Real Estate Sales Tips From A Marketing Guru
Hey guys, Gary Boomershine again, and I have another high-quality video from the Real Estate Investor Huddle. In this episode, I’m talking with Alan Weeks. He’s a former online marketing guru turned real estate investor, and we discuss some of the different challenges he’s faced on the road to success in this industry.
Most of what we talk about in this episode are related to sales, but I wanted to share some nuggets of wisdom and how they can apply to growing your real estate business. As any investor will tell you, the key to making it in real estate is learning how to manage your sales. Technically, that’s true for any business, but these highlights illustrate how to make that mentality work for you.
13:50 – Sales is All About Numbers
When you think about growth for your business, what exactly does that mean? More deals, more properties, more sales? Regardless of what you’re trying to achieve, it’s imperative that you have the numbers to back you up.
In the video, I tell Alan that one of the secrets to good sales is to recognize that you’re going to strike out more often than you’ll land a deal. Even in competitive retail sales, the best people are going to have a 20-25 percent close rate.
So, with that mentality, growth is all about boosting your numbers. If you want to add more properties to your portfolio, figure out how many leads it will take to get there. For example, if you have a conversion rate of 20 percent and you want to add two more properties to your business, then you should only have to talk to 10 sellers.
Realistically, your numbers are going to be way lower, but once you accept that most people are going to decline, it’s much easier to look at from a more objective point of view. Simply increase your marketing campaign, get more leads, and try to boost your conversion rate. Once you start down this path, growth is inevitable.
21:12 – Track Progress on a White Board
Another reason why so many real estate investors fail is that they take too much time focusing on the wrong things. Everyone thinks that they have to reinvent the wheel to stay competitive, but that’s rarely the case.
One way that I stay focused is to write down my top three leads and my top three deals that are almost ready to close. Before I start working on anything else in my business, I figure out how I can move the needle forward on one of those projects. I don’t have to move them all (that would be fantastic), but I need to move at least one. Whether it’s following up with a lead, sending paperwork to a buyer – whatever it is, I make sure that I do that first.
By taking this approach not only to your daily operations but to your business as a whole, it’s much easier to achieve growth faster. It’s way too simple for investors to fall down one of many rabbit holes that pop up in this industry. However, if you’re wasting time chasing down people or deals that won’t lead anywhere, you are doomed in the long run.
27:25 – Build Mini Relationships With Clients
I’m not going to lie – real estate is a highly competitive industry. Right now, since we’re still in the twilight hour where everyone and their mom is getting into the business, there is more competition than ever before.
However, you don’t have to try some slick new gimmick or develop a flashy sales pitch. What I’ve discovered as the surefire way to close deals is to make it personal. I tell sellers my story, and I try to help them solve a problem. Even if I’m not the person they wind up selling to, my goal is to provide some kind of positive impact on this process.
For Alan, this mentality goes a step further since he adds a philanthropic element to his business. He’s not just in real estate to make money, but to help out those in need. By telling his clients that, they are much more willing to sell to him than someone else who is merely looking to make a quick buck.
As far as growth goes, a personal approach to the business is going to serve you well in the long run. When sellers are getting hit from all angles, they are going to come to you because you built a relationship instead of treating them like a product.
Join REI Vault Today
We have plenty of other nuggets of wisdom in the video, both on sales and growth, so be sure to check out the rest. Once you’ve finished the video, I highly recommend that you go to reivault.com to see about joining our team. We’ve developed a network of motivated real estate investors, and we can assist you in growing your business. Contact us today to find out more and to get started.