Who really goes into your database? “Everyone” is the answer that I receive the most. However, the more names, the more the overhead – because you have to write, email and call your database! The real goal is to have people in your database that you have given a piece of your heart to and the ones that you are holding “IOUs” on past deeds that you have performed for them. After we know who goes in, you will want to know how to contact them, how often and with what message. When you have all that planned out, you will have another chapter done for your lead generation system manual!
At my office, I had a list of lead categories that were qualified to go into my database; this prevented my associates or me from adding time and overhead “sponges” (non-qualifiers) to my list. Here’s the list of people we want:
1. Family, friends, and associates. They qualify because at some time in the past, I have earned a piece of their “heart.” They know me, and with continued service oriented contact, I have a great chance for their business.
2. Past clients and current leads. These people qualify because they are experiencing or have experienced my free services; therefore, the “IOU’s” are in place. 99% of our services are free prior to the signing of a contract. These are same headings of current leads and I define them as follows:
A. LLA – Listing Leads in the A Class
These are leads that will be listing with you in the next six months. You’ve met them at a listing presentation and they said “Not yet, but soon.” These leads might have met you at the market and told you that they will be ready in three months or maybe they couldn’t believe they didn’t list with you since you’re a family friend! They will list with you at the expiration. This lead group of LLA should be in a rack on your desk because you have probably produced paperwork on them already.
B. BA – Buyer Leads in the A Class
These are buyers currently in play and should be treated the same as LLA.
* Both of these lead categories should be time blocked to be called once a week.
3. Website, direct mail responses, call ins, and good 1-800 IVR leads. If they have made the effort on their end, we can spend the overhead to service them.
4. Open house attendees. They squeezed your hand and looked you in the eye – this will make future contacts easier by phone or email.
5. People who have been paid by you. If you do business with them, they are required to do business with you. Be firm – ask your accountant who services her real estate needs. Before you buy a car, ask to interview all the salespeople in the dealership with one question – “Who is buying or selling a home in the next 24 months?” Pull out your check register and credit card bills from the last couple of years. Then make a list of those locally frequented business contacts for your database entries and follow up!
6. Orphaned clients. As a young agent, I was completely broke and looking for business. Inside the file cabinets in the “bowels” of my office, there were closed files with representing agents who were no longer with the office. Since my broker owned the information and the listing, I asked her to write all these past clients a letter to tell them that I was their new representative, that I had superb abilities, and that I had requested for them to accept my phone call or email.
7. Clients that I did not represent but did buy my listing. I met them during the negotiations, under-promised and over-delivered. Therefore, if I believe their representative may not follow up or if I felt that the solicitation of their client after close was not in violation of any moral, ethical, or legal rules – then I might add them to my database. This method of clientele solicitation may be under-appreciated by their real estate agent so think about the ramifications first. Wanting to keep her market share and as long as I paid for everything – why not? I added 640 new database entries the same week that I started in the business. I would send them the letter at the end of this chapter.
8. At the closing, offer to go over the closing statement. Give them a gift, Answer their questions and offer to send their friends and family their new address, phone number, and email address. The card, of course, will tout your success with your picture on it! A few weeks later, send the family and friends a copy of the testimonial letter that you received because of the great service you gave their friend/family member. A postcard, a copy of a testimonial letter from someone they know, and bam – they are a database entry!
You might have noticed that I left out your Lion’s Club, church group, and college alumni association. If you are not well known by the group, do not service their real estate needs. Make live presentations on real estate subjects first and then add them. Remember, the people you spend your time calling and writing should have you close to their heart or have them give you an “IOU” toward future business because of a relationship you built.
Now that we are clear about who goes into the database, your next decision will be how often do we contact them. It is an important question – one that affects your available time and money. If you don’t contact your database enough – you can loose them to the agent who moved in next door! If you contact them too much, you are taking opportunity time away from other more profitable lead generation endeavors or just wasting overhead money!
I always searched for the least amount of contacts to still keep the relationship alive and my name at the top of their mind. That minimum contact requirement was 4 to 6 emails or letters and two phone calls per year. On the phone, I caught up with their lives and I would ask if they had any family or friends that may be thinking of moving. I also offered investment opportunities. I would mention that the hardest job in the real estate business is the acquisition of new clients and I would appreciate their help. I would also ask if they have ever considered moving up, and finally, I would ask if they would be taking advantage of any of my VIP services.
Now that who the entries are and their frequency has been determined, what you send them will be the next step. On the telephone, I mentioned an opportunity to obtain my VIP services. I would send my database new free services each quarter. The list of my free services that I offered is detailed in the letter on the next page. You can add your “free” services to the list. You will be amazed at how much you do in this business without getting paid!
I was never a recipe/newsletter kind of guy. It was easier to send them services that, if used, led me to believe they might be interested in buying and selling. It also helped to build my “IOU’s.” Also, I would send copies of articles in the local newspaper that would affect the value of real estate in the area, which was always appreciated – plus I didn’t have to write it!
Delivery can occur via email, direct mail, or a phone call. You can also get them to visit your website by sending a postcard or leaving a voice mail. You can deliver all services via your website, but attach a form so that you will obtain the necessary information to follow up. Just choose the least expensive and most appropriate method to deliver your message effectively. Even though “everybody” is the easy answer to “Who goes into your database?” – I believe a great system will answer the “who,” the frequency of contact, what that contact is, and the delivery method. A manual on how your database system functions will make it easier for you to delegate when it gets huge from all the business it generates.
