Did you know that “educated” clients have significantly higher closing rates and present a fraction of the hassles and stress of “un-educated” clients?

When it comes to buying or selling, your clients want to know what to expect along the way, and what you’re prepared to do when the inevitable problems arise.

Thomas Ieracitano understands this implicitly, and put together a brilliant strategy and presentation for educating his clients on the process of buying or selling. His strategy not only bonds clients to him, but makes his job a whole lot easier and less stressful.

Here’s what he says (and check out the attached presentation he uses!)…

“I try to educate the customer upfront on how the real estate process works (purchase/sale) and what to expect along the way. I do this in my presentation graphically and verbally. It may sound simplistic, but we do this for a living and sometimes forget the customer does this once every 5-7 years.”

Would you like to learn a simple skill that can help you deliver outrageously-superior service to your clients every single time… manage multiple priorities with ease… maximize your income… and cut your work-effort in half or more – all at the same time?

Then drop whatever you’re doing and read every word of this article.

The skill you’re about to learn is so important, it can change the level of success of your real estate practice almost overnight. Today we’re going to talk about…

Creating $7-Figure “SYSTEMS” In Your Practice

That sounds like an MBA mouthful…but it’s essential for you to understand “Systems” fully if you’re going to truly succeed in real estate. That’s because…if you don’t have systems running in your practice, you ARE the systems…

So what is a “System?”

A business – any business – is more than just the people involved. A business is really a product or service and documented “ways of doing things” that brings about a consistent, predictable RESULT for its client and you (the owner).

And these documented “ways of doing things” are called SYSTEMS. Ultimately, your business is just a large system of smaller systems all working together to bring a consistent, predictable…and desired result.

What are a few examples of systems for real estate?

How you manage a listing can be a system (your listing checklist: signage, entering the home into MLS, listing brochures, info tubes, hotlines, advertising, client updates and feedback, etc.) – all the ways you get a reliable, consistent result every time.

How you prospect for clients can be a system (your “Sales Generation Systems™”) – ads, farming, prospecting off your listings, web marketing, etc. – to bring you a steady stream of business.

How you handle buyers – from qualifying to closing – can be a system.

In a few days we’ll start the first of “7 House List Cultivation Systems,” designed to bring you a consistent, predictable flow of new clients, referrals and repeat business.

Why are “systems” so important to your business?

We all want consistency in our lives. As humans we crave it for security. But “systems” are even more important to the successful operation of your business.

“Systems” help to create reliability in the way your business operates – whether it’s prospecting and marketing systems that produce reliable client flow…”product and service” systems that deliver excellence for each and every client…or even follow-up systems that build your Personal Market Share™ and boost your referrals, word of mouth and repeat business (as you’re learning here).

See…your goal is to have a business that is more reliant on “systems” than “people.” Why? Because people come with all kinds of quirks and inconsistencies: work skills, personality flaws, unreliability, etc.

But “systems” are Steady as the Rock of Gibraltar

That’s also why…when your business is organized around “systems,” you not only get your freedom back (you get a life!), but your business begins to run like the smooth movement of a Swiss Watch – with or without “you” involved.

And there’s one more thing…

Do you remember last chapter where I talked about the term “Residual Value™”? Residual Value™ is the value of your business without “YOU” attached to it.

Having a “systems dependent” business achieves Residual Value™…it makes your business have a value in and of itself – not dependent on you.

And an intrinsic Residual Value™ to your business means it has a greater value if it’s sold. Have you ever heard of a real estate practice being sold?

Not very often. Why? Because most agents operate businesses wholly reliant on their personal involvement. When they leave, the business leaves.

But agents who build Residual Value™ create businesses with predictability that can actually be sold. Residual Value™ happens by creating and using “systems.”

And here’s even one more reason for systems: Well-run businesses – whether they’re IBM or “Sally Realtor” – are actually quite boring. The less “drama” you can introduce into your business, the more effectively it will work for you.

Systems help minimize the exceptions (i.e. crisis) that cause drama in your business.

How do you create and manage systems in your practice?

Once you understand how systems are created and managed, installing them into your business will be a snap. Oddly enough…the best way to describe how systems are created and managed is to look at the aviation industry.

When you fly on an airliner, do you know that everything on the flight…from pre-flight, through boarding, through engine start, take-off, cruise, descent, approach and landing…is managed through systems?

