When you break your Real Estate Business down and examine your systems...there are really only 3 ways to increase your net income:
- Decrease Your Expenses W/O Decreasing Your Current Income
- Increase the Number of Total Closings W\O Increasing Expenses
- Increase your Average Closed Sales Price W/O Increasing Expenses
Any one (or combination of) the above will start you down the path to growing your business to become more profitable.
What we want to look at today is once you have mastered one or more of the above you have to look at your current prospecting systems and how productive they are at filling your pipe-line.
The natural tendency for most agents is to work with leads rather than prospecting for new leads. Oh most will do the initial follow-up with a prospective buyer/seller...but few have a viable system designed for long term lead creation.
Many are spending inordinate amounts of time with a group of bad leads trying to convert them into good leads...Many will hold onto these "marginal" leads to avoid having to prospect for new leads.
Coaching Tip #1: It's more productive to invest your time finding better leads!
It takes less time, effort, and money to close a quality lead, so the question is...how do you determine or qualify is the prospect is a good prospect or a bad prospect?
- Always meet prospects face to face as soon as possible... this will help you to determine their quality and motivation. The less committed a prospect is to buying or selling...the less likely they will be willing to meet face to face with you.
- Next look at where your business is coming from...Yard Sign Calls, and the Internet are notorious for being suppliers of "iffy" leads. I am not suggesting you turn these leads away...Just "test" the quality before you invest time, effort, and money.
Your ability to get face-to-face with prospects will be one of the biggest determining factors of your success. Your goal is to invest the most time, money, and effort into the prospects with the highest likelihood of closing in the next 90 days. You must focus on sales margins (your net) ...not just your sales volume...Ever expanding the margin between expended resources and your return.
The quality of your prospects can radically positive impact on the margins of your real estate business! So... look not only where your leads come from where they go once you get them...