Realtors – How to Increase Your Income Five Fold

Author: Jim Personius, SmallBiz123.com

The real estate sector is in depression in many areas of the country. Houses glut the market, prices are falling, and many real estate agents have left the business. Yet, times of crisis and desperation create opportunities. Some agents and brokers are doing very well—significantly increasing their incomes. A depressed state of mind in competitors combined with lesser competition is opening the door to those with commitment, drive, and a plan. Even better, these agents are growing without the need for any significant investments—just a couple hundred bucks at most. Furthermore, these agents are positioning themselves to dominate their local markets when the upswing comes!

Revealing the Secret to Dominating the Residential Real Estate Market in the Current Economy.

How are these agents able to increase their incomes five-fold and more—and in today’s tough market? Is it really true? Yes, it is! Yes, you can do it! No, it does not take much money.

First, bookmark this page. We recommend that you print this article now, laminate it, and keep it in plain sight at your desk. Even better, carry it with you everywhere.

The steps are easy to understand and easy to follow. Make them a habit and the centerpiece of your marketing efforts. The rewards will follow.

Step 1: Understanding the Importance of Differentiation

The first step is to understand the importance of differentiation. Author and business consultant Jim Personius defines differentiation as:

“Differentiation:  The active promotion of one’s uniqueness to create a distinct, better identity from competitors to create advantageous separation in the marketplace.”

What does that mean? You must position yourself, and be seen by your customers, as being different and better from other real estate agents.

Maybe more than in any other industry, customers tend to think all real estate agents are basically the same. That is why personal networks are so important—people call agents who they know with little shopping around. That is why discount brokers (MLS only services) are so popular—people do not see the value of agents work and figure to save the “fat” commission. Anecdotally, customers believe all real estate agents say the same things and will say anything to get the business. That is why, anecdotally, people think that 80% of real estate agents claim to be in the top 1%. That is why people believe the only sales tool in the agent’s portfolio is cutting the price after signing the listing.

It is very hard to be unique, when everyone says the same things. Real estate is a real copycat industry. But, that just means that differentiation is difficult, not impossible. And, when you can successfully differentiate yourself, the reward is even larger.

Step 2: Understanding Short-term Differentiation and Long-Term Differentiation

As a real estate agent, you need income today. You also need to build a pipeline of future income. In short, you need to be a hunter today and a farmer for the future. This is the key to increasing your income by five times or more.

That means that you need to execute simultaneously two strategies for growth: a short-term strategy and a long-term strategy. These strategies will run side by side to bring you income in the short term and plant the seeds for future income. Both of these strategies will separate you from your competition (differentiation!) and increase your income.

Step 3: Understanding 2 Key Facts and 1 Inevitable Trend

When you base your marketing strategy on proven facts and trends, you greatly increase the probability of your success. With proper execution, you can increase your income five-fold or more!

Key Fact 1

65% of all home sales are due in part to the front yard FOR-SALE sign.

That means that most buyers are local and have connections to the neighborhood.

Source: CHIMPP Relight, Inc.

This is powerful and important: “most buyers are local and have connections to the neighborhood.” In addition, this means that signs sell houses.

You need to be asking yourself, right now:

• How can I increase my presence and improve my connections in my targeted neighborhoods?
• How can I make my sign work harder for me—to sell houses and to bring new listings?

Key Fact 2

Approximately 60% of buyers and sellers call only one broker.

Approximately 80% of buyers and sellers never call a third broker.

You want to be called first.

Source: Real Estate Rainmaker by Dan Gooder Richard. John Wiley & Sons, 2000.

The implication: people shop around for the house, not the real estate agent. You want to be first so that you can get the business.

You should be asking yourself, right now:

• How can I be the first agent that prospects call today?
• How can I position myself so that prospects call me first over the long term?

Bonus Fact for the Current Economy

More US houses are for sale now than ever before. There are more Expired Listings and For Sale By Owner (FSBO) houses on the market now than ever before.

The implication is that there are plenty of hunting opportunities right now. This is a tremendous market to sign listings from homeowners desperate to sell and extremely frustrated with their current agent.

You should be asking yourself, right now:

• How can I get these people to sign with me?
• How can I differentiate myself from their present agent and prove that I am both different and better?

The odds are that the current agent did not do much more than list the house in MLS, put up a sign, and recommend price cuts. This is what you are competing against and this is what you have to beat to win the listing.

The Inevitable Trend

Technology cannot be stopped. In 10 years or sooner, every real estate FOR-SALE sign will be lit with solar power and LED lights.

