The hidden value of your sphere
Jose Perez, MBA
Bilingual Business Development Executive with deep real estate industry roots. Proven producer & leader driving positive results. Extensive B2B experience in AI, SaaS, M&A, franchising, & SPIN Selling. Let's crush it!
Every time I see these stats I cringe:
That’s 37 opportunities just from people the agent knows.
In the meantime, instead of investing in uncovering the hidden value of their sphere, agents continue to buy leads.
Based on the above, it makes perfect sense for brokerages to help their agents figure out ways to stay in touch with their sphere because it’s costing them too.
They need to understand how much money they are leaving on the table.
Think about all the reasons why agents don’t do a better job staying in touch with clients:
While all the above makes sense, when you consider how much business lies inside an agent’s sphere, or with orphan clients in a broker’s database, it’s almost criminal to not figure out efficient and effective ways to engage consumers regardless of whether they are ready to buy or sell today.
Why does this industry insist on calling them “past clients”?
If you provide a valuable service, those “past clients”, will always be clients!
Isn’t a sales person supposed to provide value to their clients… all the time?
Real value, in today's world is sharing an equity report or pricing estimate to show clients how their investment is doing. Unfortunately, most agents don't do this because legacy tools simply take too much time. As a result, they rely on less effective ways of staying in touch with clients, if they do anything at all.
If you agree with the stats I mention at the beginning of this article, and that your average agent actually does have 37 potential deals inside their sphere, what does this mean if you have 10, 100, 500 or more agents?
The bigger you are the more staggering the opportunity is yet, in too many cases, brokerages are leaving it up to agents that, for all the reasons mentioned above, are not consistently doing enough to provide engaging and relevant content to their database.
This is a lost opportunity especially critical in today’s environment where consumers are looking for guidance from their trusted advisors. If they have not heard from their agent in months or years, or if all they get from their agent is dribble, they are not going to call them if they have a friend or relative moving or when they decide to move again.
I will leave you with some numbers to contemplate…
How many brokerages are off 30% - 40% over the past few months? I think we all agree… lots!
I recently did an analysis for a 500 agent brokerage whose average company dollar is $2,400. They want me to help them figure out how to help their agents provide more value to their clients in an efficient and cost effective manner.
Based on the calculations I mentioned earlier, this brokerage has a potential of $44 million in company dollar on the table. If they captured less than 4% of that business doing a better job staying touch by providing real value to their clients, they would double their current company dollar.
In the current economic climate, this opportunity cannot be ignored!
The time is now to implement systems and tools that will allow you and your agents to provide REAL value to clients even if they are not ready to buy or sell today. Chances are, they know someone who is and will recommend you if they feel the value is there.
If you would like me to do a similar analysis on your company's numbers, please reach out to me at [email protected].
Building and Insulating Agent Relationships- Predictive Content/ Metrics delivering Lead Gen and Conversation Starters. Portraying Agents as HomeOwner Advocates
2 年Forgot to add. Average agent we are working with has 543 enrolled contacts in their homeactions. And 9 out of 10 do not even have a database
Building and Insulating Agent Relationships- Predictive Content/ Metrics delivering Lead Gen and Conversation Starters. Portraying Agents as HomeOwner Advocates
2 年Jose … valid stats. When we are in front of agents with homeactions I tell them 2 years after a transaction only 22% can quickly come up with their agents name Then when asked about their doctor —-91%. Then the guy that changes your oil in the car 61%.
Founder & CEO at Luxury Listing Specialist Designation (LUXE) | Best Selling Author | Luxury Real Estate Broker | "It's Not The Market, It's The Marketing!"
2 年Great article Jose Perez .. Let's get you on my show to discuss.
CEO - Homelendia Mortgage
2 年10%-20% of agents do 80%-90% of the business. I believe I saw a statistic where the top 20% of agents list 60% of the properties nationwide and handle about 55% of the buyers nationwide. I presume the top agents are already doing this. The rest of the flock just don’t want to do it. This is not a case of not knowing what to do, it’s a case of choosing not to do it or desiring not to do it for whatever reason. Based on your math, 50% of the homes that sell next year will either be in an agent’s database or connected to someone in an agent’s database. My guess is the top 20% of agents in the country will capture that business. The remaining 80% will fight over the other 50% by chasing whoever falls in their lap with an interest to list or buy within 90 days. And, your numbers are accurate and unfortunately they have not changed in almost 13 years. The next question that needs to be asked of the top 20% is who receives the commission money from the mortgages they refer, the title companies they refer, and the homeowners insurance policies they refer? There is a lot of money in the way of commissions that transfers during the transaction of a home. Most agents only receive a portion of the real estate commission.