Are You Using These 4 “Second Glass” Tactics to Make More Money?
Most real estate agents tend to think about making money in the business as simply closing more transaction. They think about it in a very linear fashion, where you find a home owner who wants to sell, you convince them to let you list the home and then you advertise the home in the hopes that it will sell.
That’s the way an average listing agent thinks.
The average buyer agent thinks about it in terms of finding people who are looking to buy a home, convince them to let you help them do that, find a home and close the transaction.
The average agent then starts searching for the next deal. And that can lead to some serious issues, like burnout and lack of profitability. It doesn’t have to be that hard because if you just looked at those people you just serviced, you will see lots of potential to grow your business in multiple ways.
In Mark Joyner’s great little book The Great Formula he talks about four “second glass tactics.” Second glass refers to things you can do to sell current clients, which ultimately increases your bottom line.
In a business like software, for example, an upsell might be an offer to upgrade to a premium version of your program. If it’s a small physical product you could offer a larger product.
How would the second glass tactic of the upsell work in real estate? You do have to get a little creative, but here are some ideas.
If you are a buyer’s agent don’t forget that buyer might have a home to sell. More than likely if they are looking for an agent they either don’t have a home or they have a home but haven’t found an agent yet. Make sure you ask!
Another way you could keep revenue coming in is to use a discount model. For a particular price you offer to do a particular part of the job. Prospects like the idea of a lower price and it usually draws in more people who are price sensitive. Once you start working with them and they get comfortable working with you, that’s your opportunity to start asking them if you can do other things for them. If they trust you, they might say yes.
Please don’t abuse this approach. Don’t promise an upsell and deliver substandard work. If you do that you will lose that client quickly. They’ll be glad to get rid of you because they feel like you cheated them and then will spread the news that you scammed them. Don’t do that!
The cross-sell in real estate is a lot like the upsell where you can offer additional services for a fee. Very effective way to build a profitable business, especially in a lousy market. Cross sells differ because the price is not going up for the prospect but going down. In other words, they may be paying you a thousand or two to help them sell or find a house, but you can offer another service that’s for much less.
A cross sell is not an upgrade, but just an accessory. Think about it when you buy a car and the dealership suggests you get a brand-name sound system with the car. That’s an upsell. If you have some ideas on how you cross sell in real estate, please share in the comments below. I love to hear from you!
The Follow Up
This is a very important second glass tactic for real estate agents because it’s tapping into an audience that most agents neglect but it is often very lucrative. I’m talking about past clients.
Why don’t agents follow up with their past clients? It is hard work, staying on top of your contacts and past clients while working long days doing the four productive activities of real estate agents. Trust me, I understand.
But if you use an automated referral system to work those past clients you can nurture them and stay in contact with them as they settle in their new home and talk to their friends and family about how great you are.
If you are giving them a monthly newsletter that makes them feel like you are talking to them, you’ll never lose their attention, and when it comes time to buy or sell again, who will they call? You!
Or they are more likely to recommend you to a friend or family member. Most people ask for recommendations when it comes to mechanics, lawyers, doctors and real estate agents. An introduction is your best part to get that lead.
I also recommend that you actually follow up a week or two after you close with your client. Just ask them how everything went and how it’s going. If you have a customer service survey, send that to them, too. Make sure you give them enough time to get settled, though.
What you are trying to do with the follow up tactic is get people to think about you like they think about a magazine or web hosting subscription. Good subscription programs keep you looped in, reminding you to re-subscribe, making offers that seem irresistible. Continuity is a built-in, guaranteed repeat sales.
The cycle is a lot longer for agents, about seven years, but that’s why your follow up program must be a well-oiled, automatic machine. Even sending a simple email is powerful way to stay in contact.
A true continuity program offers monthly payments to clients. That’s a little hard to do in real estate, but I’m sure there are lots of good ideas out there. If you can think of a way to add automatic multiple streams of income to your business, then you can weather economic famines better than if you didn’t have that additional income.
What Do You Think?
Working hard at real estate isn’t enough. You have to work smart, too. That means thinking creatively about ways to keep business and money coming in. Can you think of some second glass tactics that real estate agents can use?