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If you’ve made the decision to
make real estate your career, or if you are looking for the way to stay
in the business, here’s a new survival checklist to follow as a
current guide to get you to the new digital edge you will need to get
going down the information highway. Step #1 Find a Mentor with 21st
Century Savvy A fantastic way to learn about the business is to begin as a buyer assistant for a busy automated top producer in your office, or spend the money to “monitor” them for a day or so. Don’t look for just the big numbers in volume. Check out the organizational abilities behind those big numbers. Lots of agents continue to do big business the old way, but alas, show little or no profit from their time investment. We were seemingly impressed with
those agents that racked up gigantic volume and enjoying hundreds of
transactions a year. The
new value-set parameter will be your ratio of customer satisfaction for
services rendered on each transaction.
What if you got a report card after each transaction from your
client or customer? And
what if that information became available to other consumers who were
interested in securing an agent to work with?
And suppose that information was available to anyone who wanted
it through the World Wide Web? How
do you think you would rate? The agent with the highest service ratios are likely to get the job, than the agent grinding out the numbers but with low ratings on customer service. In addition, many agents are generating huge dollars and cash flow, but in the final accounting keeping only a fractional amount of that cash flow as actual profit. So, if you are checking out a
success model, here are a few important things to watch for:
Step
#2 Interview a Successful Agent Top producers are very busy, and you
need to know they quite clearly understand that their time is money.
If you are asking for their time and short cuts, it must be an
equitable proposition for you both.
If you have someone you have admired, ask for an appointment. Ask what it would cost to do so. Most top producers can buy
their own lunch or dinner, however, they might be flattered that you
offer to pay for their time and expertise. Regardless of how you secure the information, you need to design your business, and to ask the right questions for you. Traditionally, good questions to ask successful agents were:
New
Questions to ask the 21st Century Savvy agent might cover the
following:
Getting the answers to some of these
questions will help you write your own business plan for your career.
Knowing the answers, or designing your plan to fulfill the needs
here spells success and profit for your precious time and efforts. Step#3
Begin by Treating Your Business Like a Real Business: Start building your business like a business! Look at your costs to begin or continue in the industry. Besides the necessary licenses, continuing education and seminars, you need to look at a budget that can include the new tools you will need to stay in the game. This
means getting yourself into the technology mode, isn’t a choice
anymore. It is, and will continue to be, the way information and
communication will be organized and exchanged.
Take the time to plan out the tools and expenses you will need to
practice in the new millennium. Years ago we needed a desk and a phone.
Now you will need more tools and services. Begin figuring the
following into your current budget:
These
are just a few of the basics you might need. Every second there is a new
way/tool/gizmo for you to consider.
Just begin, master the basics and get going.
Upgrading is always easy when you are already somewhat familiar
with the use of these new tools. Step #4 Begin by Keeping Good Records & Digital Data BaseHave
a Serious Talk with Your Accountant.
One of the biggest mistakes a sales person makes is not
understanding the status of being an independent contractor, or the
importance of good records, for both taxes and a good exit strategy.
Yes, at some point your past client database can make you money!
As Michael Gerber, author of the E-myth says so well: “The
biggest challenge any small business entrepreneur has while building a
business is not working in your business, but on your business.” A fresh beginning in the
record-keeping department can make life so much more pleasant.
The challenge is to learn how to run your new business like a
real business from the very beginning.
If you do it right every day, you won’t have the nightmare of
re-creating records for April 15th.
With the latest software programs available, keeping good records
is easy and efficient. Use
software programs to control and study expenses and income on a regular
basis. Panicking around tax
time with a pile of receipts and inconsistent records is not only
stressful, it’s not productive. Tech
Tip: The key to 21st
Century Business: Make it
easy on yourself and get automated for those tasks that are done
consistently Don’t waste your productive time
on a task that is easily an affordably done with a good software
program. Sitting around on April 14th in a panic with plenty
of receipts and semi-organized records is not only stressful, it is
stupid. A good program like QuickenÓ
or QuickBooksÓ
will allow you to enter each of your checks as written in a simple
format so you can keep track every month of your expenditures and your
deposits. How much more
decisive could you be about investing in a new promotion, if you knew if
the funds were available, and in your budget to do so? At the end of each month with the push of a button you can see what you earned, and what you have spent. It is imperative that you understand the “profit” part of your business to determine in an instant if/when to consider new programs, tools, investments that come your way. We all know the focus to make money
in the real estate business relies on four basic things:
List, Sell, Negotiate and Prospect. Bookkeeping is not one of
these 4 moneymakers, but very important to the foundation of the
company. Help those
that help you by organizing your expenses and income from the get-go and
begin using financial software that will empower you to track your
income and expenses for future goal planning and strategies. Keeping an updated database is
imperative. Use a software
program that you are comfortable using, like ACT, TopProducer, Agent2000
or Goldmine, just to name a few. You will need to electronically
organize your client and customer base for several reasons.
