How to Build a Real Estate Business That Grows Itself Consistently Every Year
The focus for the majority of new real estate agents is client acquisition and getting business off the ground.
It’s a faze that everyone goes through but not everyone emerges from.
What’s the difference between the top producing agent who grows their business year in and year out and the agent who stays stuck at level one?
All top producers understand that what you do after the transaction is just as or more important than what you did to obtain that initial client.
But what could possibly be more important than client acquisition??
The answer is…
As the great Jim Rohn one said “the fortune is in the follow up”.
Let me give you a quick example to explain as we review the life-time value of a client and the importance of turning clients into raving fans:
Let’s say you help a client buy their very first home at 200k purchase price and take home 1.5% after all expenses and splits.
This transaction puts a whopping 3k in your pocket.
The majority of agents take the money and run without even considering the gold mind they have tapped into.
I know you may be thinking, “Well 3K isn’t much of a gold mine.”
However, if you kept in touch with that client over the next 5 years and managed to gain just 2 referrals over 5 years from that client (many agents will get way more than 2 referrals over 5 years) at a sale/purchase price of 200k…
Well now that 3K relationship has grown to 9K in profit.
Here’s another relevant example:
According to NAR most people move every 5-7 years and obviously this may vary depending on market but that’s the national average.
If you do the proper follow up and stay top of mind with your client, you are going to earn the business on their next transaction.
This time because you get the buy and the sale side so you earn another 6k in profit.
Add on another 2 referrals over the next 5 years and that client relationship has grown from 3K to 21K in your pocket…
Over 10 years that one client has turned into 4 referrals (conservatively) and 3 transactions directly, 21K in profit all sparked from one transaction!
If you can manage to cultivate just 5 relationships like this per year over 10 years you would bring in over 1.25 million.
Can you see the bigger picture?
That’s averaging more than 125K in income each year.
You do all the hard work of earning a client, why would you leave the majority of profit on the table?
Here’s the key factor in making this a reality in your business:
Convert your clients into raving fans.
A client is someone you worked with that is subject to use another agent on their next transaction….
A raving fan is a client for life.
Clients will move on while raving fans would never think of using anyone else!
So how exactly to do you turn a client into a raving fan?
Do you just call them once a quarter? Will sending a post card during the holidays create raving fans? How about a calendar before the new year will that do it?
Post cards, calendars, and the occasional check in call will help stay in front of your client but it won’t create a raving fan.
How about doing a good Job for your client? Surely doing a good job will create a raving fan right?
Sorry though, but most agents do a good job and very few cultivate a culture of raving fans.
As a matter of fact NAR did a study and found that after a home purchase 80% of people said their agent did a good job and that they would reuse them again however only 12% of people actually did.
A raving fan will not only recall your name quickly, but they actively advocate for your business when you’re not around….
These are the people that bring you business, the people that are loyal to death do you part!
Here are 5 big secrets for creating a client base of ravings fans:
- You vastly exceed their expectations.
- You bring them more value than they ever pay you for.
- You express gratitude and appreciation on a regular basis.
- You surprise them with custom made gifts to celebrate their one year anniversary.
- You don’t just call to check on them you call them to invite them to a special party you are putting on just for them!
Going the extra mile at while they are working with you and long after they close.
You invest time, money, and energy into maintaining the relationship just like you would with a friend or family member.
If you’d like to learn more about ideas to stay in touch with your client throughout the year with powerful gifts and messaging that help cultivate a culture of raving fans…
A) Get a meeting with a top producer in your office.
B) Get in touch with us at Cutting Edge Gifts today!
P.S. If you’d like to check out some of customer testimonials, you can click here.
To stock up on your gift supply email or call!