I've been reading alot on the forum over the past several weeks absorbing all I can. There are many opinions by different people on how to operate your business. Some believe in farming, others go door to door, others work the phone. Some combine them all in addition to a great web presence. What I haven't heard is why there are so many dropouts in the first year. What are these people doing wrong? My guess is that homes were selling like crazy around them at one time and they decided it must be easy to sell homes and make a killing. Obviously, reality set in pretty quickly. I also suppose they didn't realize that real estate is hard core sales and prospecting and they weren't ready either financially, physically or emotionally.
What were these agents doing to cause them to fail?

They think it's easy. They believe that the business will just come. They don't realize that they have to go out and get the business.

They don't get organized and create a business schedule designed to make contacts that they then stick to.

They spend too much time at the office.

They surround themselves with other agents who are not getting anything done.

They are lazy.

They are afraid.

People get used to being told what to do and when to do it. The rugged individual has been breed out of us by a system that needs folks to tow the line and do as their told by employers. You kind of have to reverse that dependent mentality and face the fact that the only time really good or amazing things are going to happen for you is when YOU make them happen.

What is that statistic you hear now and then about the percentage of folks that were self employed 110 years ago versus today? It's something like 80/20 in favor of self employed folks back then and today it is reversed.... something like that.

Anyway, I think the biggest thing that will cause folks to fail is refusing to take responsability for their success and/or failure. If your constantly blaming others because you are not getting any business, then your never going to learn what you need to change about your approach to get it right.

Anyway... that's my 2 cents.

R

Robert, I think I read in one of your posts that its really important to press the flesh with 10 to 20 people a day. That makes sense to me. Do you or did you go door to door in a neighborhood and introduce yourself? Wouldn't that be one way of working a farm?
I'm thinking of doing that once I get licensed and giving the people a copy of my newsletter and then ask if they would like to be on my email list. This would be an effective low cost approach, I think.
Also, I am guessing that the best time to go door to door would be early evening when most folks are home...

I am a road map of the "tried everything but the stuff that works" farming methods.

It was not till I started getting out, shaking hands and meeting people that things turned around for me.

Yes, go door to door. Pick a combination of streets. Do a market analysis for that area using only those homes. By using streets names and addresses they now, it is more relevant for them. This can be part of the packet your giving them. You will give them one of these every time you walk that farm. Do this AT LEAST once a month. Try to do it at around the same time each month. So if you have a big farm, maybe it takes you 5 or more days to walk the whole thing. This does not mean your walking from 9AM till 5PM. Go for at least 3 hours but not to the point that your pooped... being pooped does not help with your charm at the door.

Whatever you do, you need to pick a foundation set of things you do. For me, knocking on doors and shaking hands feels like the right foundation. As your business evolves and your getting more referrals and your starting to "Own" a certain area, you can step back a bit on the walking. At least, that is what I do. But then I am balancing personal and professional life - so my idea of success is making what I want to make with the least amount of effort on my part. So if I am making what I want and can sustain it without walking as much, I walk less.

When is the best time to walk your farm? When you will ACTUALLY WALK THE DAMN FARM! I will usually start a farm walk at about 9 or 10 AM. Take a break for lunch, then go back to it for a while.

If the time you know you can make yourself walk the farm is early evening, do it then. I do NOT suggest doing it after sundown tho... or around meal time. That just annoys people.

Just remember to be "That Guy" when your farming. You smile at and say hello to every living thing you pass... hell... say hello to trees at first just so you get in the habit. You walk like where you are is the best place in the world to be. Your on stage, act like it. Don't mistake this for insincere. Think of it as unvarnished confidence. When talking with folks, you need to be the patron saint of straight talk. People can smell bull**** and they tend to avoid it.

In all honesty... I truly hated this kind of farming when I first started doing it. I even had a few false starts that convinced me it did not work.

Just remember that eventually, contacting people is what it is about and it is going to pay off. It may take a while, but stay at it.

The next level would be introducing yourself to people in line with you at starbucks or the bank or the supermarket and handing them your card. Making every time you are in a room with anyone else a marketing opportunity. I can do this *sometimes*. But I am not a master of it yet. It just seems to take one step too far towards "Creepy Guy".

Maybe someday.

R

The "creepy" guy (or in my case "creepy gal" or "annoying salesperson") issue is what has prevented me from going door to door in the first place.

First of all, unless I hit on a neighborhodd that is rich in retirees, no one is home UNTIL dinner time or after. Everyone works and works and works (9AM-9PM) because it is so insanely expensive to live here in the first place. The notion of being home for the kids - forget about it - keeping a roof over everyone's heads is job one.

When they finally do come home, all they want to do is crash or be with their families. Since I do believe that being considerate is a big part of being successful, I am concerned that knocking on doors will only anatagonize people.