That’s how you get consistent, predictable results – in this case a safe arrival to your destination. Each of these systems (pre-flight, take-off, etc.) is managed by a CHECKLIST.

The combined checklists (small systems) for all the tasks involved in the flight comprise the overall SYSTEM. Makes sense, doesn’t it?

And Your Practice Works the Very Same Way

I’ve built 4 multi-million dollar companies, and I have used the very same “systems structure” with each business. I’ve never seen it fail for anyone who learns and uses it.

I’ll give you the skills and a simple structure to create your own systems, but because every business is different, it’s up to you to customize the systems to your unique business.

There are 2 types of systems you have in your practice:

TASK Systems and TIME Systems

TASK systems are used to accomplish some type of operation in your business.

For example…when you take a listing, you would use your “New Listing Systems” checklist (you’ll see more below).

Another example: When you run an ad, your “Ad Systems” would organize and execute the logistics: ad writing, photos, layout, placement, response mechanism, lead pick-up, lead conversion, etc.

Think through the MAJOR TASKS of your business, then create a system (and checklist) for the EXACT way you want the task to be accomplished.

Don’t worry about whether it’s right or wrong – it’s about how YOU want to operate your unique business. Follow along with me, and you’ll understand it thoroughly…

Step #1: Major Tasks

List out the Major Tasks you perform in your business: Your business is really about Listing and Buying, right? So, for listing systems (for example), you want to take out a piece of paper, and write “Listing Systems” at the top.

Then, you create your systems by simply thinking through the logistical (step-by-step) tasks of getting and successfully managing listings in your business.

Here are a few ideas that relate to the listing side of your business (notice how I thought through the listing process chronologically – from prospecting through post-closing)…

• Listing Prospecting System (your marketing plan to get listings – some of these may be “time systems,” but don’t worry about that for now)
• Pre-Listing System
• Listing Presentation System
• New Listing System
• Home Marketing System (sell home + attract buyers and listings)
• Listing Management System
• Offer and Negotiation System
• Escrow System
• Closing System
• Post-Closing System

You can do the same thing for your buyer systems – just think them through chronologically, then we’ll fill in the details in the next steps.

Step #2: Minor Tasks

Take out one piece of paper for each of the Major Tasks you outlined above, and list out ALL of the important tasks that need to be accomplished to execute the task to the standard you demand.

I call these “Minor Tasks” because they are the “Major Tasks” broken down into manageable pieces. For example, your “New Listing System” sheet (#4 from above) might be broken-out to look like…

• Listing agreement signed
• SPDS Complete New Client Welcome Gift
• Title/History Search
• Home Staging
• Photos of Home/Virtual Tour
• Home Brochure
• Enter into MLS
• Order Signs & Riders
• Info Tube Up
• Web Listing
• Sign-in Sheets/Visitor Pkg.
• Etc.

Do you see what we’re doing here?

We’re outlining all the details and tasks that make your services superior – and when they’re documented and systemized (even outlined on a simple piece of paper), they provide you a more consistent, predictable delivery of service.

Step #3: Procedures

IF YOU FEEL IT’S NEEDED: create PROCEDURES for exactly how you want each of the Minor Tasks completed. Some Minor Tasks are simple and intuitive and you don’t need procedures, while others may require further details or standards you want implemented.

The way to create your procedures is to simply take another piece of paper, and write the “Minor Task” at the top, then list out the step-by-step procedure of how you want the task completed.

For example, if you want your Home Brochure (#7 above) to also include important marketing tasks, such as offers for Free Consumer Reports on the back (to attract buyers to call you), then you need to detail that with your “Home Brochure” Minor Task.

Are you following me here?

Notice that we’re simply taking the Major Tasks, breaking them down to Minor Tasks, and (if needed) break them down again into detailed Procedures (so they can be easily used to train employees as you grow).

Step #4: Assign Accountability

The final step of your Systems is assigning a responsibility for completing the System.

A lot of agents create their systems on simple cards (or sheets of paper), and they use rows and columns to manage their systems checklists. Obviously, one of the columns is going to assign accountability for completing the task.

They then bind the systems (Major Tasks, Minor Tasks and Procedures) into a notebook for training and easy reference.

Remember, you have a unique practice – so don’t be afraid to create the systems exactly the way you want your business to run. You’ll know your systems are “correct” if your practice is running smoothly, delivering consistent services, with nothing falling through the cracks.

