You'll learn the 7 reasons why you need to work your database with the marketing plan Jeff Glover put in place to go from 100 to 400 deals from his list.
Real estate clients and friends,
Vyral Client Jeff Glover is the #1 real estate agent in Michigan. In 2020, he's doubling down on working his database instead of cold calling and doing very expensive advertising (over $1 million a year!). He was "forced to" because running his business the old way just "wasn't staying profitable".
We're seeing this more and more at Vyral Marketing. We have a record number of past clients coming back after giving up on (or putting less emphasis on) buying internet leads en masse or getting strangers on the phone at scale. It's just getting too expensive and/or competitive.
This is a pretty powerful quote from Jeff....
"Three years ago my business was 'growing', but profits were shrinking. I was forced to shift from a cold calling, advertising model to a relationship-based, database approach. Now, 400+ deals a year come from our database. Profits are also going back up. If you don't do this, too, you'll go broke. I have 7 reasons why. I lost sight of what it means to be in business. Not anymore." - Jeff Glover - #1 Real Estate Agent (Michigan)
He went from less than 100 transactions a year from his database (three years ago) to over 400 this year. In the interview you'll learn how he did it. It involved a very big mindset shift to a relationship-driven business over a transaction-based business. This is not easy to do, especially with an operation as big as his with an entrenched culture around getting the next deal done fast.
Jeff's a sharp guy and is deep in the industry. He started a coaching company to help agents succeed with an excellent blend of the sales/prospecting Mike Ferry message with the marketing/leverage message of Gary Keller.
Glover says there are 7 forces against real estate agent profits...here's what I took from Jeff Glover's Facebook post he made about these and put them here for you.
"If technology continues to improve, which every indication under the sun is showing that it will be, the amount of referrals from the database will decline. According to the NAR Profile of Home Buyers & Sellers Annual Report, in 2018, 55% of home buyers took it to the internet BEFORE reaching out to an agent, whereas in 2011 that number was only 45%, thus reducing the amount of calls from a client in our databases by about 20%..that's HUGE! This happens because today it is easier and more convenient for consumers to just click on a link or swipe on some photos to get more information on a property, thus reducing the need to "bother" their agent with what the consumer may consider non-sense. Well, what may start as non-sense becomes real once they fill out a simple lead capture form and next thing you know they are viewing homes and are meeting with agents to discuss their plans. We've all been there..."Oh my gosh Jeff I am so sorry, I know we have used you for years and we tell everyone about you it's just...it just happened so fast and we made an offer with the list agent because there were multiple offers... Oh my gosh, I also have to tell you that we can't list our home with you because they gave us such a deep discount to list with them and we would never have asked you to work for peanuts!" Anybody but me ever been there before? If you're full time in the business, you've experienced something similar a time or two. This scenario all started because technology got in the way."
"As the advent of I-buyers continues to take shape, here's another black and white reason why the business agents receive from their database will decline. It's pretty simple math if you ask me...think about it...they can sell with you and get 98% or 97% percent of their asking price, which you would probably claim is market value or close to it and these i-buyers are coming in at 88-92% of value. Back out the 5-7% commission and voila, the sellers end up within just a few points of what a full service brokerage could net them. How does this affect repeat and referral business? The answer is simple: Many consumers will now, just out of pure curiosity, reach out to one of these institutions (or Real Estate teams/brokerages offering them) just to "see" what they could get in an instant offer and next thing you know they are signing paperwork to sell their home to them, thus reducing the amount of calls from a consumer to a Real Estate agent, which ultimately will affect the "golden rule" in a negative way."
3) DIY'ers increasing
"Take a look back over the last ten years, in nearly every industry, there has been this sentiment of "I can do this on my own now"...why is that? Well, some would suggest technology makes it easier (especially in our industry...think fsbo.com, Zillow make me move, youtube videos) but also because today's consumer is more savvy than they have ever been. A savvy-tech enabled consumer can now take matters into their own hands (not without risk of course) and complete tasks that they would NEVER consider doing on their own, such as selling a home or not working with a buyer’s agent and going straight to the listing agent. So who makes up the majority of DIY'ers? According to most reports, including one from the Home Depot and Forbes, it is the Millennials."
