ConfusedHave you ever hear the phrase, “work smarter, not harder”? In your real estate business, this can be the difference between earning over $250K per year and $70K per year. Using tried and true methods that have proven to work for others is a great way to minimize your effort and see greater returns.

One of the most important jobs of any realtor is converting leads into appointments, and appointments into contracts. Whether you are on a prospecting call, making an appointment, talking to past clients or connecting with your sphere of influence, using a script can help you breeze through this process.

In fact, 81% of realtors making $250K or more always use a script. This doesn’t mean that they are reading from a written document every time they talk to people. That would be awkward. However, they do have a loose idea of what they will say in any given situation.

As proof, these high earning realtors (81% of which always use a script of some kind) have 74% listing rate when they go to an appointment – in other words, 74% of their appointments sign contracts. Whereas agents who are earning only $70K or less generally have a 53% listing rate. These high earners are obviously saying something that works.

Additionally, the difference in income between those two percentages is significant. For example, if you call 200 expired listings and your average commission for each is $5,000, the difference between listing 74% and 53% is almost $5,000 in additional income.

So now that you are convinced that a script is invaluable when talking to potential clients, what exactly should you include in a script of your own? The following are four main elements that make up a time-proven, successful script.

  1. Build rapport. Building a relationship with potential clients is crucial. Talk about them, ask lots of questions, and find things that you have in common. Is your client an avid fly fisher? Tell him about the great fishing trips your dad used to take you on when you were a kid. Does she love to travel? Point out a great travel blog you came across on the internet.
  2. Get them talking. Get the homeowner talking about their house and their previous experience in real estate so that you will know their hot buttons and what is really important to them.
  3. Qualify the lead. What is their time frame? How much urgency is involved, what are their pain levels? All of these things will help you determine how to approach the sale.
  4. Find a way to get an appointment. Your goal here is not to sell real estate over the phone or in a meeting.  Your goal is to get inside their home to see how you can help them as a real estate professional.

Using a successful script will smooth the process of converting leads into appointments and signed contracts. And over time, it will also become an invaluable and much used tool in your real estate sales kit.

What is the difference between a realtor who limps along making only $70K per year and one who pulls in $250K or more? Is the second realtor working exorbitantly long hours or tapping in to some kind of real estate superpower? Not likely.

While there are a number of factors that go into the success of a real estate business, one of the most powerful ways a realtor can impact his or her business is through accountability.

Bullseye Accountability and REDX

The Power of Coaching

In a survey of hundreds of realtors, those making $250K reported that the number one way they hold themselves accountable is through a coaching program. In fact, of the realtors surveyed making $250K, 73 percent have had at least one full year of coaching, while 68 percent have had over three years of coaching.

By contrast, in the $70K group, 78 percent have had less than a year of coaching. Why does coaching make such a significant difference? It’s the accountability factor.

So what makes coaching such a powerful tool? There are a number of things that coaching provides:

  1. Clear vision and purpose
  2. A defined business plan
  3. Written goals
  4. Diverse ways of doing things
  5. Refined skills and techniques
  6. Accountability

Having someone to answer to, especially someone knowledgeable in the real estate industry, will start your engine and get you going like nothing else.

The overwhelming majority of respondents said that the coaching program was what drove their business to the $250K level. They didn’t wait until they could afford it. They made it a part of how they would achieve their goals.

The Power of Personal Accountability

Whether you have a coach or not, you should define your goals and write an effective business plan. Of the hundreds of realtors surveyed, 100 percent of those making $250K per year had both written goals and a written business plan. This is obviously an important factor in their success.

Written documents that remind you of where you want to go will provide the concrete, “on paper” accountability to help you get there. And having written documents to live up to drives you to do better and keeps you motivated to stay consistent with those goals.

Having to answer to someone other than yourself is a compelling motivator. One realtor made a deal with his children that anytime he made an appointment he would take them out to dinner, and if he sold a contract he would take them to dinner and a movie. Every day when he picked up his kids from school, he had to look them in the eye and give an accounting of his work.

Accountability should be a major part of your business operations, whether that means reporting regularly to a friend or coworker or working with a business coach. It will yield enormous dividends in both the short and long term success of your business. Find ways today to insert more accountability into your business plan and you will be on your way to a $250K paycheck in no time.

Join us next week for more ways to take your $70k paycheck to $250k

Tracking Numbers on Real Estate Leads

Prospect smart like a 250K REDX Top Producer

You’re an entrepreneur. There’s no question that you are full of confidence, intelligence, and ambition. But at the end of the day, the difference between a highly successful entrepreneur and a typical entrepreneur is one thing.

It’s all in the data. Entrepreneur Magazine says your best shot at success comes when you have “a complete understanding of the numbers that drive your business.” While the big numbers after the close of a sale are important, don’t overlook the data that came before and paved the way for that big commission check.

The REDX talked to some of the biggest money making realtors in the industry, the people making a minimum of $250k, and we asked them where their money came from.

What we heard didn’t surprise us. All agents know that prospecting and leads are the foundation of their business, but when we ran the actual numbers we found 2 astonishing things.

250k Agents Track their Business Numbers

$250k agents don’t only know that their business comes from great leads, but they know which leads are the most productive and have the numbers to back it up.

78% of the richest realtors in America track their numbers—compared to only 42% of realtors earning $70k or under. Ultra successful realtors track three things:

  • How many contacts need to be made before an appointment is set
  • How many appointments it takes before a listing contract is signed
  • Average commission made on each contract

Bottom line: $250k agents track more than their income. They track the specific investments of time and work they put in before they even get to the sale.

$250k Agents Understand the ROI of their Business

The playing field is pretty level from the outset. All agents, regardless of their take-home will get in contact with about 7.6% of all expireds they contact and 38% of the FSBOs they contact.

What happens after that is where we start to see the gap widen.

It’s clear that $250k agents are doing something differently than $70k agents. The value of the $250k agents’ monthly listings is over $2000 more than the $70k agents.

Not only did these successful agents track their numbers, but they understood them, let them inform their daily habits, and developed strategies for success based on them.

One agent we interviewed took her highest yielding commission checks and asked some questions about them:

  • What type of lead was it?
  • How hard did I have to work to get the lead?

The first question led her to find that certain leads were more profitable than others in her particular market. The second question clarified whether the time she had to put into generating the lead, making the calls, setting the appointment, and closing the deal was worth the return in money.

This particular agent broke down the numbers so that she knew exactly what each call was worth to her. If calls on FSBOs came out to $13 each but calls to expireds returned $8, she focused her time on the FSBOs.

Bottom line: $250k agents understand where the money comes from so they can focus on the things that give the most return on their investment.

Join us next week for a discussion about how principles of accountability turn $70k agents into $250k agents.

Are you struggling to find leads for your real estate business? Are you spending too much time generating leads and not enough time acting on them?

Here are five simple ways to speed the process of lead generation and free up more of your time to make appointments, sign listing contracts, and close sales. [click to continue…]

Warmer weather, longer days, and increased home sales. Summer is upon us, and many real estate agents find that this season is the most ideal for selling a home. Here are just some of the many advantages of selling your home during the months of warmer weather:
[click to continue…]

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