Gary Elwood
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Gary Elwood
What Do Journalism and Real Estate Prospecting Have In Common?
Prospecting has a lot in common with journalism.
For instance, journalists are always approaching strangers. They’re always asking a lot of questions. And they’re interested in learning the truth.
And, just like in journalism, a good prospector has to understand the 5W’s: Who/What/When/Where/Why (with a little How thrown in there).
Who are your prospects? Your prospects are people from all walks of life. They can be the warm market, or your circle of influence, meaning your friends, family, relatives, co-workers, and everyone you know that you already have a relationship with. Prospects can also be referrals, or personal recommendations from someone else.
What do you want to do with your prospects? Here is where setting clearly defined goals is very helpful. Know what you want out of your prospecting efforts: How many appointments? How many listings? How many referrals?
When is the right time to gather prospects? Anytime. Walking out to your mailbox. Shopping for food. Mailing a package at the post office. Mingling at the neighborhood block party.
You don’t have to be a nuisance. But you do have to have your antennas on. Be ready.
Where do you find prospects? As mentioned above, prospects can be found right in front of you within your circle of influence – the people you already know.
You can ask for prospects from both the people you already know, and also from the prospects who end up declining your offer. The people who turn down your business can be a good source of referrals. If they say, “No”, then you simply say something like, “Thank you for your time. Do you know of anyone else who might be interested in buying or selling a home?”
Why are you prospecting? Are you just doing it because your broker told you too? Or are you doing it because your leads have dried up? Ask the opposite to dig deeper: Why aren’t I prospecting? Do I have a solid business? Do I not want more?
How do you get prospects? This is probably the most important question of them all. As I said, prospecting is an art that takes practice, so it helps to start by setting goals that are measurable, realistic, and achievable. Know what you want and when you want it and do something every day to work towards getting it. Practicing means knowing what you are going to say to your prospects before it happens by using a script, and then eventually becoming comfortable and confident enough that you don’t need the script anymore.
And it is up to you to walk away from prospects who aren’t ready. Like the recent Baylor survey on real estate lead generation indicated, identify potential clients. We don’t want to beg or plead them to join with us – we want to grab those who are enthusiastic, ready, and willing to be on a winning team.
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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“Show business is not hard. It’s all just basic Dale Carnegie stuff,” Jay Leno once said in a Selling Power magazine interview.
Easy enough for Leno to say. The thing you should know, though, is that Leno’s back-of-the-napkin statement is supported by decades of smooth, polite and consistent relationship building. And nine easy-to-follow techniques.
1. Try to make a good impression that lasts. That Leno’s everyday personality is nearly identical to his nice-guy image on television doesn’t detract from his success. It adds to it.
2. Get guts. Don’t be afraid to tackle more than you think you are capable of handling. Unless you try to do something beyond what you have already mastered, you’ll never grow.
3. Take the high road. If during a conversation with a client or prospect someone insults you, avoid the temptation to retaliate. One up them, in fact, by responding in praise and affection. “Gee, I’m hurt that that was said about me, especially since I admire <so and so> so much for his family values, etc….”
4. Ignore failure. Failure will come. That’s a given. What you need to do is bounce back as quickly as possible and keep truckin’ as if nothing even happened.
5. Love what you do. When you love what you do, everything else just seems to fall in place. It’s easy to get out of bed, it’s easy to do the hard things.
6. Fake it before you make it. Even if the ink is still wet on your real estate license, give people the impression that you are the best person at what you do.
7. Treat everyone as a potential customer. This is particularly true for real estate: everyone buys or sells houses, and your market is probably made up of the people you run into everyday.
8. Treat your team as if they are stars. Whether it’s your lender, listing coordinator or buyer’s agent, make the people you work for, and who work for you, feel like your world would collapse without them.
9. Give back to the community. Volunteering your time to worthy causes proves that you are committed to the area you live and work in, which, by the way, provides a good way to meet potential customers.
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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The Claude Hopkins Guide to Real Estate Prospecting
Here’s the deal. In the book My Life in Advertising“, Claude Hopkins tells a great story about a gloomy copywriter named Powers–a story with implications of everything you’re working right now, today…
“A clothing concern was on the verge of bankruptcy,” says Hopkins. “They called in Powers, and he immediately measured up the situation. He said: ‘There is only one way out. Tell the truth. Tell the people that you are bankrupt and that your only way to salvation lies through large and immediate sales.’
“The clothing dealers argued that such an announcement would bring every creditor to their doors. But Powers said: ‘No matter. Either tell the truth or I quit.’”
