What do Ben Kinney, Gary Keller and other top-producing real estate agents have in common?
They focus their time and attention on the most important stuff. They also boil down their ultra-successful real estate careers to a simple, but effective way of doing business.
Many call this system the 3L’s of real estate:
Leads, Listings and Leverage
Keller Williams Realty Founder, Gary Keller, introduced this strategy in his best-selling book, The Millionaire Real Estate Agent. It’s a must-read for any realtor seeking to break the million dollar production mark.
Start With Lead Generation
If you’ve been a real estate agent for any amount of time, you understand that you don’t have a real estate business (or any business) unless you find clients or customers. And you can’t find clients or customers unless you have a lead or prospect. So before you can sell a house, you need a buyer or seller. To find those you have to generate leads. Pretty obvious, right?
In a recent interview, Ben Kinney cited his 3 fundamentals of low-cost lead generation. He advises EVERY agent — new or old — to master them before anything else.
He calls it the first half of the pie.
Work Your Database
Be on Stage (Open Houses)
Prospect (Cold Calls)
He also says these actions are the path to your first 36 transactions a year. After you master these fundamentals, you can move on to the more advanced lead generation strategies and higher levels of production.
Touch Your Database 63 Times a Year
Here’s the exact process Kinney uses to “touch” each prospect in his database 63 times a year.
He CALLS everybody in his database ONE time each month.
He EMAILS everybody in his database TWO times per month.
He MAILS everybody in his database ONE time each month.
He does one thing for his database on SOCIAL MEDIA every month. This includes liking on Facebook, endorsing, retweeting, commenting, sharing, etc.
He VISITS everybody in his database THREE times each year.
Add all his actions up and he’s touched each person in his database 63 times each and every year.
Now there’s lots of other lead generation tools available to you and I’ll get to many of those in future posts, but focus on these “must-do’s” first. If you do, the leads you generate will produce the listings you want.
Why the Most Successful Real Estate Agents Are Listing Agents
Now if you’re already a top-producing agent you know this, but it’s still worth repeating. You can’t reach the next level of your career by only being a buyers agent. Why? Experts say it takes about the same amount of time to manage 8 buyers as it does to manage 30 listings. Do the math. You will be working a lot more hours to produce the same earnings if your business is primarily focused on buyers — not sellers.
Listings also provide you tons of free or low-cost advertising opportunities which — you guessed it — generate more leads. Your seller’s neighbors won’t remember the buying agent, but they will know who list and sold the house next door. When they get ready to sell their houses who are they most likely to call?
How Leverage Enables You to Earn More Money and Have More Time
Now, I’ll be real honest. If you haven’t taken care of the first two L’s, you’re really not ready to take this step. But if you’ll focus on Kinney’s advice you can get there and it’s a great place to be.
However, if you’re generating leads and listings consistently and have more business than you can handle, leverage can give you back your life, save your marriage, and put more money in your pocket.
Leverage is the critical success factor to reaching the next stage of your real estate career. And here is how it works. Simply put, you hire other people to do the low-value activities — the “grunt work” — so you can give your time and attention to the MOST IMPORTANT STUFF — leads and listings.
In fact, we have a current client who is prime example of someone who handed over his administrative work to us. Now he does nothing but prospect. In year one, he was able to go from 300k in GCI to 700k in GCI. In his second year working with our company, he’s going to break through the million dollar production mark.
Where Do I Start?
I wrote an entire article on who to hire first. You can read it here. But here’s a quick overview. Hire a personal assistant or admin assistant first. Then you can add a buyers agent. Why? A personal assistant or administrative assistant can handle all the tedious, low-value activities that bog you down and distract you from generating leads and listings.
Stay tuned as I’ll talk more about leverage in a future post, but if you’re ready to take this step we can help you evaluate your situation free of charge. Simply call us at 1-877-959-4879 or fill out our contact form and we’ll reach out to you.