Building Your Database and Expanding Your Sphere of Influence
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This document discusses strategies for real estate agents to build and maintain their client database in order to generate repeat and referral business. It provides statistics on how buyers and sellers typically find realtors and recommends that agents (1) establish a client database, (2) regularly update their clients, and (3) continuously engage with clients in order to increase the likelihood of capturing repeat and referral commissions that can significantly boost their income over time. Various formulas are presented to illustrate how larger database sizes can translate into substantial additional annual commission earnings potential.
Building Your Database and Expanding Your Sphere of Influence
- 1. 1 BUILDING YOUR DATABASE & EXPANDING YOUR SPHERE OF INFLUENCE
- 2. Open your mouth and hope something flies into it Flight of the confused bumblebee 2 AGENT LEAD GENERATION PROGRAMS
- 3. Top 2 Answers 1. Referred by (or is) a friend, neighbor or relative 2. Used agent previously to buy or sell a home 3 HOW BUYERS FIND REALTORS® 50% 38% 12%
- 4. 4 HOW SELLERS FIND REALTORS® Top 2 Answers 1. Referred by (or is) a friend, neighbor or relative 2. Used agent previously to buy or sell a home 63% 36% 27%
- 5. 1. How many people know that you are a REALTOR®? (insert your own number) 2. Percentage that will move this year (NAR studies indicate that people move, on average, once every ten years) 3. Number of people that you know who will move this year (Multiply #1 by #2) 4. Captured business (Multiply #3 by 75%) 5. Average commission earned (Average sales price ($300,000) X Average commission percentage (5.85%) X Co- op commission portion (50%) X Agent split (50%)) 150 5 THE POWER OF YOUR DATABASE 10.0% 15.0 11.25 $4,387
- 6. 6. Commission income from your database (Multiply #4 by #5) $49,354 6 THE POWER OF YOUR DATABASE
- 7. If you increase the number of people in your database 7 PLAYING WITH THE NUMBERS 200 $65,805 350 $115,159 500 $164,512
- 8. 8 THESE NUMBERS ARE CONSERVATIVE
- 9. 9 THE FORMULA DOES NOT ACCOUNT FOR . . . selling your own listings FOR SALE ABC Realty Tom Blefko O: 717 123 4567 C: 717 587 6600 tomblefko@gmail.com
- 10. 10 THE FORMULA DOES NOT ACCOUNT FOR . . . sellers who also buy
- 11. 11 THE FORMULA DOES NOT ACCOUNT FOR . . . commission split increases
- 12. 12 THE FORMULA DOES NOT ACCOUNT FOR . . . referrals from outside your database
- 13. 13 WOULD BUYER USE REALTOR® AGAIN OR RECOMMEND TO OTHERS * * 2022 Profile of Home Buyers and Sellers, National Association of REALTORS® 60% 80% 50% 70% 40% 30% 20% 10% 0% Definitely Probably Probably Not Definitely Not Don’t Know 76% 13% 5% 4% 2% 89% would probably use you again or recommend you to others
- 14. 14 HOW REPEAT BUYERS FOUND THEIR REALTOR® * * 2022 Profile of Home Buyers and Sellers, National Association of REALTORS® 15% used agent previously to buy or sell a home
- 15. 15 THE UGLY TRUTH Unless you do something about it today . . . 83% . . . over will use another REALTOR® in the future
- 16. 16 SO WHERE DO YOU BEGIN?
- 17. 17 FOLLOW THE STEPS TO SUCCESS Select Your Database Feed Your Database Touch Your Database