The book continues:
“Their next day’s ad read something like this:
We are bankrupt. We owe $125,000 more than we can pay. This announcement will bring our creditors down on our necks. But if you come and buy tomorrow we shall have the money to meet them. If not, we go to the wall. These are the prices we are quoting to meet the situation.
Truth was then such a rarity in advertising that this announcement created a sensation. People flocked by the thousands to buy, and the store was saved.
What’s the moral of the story?
Powers’ breakthrough is as effective today as it was over a hundred years ago-–and suggests three ultra-powerful sales techniques with the potential to ramp up your response and revenues right now…
1. News sells. Power’s innovation–-presenting your ad as if it was a front-page news story…and then telling “the news of the store” in an objective, straight-forward, no-nonsense way is still a powerful way to get attention and establish credibility. But it’s only the tip of this iceberg.
Topicality–-tying your headline and opening copy to an event that’s at the top of the news is one of the nuclear weapons of the marketing world. In test after test, the timely, newsy test headlines focusing on a major on-going news story always left straight benefit-laden headlines in the dust.
Why? Because if it’s in the news, your prospect is thinking about it. If he’s thinking about it, he has feelings about it. Connect with those feelings, and you’ll make your copy nearly irresistible.
Next time you choose a theme or write a headline or lead, ask yourself, “What important, long-running news story could I hitch a ride on?” Interest rates? Hurricanes? Immigration?
2. Always have a reason. Always, always, ALWAYS. Explain why you’re writing this ad or why you’re calling this person…why you’ve decided to offer a free market evaluation…why you’ve decided to “bribe” a FSBO with a home selling package…and why why you need the prospect to make a decision in the next 24 hours.
Have a solid, believable, even self-revealing answer for these questions, and your credibility will soar-–along with your response.
3. Tell the truth. When everyone else in your market is writing unbelievable “blind-‘em-with-BS” headlines and ads…the simple objective, unvarnished truth in a headline lifts you head and shoulders above the din. Just like it did for the copywriter Powers. And just like it did for Volkswagon.
Couple this with the truth that their spilling out of Baylor University about the two most productive lead generation tools and you’re bound to hit a home run…even in this bad economy. At least you’ll get on base. Let me know what you think.
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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Five Words That Will Injure Any Sales Call
The key to being successful is sweating the small stuff. That comes down to the very words that you use. That’s why I’ll always encourage you to paint persuasive word pictures for your clients.
But don’t stop there.
Avoid those words that raise flags for buyers and sellers. Words that paint ugly, bad pictures–albeit, stereotypes–of salespeople.
Following is a list of Tom Hopkin’s “Thou shalt not say” words. Words that generate pictures of sleazy car salesmen, images of big city political hustlers. Words that put prospects on the defensive, out of the buying mood.
“Cost” or “Price.”
Here’s what your client sees when you say these words: Money leaving their wallet. Instead, say “total investment,” which creates a picture of putting your money to work.
“Monthly Payment”
Picture of bills. And they already have too many of those.
Instead, say “monthly investment.” Again, a picture of putting your hard-earned dollars to work, which everyone enjoys hearing.
“Sell” or “Sold”
Picture of being pushed or pressured. Think telemarketers and resort sellers.
Instead, say “get involved with” or “helped you acquire.” Pictures of participation and benevolence. Big difference here.
“This Will Be a Good Deal.”
(Personal pet peeve of mine.) Picture of back office, city politics. The pool hall deal. Used car lot negotiations. It’s got corruption written all over it.
Instead, say “opportunity.” “This will be a good opportunity.” Ah. Need I say more?
“Just Sign Here.”
You’re client or prospect sees you holding them hostage to an agreement–forever. Will spook even the most seasoned home buy, I bet.
Instead, say “endorse,” “authorize” or “approve the paperwork.” Pictures of you in the driver’s seat, you with the power.
Conclusion
Remember: a successful sale is made up of dozens–if not hundreds–of smaller parts. Success comes together like a deliberate, systematic arrangement of jigsaw puzzle pieces.
That means the words you use are just some of those parts. A tiny part, yes, but could be the very hinge that closes the door on your “opportunity.” Let me know what you think.
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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Another 5 Essential Tricks Every Agent Should Know
Recently during a conversation someone turned up their noses when I mentioned Cialdini’s book, Influence. It took me off guard. To make sure I read them correctly, I asked them if they read it.
“No” was their response.
Interesting. I asked why not. Their answer in a nutshell: Persuasion is for crooks.
