commissions (and sell your listings faster) with a great buyer marketing strategy,
  2. How to create a “Power List” that brings you consistent clients year after year, and…
  3. How to understand your Return on Investment with your marketing.

So let’s get started…

PROFIT MULTIPLIER #1: New Agent? Just Relocated? Need to Generate Commissions FAST?

First, find an agent with several active listings. Tell them you have a number of “buyer” marketing strategies that will sell their listings in a fraction of the average market time. Offer to implement the 4 “buyer magnet” systems I taught you from this real estate marketing article for EACH of their listings. You manage everything for the agent so they’re out $0 and no time.

Second, implement the strategies, agree to take the buyer calls and qualify the leads, and sell them a home. Work out a commission split, and you’ve now got a marketing system working to bring you buyers, and even a few great listings.

Plus, you’ll look like a marketing wizard in your office and agent community (not to mention you’ll automatically be building your own “Power List” for increased referrals, word of mouth and repeat business).

If the listing agent refuses your offer (some people will step over dollars to pick up dimes!), move on to another agent who’s got some business sense.

Remember, the strategies from this real estate marketing article will also help sell your own listings faster by acting as active “buyer magnets”.

PROFIT MULTIPLIER #2: Create a “Power List” and Make Them Your Primary Market

You already know that the NAR research says 74% of all real estate transactions occur from a relationship – they know the agent or are referred from a trusted source.

Here’s something you don’t know: If you built a “Power List” (database of personal contacts) with 300 people (homeowners), and the average home ownership period is, for example 7 years (nationally it’s 5.5 years), then 42 of those people will buy or sell every year – good market or lousy market.

Holy cow!  Is this getting your attention?

600 people on your database and it’s 84 transactions every year from that list. 900 people and it’s 128 deals a year – and so on. And don’t forget, that doesn’t include referrals they could send you – it’s just the number of direct transactions that come from that group.

Now hold on. Before you start thinking you just hit “easy street”, there’s something you need to understand. These are not just “random” people. I’m talking about people who know you or know OF you.

The higher the “quality” of contact on your list (i.e. the better they know you), the more responsive they’ll be to your regular contact. This means the more inclined they’ll be to think of YOU FIRST when they think real estate.

I call this your Personal Market Share™…

So the “operative” question is: WHO will get all those deals?

ANSWER: The agent with the highest Personal Market Share™.

The one who’s stayed in contact (at least once a month, every month), deepened the relationship, provided on-going value to their list, and demonstrated they’re a true professional committed to the relationship for the long haul and worthy of the client’s business over any other agent.

Are you willing to become that agent…the one who captures 74% of all transactions, holds such a high personal market share they generate huge income regardless of market conditions?

You are?  OK, good because next I’ll show you…

How To Build Your “Power List”

Building a Power List is easy if you put your mind to it.  Here’s the best way to go about it…

STEP 1: Start with all the people you know and create what I call the “Big List”.

STEP 2: Put every new and old client on the list.

STEP 3: Put leads you generate on your list.  Many successful agents make it a point to add 2 people a day, and soon have 500 contacts their first year (and got 10 to 20 deals just by putting people on the list).

STEP 4: Also, the other parties to any transactions you complete go on the list (hint: their agent will forget about them, so they’ll easily be yours when they buy or sell again).

STEP 5: Create “strategic alliances” with professionals who have clients that could be yours and get a “host endorsement” of your services: accountants, insurance brokers, etc. Consider reciprocating by introducing them to your clients as well. The credibility of the existing relationship is transferred to the endorsed person.

Final note: purge your list every 6 months to remove lower quality people. Within 12 to 24 months you’ll have a small, highly motivated group of people sending you consistent business month-in and month-out – something I call building “Critical Mass™” in your business (see Step 3 of the 3-Steps system). That’s what I mean by “Personal Market Share”.

How Often Do You Contact Your “Power List” ?

Now that you’ve created a “Power List” you must plan on monthly contact to make any inroads. Commit to monthly or don’t even start.

The Direct Marketing Association reports that the optimum contact time is every 21 days. There have also been studies out there that say for every month you forget about your Power List, you lose 10% of them – another reason for monthly contact.

Finally, the NAR reports that the “average” contact program takes between 8 and 12 months to “start” working.  (Side note:  We’ve cut that time in half with Service For Life!®, but even if it takes 10 months to start the “market share engine” producing, that’s still a great deal, considering most agents never get it going).

PROFIT MULTIPLIER #3: Know Your Return on Investment

If you understand where you get the most return for your marketing dollar… you’ll know exactly what to invest in to increase your income.  Sounds pretty simple, but most agents don’t know how to track their numbers.

Here’s how to understand how well your monthly marketing system is working for you… and I’ll use a simple example.

Let’s say you want to send 300 Service For Life!® issues out each month to your Power List. That’s going to cost you about $0.91 to $1.29 per issue (let’s call it $1.20 because that’s on the higher end and will make the math easier). So you’ll spend about $360 a month for the mailing, including having the newsletter written for you.

That means you’re investing about $4,320 every year to contact 300 people 12 times each, or 3,600 contacts. Now, I know that might sound like a lot of money, but let’s get some perspective here.

Let’s run some quick numbers…

Of those 300 people, you know statistically that about 42 transactions will come from them (300 divided by 7 years average home ownership period = 42 transactions EVERY year).

If the average home price is $200,000, that gives you a co-broker commission of $6,000.  Subtract out home marketing expenses and a broker split, and you’ll probably net about $4,500 from that commission.

Does it make sense to mail to your Power List every month?

Well, look at it this way: If you get only ONE of those 42 transactions, you’ve broken-even ($4,500 commission against $4,320 to send for a year).

But after all that marketing, do you really think all you’ll get is a ONE measly commission out of 42 transactions?

Here’s what’s more likely to happen…

First, ask yourself: Who will generally get the lion’s share of those 42 transactions? The agent who’s cold prospecting over dinner time or pestering people in the grocery store line, OR the agent who’s demonstrated their competency, brought great value, created a family-like relationship, and “been there” when it was time to buy or sell?

Are you getting a hint?

I have agents with small databases of 300 “quality” people who “net” more than $300,000 per year using that very system (and it’s their only marketing).

That’s a whole lot more than just one transaction out of 42.

Problem is, most agents quit before they get any traction – “instant gratification” takes priority over sound strategy. It’s a shame, but that’s good news for agents who “get it”.

When you consider the ROI in your marketing, you now have a benchmark to know when it’s profitable and/or unprofitable for you.

To learn more about developing and harvesting endless commissions from your Power List, go here.