So let’s talk about the SECOND type of Systems for your practice…

TIME systems are used to accomplish something that occurs (or reoccurs) on a regular basis – whether it’s daily, weekly, monthly or yearly.

For example, if each morning you or your assistant checks on your hotline leads or inbound calls (from ads running, sign riders, or info-tube flyers), then you need to have a system to pick-up and follow-up on those leads each day.

Or if you need to present showing feedback to a homeowner of a listing each week (on, say, Fridays), you need to have a system to alert you (or your assistant) to create a report each week – or whatever the time frame you provide listing feedback.

You can create your own TIME systems by simply thinking through the tasks needed to be completed on a regular basis. Here’s the structure of the systems we use in our business…

DAILY/WEEKLY:

Monday

Tuesday

Wednesday

Thursday

Friday

MONTHLY (and yearly):

January

February

March

April

May

Etc…

To create your time systems is incredibly easy. Here’s a quick overview to help you get started.

STEP #1: Create DAILY/WEEKLY Systems

Take out a piece of paper for each day of the week (Monday, Tuesday, etc.). You can simply put the day of the week at the top of the page.

Then, for each day, list out (in detail) exactly what you want to have happen for that day – in order. You can be as detailed as you like to ensure everything is completed. Some TIME checklists may actually refer to your TASK checklists to make sure they’re getting done.

For example, here’s what a (partial) list for a Monday Time System may look like…

Monday:

Check voice mail – client calls – Return Calls

Check hotlines – lead process/follow-up

Check Listing Feedback – report

Pull Listing Activity for (area)

Pre-listing CMA’s Prep’d.

Check Escrow Status

Info Tubes Stocked

Etc…

Create your Task Lists for EACH day of the week.

STEP #2: Create MONTHLY/ANNUAL Systems

Some tasks you’ll complete on a daily or weekly basis as shown above. However, some will be done only on a Monthly or Yearly basis – such as reconciling your commission reports or even your checking account.

Again, how you want to manage these is up to you, but you want to get your systems in place for Monthly/Annual tasks to be completed. Just follow the exact same instructions for your Daily/Weekly tasks, but think through the items that need to be completed on a monthly or annual basis.

It’s easy once you get started, and you can always add or refine your lists as you grow in your business.

Do this for EACH month of the year.

STEP #3: Procedures

IF YOU FEEL IT’S NEEDED, create procedures for each of the tasks for each day of the week or month of the year. Again, most tasks will be intuitive, but some will require detailed explanation of how you want the tasks to be completed to the standards you set.

The way to create your procedures is to simply take a piece of paper (for each Task on your Daily/Weekly or Monthly/Yearly lists), and write the Task at the top, then list out the step-by-step procedure of how you want the task completed.

Notice that we’re simply taking the Day, Week or Month, then breaking it down to Tasks, and (if needed) break them down again into detailed Procedures (so they can be easily used to train employees as you grow).

STEP #4: Assign Accountability

There are 2 ways to assign responsibility for TIME Systems.

The first way is to create your TIME Systems Checklists just as I showed you (Monday thru Friday, and January thru December) and have a COLUMN for WHO will be responsible for their completion. This works best when you’re a small organization.

The second way is to create TIME Systems Checklists for EACH POSITION you have in your company. So, for example, your Escrow Coordinator or Buyer Agent or Personal Assistant might have their own checklists for Daily/Weekly or Monthly/Annual tasks.

As you grow and add positions to your company, you simply add the Daily/Weekly and Monthly/Yearly Systems Checklists for new positions.

Again, either way will work – it’s just how you want to handle it in your own organization.

I hope this little article helps you understand the process of creating Systems in your business. Part of truly understanding the process is taking initiative and working through it. If you simply start and commit a little mental focus to this process, getting a finely-tuned real estate business will be easier and faster than you ever thought possible.

You’re production will grow, you’ll get more done each day, you’ll slash the stress and strain you face each day, and you’ll have more time for “you.”

Take out a notepad and start today. You’ll be glad you did!

I always knew that practicing real estate was stressful. But what I didn’t realize was that the real estate profession is ranked in the top 15 “burnout” professions in America. Right up there with air traffic controllers, SWAT police officers and NCAA coaches, real estate agents not only feel the pressure to perform, but frequently sacrifice their personal and family lives for their jobs.