Now, some people use influence or persuasion to take advantage of people. Yes, that’s true. So it puts the idea of selling, marketing and persuasion as evil into people’s mind. Puts a bad taste in their mouth.
And yes, of course, persuasion has been abused throughout history. And will continue to be abused.
But there are plenty of legitimate persuasion techniques. In fact, I think when you are chasing down the right things for people and working for their good and you have their best intentions in mind…you owe it to your client to be persuasive.
So building upon a previous post, I’d like to to share 5 essential persuasion tricks with you.
1. Authority Head Nod
Often all you really need to get somebody off the fence is to give them a suggestion from an authority figure. In your case, this could be the house inspector. A lawyer.
As Hogan and James say in their book Covert Persuasion, “A suggestion from an authority figure can often override a person’s visual memory to create a new and different memory.” In other words, people think differently, depending on who’s talking. Magic happens when you quote someone in power.
2. Agree with Their Point of View
People instantly resist what they don’t believe, so the moment you sense someone pulling back, affirm their point of view. You may have to find out first what it is that’s causing them to withdraw. So discover their belief and let them know you agree with them. They’ll be in a more flexible state of mind.
3. Avoid Verbal Commitments
Let me qualify this.
When I say “avoid verbal commitments” I mean commitments that you will want your client to change later. For example, avoid having your client state which home they want. If you do that, then you’re going to run into the problem of consistency, which basically says that people, aware that they’ve made a public stand, will hold tight to that stand so as to appear consistent.
Consistency in behavior is good, especially in difficult or tense times…and is the biggest part to influencing people. But don’t over do it. You may end up with a stubborn client when you don’t want them that way.
Granted, this may have happened to you before. It might happen in the future. The key is to learn from it. Keep your eyes open.
4. Limit Choices
This is an oldie, but goody, especially if you want to hear more “yes.”
Copy writing legend John Caples was one of the first advertisers of catalogs to point this out when he discovered that ads that limited choices massively out sold ads that offered too many choices.
The problem with too many choices is that the mind can go into overload. People get confused with too many choices and when they get confused–like me–they walk away. Not good.
So, define a very narrow number of choices. But don’t withhold relevant, important or urgent information. Stay way above the table on this. Your goal is to help your client buy a home. The smart thing for them is too limit their choices.
5. Justify Your Requests
According to popular research, the word because can get your copies made faster, get you through airport security without waiting in line, and get your children to behave.
Why is that? Human Factors suggests that we are patterned to accept requests when they are followed by a reason. But sometimes all we really hear because. We tune out after that.
My point is this: When asking your client do something, tell them why. I bet more than 93% more people will agree with you. How do I know? Because Human Factors said so. 😉
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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Follow Up: Why Targeted Repetition Works So Well
As every great agent knows, it’s your consistency that will make the difference in making any follow-up program work. Even if you borderline on obnoxious.
Understand, I don’t mean you have to be a jerk…but you may have to be that agent who refuses to “take a hint”.
If someone calls you–whether via your 800 hotline call capture line or simply your office phone–they are indicating that they are interested. And if they are interested, its your duty to follow up with them to see whether they need more information.
Here are a couple ways of doing that.
1. Create a policy with yourself or your team to make hotline follow-up calls in less than thirty minutes.
2. Write, rehearse and memorize follow-up scripts. This alone will help you lower your call reluctance.
3. Capture every prospects’ home address over the phone. Even if they have all the information they need, ask them if it’s okay to get their home address so you can mail them a report or article.
4. Plug all prospects who are farther out in the buying or selling cycle into a monthly service newsletter like Service For Life.
5. Flat out just keep calling to get an appointment.
6. If you get their voice mail, leave a provocative message: “Hi Cal. Listen, I have a copy of your home listing from the MLS and have a question for you. Could you call me back at…” But be careful: your question better be honest. The last thing people want to be bothered with is a bait-and-switch question.
Without argument, the agent who is the most consistent with follow-up calls will be the winner. I don’t think anyone would disputte that.
And the best way to build consistent, targeted repetition into your individual program is to schedule it. Do this work the same time each day, everyday and you will find that the consistency becomes a habit and eventually that habit will reap massive rewards. You can bet the farm on that.
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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Make Sure You Know the Answer to This Question Before Your Next Presentation
I don’t know about you, but I think this market sucks. I know people who are flailing. I know people are are failing.
You probably know some people, too. Maybe you’re flailing. Or even on the point of bust.
Whatever your situation, good technology and talent can help you endure a tough market. But that alone won’t do it.