Although hardly scientific, I have done some independent "polling" of my family and friends that live in my county - and they confirmed my worries. When I asked people how they felt about an agent knocking on their door and they all said pretty much the same thing: they would remember them so that they would NEVER use them. They consider a door-to-door salesman a parasite and the idea that a real estate agent would need to do this smacked of desperation.

It may be low-cost, but that may well be part of the problem. Low-cost means you don't have the means to do the "good stuff". I also asked what would draw them to an agent. They all said the same things: Fancy web site with very high google ranking, lots of ads in the paper etc. All of them said that unless they saw a high-profile web presence and your name everywhere (VERY expensive) they would not be moved to work with you. When I asked why, my friends just said "Get real, if you have to resort to such high-labor and low-return tactics in order to generate business, then you don't yet have a viable business." They are right about that one. The big dogs in my area never go door knocking. When I say never, I mean NEVER.

My question is this: Door-knocking seems to work in other areas of the country - however, is the prevailing attitude the same there? I'm only asking because having lived in one place my entire life, I just don't know the answer. My gut instinct (which is usually correct when it comes to people) is that around here this kind of activity could actually do more harm than good. However, if most people feel the same way elsewhere, then maybe it does work in spite of what the prevailing beliefs are.

Even if I could door knock in my neighborhood (gated community with big sign in front regarding prosecuting solicitors), I probably wouldn't. I've been a Realtor for 2+ years and am pretty outgoing, but could never bring myself to knocking on a stranger's door in any area. I try to put myself in the other person's shoes, and it wouldn't go over well with me if I were on the other side of the door. Just not my style but I have heard of agents that do well with this kind of prospecting.

[/QUOTE]Even if I could door knock in my neighborhood (gated community with big sign in front regarding prosecuting solicitors), I probably wouldn't. I've been a Realtor for 2+ years and am pretty outgoing, but could never bring myself to knocking on a stranger's door in any area. I try to put myself in the other person's shoes, and it wouldn't go over well with me if I were on the other side of the door. Just not my style but I have heard of agents that do well with this kind of prospecting. [/QB][/QUOTE]

That's the way I feel as well. That's why I mentioned people's work schedules. Before I was doing this I worked about 70 hours a week in a laboratory. When I FINALLY got home, I had been on my feet for at least 10 of the 12 hours I had worked, I had battled public transportation and traffic jams getting to and from work - I was tired and cranky. I wanted to make dinner,walk the dogs, see my friends and COLLAPSE. The LAST thing I needed when I got home was some bozo knocking on my door wanting to talk to me about real estate. I would have remembered them enough NOT to use them to sell my house - EVER. Then I would have slammed the door in his face. I think its just plain intrusive - and I'm pretty outgoing....or so I'm told. I thought that might be just me. When I polled people that I already knew, I got the same response. Yet, on this board you are thought of as a laggard for NOT knocking.

Door knocking is a waste of time. It looks cheezy as well. Maybe if you live in a small rural community, this would be a good idea, but otherwise forget it.

Most of those people who consider selling their home already got 5-10 CMAs from realtors they found on the web before you even show up at the door, so it makes sense to start with the web and the phone.

Btw, web presence can be quite affordable. It would take about a week for any moderately smart person to learn the bare bones HTML and CSS needed to make a website layout. You can also buy a $50 template, with a bunch of forms. What matters on the website is content and no one should be writing that for you. It has to come from the heart, and that's when the site becomes effective.

I'm getting the impression that what works for one may not work for the other. Its also a matter of what you're comfortable with. It seems to me that being successful requires ALL these avenues to some extent and I agree, when I do my research I go to the web first. But there is alot to be said for a real human face and personally I think knocking on doors and really just being friendly with everyone I come in contact with and trying to make them part of my sphere of influence is a way to expand my comfort zone. I certainly don't think people would really ostracize you for door to door marketing--most likely they wouldn't remember your name or face if they are so inclined to slam the door anyways. Also, I think going door to door is very targeted marketing. Nobody expects death, divorce, births and the myriad other reasons people find new homes, but keeping your name in front of them is definitely the key. Most likely I wouldn't do door to door marketing in higher end neighborhoods, but there are many neighborhoods where people are more approachable. These are just my opinions, what I think I will feel comfortable with and definitely does work for some agents that contribute in these forums--heck, I haven't even tried them yet...

I thought of this, and I havent done it:

Instead of knocking door to door, leave a newsletter (that has no RE sign out front). Read my post under Agents/ Brokers: is there something I can do? Pick a time where most homeowners "might" be outside.... Stop by and personally hand deliver to them and start that way. I know that's what I'll need to do to build up my confidence level before stranger's doors. Then for my neighbors whom I know, I'll ring their door bells too.... I was Buyer's agent for my neighborhood for 5 houses (my best record in 1 community). Introduce myself as a neighbor to my neighbor instead of the "salesperson" image. I watch every transaction in my neighborhood and basically every transaction in my "town".