Updating information should be done with a software program that
easily integrates with Internet applications.
One of the best ways to utilize the power of your database is to
couple it with the use of mail list/list serv software to making keeping
in touch easy. Many Internet Service providers offer mail list software
for pricing around $150-300. The
best use of a database is to use it to send information. So whatever
software you are using, choose one that is compatible with Web
applications for broader exposure and easier dissemination. The secondary reason to build a
strong database, is of course to have an accounting and good records for
quantifying your own business. Another
reason is for the possibility of sharing or selling your database in the
future should you decide to partner, move out of an area, or “sell”
your business. TECH
TIP: The 21st
Century Model for E-Commerce is
Information and Your Ability to Use That Information in Multiple Service
Applications. Don’t minimize your “database
information” by haphazard files and archaic 3 x 5 cards.
Get with the program and get digital! Step #5 – Get a Tech CoachThe psychiatrist of the
70’s/80’s is being replaced by the need for a technology coach.
Remember that our prime activities must be listing, selling
negotiating and prospecting. So
becoming a certified “geek” is not necessary, but we must consider
the importance of understanding the new communication and the
“appliances” that go with it. Even if you are a top producing
agent, don’t be held hostage, or pay way too much money for digital
goods and services. It will
take a short investment of time, but you need to be in control of this
new medium, or someone will do it for you, without you.
Not a good plan;-( Real estate is the one entrepreneurial business that saves you from investing in warehousing, storing, inventorying and outright purchasing of products to sell. The new 21st Century agent needs some extra’s to compete and survive. Guidance and on-going technology training and assistance will shorten the curve to helping you become sophisticated about the use of the WWW. Work with a coach to:
Decide what hardware and software
you can afford now and when you can expect to afford the basics and
eventually the “extras.” Don’t
be caught with a carload of expensive tech tools you don’t know how to
use, that seem to be aging as you take them off the shelf.
Buy what you can use, master it and move on to the next one.
There is no reason to spend money on technology toys and tools unless
you plan to learn how to use them and actually use them!
Studies have shown that many of us spend lots of money for new
technology and just have no follow up plan to implement their many uses. You will want to get digital to keep
a competitive edge both on the changes, your market and your
competition. The new sites and technology tools are evolving and changing
as you breathe, so if you are serious, a laptop is a must.
The agent of today is “virtual” and not tied to the
limitations of an office or a desk.
Although a desktop is less expensive, it is not as versatile or
mobile to offer the needs of Real Estate business is being conducted
today. A laptop to use with a digital
listing presentation will likely replace your flip chart and
presentation book. Unlike printed collateral, which is often out of date as the
ink has dried, a digital presentation can be updated in seconds and
personalized with just a few keystrokes.
The equipment and the programs change daily, but keep in mind, if
you are a “newbie” to technology and real estate, you won’t be as
quick as the high end hardware. Have
your tech head guide you on a minimum and maximum for hardware and
software requirements.
Take a course in Windows and learn
how to use presentation software to get you up and going.
Windows is the basis for most everything, so one course can set
you right up.&
Terri Murphy is one of the industry’s leading consultants on the integration of traditional marketing and communication with today’s Web and Internet tools. Her expertise is developing and growing customer relations to create a more profitable business model for Fortune 500 corporations and real estate companies nationwide. She has 24+ year career in the real estate industry and holds the GRI, CRS, LTG & CREC designations. She is the CIO for U.S. Learning, Inc. and a frequent spokesperson for sales industries nationwide. For information about Terri's presentations, |