You also need a good attitude. No…you need a super attitude. A superstar attitude. Let me show you what I mean.
Superstars don’t think like everyone else.
“The average person has 2,000 to 3,000 thoughts a day,” says Jim Fannin, performance coach for big name ball players like Alex Rodriquez. “And 60 percent of the average person’s thoughts are in chaos.”
How many thoughts do you think the superstar has? The superstar, says Fannin, has 1,100 to 1,300 thoughts a day. How do they do that? They eliminate worry, envy, jealousy, embarrassment and anger.
The superstar thinks a lot less. But holds a thought longer.
Here’s my point: Most of your thoughts don’t matter. Most of your thoughts are of the “Air conditioner just started” and “Breeze is cool this morning” breed.
And because of the randomness of some of your thoughts, you probably don’t focus on any of your thoughts. And that’s a problem. Let me explain.
If you ignored all your thoughts, you could miss out on great ideas when you have them. Like taking that much-needed vacation or placing an ad in that new homes magazine.
Worse, however, is when you focus only on your negative thoughts. This can literally cripple you at the negotiating table, the listing appointment or even at the cocktail bar.
My question for you when approaching any situation is this: where are your thoughts pointing? Are they surplus or scarcity?
Scaricity thoughts look like this:
“I don’t deserve this listing when I’m going up against that agent.”
“I bombed my last presentation. I’ll probably bomb this one.”
“If I don’t get this seller, I’m sure to foreclose on my own house.”
On the other hand, surplus thoughts look like this:
“I deserve this listing.”
“I can’t wait to deliver a killer presentation!”
“I love real estate and the thousands of opportunities to make thousands of dollars!”
As a rule, never believe your negative thinking…especially if it limits what you think is possible.
If you tend to be a scarcity thinker, stop right now and admit that your habit of thinking needs to be changed. You’ll need to do this because just being aware of limiting beliefs and thoughts is a major step in the right direction. And awareness alone can be curative.
Then begin to work on affirmations like the ones above in the surplus category. Also simply doing something different that counters limiting thoughts can work wonders.
For instance, if you typically avoid or neglect selling situations, hunt them down. And throw yourself at them. You’ll be amazed at the level of confidence you gain from simply doing something you’ve always dreaded. Even if your initial results are less than you expected. Practice makes perfect.
Only when we weed the limiting beliefs from our subconciousness is it possible to plant the seeds of new beliefs.
And new beliefs are the pathway to prosperity. Abundance. Surplus.
To help you on your new journey, we recommend you pick up two classics: Awaken the Giant Within by Anthony Robbins and Think and Grow Rich by Napolean Hill.
Both can be read in a weekend. And both will have you climbing the walls…hungry to make big money.
Did you find this article useful? If so, leave a comment. And if you like what you read, subscribe to the Real Estate Marketing Blog.
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How to Make Emotion Your Most Potent Advertising Weapon
Why is emotion so important to your advertising? In the end, every decision–to list, to sell, to buy, to call–boils down to how a decision makes a person feel. Let me explain.
Take the calculated, number-driven investor. She won’t invest in a condo unless the numbers make sense. If the numbers do make sense, she’ll invest. However she wouldn’t be investing in the first place if she wasn’t driven by competition, power, pride or financial security for her family–all emotions.
So, here’s a short, shrewd list to help you put powerful emotion into your advertising.
Focus on Them, Not You
“I Am the Greatest Agent” creates a ho-hum reaction at best. Instead, tell the reader what’s in it for her, not for you.
Stir up that desire to own a bigger home if the family is out growing the current one. Stoke that sense of power that goes with driving into a prestigious neighborhood. Fan the flames of romance behind a nice cottage on the foothills of the Alleghenies.
Focus on Benefits
Why should someone list with you? “Quality and service” is not an answer. “To sell your home for the most money, in the fastest time and with the least hassle” is.
But this is not enough.
Focus on Details
Explain to them exactly how you will accomplish your goals. “I use proven techniques to bring more buyers to your door.”
Then define those techniques. Being very specific–down to the tools and tactics–engenders confidence in your prospect. Yet, continue to be specific after they’ve become a client. Your job of building confidence never ends. Be detailed the whole time.
Focus on Active Voice
The active voice is usually more direct and vigorous than the passive. “I will sell your home for more money” is much better than “Your home will be sold for more money by me.”
Focus on Curiosity
“I will sell your home for more money by creating a bidding war between buyers based on a marketing strategy that blends psychological triggers and unique technology.”
Who wouldn’t say, “Oh yeah. How exactly are you going to do that?” Curiosity is a universal attention getter.