The problem in bigger cities is you just burn out hand delivering notes. In some neighborhoods, half the homes are rented, so your efforts will be wasted as well. I have yet to see a neighborhood where people are just sitting around outside in the evening and willing to talk. That kind of utopian version of suburbia hasn't existed for a long time.

The other point is good, trying to be friendly with everyone you come into contact with. I would also fisit FSBO homes when they have open houses and just chat with them, no pressure, point them to your website.

Buyers can be targeted with mailouts to apartments.

My point of view may differ.... Even if it's a "tenant", it's about meeting them. For me (and my way only, may not work with everyone) it's about establishing a genuine relationship. When they are ready, you could be the first they think of. Sure, it takes a long time, but those are the types that I think are lasting.... I have walking/ talking happy clients and real friends that can do a much better job than I can, talking about myself. No matter who well I can farm, or work any buyer/ seller, I think coming from a referal or a recommendation of a friend means alot..... They are credible: their experiences with me, and their leads are more likely to be credible too (it's a matter of time).

They might not be in the market to purchase yet. But a solid friendship can begin. Also, it's not about whom I know directly. It's also about whom they know. In this day and age, I'm sure someone knows someone who is in the RE market. That's how I plan to market myself - to go out to meet more people and through relationship-building because I care.

Also, I dont want to approach people in the neighborhood streets as a potential paycheck. Mentally, it would be easier for me to approach them that way. I can usually see through a salesperson's attitude vs. one who genuinely bring an added-value to the service/ product.

I'm merely just describing what I've done in the past, but I also know I need to do more of. It may not work with everyone. People is what matters most to me.

I do attend FSBO open houses. I have been finding this more fruitful than running other people's open houses - or even my own for that matter. I do just that - chat. I don't overwhelm them and I certainly don't call them every day asking "have you sold it yet?" They are eager for advice and most eventually do list. I did get one listing that way.

As to people who rent...in my area they are candidate buyers. Rents have increased dramatically in my area. The average 1 BR apartment has a rent from $1800-2200 a month. That gets old fast.

I think a lot of it has to do with the community you are in. Our city has become more of a self-contained type of city. NOt a lot of people out walking around. People don't do their own gardening, they really come home to CRASH. The kids don't play outside so much - they have scheduled activities. Also, I guess people solicit a lot around here because incomes are high. Trouble is, people don't feel rich because the cost of living is crazy. Everyone I know feels stretched to the max financially. Yet we are constantly being hit on. My mail box is stuffed every day with pure junk. I try to fish out the bills and REAL mail and toss the rest. But my recycling bin is overflowing with junk mail. I've gotten to the point where I'm going to try to get on a "do not mail" list. It is THAT out of control.

There are a few areas where walking might really work. Each neighborhood is unique. I can think of a couple of residential areas that "trend" more towards being out of doors. Those areas are "owned" by people in my office, but if they want to throw me out of the office for that I don't care anymore. I'm tired of the "rules" that don't allow me to farm my own city getting in my way.

Another thought. I was hoping that just "getting out and meeting people" would be helpful as well. I have a very sweet and drop dead beautiful white siberian husky. When she is in the car with me, people roll down their windows to ask me about her. Would casually walking one of the few neighborhoods where people spend time outside with her seem too unprofessional? I would only mention real estate casually. Have a few cards with me etc. She definitely is a conversation starter.

I guess I'm trying to find a way to do this without creating what I think could be real problems.

Clear Lake
Hi neighbor - I'm down the road a bit from you. I'm a new realtor since July and have asked this question since going to real estate school. The person above who said they thought people thought it was easy, spent too much time at the office, lazy, etc. is what I'm thinking too. I also know that it's pretty discouraging at first to try and get business. I'm struggling to keep the right attitude but hard work doesn't scare me and the worse thing they can say if I mention is real esate is go away so I'm starting to open my mouth and talk!!!! Good Luck when you get your license!!!

Getting back to the OP's question in my observations from working with and studying scores of RE agents there are a few basic things that will almost assure that you are successful.

1) You must have an open mind, be trainable & coachable and not have preconcieved notions of this won't work, I not going to do that, etc.

2) You must be willing to work very hard, RE is a great business that you can make lots of money in but it is not "easy" money.

3) Have the mindset of a winner

4) Most important, you must be 110% clear that you are willing (not just able, but willing) to give full committment to your business plan. You must execute the plan. Most, want to learn it, plan it, study it, talk about it, think about it and then either never do it or do it so little or for such a short period of time and then give up and go back to talking or thinking about it.

By the way, these things apply to both the RE sales and mortgage origination businesses (as well as many other business endevors)

For great 3 minute audio about "doing it" click here .