Last week I told you how Tom Ferry’s Sales Edge changed my opinion on the importance of scripts. Communication is one of the most important skills you need to master as a Realtor, because “Knowing what to say, matters“.
Why You Need to Master Good Scripts
The objective of scripts is to automatically say the right
words when certain situations arise … and, to say them with confidence.
Let me give you an example: One of the most common questions you are asked as a Realtor is “How’s the Market?“
Do you have an answer that will lead to an appointment or
yield a referral?
Or, do you just say, “The market is great!” and
miss out on an opportunity to grow your business?
Here’s the answer Tom Ferry teaches:
How to Practice Scripts Effectively
Practicing a script takes time. You won’t be able to present
it with confidence in a single day. You have to make an effort to memorize,
rehearse, and internalize the script.
Here are 5 steps:
Stand up and read the script out loud 10x in a row each day for a month.
Hand-write the script on a notepad twice a day for a month.
Record the script on your phone and listen to it when you drive.
Role-play the script with another agent in your office, your coach, your spouse or anyone who wants to help you become a better agent.
Make it your own. Present it in a conversational way. Watch your body language, smile, and say it with confidence.
Where Do You Find Good Scripts?
Many real estate coaches publish scripts on their websites.
Unfortunately, not all are good.
Some scripts are outdated and don’t apply in today’s market. Other scripts sound awkward and make you feel uncomfortable. So, pick scripts that fit your personality.
I like Tom Ferry’s scripts, because they are up-to-date and
tested by thousands of coaching members.
Click here for some of the scripts we learned at Sales Edge.
Defending Your Commission
You’ve probably been asked by a seller to lower your
commission. Here’s a short script to handle this situation – recorded at Sales
Edge.
Bill Pipes role-plays with Candace Decker as she defends her listing commission. Candice is one of Bill’s coaching clients. She said it took her 30 days of practice to present this dialog in a confident manner.
The key to successful scripts is practice and accountability.
Who’s helping you find the best scripts? Do you have an accountability partner or coach to practice?
If your sales skills are not as effective as you want them to be – as evidenced by a lack of leads – you should explore how joining RE/MAX 24/7 could improve your business.
Our agents have full access to a proprietary marketing
system which results in $15 million in sales each year.
We use the same lead gen strategies as top-producing Tom Ferry teams, and you get personal coaching from me and Susanne.
Last week Susanne and I attended Sales Edge in Chicago.
Sales Edge is a 3-day sales training for real estate agents.
It’s about scripts and how to present them, because
“Knowing what to say, matters”.
There are 3 reasons why we decided to attend:
I always wanted to be at a Tom Ferry event
I never attended sales or script training, so I was hoping to learn something new to share with my agents
A business trip to Chicago allowed us to visit our 2 sons who’ve been living there for a few years
What’s Going on at Sales Edge
The 3-day seminar is presented by Bill Pipes. He is second in charge at Tom Ferry International and responsible for their 160 coaches.
Bill is a superb presenter and motivator, just like Tom Ferry himself. He managed to get all 550 attendees to pay attention 9 to 5 every day, get them pumped up, and practice scripts right there in the big ballroom.
If you have a chance to attend a Sales Edge, I strongly recommend you go. It only costs $199 per person (plus travel). It’s well worth your money and time.
Experiencing a Mind Shift
I have always been a strong proponent of inbound marketing
to get prospects call you. That’s how we built our business.
However, when prospects call, you need to talk to them, and
you need to know what to say.
During a buyer’s consultation or a listing presentation you
need to know what to say.
If you know what to say and how to present it you can
seriously improve your conversion rate and close more transactions.
This event changed my prejudice against memorizing scripts.
Bill got me out of my comfort zone. He made practicing
scripts fun.
If you want to learn how to practice scripts, I will write
more about it in next week’s Agent Insider.
How Is Tom Ferry Coaching Different?
Half of the attendees were Tom Ferry coaching members.
Events like Sales Edge are critical for their success. It gives them a chance
to mingle with their “tribe”, and to give testimonials for others to
join.
You would be naive to think that Bill Pipes did not promote
the coaching program during this seminar. He did it during was a special lunch
presentation and did not disrupt the regular schedule.
Tom Ferry’s website explains their coaching options. Click here for details or give me a call to discuss if coaching would be right for you.
Unlike other coaching programs Tom Ferry does not insist on a single way to build your business. There are options, as long as you have at least 4 lead sources.
Should You Sign Up for Coaching?
The key to coaching is accountability. Coaching members have to report their numbers daily. They will get reminded by their coach if the fall behind or just don’t report.
Some members are kicked out of the program if they fail to
stick to their commitments.
