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 .

Why are so many real estate sales people unsuccessful? Because this is a lot harder than it looks. It's also extremely easy to make excuses why something won't work (which you see in this thread and just about every other one) instead of trying to find ways to make something work.

A lot of what works for me are things the so-called experts told me wouldn't work. Their loss...

Here is one approach:
http://www.brokeragentnews.com/news/residential/2006_8/8_9_2006_nl_1155107091.html

Thanks everyone for all of your thoughts. Its been great to be on this forum and learn from so many people, many who've surely learned the hard way, how to be successful in real estate sales. Having done other sales years ago, I know you can't be successful if you're not always prospecting, one way or another. The broker agent news article was very informative too...thanks, Steve

Roberts first post is totally 100% on the mark. If you go to real estate school in a classroom you will understand the low success rate. I've always told my husband this. He is starting to work on his license and went to class last week. I was hoping he would recruit a couple of people for me. But he came home and said that now he knows what I was talking about; out of over 30 people in the class, he doesn't think there is one that I would even want to interview. You have to get a plan and be consistant EVERY DAY. You have to call people EVERY DAY, stop by to visit people EVERY DAY, add new people to your database (meet people and ask their permission) EVERY DAY. If you send a newsletter you have to stick with it. Personally, I couldn't make myself door-knock, but I do stop by to visit my sphere of influence on a regular basis. I try to get by to see people in person EVERY quarter, call them EVERY month, send them a newsletter EVERY month, write them a personal note EVERY quarter. You just have to be consistant- or maybe a better word would be PERsistant.
Why the failure rate? People aren't by nature persistant. They like to think they are, but they aren't. They go to classes, work on designing ads, plan out marketing campaigns, change marketing plans, ask advise from the other lazy agents in the office, change marketing plans again, write out goals, and do just about anything EXCEPT what is going to bring in business. You can stay really busy and never make a penny in this business- or you can work part time and still make a killing. It's 100% up to you, and you can't blame anyone expect yourself.
Good luck!

This will just be another post to add to the rest:

Most agents don't make it because they don't: stick with it, realize that it is intense, undrstand people, have money to make it happen, do what they are told by mentors.

Best of luck, as it is hard to get going, but once you are up an running it is the most rewarding business in the world.

Go to www.salary.com and see the average is 40k. I think I read somewhere 10 percent of the brokers do the major transactions and sales. The other 90 percent get by with whatever is handed to them.

The whole point is meeting people.

Are there areas where walking a neighborhood is not going to be something you should do? You bet.

I used to work in the Los Altos Hills area of Northern California (Like Beverly Hills, but hi tech millionaires instead of movie millionaires). There is no way on Gods green earth that walking that area would work AT ALL.

Now, what SiberianWinter is saying is EXACTLY what my reasons were for not walking a farm back when I got started. It seemed tacky, annoying and something that would actually piss more people off than win over.

However, we all need to realize that what builds a business is contact with as many people as possible. I made myself do phone cold calling for a while and decided it was simply too distasteful to keep going.

Now... anyone you talk to is going to say that they would actively avoid working with someone who knocks doors, or would consider that tactic low brow or a mark of desperation. While that may be the case - it does not change the fact that folks who do it, experience success with it... PERIOD.

You will always find "good" reasons not to do something. You can always count on advice that tells you to not do something.

I treat my door knocking as touring the neighborhood. When people ask why I do it I say it is much easier to get to really know a neighborhood by walking it.

Your point about people not being home is a good one. If you walk an area and you are finding that only about 1 in 10 homes has folks in it, then maybe you need to find a different area to door knock. In my area, I was getting 1 answered door for every 3 I knocked on. If nobody is there, I at least leave my info pack at the door.

So, lets break this down. Lets say you believe as strongly in not knocking on doors as I do in not doing phone cold calling. So, go out and walk your farm and simply put your info packet at the door with no knock. Include a note on the pack that says because you respect their privacy, you have left this pack without knocking on their door.

They still get your info and you can still say hello to folks you might encounter outside the home.

My problem with these arguments is that it inevitably leads to agents glomming on to passive personal marketing that just does not grow a business.

Any plan that can leave you sitting more in the office and less out in the world WHERE THE CUSTOMERS ARE is a cop out.

R

Just to follow-up with a real world example.

Way back when I first got started, there was a guy working at a Century 21 in Sunnyvale, CA I think. His name was something Art or Art something. Some of you might remember him if you worked real estate in that area in the late '80s or early '90s. He may even still be around... but his signs were EVERYWHERE.

Anyway, the point is that this guy was the poster boy for getting listings. He was the number 1 guy in closed escrows per month for months on end.