Yet not all feel this way. How is it that some people love the craziness of the business, while others feel overwhelmed and stressed to the point of collapse?

Not long ago, I met a person who shared an interesting observation about stress. She said that people feel stressed when their OBLIGATIONS exceed their COMMITMENT level. In essence, we create struggle and resistance in our lives when we take on obligations, duties and expectations that are inconsistent with our commitment level (deepest desire) to perform them.

This person also shared with me five helpful tips for lowering stress levels and creating a life and career of greater balance. And given the “hot topic” lately, I thought I’d share them with you…

Tip #1: Know what you want personally. Your business exists in the “marketplace” because you provide a great service that solves problems and delivers benefits to consumers – you make people better off by what you do. But when it comes to “you” personally, your business exists for ONE reason only, and that reason is TO SUPPORT YOUR PERSONAL LIFE.

How often do you find yourself focusing on your MLS or office ranking or some “guru’s” expectations of you rather than what YOU want out of your career?

Everyone has a different vision for what they want personally. Everyone has a different commitment level…or even commitment “tolerance”. If your personal desires are in conflict with the expectations you take on from your office, MLS, Broker or anyone else but YOU, you’re gonna have stress.

Think about what you want for your life, and keep your focus on serving your clients as best you can, and forget the other “external” standards.

Tip #2: TRAIN your clients how you work. This sounds like I’m suggesting poor service at first, but it’s really just the opposite. If you let the inmates run the asylum, you’re in for trouble.

Tell your clients up front how you work and you’ll be amazed how they’ll comply. They’ll actually appreciate your forthrightness. Discuss how they may reach you or your assistant. And tell them how and when you return calls that require your personal attention. If they don’t know your boundaries, they’ll assume you have no boundaries and act accordingly.

Tip #3: Control your time. This sounds like a Herculean challenge for agents. We think “availability” is paramount in this business – and it is important to be responsive to your clients. Problem is, we confuse giving good service with personal balance. The more proactive you become with your time (i.e. the more you “template” your day based on the activities you need to accomplish) the more balance and productivity you’ll have in your life. You’ll make much more money, too.

Tip #4: Control your contact/info devices. Once again, the coyote is guarding the hen house. Cell phones, pagers, email, PDAs, traveling computers were all designed to “make us more efficient.” Yet, I have yet to meet an agent that didn’t want to take a sledgehammer to most of them on a daily basis.

Simplify. Turn your cell phone on ONLY when you’re available to take calls – all other times let your voice system or assistant handle them. Control your email – somehow people sending emails think you’re sitting right there in front of your computer for the sole purpose of answering their message. Your response should vary according to the importance of the email. Clients and potential clients get highest priority. Friends and family get the lowest. Let people know how you operate.

Use a PDA only if you really believe it makes you more productive (Enlightening story: I carry a little pocket phone book. Yes, it’s made of high-tech paper. The other day I had a race with a friend with a PDA to see how fast we could look up a name we each had. I found it in 8 seconds. He took 24 seconds. Hmmm…productive??). Technology can direct us away from the fact that real estate is primarily a relationship business. Consider your options for contact carefully.

Tip #5: SYSTEMIZE your business – especially your marketing and client generation. There are only 2 ways you can leverage your ability to make money: 1) with other people, and 2) with systems (by the way, in the next edition I’m going to share with you a step-by-step way to systemize your business – it’ll be some of the most valuable information you’ll ever read for your business and life).

If you’re manually prospecting instead of using Hotlines, Newsletters, web sites, and all the systems we teach in the 3-Steps System (www.3-Steps.com) to get clients from gazillions of sources…you are minimizing your productivity and income, and MAXIMIZING your stress level.

Ask yourself constantly: “How can I put my client generation on auto-pilot…and allow my systems to sort and sift for new clients…so I can spend my time working with quality clients, closing transactions and cashing commission checks (and taking the time to enjoy my family and personal life).”

There’s an ironic benefit to knowing what you want, and setting boundaries within your business (and knowing what’s important from what’s unimportant) that SUPPORT your desires. You become much more productive. Your stress level will plummet. You will attract the kind of clients you want – strange but true.

And, most importantly (and the most “ironic” part), you will be dealing with your clients from a place of balance – and that’s power.