Tom Ferry has 5,000 paying coaching members. Their average
GCI is $395,185.
If you feel that Tom Ferry’s coaching is too intense or too costly, you should consider joining RE/MAX 24/7. Our agents have full access to our proprietary marketing system which results in $15 million in sales each year.
We use the same lead gen strategies as top Tom Ferry teams, and you get personal coaching from me and Susanne.
If you want to build a referral-based business, then Brian Buffini is your guy.
His approach may appear to be the opposite of the marketing strategies promoted by Travis Robertson (see last week’s email or read the article on my blog).
However, referrals are a critical component of any successful real estate business. That’s why maintaining strong relationships with your sphere and past clients is so important.
Introducing the Joy of Giving in your Business
In the video below Brian Buffini explains Pop Bys. It’s his signature strategy to strengthen relationships with your sphere. The video is funny and less than 4 minutes long. Watch it now!
Pay special attention to the last minute. That’s where Brian summarizes all strategies you should employ to get more referrals.
Are these tactics successful?
Buffini’s coaching clients earn more than $300,000 in gross
commissions with a very small marketing budget. They work!
The 7 Tactics of Buffini’s Referral Marketing System
Here’s a short summary of the core activities of a referral-based
business:
Monthly printed mailer, postcard or newsletter
Weekly or bi-weekly email newsletter
Handwritten notes, 4 times a year
Occasional pop-bys
Phone calls, 3 times a year
2 customer appreciation parties
Lunch or coffee meetings with your top referrers
Sounds pretty simple. A good CRM (customer relationship
management system) will help you manage all important data on your contacts,
even remind you when to mail or call.
How Can You Implement These Strategies?
If you hire Brian Buffini as your coach, you’d probably pay more than $600 a month for 3 phone calls with one of his “success coaches“.
It would be a smart investment.
Another option is to join our brokerage. If you join RE/MAX
24/7 you will get full access to our proprietary marketing system which results
in $15 million in sales per year. 70% of all commissions are generated from
referrals and past clients.
Click here to schedule a meeting and find out how we can help you become a better marketer!
Referrals are the best source of leads for your real estate business. You are endorsed by the referrer, there’s no competition, and referrals are basically free.
A Referral Business Takes Effort
Referrals and repeat clients have been 60 to 70% of our
sales every year since 2012.
This is not a “set it and forget it” lead source. You have to invest time, energy and some money to GROW your business with referrals.
Below you will find strategies to run and grow a referral-based
business compliments of three of the most recognized real estate coaches in
America.
6 Modern Referral Strategies by Tom Ferry
Tom Ferry promotes different tactics for lead generation. In this video he talks about 6 modern referral strategies – some you probably never heard of. Check it out …
The Buffini Referral System
Brian Buffini leads a huge coaching organization for Realtors and small businesses. His system is completely based on referrals.
The approach is simple: “A consistent level of contact
with and care for the people in your database will lead to a steady stream of
repeat business and referrals to their friends and associates.”
Buffini’s system uses a combination of direct mail, email,
phone calls and Pop-Bys along with targeted dialogues and hand-written notes to
create a stream of high-quality referrals.
I recommended Michael Maher’s book “The 7 Levels of Communication” many times. It tells the story of a mortgage broker who helps a real estate agent rebuild his business through strengthening relationships.
Watch this video interview to learn more about his book and the philosophy behind the Generosity Generation.
Should You Rely Exclusively on Referrals?
Many agents tell me they rely on referrals only. That may be
true, but most struggle to grow beyond $2 million in sales a year.
I don’t believe you should build your business exclusively on referrals. If your livelihood depends on a single source of leads you put all eggs in one basket. And if that basket goes away you are out of business.
Have you ever been tempted to work with real estate
investors who claim to have unlimited cash to purchase homes in any conditions?
Before you dedicate your time to an investor, please read
this article to better understand how they operate and which ones to avoid.
How do I know?
I’ve been a real estate investor for 15 years. I attended
boot-camps and investor meetings. I flipped houses and still own rental
properties.
So, let me give you an insight into the minds and types of RE investors: the wholesaler, the house flipper, and the landlord.
The
Wholesaler
Mindset: Get rich quickly without money
Opportunity for Agents: None for finding deals, possibly you can help them sell a property to a rehabber or landlord.
This
type of investor is trying to find good deals and immediately
“re-sell” them to another investor. Essentially, they put the
property in contract and assign the contract to a buyer.
Most
investors start as wholesalers, because they don’t need any money and dream of
quick cash with little work.
There
are many wannabe’s in this category, people who watched a late-night
infomercial or attended a free seminar of how to get rich in real estate.
Don’t
waste your time helping them find deals. Many wholesalers simply practice real
estate without a license and could easily get into trouble with the Division.