Solar lights for real estate FOR-SALE signs are available in the market now. However, they are new and have less than a 1% penetration rate today. As all other forms of commercial signs are lit to attract attention, technology now makes it possible to illuminate residential FOR-SALE signs without dangerous extension cords, complex jerry-rigged structures, and the need to replace batteries.

To homeowners, illuminating the FOR-SALE sign is obvious and people wonder why the real estate agents are so slow to adopt new technology.

The implication: this is a powerful, inevitable trend. You want to be in front and be a leader. This is your opportunity to be an innovator.

Step 4: Implement Differentiation Today and Start Earning More

These facts and trends create your opportunity (right now, today) to:

• Differentiate yourself from all the other real estate agents in town;
• Prove conclusively that you are different and better from all the other real estate agents in town; and
• Start signing new listings today, like never before.

How? Visit the Relight website, where Relights are under $30, and order one solar light unit. When it comes, take it out of the box and charge it up in the sunlight for day or so. Then, take it to any listing presentations you have scheduled (or expired listings or FSBOs).

Show the homeowner how the RE•Light™ works. Explain the fact that 65% of all houses are sold in part due to the front yard FOR-SALE sign. Your sign works harder because you use the latest technology. The RE•Light™ attracts extra attention to the house, your sign works day and night, and it generates word-of-mouth publicity. All this helps sell the house faster—and faster means a higher price for the homeowner (eliminating rounds of price reductions) and a higher commission for you.

“Selling the house faster means a higher price for the homeowner and a higher commission for you.”

RE•Light™ changes the whole dynamic of the listing presentation conversation. You are now instantly different from all the other real estate agents in town—and you are proving it to the homeowner. You have significantly enhanced your chances of signing the listing. You are increasing your income already.

Be sure to follow the directions in the box for proper installation and sign placement. RE•Light™ is fully automatic; it does not need any batteries and there are no timers to set. It charges and lights automatically. And, the light provides its own security.

Step 5: Implement Long-Term Differentiation to Build Your Business Pipeline

Real estate leads studies have shown that over 50% of the people (leads) planned to move in 4-12 months, while only 30% planned to move in 3 months or less. That means:

• 70% of the people (leads) were long-term prospects;
• People (leads) are willing to reveal themselves under the right circumstances; and
• People (leads) do private research well in advance of actually beginning the moving process.

When you combine this information with Key Fact 2 above, it is possible to lock in a good percentage of customers before other real estate agents even have an inkling the people are in the market.

What exactly do I mean here? 60% of buyers and sellers only contact one broker (and sign with him/her). With the right bait, honey, or incentive, you can get those people to contact you during their research phase. Start a conversation with them, follow up as they desire, provide helpful information and insight, and establish your differentiation to lock them in before they even think about contacting other brokers.

With RE•Light™, you have already established the groundwork for uniqueness and differentiation in your target neighborhoods. But, now you want to take another step to expand your pipeline.

In all of your print ads, on your post card mailings, on your website front page, and on the back of your business cards, add these two simple elements. They do not need much space, but they do need to be prominent and consistent.

Element 1: Put the RE•Light™ logo in your advertising mentioned above along with a phrase that draws attention to it. For example, “we light our signs” or “ask me about.” Again, this sets you apart from the other real estate agents in town and reminds potential customers who you are if they have seen the lights on signs. Email the author Jim Personius and he will send you the logos and license for FREE ($60 value).

Element 2: Offer a free book to homeowners who contact you—“101 Ways to Prepare Your Home For Sale.” Now, people who are thinking about selling in the future will contact you today. Find out their name, address, and phone (so you can send the book—or drop it off!). Find out when they are planning to move and what they are looking for in a new home. Offer a free market survey when they are ready. Bam! You are practically their real estate agent already!

These people are NOT interviewing real estate agents or shopping around for services. They are researching for their own situation. Yet, Key Fact 2 clearly says that there is a 60% chance that they will sign with you and never contact another agent. This is practically money in the bank! Your differentiation will help you grow your income by farming your prospects.

You can buy 100 copies of the book, complete with your logo and contact information printed right on the cover for about $2 each at Personius & Company.

What is the best part?

• Your marketing is targeted to people who intend to move;
• You preclude your competition and lock in prospects;
• Your marketing is simple and straightforward;
• Your total investment is just a few hundred dollars—cheaper than the average post card mailing or a single magazine ad;
• You successfully differentiate yourself while positioning yourself as a leader and expert; and
• You can increase your income five fold or more over the next year!

Right now is a great, unique opportunity to significantly build your business, increase your income, and your pipeline while other real estate agents are hibernating or hunkered down.

Good luck! Go get ‘em!