I had started to enjoy some level of success in the business pretty early and I got an invitation from this guy to go to lunch. He wanted to talk to me about how I got going so quickly and what techniques I use. The conversation goes both ways and he tells me that he got his momentum going by knocking doors. He even still does it himself from time to time and still has members of his team do it. I got much of my philosophy of what works from that guy - because he was absolute proof it worked.

Frankly, I don't care if you knock doors. But all of us need to meet our "Art" that convinces us so completely that something will work, that we keep at it till it does.

Whatever you are doing, if it does not involve meeting people, making contacts, giving out your info personally - IT IS NOT LIKELY TO WORK.

Mailers and all that passive stuff is fine, but only if it is taking a back seat to a fundamental dedication to "pressing the flesh" with as many folks as possible.

R

Door-knocking is demeaning and looks desparate. The days of referral business are over as well. Between the time you knock on the door and that person going to sell, they may meet yet another agent at some party and use them instead, so you just wasted all that effort. I've heard TONS of stories from agents who were bitter that their good friends went to someone else.

Personal contact is still important, but there's easier ways to make it happen. Lead generation through the web and business contacts, followed by a personal meetin after exhanging emails. There's brokers all over the country who do high volume just off of the web. It's easier to play the numbers game this way, and looks more professional than begging at the door.

But hey, whatever works for you. I just prefer to be more efficient.

I get business from the internet and from my SOI. Personally I prefer referals from my SOI any day. They are generally ready to go, and I end up selling a house to 80-90% of people who are refered to me. That ratio is MUCH MUCH lower for the internet. Working by referal is the way to go- as long as you WORK it! Like RebelBroker said though, if you're persistant with just about anything- as long as you are getting out there- you will eventually have success with it.

Perhaps, but spin it to your advantage. How about this dialogue.

"Mr. and Mrs. Homeowner, there are some in RE sales who think that going around door to door and talking to you nice folks is a little outdated. The reason I do it, besides getting to meet so many nice people like you, is to demonstrate to you that I'm not afraid to get out there and do the hard work, the kind of work that it takes to sell a house in today's market. Let me ask something, when a Realtor only wants to sit back and market for clients over the internet how to you think he's going to market your home?"

And so on and so forth, you get the idea. You can put the right spin on just about anything.

Thanks for the tip, but no. That kind of dialog is not going to impress anyone. In fact, if I were the seller I'd be concerned that my agent is spending time walking around the neighborhood getting new business instead of following up with interested buyers.

Don't you people get it? It's a very ineffiecient way to prospect, just like the open house and newspaper ads are no longer needed to sell the home. With most people looking online to buy and find an agent, sellers are more and more leaning towards agents who have tremendous online presence and know how to market their property in every way possible on the web.

I make it a point to tell my clients that I specifically have prospecting set up to where I don't need to knock on doors, and therefore can devote more time to selling their home more effciently using the internet.

Wake up guys, the days of farming and door knocking are over. Grab that lead online, be responsive to their questions, and use face to face time with them to secure yourself as a trustworthy agent.

Ok, one more thing. Besides being a waste of time, door knocking is dangerous:

http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2005/11/03/state/n064241S36.DTL

With people more and more worried about privacy and security it's not surprising. I know I'd never open the door to someone I don't know, and even if some realtor opened his mouth, I'd semi-politely tell him to f$$ck off and quit wasting my time.

You seem to feel very strongly towards one thing and that's great. But one "style" or method that works with one person, may not work for another. That's what makes us all unique individuals. Hence, as salespeople, we should do what comes natural to us and at the same time, learn to cross over our comfort zone. That's where we learn. Knock or not.

I can appreciate someone not wanting to do door knocking.

However, to claim that it is a waste of time is simply incorrect.

I have moved myself several times and had to start over from scratch. What got me back to closing pretty much as many escrows as I wanted per month was walking my farms.

Even if nobody answers the door, you are still leaving them with the material you want them to have. Your getting your material out of the undifferentiated junk mail in the mailbox and right to their front door where they will see it and only it.

If door knocking has just not worked for you, fine. But to imply that door knocking does not work could not be more wrong.

There are simply too many real world examples of success with it.

No matter what practice you use to get in front of people your going to get the f-off crowd. It is not unique to door knocking.

Again... I really don't care what you do to get in front of people so they know who you are and what you do. Do what works for you. But I can tell you that folks that walk the farm and stick with it are able to build a business up using it over and over - I know I have.


R

Bottom line,

I'm not about to do anything that I personally would find offensive or intrusive/invasive. Always do unto others as you would have done to you.

