I just gave a talk to a real estate office in New Jersey and lead a prospecting school the following day where six agents set 21 appointments in 4.5 hours of prospecting. My focus with the agents during the two days was centered on dealing with reality.
In the book Principles, author Ray Dalio, who owns the largest hedge fund in the word and is one of the richest humans on planet earth, discusses the principles that he has used to grow himself personally and create his business. The guiding principle is the following:
You need an accurate assessment of reality in order to produce a good outcome.
In other words, you need to be able to see what is in order to make decisions and choices that lead to good outcomes. You have to see the truth—not the way you would like it to be or the way it ought to be, but the way it actually is.
The challenge in the real estate industry is that often salespeople do not have an accurate assessment of reality. Because of this, they are not able to choose behaviors that lead to good outcomes.
The reality of the real estate business is as follows:
1. This is a direct sales business- No different from selling books door to door, selling cars or selling subscriptions via the telephone. As such, it must follow the sales process. The sales process consists of five steps.
Step 1: You must prospect everyday looking for people who could use your service. A day not spent prospecting is a day you are not in business.
Step 2: You must have the skill and ability to set an appointment with people you speak to by demonstrating a need for your service. The money in this business is not in the service— it is the selling of the service.
Step 3: You must prequalify the appointments you set to ensure that the people you set appointments with have the means, ability and motivation to make a decision.
Step 4: You must present and convince people to utilize you service versus others who can perform the same service.
Step 5: You must close and ask for the business.
2. The money is not in the service, the money is in the selling of the service.
As a real estate sales person, you had to pass a test (get a C or better) to obtain your license. This license grant you permission to perform a service and receive payment for that service. The money in this business, however, is not in the service itself. It is in the selling of the service. If this is the truth, which it is, it makes logical sense to then spend a large portion of your time learning how to sell the service.
Here is a link to my courses on Udemy that can help you learn how to sell the service.
3. All the leverage in this business is on the listing side.
When you list a property, you become the employer and everyone else becomes an employee. If you want to build a team (which is popular at the moment), the only way building a team is both profitable and predictable is if you are able to take listings in high volume and replenish those listings when they sell each month.
4. You only make money in this business when you are engaged in four activities.
L Lead follow up.
A Go on Appointments.
N Negotiate deals.
The amount of time that you spend in these activities is directly linked to the amount of deals and thus income you produce. If you spend 10 percent of your time on your PLAN, then you will do 10 deals. If you spend 20 percent of your time in these activities, you will do around 20 deals.
Are you dealing with reality or resisting it?