Why is one month so hectic, while the next is dead?
Why do we have the ups and downs of our workload, paychecks, and clients?
One way to understand the inconsistency of your business is to approach your database mathematically in three steps.
- Think back to your first year in the business. Write down the total number of contacts you had at the end of your first year.
- Next, count up all of the transactions from your first year and divide them into this total number of contacts.
- From this you will come up with a number that will tell you how many contacts = 1 transaction.
- Skip forward to the past 12 months. Do the same thing: Total contacts divided by total transactions. This is to see if the ratio has improved or worsened in your career. (If you want to read something else about the importance of ratios in your real estate biz- read this).
We have some insight for you. Inconsistency exists in your: marketing, the frequency of your communication, and in the quality of the content you send to clients. This causes attrition, something every agent faces.
Agents face the problem of losing clients to other agents everyday. If your total contacts have increased every year and yet your transactions decrease or remain the same, then you are losing your clients to other realtors.
Are your clients disconnected from you? These are questions to ponder and analyze.
- Are you the first person your buyers and sellers think of when they are ready to make a decision about their housing? If not, why not?
- Are your clients searching for homes on your website? Does your website give them that option?
- Are you alerting your homeowners of what is happening in their neighborhood?
- When a home down the street goes on the market, does your client: call that listing agent, drive to the open house, or visit Zillow to find out the home’s value?
- Do you rely on referrals, but don’t give your clients much of a reason or incentive to refer business to you? (Hint: “The best way to compliment me is to refer a family member or a friend to me” message doesn’t cut it anymore).
- Do your clients know your domain name off the top of their head, so they can refer someone to your website? (Keep in mind that the best way to do this is to have a website that lets you set up MLS searches for your clients. When a client receives a listing alert, they are redirected to your website over and over again. Repetition is the mother of all learning. Your clients need to see your domain name on a continuous basis, not the MLS’s domain name).
Oh and one last thing. If you do not market to each client’s needs, 80% of your database will most likely buy or sell with another agent. Content is king. Unfortunately, this also means that 80% of your database is probably in another agent’s CRM. A CRM that is marketing to them as much (if not more) as you do. If 20% of the contacts in your database are yours, then you can see how paycheck inconsistency can happen.
As for your workload, things will slow down around the holidays and when school starts and gets out. There are months where it is more convenient for people to buy and sell. But there is more to say about this, and we will do so in another Tip of the Week.
Questions? Feedback? Agree? Disagree? We would love to get your point of view.
Good luck this week!