There
are a few good ones, though. Get on their mailing list as they may find great
deals that work for your rehabber clients.
Note: They are FSBO’s, so
make sure they pay your commission.
The House Flipper
Mindset: Earn a big profit doing what you love (rehabbing homes)
Opportunity for Agents: repeat business – you earn commissions when they buy, when they list the flip, multiple times a year.
This investor loves to work on houses. They watch HGTV and
other home remodeling shows. They are looking for properties that need updating
and are ready to put in the work.
House flippers need your help finding “good” deals
– distressed properties they can buy cheap and sell for a profit after rehab.
Representing serious rehabbers can be very lucrative for
agents. You will not only earn a (small) commission when they buy, but also
when you list their flip.
Before you start working with a rehabber, make sure they
have access to cash. Connect them with rehab lenders who finance both purchase
and renovation.
House flippers want to get top dollar when they sell. Give
them solid advice on home sales data, what buyers are looking for, and exact
valuations.
Some Realtors even supervise the rehab or operate as the
eyes and ears of out-of-town investors. If you find a serious house flipper you
create a very profitable, consistent stream of income for yourself.
The Landlord
Mindset: Create passive income to retire in the future
Opportunity for Agents: repeat business helping the landlord accumulate a rental portfolio, and possibly sell it in the future to transition to commercial property.
The goal of the buy-and-hold investor is to generate cash
flow from rental income and build long term wealth. They probably read
“Rich Dad Poor Dad” and want to create passive income to get out of
the rat race.
This type of investor usually has financial resources. Some
even pay cash to park their money in real estate.
New landlords look for advice on how much rent to charge, how to pre-qualify tenants, and how to manage their properties.
An experienced investor understands the value you add as a
real estate agent. Watch out for newbie investors who just attended a “get
rich in real estate boot camp”. They believe they know everything and that
you are not worth your commission.
Tip: Don’t waste time with self-proclaimed wholesalers who don’t have cash, don’t know how to find deals, and just dream of making a quick buck.
Imagine you are invited to a listing presentation. When you get to the house you discover that it’s dirty, cluttered, outdated, you name it.
How can you have an honest conversation with the homeowner without offending them?
Sellers are sensitive when it comes to their home. It’s very personal to them. They may become defensive when you try to recommend improvements. And you may not get the listing.
Tell the Truth! It builds trust and the seller will thank you!
A few days ago, Susanne met with a couple who just fired their agent. Here’s what went wrong …
Sellers Interviewed 3 Experienced Agents
The homeowners interviewed 3 Realtors in May. They didn’t list the house until October, because they wanted to move into a new built home at the end of the year.
The homeowners specifically asked each agent how to improve the house as it was only in average shape. Not a single agent gave them an honest assessment and made recommendations.
The agent who got the listing suggested to price it based the highest sale earlier in the year. That “comparable” sold for $25,000 above list price during the competitive spring selling season. It was completely remodeled and received multiple offers.
Needless to say, the listing was over-priced for its condition and did not attract any buyers. The home owners were wondering what went wrong?
They did not get an answer from their agent who was traveling and could not be reached. So the sellers cancelled the listing.
What Went Wrong?
There are 3 reasons why this agent lost the listing. They all have to do with an honest conversation.
High Price – The agent based the price of this listing on the highest sale ever in the subdivision without analyzing exactly why the other property received with multiple offers.
Average Condition – The agent did not make recommendations on how to improve the appearance of the house even when asked.
Lack of Communication – The agent left town and did not tell the client that she couldn’t be reached.
This Script Will Not Offend Your Seller
Many agents don’t recommend upgrades, because they do not want to offend the seller. They are afraid they won’t get the listing if they speak honestly.
This is a big mistake.
As Realtors we don’t want to criticize the seller or their property. We certainly should not impose our own taste on the listing.
But we have to be honest about the condition of the property and consequently the correct pricing.
Here’s a simple script that works for us in these situations. Tell the seller “let’s look at your home through the eyes of a prospective buyer.”
Sellers who are looking for a new home themselves will understand how a potential buyer feels.
Telling the truth – even if it is uncomfortable – builds trust and that’s ultimately why a homeowner will hire you as their listing agent. Sellers will thank you for your honesty.
Do You Get Honest Feedback on Your Business?
Whom do you talk to when it comes to improving your business?
Can you get a straight answer from your broker or will they just tell you what you want to hear to keep you happy?
A coach will tell you the truth even if you don’t want to hear it. An honest assessment is the only way to improve.
If you want to grow your business but don’t get the honest help you need, it may be time to consider a move.
Call or text me to discuss your future! Have a wonderful week and a Happy Thanksgiving!
