by artesiantitled | Jan 20, 2020 | Market Insurance
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by artesiantitled | Jan 20, 2020 | Title Insurance
The business of sales has changed dramatically in the past ten years. Much of our success now stems from successful content marketing. We can never forget though, that success also stems from effective sales people. And what makes effective sales people? Someone who is managing data to continuously improve our business. The book “The Sales Acceleration Formula” by Mark Roberge, focuses on repeatable and scalable sales practices, and identifying what makes a good salesperson. A great salesperson uses data to drive business. Many businesses are great about collecting data, but don’t often actually use it.
Using Data in Sales
Data and improving how you use data is the backbone of sales. Hiring people can be a completely changed process, based on data collected on previous hires. The way we train and manage people can be altered based on data regarding what works and what does not. Business is quantifiable and numbers help prove who is helping and who is hurting. A salesperson is successful thanks to their numbers. Tracking data can give you clear information on how to optimize your business.
Technology Changes Everything
The internet changed everything about sales. In real estate, online websites give buyers much more power. They have access to so much information before ever interacting with a real estate agent. Instead of just promoting a product, we now have to change the way we interact with people to make it worth their time and money. We have to offer what the internet cannot, which means building meaningful relationships with clients and sharing information differently. Technology drives the need for effective content marketing, because as sales people we are able to make judgements about what best to post for our audience. Computers simply can’t do this.
Content Marketing
Content marketing is essential, and there are so many options now for how to share information. Facebook live, Instagram stories, blogging, even podcasts are all easy and unique ways to reach the public. Get your message out in as many ways as you can. Also keep in mind your audience. You are sharing with a community of buyers and sellers, not the entire country. People want to know that you are a part of the community, so instead of focusing solely on sharing listings, try to promote other people, events, restaurants, etc. in the community.
When you share those things out, they touch an audience in a different way than a sales pitch. Plus the businesses or people you are promoting from your community might repay the favor and promote you as well. Don’t forget to balance the information that you are sharing. ⅓ of your content should be your own and ⅔ should be related to and promoting the community. Make sure that the majority of your posts are giving value to your audience as opposed to asking things of them.
Hiring a Sales Team
There is no single answer about what makes a great salesperson, it’s all about what makes the best salesperson in the context of your goals. A salesperson with big corporation experience is not necessarily going to do well in a smaller or newer company, because the sales skills they need are so different. Location also is going to make a difference, since selling in New York is vastly different from selling in Winter Park, Florida. You need to figure out your own formula for the best salesperson for you.
Decide which qualities and skills you value most, and which work best for the type of business you are doing. To make those decisions, keep track of your sales people. Once you have data on who is doing well and who is not, think about what skills or qualities your top sellers have that your lower performing employees do not, and then help them build those skills. In general, the best indicators of success are coachability, curiosity, prior success, intelligence, and work ethic.
When you are trying to grow your business, one of the most important questions to ask is, what breaks after two months? What gets messed up when you leave? Those are the things that are limiting your success, so those are the things that you should focus on fixing. Times have changed, and sales have changed with them. We have to adapt to succeed, and that means utilizing data to our advantage, understanding how technology has changed what we do, and optimizing content marketing to drive our success.
by artesiantitled | Jan 20, 2020 | Title Insurance
Doug Edrington started in real estate when he was 18 years old, it became a family business after he said he wanted to flip houses. They started in their hometown of Chattenuga, Tennessee. After years of hard work, they were consistently hitting 100 transactions per year. But they seemed stuck at that number. After restructuring their company and following the advice listed below, they grew that number to 227 per year, then 385, and now are exceeding 490 transactions per year.
Strategies for Growth
Hiring the right people has been essential to Edrington’s success. When he interviews people, he is looking for leaders, and so asks questions starting with understanding their childhood to gain a better understanding of the potential employee’s mindset. He also asks about their early ideas or memories of money. Edrington talks about understanding the relationship between work and profit early on. His father was a car salesman, and so when they wanted to buy something expensive, he simply stated that they would need to sell more cars, so he understands very clearly that relationship as his way of viewing money. As he grew older, he learned better to balance that hard work with enjoying life.
Classroom, Practice, Performance
Edrington emphasizes the need to be continuously learning and practicing, and also the importance of separating those areas from performance. He considers his classroom learning theories and concepts, reading books from experts, and even watching Youtube videos to learn and understand as much as possible about everything and anything related to your business. As you learn new information, it is important to practice utilizing it before attempting to insert it into your performance. Practicing can include things like roleplaying, videotaping yourself to see and hear how you speak, and experimenting with new ideas and strategies on how to communicate, make sales, or market yourself. Only after new ideas are learned and practiced should you apply them to your work in real time. Don’t practice on your performance, and don’t practice on your paycheck.
Learn How to Say No
In Edrington’s own words, “you don’t have to please the world.” Understand how to say no and also when to say no. This is one of the hardest theories to put into practice, because at times it can feel like you might be missing an opportunity if you say no. However, it’s important to remember that saying no to something that might be time consuming or not beneficial opens up room for new and better opportunities.
Time Blocking
Time management and scheduling are also essential to Edrington’s success. He says on Monday-Thursday, if it’s not on the schedule it doesn’t exist. He details out exactly what and when he needs to do things for the first four days of the week. That way Friday-Sunday are for freedom or catch-up. Nothing reoccurring goes on the schedule so that those days become flex days. Sometimes those days might be used to reschedule meetings that were cancelled, or to work on things that didn’t get finished earlier in the week, and if everything was completed between Monday and Thursday, those days can be for family or personal time.