Conclusion
Craft your ads and presentations and even your casual encounters with people using these five tips and I’m certain they will have the type of emotional appeal that will add a powerful punch to your marketing.
You’re bound to generate lots of interest.
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Five Proven Tips to Help You Negotiate in a Buyer’s Market
Before the dismal collapse of the housing market, negotiation skills weren’t quite as important as they are now. In many cases, all you had to do was put the house on the market with a reasonable price and get out of the way.
Things have changed. And aren’t supposed to get any better soon.
What you’re looking at now is a more traditional market where buyers have their share of homes to choose from. That means the negotiation game among you buyers has reached a new level of importance.
Here are four tips to help you negotiate in a buyer’s market.
1. Be Informed
I can tell you without exception who always wins in a negotiation—the one who has the most information and uses it wisely. It’s the one tool that’s imperative in any negotiation. Information leads to the right price for a property. It puts details in perspective. It lessens tensions. And it keeps emotions in check.
Take away: Burn the midnight oil and do your homework.
2. Don’t Lower Your Commissions
This is a key point…because in a buyer’s market, many, many REALTORS® automatically put their commissions on the auctioning block.
But if you lower your commission to get a seller’s business…what does that really say to the seller? That you’re easily willing to come down on price—not what a seller wants to hear!
3. Handle Offers with Care
Never flat out reject an offer. Sure, you’ll get offers that you simply can not accept…and that you might even find insulting…but be careful and tactful with how you respond to those offers.
You’ve done your homework to arrive at the asking price, so explain that to those who make offers instead of a flat rejection.
4. Keep a Positive “This-Will-Work” Attitude
Imagine how comfortable you’d be on the operating table with a surgeon who’s sending out vibes that things might not pan out. You’re confidence in that surgeon sinks. And you want to get the heck out of there!
So, in all situations, focus on solutions and persist without exception. No matter how bad things get, think creatively. There really is a solution to every problem. And if you persist and emerge with a solution to a seemingly impossible situation…you’ll look like a super hero.
This is hard. Cause it will take time. You may look like a fool but keep begging for more time.
5. Ask for Help
At any sign of trouble, go for help. Ask an expert, mentor or coach what you should do in a sticky negotiation situation. Better yet, hook up with someone that will support you and ask them to commit to being available for help.
Best yet, hook up with two people: someone from real estate and someone from a different field. The person outside of your industry will be able to give you fresh insight never heard of before.
Did you find this article helpful? If so, leave a comment or subscribe to the real estate marketing blog.
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Resurrect Your Real Estate Blog: The Best Idea You’ll Ever Hear
Let me ask you a question: Got a blog yet?
Maybe you do. But it’s languishing. No hits. No comments. No subscribers. That’s a good indicator you’ve got a lackluster yawn-fest.
So, without even looking at your blog, I can guess what’s wrong with it. It’s one of three–if not all–of these factors:
1. You don’t care.
2. You’re not very good.
3. No one is listening.
And if you’ve been at real estate blogging for any time, you probably have said this to yourself more than once in the last 24 hours: “Why am I working so hard on this thing? What’s the deal?”
Again, without looking at your blog, I could probably tell you what’s wrong with it: It’s all about you.
If that’s the case, then you can kiss prospects, subscribers–and even clients–good bye. Bottom line: you build an audience, attract prospects and generate comments from consumer-focused content.
With that thought in mind, here’s one of the most brilliant ways to do that: Write short, meaningful posts about people in your community.
In essence, become a local journalist.
That means, every time you are in the car, on the phone or in a meeting with someone…find out something interesting about them. And then ask them if you can blog about them. Keep a notepad and build up a pool of stories.
Once you start posting these stories, email the person to let them know. Then naturally they tell all their friends and family. Pretty soon you’ll have a large swath of people eyeing your blog to see if they made it on there yet.
In fact, you do this good enough, and strangers will go out of their way to meet you, hoping you “interview” them.
Why is this effective? Because people like to see themselves in print. Let me explain.
I got this idea from the book Made to Stick, where Dan and Chris Heath tell the story of a city newspaper that had a readership rate over 100%.
Over 100%? That means people outside of the papers base read it. That’s incredible.
What’s the secret to their success? The editor summed it up in three words: names, names, names. He and his reporters focused on the people of the town–their dreams, ambitions, families, jobs, fears, desires, hopes and lives–not the events.
That means you should do the same. So…what are you waiting for? Get to work.
Did you find this article helpful? If so, leave a comment or subscribe to the real estate marketing blog.
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