My home is my castle and my retreat from the world and I don't want ANYONE invading my space uninvited. I feel very strongly about that. If I feel that strongly, then it stands to reason that I have no business imposing myself on people in way that I would personally resent.

Totally agree.

Which is why I honor all "No Solicitation" signs and if someone does not want me knocking on their door, I put them on my do not knock list.

For me, I have far less of a problem with someone who knocks on my door than someone who just calls on the phone.

I do not consider someone knocking on my door offensive... in fact categorizing it in that way is a bit of a stretch - but we don't need to debate that.

Is it intrusive or invasive? Perhaps. However, the same argument could be made for most forms of proactive advertising.

In short, I think the vast majority of complaints made here are fair and valid considerations.

However, it does not alter the fact that walking your farm will generate clients.

As I said before, even if you DO NOT KNOCK ON A SINGLE DOOR, walking your farm just to deliver your packet of information is worth your time.

While a postage stamp might get some info mixed in with the rest of the mail (and just as quickly tossed), hand delivering it to the homes is going to get it more noticed and allow you to include more info.

Also, if you do this regularly, you are going to get noticed by the folks in the neighborhood. They are going to see your face and your info. After a while, you will even find that people will approach you to ask you a question.

As I keep trying to emphasize here... the real value is GETTING OUT WHERE YOU CAN MEET YOUR CLIENTS.

Don't use your problem with door knocking as some kind of excuse to not get out there. There is no reason why you cannot satisfy your convictions and still get out there where the clients are.

R

Hello form Bulgaria!
Hope i will find new friends here and many interesting things!
Actually i am very hungry now and i will go to prepare rice with chicken meat
Anyway i am still hungry? Who wanna join me?

Wow.... random.

R

Seems like a long way to go for some chicken and rice--think I'll just venture towards the kitchen, if you don't mind.

Am I missing something? Is there something special about Bulgarian Chicken and rice that I don't know about?

Is that message board spam?
T

I have noticed a lot on this site about going door-to-door, and I guess in some areas door to door soliciting is perhaps more expected/excepted/common, but I know that where I live it would be considered the height of rudeness. There is nothing more intrusive than someone knocking at your door trying to bend your ear to their cause. It is just so frowned upon.
My advice would be: know your market and what is considered acceptable. I know towns around here where you might get away with d2d, and other towns where you might get addressed by the police. Around here even the books salesmen, vaccume salesmen, and religious people just leave flyers rather than knock. I couldn't imagine cold calling people here either. For us it is creative marketing, making youself visible and accessible without being in-your-face about it. We network more than we agressively prospect. Rather than d-2-d, maybe networking with local town offices, listers, appraisers, inspectors, assessors, bankers, lenders. Sprinkle your cards everywhere, you know?

This is what it is in my area as well. People will leave things at my door. But NO ONE knocks...EVER. I would tell someone who did where to go in a big hurry. What a lot of people here don't seem to get is that it truly IS the height of rudeness. PERIOD. One rule I have adopted as a sales person is this: I won't subject others to treatment that I wouldn't find acceptable if someone did it ME.

My question for you is do your methods work? Do they bring in customers/clients? If some of them do, which ones? I've been relying on open houses, just listed/sold cards, and floor time and I'm getting nowhere fast.

My other question is how saturated is your area? In my county there are 7000 ACTIVE AGENTS 80% of which are all chasing the same 20% of the available customers/clients...In that atmosphere, unless you are in that top 20%, without referals, you're toast.

Once we decide on a firm to go with, we'll most likely do a mix of everything. Starting off, I know they emphasize your SOI. But, strangely, I think I will be most comfortable knocking doors. I did a ton of cold calling back in my old sales days (B2B), so I am sure the reception will be different in people's homes as opposed to businesses. However, can always leave something at the door. They key I guess is to get your name out to everybody by whatever method works and that you are comfortable with.

Siberian - notice we are both from the NorthEast, and things are just different here? Ediquiette (sp?) is different.
My methods work well. I started my own company (not real estate) 6 years ago from scratch with a 4month old on my hip, and had nothing and no one to help me. I found a great professional website with lots of support, tips and ideas, and used my creative marketing ideas and networking to make it happen. The contacts I built there have made real estate so much easier than it might have been. All those professionals I mentions in my last post are the key to my success. Go to a town office? bring brownies. Pass out your card, chat them up, put up flyers at gas stations, make your own brochure and place them in restaurant waiting areas, laundry mats (where a lot of apartment people go, hehee)
My methods have worked for me in 2 different professions. And the 'work' and cost involved is minimal on my part.