Divide and Conquer
Edrington speaks to the need for differentiation. He even uses different facebook pages for different needs. They have one page just for houses that are for sale in the area, and then separate pages for content marketing. This way, he brings people in through the houses, and they become clients, and then they are drawn to the culture pages. He uses the content marketing pages to very clearly share their culture so that anyone who visits the page. That way, be it potential clients or potential employees, they know exactly what they are getting into. Don’t waste time trying to attract people that do not fit into the culture of your company.
by artesiantitled | Dec 4, 2018 | Uncategorized
Let’s simplify this – the market is falling because of fears of a recession. The red flag that has popped up over the last few weeks has been what we call an “Inverted Yield Curve” in the bond market. What does that mean? If you buy bonds that pay in 2 years vs 10 years the amount being paid is the same. What has happened every single time we see this? A recession. That’s right, I said every single time. We shouldn’t be shocked by this. Remember we’ve had 8 years of expansion. We have to have some sort of economic slow down at some point.
What will happen to the economy?
To put it simply, it will slow down. This is normal and healthy. Remember, 2008 was a once in a lifetime economic event. Do NOT expect that. But unemployment at 4.5%, believe it or not, is not healthy long term. It leads to inflation which is a whole other issue. But this means some companies will stop growing, leading to both people and businesses to stop adding debt or investing in riskier projects. Which means people will stay in their current homes, and less people will invest and buy new homes.
Is this like 2008?
NO NOT AT ALL. This is a healthy normal pullback like 2001. The problem is not a lot of people were in Real Estate then to know what to expect. 2008 was caused by irrational loans given to consumers that could not afford their homes at very low temporary interest rates. Once those interest rates reset people couldn’t afford the mortgage and they foreclosed. That was the first time in our history that had occurred. Today homes have been in a steady upward cycle since 2011 and now it’s just time to pause. Like I said it’s healthy. Anyone buying a home should take solace in knowing they are fine. The only people that need to be prepared are people that work in the Real Estate sector because business will slow down and they need to prepare.
When will we see the effects of an Economic Slow down?
Based on the stock market moves, you can anticipate this happening in the next 6 to 8 months. That’s how long it takes for things to trickle down.
How does this affect Florida Real estate?
First things first; things are going to slow down. Don’t kid yourself into thinking otherwise. WE WILL SELL LESS HOMES IN 2019 AND THE EARLY PART OF 2020. We are only 10 years removed from a once in a lifetime economic crisis, so consumers will think that’s what going to happen again. Less sales will occur, Days on Market will increase and overall you will see prices go down. And to be clear I don’t believe we will ever see what happened in 2008 happen again in our lifetimes. What you are going to get now is a normal economic slow down.
Orlando Real Estate Market:
Homes priced below $300k are going to be less affected. This is because I wholeheartedly believe there are not many places in the country you can go to and find:
No State income Tax
A+ rated schools
Jobs
One hour to the beach
Sunshine
And finally homes below $300k
With that being said, remember consumers still move, still have babies and $300k is still an affordable price point in our market. So a 3 to 5 % correction in this market is what I would expect. For homes priced above $300k, I would expect a larger pullback as they have been in a buyers market for over a year now.
The Rest of The Florida Market:
Expect a larger correction. The truth be told most of Florida has already been in a correction. I would look for it to deepen. Days on Market will expand, and price points will go lower. It will become a deeper Buyer’s market.
What will happen to realtors in this correction?
The NAR estimates 93% OF REALTORS are out of the business in 18 months anyway. But they usually get replaced by a new crop. I would envision that a year from now, most MLS boards will have close 10 to 15 percent less realtors. This is simply because the market will sell less homes, which will push more people out.
How can a Realtor Make this environment work for them?
First of all death, divorce and growth of family always occur, even in a down market. That means you need to market to Probate Attorneys, Divorce attorneys and OBGYN’s. Find a way to meet them, you will be shocked how happy attorneys are happy to hear someone wants to solve their problem with a home they have to sell. Be their solution.
Second, investors will step in at some point. The problem is everyone and their mom is flipping a home or has become a wholesaler. This group will be the first group to get wiped out. They will get stuck with homes they can’t carry or simply can’t find someone to flip their contract too. At some point hedge funds, like the one I ran, will step in and buy homes as they reach over-corrected levels and feel they can make money flipping them or renting them. The key for us is the timing of this.
As a realtor you should be marketing to these funds and letting them know you want to help them make money. Or put money together and start your own fund.
Thirdly do not commit yourself to anything that you cannot get out of in more than 90 days. Meaning contracts and agreements This is the time to run lean and stick to tried and true ways of marketing that has worked for you Make sure you try stick to the 8 percent cost of marketing rule. For every dollar you spend you better make $8 for it to work long term.
Should you get another Source of income?
In 2009 most of my friends in real estate, and I mean the top 4%, struggled. They couldn’t in good conscious sell a home to someone knowing it was going lower. The REO and Short Sale Agent’s did decent, but that made up a small group. And btw REO’s will not surface for 18 months. Remember people have to lose their jobs first, then stop making payments for months on end and then comes the foreclosure.
My point is start looking for a secure source of income outside of Real Estate if you can. Because when it slows down and no one wants to buy, NO ONE WANTS to buy. And you need to be ready for how to deal with that.
