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 put 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 consistently apply them in your marketing. 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!

Now that the new year is upon us, I’m getting calls and emails from agents who want a better, easier way to grow their businesses.

Below, in no particular order, are FIVE strategies and in-the-trenches “marketing wisdom” that will help you generate more clients, and build a long-term viable business. Many of these suggestions are further detailed in the 3-Steps Marketing System.

1. Prioritize Your Marketing Time, Money and Effort According To the QUALITY Of The Prospect/Market

“Quality” is defined as how well the prospect already knows you and is most predisposed to use you over any other agent. Remember:  never chase cold prospects at the expense of higher potential prospects. Here’s how I believe you should prioritize your marketing:

• Build a “house list” and market to them on a monthly basis (this is your “market share”, where 70% or more of your business should come from – more on this later).
• Market off “Transactional Leads” (from your listings for buyers) and other listings (once you have them).
• Work hot leads – follow-up is essential. At the very least, you know they’re in the market to buy/sell, and most agents hopelessly ignore follow-up.
• Do your research homework to select market niches that have the most promise, and work them (i.e. fish in a stocked pond) – this includes geographic markets (farms), specialty markets (resort, golf, vacation, etc.).
• Work FSBOs and Expireds – but notice the low quality of this group. We both know the reason. Here’s a revealing fact: The National Association of REALTORS^® produces an annual research report called Profile of Buyers and Sellers. It’s filled with lots of facts and figures, but the most startling fact they’ve discovered is that approximately 74% of all real estate transactions occur because the client either 1) knew the agent already, or 2) was referred to the agent from a trusted source.This means that 3/4 of all transactions happen because of a relationship –  yet only 4% of all agents have any “systems” to harvest deep relationships and build market share. So about 4% get the lion’s share of business and 96% wrestle each other over the scraps. THIS fact alone is why I told you (above) to create a “house list” of friends, family, past clients, acquaintances, etc., and market to them first and foremost. It’s also why I created Service For Life!^® at www.ServiceForLife.com as a ready-to-use tool to capture that business. I’ll cover this in more detail later.

2. When Starting Out, Spend 80% of Your Time Prospecting

Whether it’s cold prospecting or establishing marketing systems, focus your resources on getting business. Don’t allow distractions (self imposed or otherwise) to interfere with this task. At the same time, don’t neglect establishing other marketing systems so you can quickly stop manual prospecting.

3. Get a Hotline and Use it

Your hotline will become the foundation of your marketing systems, and will become the “mechanism” that generates leads and clients automatically from ALL your other marketing, so you can do your job: working clients, closing deals and cashing commission checks. You’ll use it for classifieds, display ads, sign tags, info tube flyers, listing presentations, and lots more. Go to www.SixFigureHotlines.com and subscribe to the free course there and examine Proquest’s hotline service – it’s first-rate and they give you extra marketing tools to use in your practice.

4. Product-Ize Your Real Estate Services

This industry is a mass-commodity of agents all screaming the same thing to prospects. You need to be seen as different. So create unique products out of your services.

• For example: “Your Maximum Value Home Marketing Plan,” or “Preferred Buyer Program”.
• Another example: Rather than give CMAs, agents will offer a “Maximum Home Value Audit” to examine and determine ways to maximize the value of a home and sell in least time.

The secret is to weave the greatest benefit for the client into the name. Then, make a simple list of everything you do for the client as part of your program – even if other agents do it, it’s likely they don’t promote it, so you have the advantage.

5. Make Yourself A Self-Proclaimed “Specialist” in Your Market

Farming a resort area? Make yourself a “resort property specialist” and title your product specifically to it: “Ventana Canyon Golf Property Specialist” and “Ventana Canyon Maximum Value Golf Property Program.” Use your creativity and match your services specifically to the market.

Your success in 2010 and beyond require intense focus on your highest priority activities. This list will get you started down the right path of where to make changes to grow your real estate practice this year, and for the future.

Agent Molly Schubert has generated lots of new clients from a simple yet powerful marketing technique.

She sends a monthly newsletter and includes a response mechanism with a unique phrase…”There’s So Much More To Serving You!“

This simple phrase (and description) shows why she is unique and highlights how she goes above and beyond for her clients, and you can see an example below. When people read this section of her newsletter, they call her to get the names and numbers of all types of service providers.

Molly uses this technique in her newsletter, but you could use this idea in a postcard, on your website, in a letter, or any medium you use to regularly communicate with your clients, pipeline, SOI or even farm.

This strategy bonds clients and prospects to Molly and she receives a lot of extra business. When I asked Molly about this idea she said she gets calls all the time from her sphere asking for a plumber, painter, etc. all because of this little phrase she uses. Here are just a few examples:

• A call in for someone to install a front door… resulted in a referral to help the caller’s daughter buy a home;
• A call in for names of painters… resulted in a referral to sell a home last August for approximately $7,450 commission;
• A call in for a chimney repairman… resulted in a referral to a buyer she is currently helping, and they also already referred their friends to her.

Here’s Molly’s description in her own words…

“If you have a list of ‘trusted’ service people that you use, now and then include something such as the following in your newsletter or mailings:

We do not just give out the list of names and phone numbers. We want people to call us. And they do! All the time. We even get people in our farm calling to see if we know how to get rid of pests in a home (not kids!), or bees.

You want people to be calling you, because if you help them with these things, they’ll remember you.”