How To Sell Effectively AND Honestly For Big Results
Today we’re going to be focusing on one of the most fundamental elements of real estate (or any business, for that matter): sales.
Every real estate investor knows that sales are the cornerstone of success, but reaching one’s goals can seem like an impossible challenge. For many investors and entrepreneurs, they focus too much on the intricacies of real estate without realizing that sales are far more valuable.
In this video, I’m talking with a recent REI Vault member, Alan Weeks. Alan comes from the online and affiliate marketing world, but he recently switched to real estate within the last year. He’s only been with us for two months, but being a part of our team has transformed the way he approaches real estate and how he’s shaping his financial future.
Alan and I go over some of the different aspects of sales and marketing – what works, what doesn’t, and what you should be doing to get to where you want to be. Alan is a motivated and smart guy, and although he’s faced some struggles along the way, I know that he’s just about to cross the finish line and make gold.
I want you to have that experience too, which is why I’m sharing this video. I’ll go over some of the juicy highlights that we discuss but be sure to click the link and watch the whole thing so that you can absorb everything we talk about. There are some real nuggets in here, and I want to make sure you don’t miss any of them.
13:51 Marketing and Sales is a Numbers Game
One of the things that most people get wrong about sales and marketing is that you have to convert every lead into a sale. All too often, business owners and entrepreneurs work on crafting a can’t-miss pitch and then get frustrated when they are turned down time and time again.
Yes, striking out can be frustrating, but it’s a natural part of the business. When you look at the top salespeople in the world (regardless of industry), their close rate is probably about 30 percent or less. That means that out of every 10 people they talk to, seven of them will walk away without buying.
Thus, sales and marketing aren’t about developing the perfect pitch – it’s a numbers game. If you have an average conversion rate of 10 percent, then you can work with that number. If you want to close two deals in a month, then that means you need to talk to 20 leads.
If you can improve your conversion rate, that’s awesome, but make sure that your numbers are dialed in to ensure that you make your goals. Overall, if you can quantify your objectives and break them down, it’s far easier to reach them.
For example, if you have to talk to 20 people to get two sales, then how many offers do you have to make to get those 20 people? Realistically, you could have to send out 200 or more mailers a month to get there, but once you find that number, success is merely reaching it consistently.
16:15 Come into Each Deal with an Empathetic Heart
When it comes to buying properties in real estate, everyone assumes that you have to find motivated sellers. These are people who need to sell the property immediately for whatever reason, so you swoop in, make a reasonable offer, and get the deal done.
However, in my experience, it’s far better to focus on reasonable sellers, as well as try to understand them.
One aspect of sales that I know can be jarring at first is getting angry calls from people. It happens all the time. Someone received a direct mailer asking to buy the house, and the person feels offended that we would do such a thing. Perhaps the owner is elderly or sick, and it looks like we’re preying on them.
Getting those calls can be a little overwhelming at first, but usually, those are your best clients. Why? Because they’re not really angry at you. Instead, they’re mad because they’re faced with a particular problem and no easy way out.
As a buyer and as a real estate investor, you should be looking to solve those problems. Be empathetic to the seller’s situation and try to understand where he or she is coming from. Once you do that, it’s far easier to make a deal because now you’re not just a businessman trying to buy a property – you’re helping someone in need.
Overall, reasonable sellers may take a little longer, but you’re going to get a far better deal. I recently had a woman who wanted $750,000 for her house but wound up selling it to me at $410,000. Was I conning her or tricking her into a lower price? No – it was a process of working together and coming up with a solution that satisfied both of us.
I talk briefly with Alan about a book called Never Split the Difference, which was written by a hostage negotiator for the FBI. While I won’t get into the meat of the book (since you should read it yourself), one of the key points is making a deal like your life depends on it. Splitting the difference doesn’t do you any good, and you could wind up hurting yourself and your business in the process.
19:53 – Three No’s Equal a Yes
Let’s say that you’re talking with a seller and you make an offer. Immediately, he or she accepts, and you’ve closed the deal. At first, this may seem like a good thing – instant gratification. However, as someone who’s experienced in this business, you want the seller to say no at first.
Here’s why: if a person accepts your first offer, that usually means one of two things. First, you overbid, meaning that you’ll pay too much and lose out on your profitability. Second, there’s something about the property that could bite you later on.
When it comes to sales, people buy on emotion and then use facts to justify the decision. In most cases, sellers will float a high price because they’re hoping that you’ll say yes immediately. However, that’s mostly a smokescreen covering up the seller’s true motivations or intentions.
Instead, it’s far better and more productive to make an emotional connection to the person so that you can find out what’s really going on and make a deal that works for everyone. Getting no’s in the beginning is part of the process. As long as the seller is still talking to you, anything is possible. Never assume that a lead has dried up until that person has sold to someone else.
21:12 – Keep a White Board of Your Top Deals and Leads
Another pitfall that plagues many entrepreneurs is that they get too busy in the details of the operation. It’s so easy to fall into a rabbit hole and lose focus, and that can kill your momentum and your profitability.
One of the best ways I’ve found to ensure that I stay on track is to have a list of my top five deals (the ones closest to closing) and the top five leads. Before I do any other work, I look at what I can do to move the needle forward on any one of them.
There are so many different aspects to this business that it’s hard to keep track of everything. However, taking this kind of approach ensures that you’re always focusing on items that will help your bottom line. Whether it’s making another call to the seller, following up on a lead, or sending out more direct mailers – as long as you’re moving that needle forward, you will find success in the end.
See if You Qualify for REIvault
We have tons of other sales nuggets in the video, but one of the best ways to maximize your potential is to utilize our services. We make it easy to reach new sellers and follow up with leads, thanks to our dedicated team and our streamlined marketing process.
However, REIvault isn’t for everyone, so it’s imperative that you have the same drive and the same spirit as we do. In the video, you can get a sense of Alan and his motivations, and he’s a perfect example of a real estate investor that we want in our network.
Click here to find out more about what we offer and see how you can benefit.