"Despite all the reports saying that millennials aren't buying homes and they are still living in their parents' basements, this generational group will present some real issues for loyalty from our database. According to NAR, millenials make up the LARGEST generation of home buyers today sitting at 37% of all home purchased in 2018. What does this have to do with negatively affecting the return on our database? The answer is simple...for the most part, this group is already used to trusting apps and online processes for buying and selling merchandise and it's only a matter of time before they trust the latest and greatest home selling or home buying app (and this is already happening). We hope to have some data to prove this once we get into 2020. Nonetheless, a 28 year old male or female who once may have taken their parents advice of which agent to use are now relying on agent reviews online to choose an agent and a certain percentage, maybe while searching agent reviews, will click on links to services that will assist them in buying or selling in non-conventional ways."
5) Online Reviews
"Speaking of online reviews...many consumers today are utilizing sites like Homelight and Angie's List to "check out" the reviews on an agent they were using in the past to see if it is safe to still use them again. During this process, they fill out a form and next thing you know, they are receiving solicitations from every agent in town asking if they'd like to meet. All it takes is one or two a year to do this and end up with another agent thus costing you a sale from your database that would've otherwise landed in your lap."
6) Customer Experience
"As we head into the new decade there's something we need to know about today's customer. Their expectations of a great experience are higher today than they may have ever been. According to a 2018 survey from Gladly, the consumer experience is affecting a consumer's recommendation of the service provider now more than ever. We had a challenge in our business four years back...our business was growing rapidly actually. We were closing about 650 transactions as a team after closing around 500 the year before. The challenge was not that our business was growing too quickly, the challenge was that we were growing and our profits were shrinking. Because of this, I brought in a consultant from outside of the industry to peel all the layers of the onion off of our business and what she discovered is that we were a very "transactional" company, meaning our focus was on driving leads and driving sales and it was NOT on the customer experience. It was at this moment where I learned that customer service is what they pay us for and what they expect and the customer experience is everything above and beyond what they expect and pay us for...and that is what leads to repeat and referral business later."
7) TCPA & DNC Laws
"Although the do-not-call laws are over a decade old, we are just now starting to hear of agents and brokers being targeted by law firms that specialize in seeking out individuals on the DNC list who have been contacted by Realtors. These law firms are finding consumers who are willing to say that indeed they had been contacted in exchange for some type of settlement. Based on my research, what seems to be heavily scrutinized right now is the use of multi-line dialers, mass texting services and direct to voicemail services to those with a phone number registered with the FTC. The increased awareness of these laws are causing agents and brokerages to be more cautious when using services such as the ones mentioned above to reach out to their databases. Why is this affecting the "database formula"? Here's why...the term "work your database" has long meant calling them, seeing them and adding value to them. Well, if the laws change the way we reach out then it will change the ratio of contacts to appointments set, gone on and so on."
All of these forces have lead Jeff's real estate team to reconnect with their past clients, sphere and leads in a deeper way. Jeff shares his database marketing plan in the interview.
It involves direct mail, appreciation events, phone calls to only deliver value, and email communication. We do most of that for you at Vyral Marketing on our core marketing plan.
Jeff also comes from a hard-core prospecting background where you track dials, contacts, and appointments daily (usually by the hour). One of the big things he put in place was adding question #5 (below) to what he tracks. I recommend you do this, too.
- How many dials did you make?
- How many contacts did you make?
- How many appointments did you set/go on?
- How many contracts were signed?
- How many people did you add to your database?
For example, if you make 10 contacts a day and you're able to take one good conversation (name, phone, and email), you can add about 250 contacts to your database within a year.
If you stretch that over four years, you’ll have 1,000 contacts in your database. Jeff then shares, again, his database marketing plan to bring value to them in the interview.
So, enjoy! It's good stuff!
We're going to be at Jeff's event coming up, too - it's a perfect fit for us. It's 3 days of nothing but how to compete against these 7 forces by building and working your database. Jeff will be sharing everything he does so you can model it, too. The entire event is on how to better work your list.
Come join us at the Live Unreal Summit on January 6th, 2020 in Orlando, FL.
You can get your ticket here: https://www.liveunrealsummit.com/
See you there!
Frank Klesitz, CEO