THE GOLD IN YOUR DATABASE

Would you like to grow and develop a sustaining, robust business year over year? Then grow the affluent segment of your database.

The affluent are different than the non-affluent: they have more money and the credit, unlike some of the posers we inevitably cross paths with. Consequently, we should treat them differently. How?

Matt Oechsli’s book, The Art of Selling to the Affluent, has helped me to develop a better approach to my business. Along with The Millionaire Next Door (Thomas J. Stanley and William D. Danko), here’s what I’ve learned.

First, who are the “affluent”? Here are some of the major attributes. The affluent have household incomes of $250,000 or more. The younger affluent have household incomes of $100,000 or more, and these households are growing three times faster than all US households.

55% have graduate degrees vs. 12% non-affluent. By employment the jobs most frequently held by the affluent are: Large business executive 49%, Entrepreneur 44%, Medical doctor 26%, Retiree 19%, Attorney 14%.

60% drive American brands of cars. The most popular brand is Ford. The most popular model is the F150 Pickup Truck.

97% are homeowners. 50% of these have lived in the same house for more than 20 years. Their homes are currently valued at an average of $320,000. Many of the businesses they are in can be classified as “dull normal,” such as welding contractors, auctioneers, rice farmers, owners of mobile-home parks, and pest controllers.

80% of America’s millionaires are first-generation rich, that is, they made it during the course of their working life. They did not inherit it.

The incentive to work with the affluent is obvious: larger commissions. But additionally, they are loyal, and they will refer their friends and neighbors, who are also affluent. Furthermore, when you retire you can sell your business, that is, your affluent-infused database. Yes, that’s right. The people in your database do not stop buying and selling just because you became a full-time amateur golfer. The new owner of your database is serving them while paying you a residual.

Just what are they looking for in their real estate professional? First and foremost, they want a relationship; they don’t want to be sold to. Get to know them and their needs, and share with them your experiences, and recreational interests. Talk about family and community involvement; you may discover many common interests and themes. Get to know them as friends.

They are expecting to be served professionally, and that you are competent, informed and knowledgeable. Reliability is also very important to them.

So, how do we move “up market”? Start with who you already know, that is, take a closer look at your database. What is the price or value of the home they bought, sold or reside in? What subdivisions do they live? What are their occupations; their age? Do they drive a F150? Gather the affluent into its own group, and spend more time, effort and money on them.

Next, improve your professional appearance. Have you seen how some agents dress nowadays? Pitiful. “Research shows that your appearance strongly influences other people’s perception of your financial success, authority, trustworthiness, intelligence and suitability for hire [my emphasis] or promotion.” (Here’s How Your Clothing Affects Your Success, Business Insider, 8/19/14).

Then, create more face-to-face opportunities. Face-to-face opportunities will strengthen relationships, and create opportunities to meet more affluent prospects. Have you taken to lunch that affluent buyer or seller from six months ago? Or from last year?

Attend the events and organizations where the affluent congregate, that is, meet them on their ground. The affluent love to network. Networking and social opportunities fall into three categories. There are social or community groups such as the country club. There are charity or volunteer organizations such as the Houston Rodeo. There are business groups such as the Chamber of Commerce. Join and participate in the organizations they belong to.

Lastly, host Open Houses in affluent neighborhoods. Volunteer to host other agents’ higher priced open houses in return for the chance to meet prospects. You’ll meet the neighbors and buyers in that price range.

Constant improvement to your database should be a top priority, not just in quantity but more importantly, in quality. Identify the affluent in your database and focus on enlarging this segment. It will pay off handsomely.

#therelentlessagent #onlyatnexusone #millionairemind #motivation

Andrew W. Chong is Co-Owner, Broker, and Head Instructor at Nexus One Properties, a residential brokerage located in Katy, Texas. His certifications include Accredited Buyer Representative, Certified International Property Specialist, Accredited Luxury Home Specialist, and Buffini And Company Certified Mentor. He is a TREC certified instructor and creator of the 3-hour CE course, Selling To The Affluent.