Residential Real Estate
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Improve Your Bottom Line
As a broker, you have much more control over your company"s bottom line than you realize. Here are some surefire ways to generate revenue for your office. It"s easy these days for brokers to despair about their lack of control over their business. But, I firmly believe that brokers have more control than they realize. Even though the people who work for you are independent contractors, you can still hold them accountable. And, you can make your business grow. You have to. You cannot let fate rule your future. Start by putting yourself in the middle of the real estate process. Not intrusively, of course, but very strategically. There"s no reason to stay one step removed. As long as you bring something useful to the transaction your presence will benefit the consumer, your office and your associates. For example, when an associate in your office brings in a listing and the seller is there, introduce yourself and offer your services. Then, send all sellers a personal note saying that if they had any questions, they should feel free to contact you. Also try to stop by each seller"s home unannounced at some time during the listing period. If you haven"t met, introduce yourself and tell them that Agent So-and-So works for you, and I just wanted to know how we were doing. Personal visits work on several levels. First, if your associates know that you"re going to do something like that, they step up to the plate and make sure they service their listings. Second, the clients are very impressed that you take the time to go by their home and meet them. Third, it gives you a chance to highlight your agent in the seller"s eyes. Of course, when you first start doing this, it won"t be a popular program with your associates. But, in time, they see that it works for them. They end up giving better service and making more money. And, they realize that one of the things you are there to do is to build them up with sellers. If you don"t have time to visit every single seller, make sure you call at some time during the listing period. The important thing is that you make contact with all your sellers and that your associates know you"ll be doing it. This contact returns some of the control to the broker, and it makes the associates accountable for the service they provide. In addition, you should devote time and energy to building activity for the office. As a broker or manager you can, and must, find ways to generate revenue. Recruiting top producers from other offices is the tried-and-true method that most brokers use to boost their bottom line. But, I believe you have to broaden your efforts. Certainly, you should always be on the lookout for excellent people to add to your team. But you can"t depend on recruiting alone to help your office grow. Following are some ideas to generate business. As you"ll see, some of them are long-term programs and some are simple marketing ideas. The combination of these two types of efforts applied to an office consistently makes a positive impact on the bottom line. Database One of the simplest and most effective revenue generators is the creation of a database of every buyer and seller with whom your office ever worked. Make sure you get forwarding addresses of all your sellers and mail to the entire database monthly. In January, you can send out a personal letter thanking them for doing business with your office the preceding year and enclose a copy of the closing statement for their accountant. Primarily, though, I think postcards are the easiest and most economical for monthly contact with the database. Each month, you can send full-color postcards that feature photos of four different listings. On the back, include a positive message about the office. It might be the amount you"ve sold that month or the fact that the real estate market is very strong. People love to see what"s going on in their market, and they enjoy receiving photos of the properties. I think this database is one of the strongest tools that brokers can use. Brokers should farm their market just as the best associates do. You"ll find that very few brokers in any given market take this comprehensive approach. They may send out a survey or a thank you card. That"s not enough. You have to keep your company on people"s minds. Once you begin this type of program, you"ll see that it pays huge dividends. Of course, you have to give people something of value. In most markets, photos of current listings are of interest to people, something they seem to feel positive about receiving. That"s very important. You can"t simply talk about your office and expect consumers to respond. When the market is strong, as it is now, there"s a tremendous amount of movement. Your card just might arrive at the right time to sell one of the listings pictured. That"s a bonus. The major objective of the campaign is to keep your name in front of consumers on a regular basis. When those consumers or their friends or neighbors are ready to buy or sell, you"re much more likely to hear from them if they"ve been hearing from you. This may seem redundant to associates who regularly mail to their entire database of buyers and sellers. But, I can tell you from experience that those associates are a minority. The vast majority is not making regular contact with former buyers and sellers. So, it"s a benefit to them and to the office to have the broker doing the mailing. When former clients call in about a particular home from your mailing, you can refer them back to the associate who worked with them previously. If the associate has left the firm, you can give the referral to another associate. The database is such a simple idea, but it is an absolute gold mine. Start today by mailing to your current sellers and buyers. Then, dig through your files to create a database of everyone with whom your company has worked over the past three years. When you begin sending regular mailings, you"ll be amazed at the results. Personalized Networks Of course, most companies participate in referral networks, but it"s very effective to supplement that connection with personal networking. For example, contact brokers regularly in nearby areas that serve as "feeders" for your market and let them know what"s going on in your community. You can also put together a publication of your listings with the idea that they could make it available in their lobby. I find that personalizing the network is a tremendous revenue generator. Brokers and associates tend to be more comfortable referring to someone they know personally than to a broker in the same referral network whom they"ve never met. In addition, if you visit offices with which you do business in your franchise or company and occasionally conduct a sales meeting for them, you are building a strong foundation for referrals. You can call brokers and ask them for 5 minutes to present some information on your market place. Most brokers would be receptive to having information shared at their meeting. Institutional Ads Do some institutional advertising in "feeder" markets. That should generate calls and allow you to develop relationships with people before they actually reach your market place. You just have to know where your business comes from. That"s the key. Once you know the source of your business, then you know where to advertise. You don"t have to place a huge ad, but it should include a photo because it works much better if you can show an example of the type of property you represent. Newspaper Inserts I"ve gotten a great response from running inserts in our local newspaper. I looked for promotions that no one else is doing. The inserts work well because they"re out of the ordinary. I looked for different ideas that will help distinguish my office from the others. For example, I did a very high-end black-and-white approach because everyone else was doing full color printing. Our four-page insert had a very sophisticated look and featured photos of our properties. When it ran, our phones rang! Special Promotions Here is a sampling of several special promotions for your office: Super Bowl. Schedule a huge promotion for the Sunday between the playoff games and Super Bowl Sunday. You can heavily advertise a group of open houses, giving prospects the opportunity to win a drawing for a free computer, with the theme "Get a Super Start to Your Year!" Cable Inserts. Try advertising with coupons that are mailed out with cable TV bills. The coupons draw them to the office for a chance to register for a weekend getaway to a local resort or a special gift. The cost is minimal and you can add all the contacts to your database. Artist"s Reception. This idea came from one of my agents and I thought it was good. Contact a local artist to hang his/her work in your office. At the end of three months, hold a reception for him/her, which you can promote by creating a full-color postcard from one of his/her paintings and using the back of the card to invite people to meet the artist at a reception in your office. Website Create a website for the office that includes information about the area, listings, best buys, agent as well as office special promotions. You should do this even if your company has its own site. Link to the company site as well as your agent"s individual sites. This is a great retention tool as well as recruiting tool. Put any monthly agent awards on your site as well as weekly open houses. Productivity Enhancers Think about employing a marketing specialist and a transaction coordinator for the use of your associates. By having these assistants available to handle some of the time-consuming details, you can help your associates be more productive. And, do more than that. For example, your marketing specialist could send 25 open house invitations each time one of your associates holds an open house. The invitations, custom made for that particular home, look like a party invitation, printedPages: [1] 2