And I work soley from home - no office time, no floor time, no office phone. I have a "home office", and a supportive broker.

Missed the saturation Q - we are starting to hurt here. We have a lot of high end homes, country estates, equine property, and then kinda lower-income twons/neighborhoods. We do not have the white collar set, upper-middle income subdivision young power family crowd. Just a huge gap, and realtors and agencies follow that being one or the other for the most part. We certainly have more realtors than properties or buyers, and many more sellers than buyers. It is tough here, but not desparate. The creative agent gets it done. Open houses arent' big here either unless the property is listing for over 500k, and then it is usually invite only. If you want a feel for our types of listings try
http://www.mcenaneycompany.com/
or
http://www.wbllc.net/
I'd put up my site, but my broker won't let me on a forum. Personal Liability, our commission can be tough.

Thanks Serendipity....

Maybe I should move to VT! At least my Siberian Husky would have more land to run on!

The upper end is similar but the price point is different. Luxury homes with a lot of ammenities. But I ENVY the lot sizes! Here, raw land is going for $1 million/acre - and that's cheaper than other municipalities in the county. So a 4 BR house (1800-2000 sq.ft.) on 0.2 acres goes for about $800k. In fact, your upper end 2nd home buyers may well come from my area! Upper end is loosely defined as $1 million to $5 million or more. But the IDEA is the same. The homes are similiar but our lots are much smaller. People keep to themselves and don't want to be bothered.

We do however, have the young power family crowd in force. There are two types: the upper class professional with so much much money they throw it around like confetti and the upper class wanna be's. The people in the later category want and feel they deserve a HOUSE but they just can't make it. This is the niche that I have found myself dealing with for the most part.

It's a VERY tough group to deal with. They are madder than hell because they have been sliced out of the housing market by the wealthy who have driven up the cost of living in every way you can imagine. They want the American dream, are working their tails off to get it, but still can't afford it. They are bitterly disappointed when they see how little their hard-earned money will buy and in a very real way, they feel betrayed. The mindset is that having a house is the birthright of the middle class. Convincing someone that a dingy 750 sq.ft. 1 BR is the best they can get for $180k is a very hard sell. They also do not want to hear that they will have to move up in stages if they ever want to have that house. Most need to transition from co-op to condo/townhouse to house. One women said to me today "but I just HATE moving. I want to go directly into a house! Why can’t we afford this when we both work so hard?" Trouble is, a family of 3 in a Jr. 4 isn't going to cut it for the ten years it will take them to build the equity necessary to buy the house they want in the school district they feel is “necessary”.

Then DON'T KNOCK.

DON'T KNOCK

DON'T KNOCK

Lets COMPLETELY FORGET ABOUT KNOCKING.

Just drop off your packet of info.

My main point here is that just getting out there and walking your farm, area of interest, whatever - has a value all its own.

It's just too easy to come up with excuses why we should not/could not/would not want to get out there where the clients actually are.

If knocking would simply be too rude in your area - THEN DON'T. But do not use that as an excuse not to get out there and walk the farm.

Stick a fork in me, I'm done.
R

A Million an acre??? Holy Kaca!! Well, this is still farm country. In one town you can go from The Hill Society, a road with elite equestrian properties, to 5 miles across town where there are some trailers and cottages on an acre that the dairy farmer who own 300 acres sold off to make ends meet.
We have that very angry crowd of hard workers here too, but I don't think they even make the $ yours do. Here, they are the LOCALS, who can't afford to live here because the influx of new and wealthier bodies driving up the housing market's median price.
And our prices have gone ape up here. Our house we bought by the skin of our teeth for 82k in 2001 (remember salaries up here are very different, most locals only make 25k a year, household) It is over 2000sqft w/a 3 bay garage and a barn. Circa 1865, Beautiful old farmhouse. It more then doubled in value in the first 2 years we owned it. Now no one can afford a house here if you were born here. I jumped into real estate because I couldn't afford to live here as a successful small business owner! But if you can't service the wealthy, you aren't going to get far, esp if 1st time homebuyers are your niche. Around here you don't really get the time of day unless you are pre-approved or pull up in, say, a Land Rover.
I really hope the market settles soon.

It's just too easy to come up with excuses why we should not/could not/would not want to get out there where the clients actually are.

-----------------------------------

And that's where the argument is coming from, Robert. You telling people who don't knock that they're just making up excuses, which naturally puts people on the defensive.

It's not an excuse. Walking and/or knocking is one of the least efficient ways to distribute information. Also, the days of an agent making a living off of one small farm area are over. That's where the internet comes in. I could be contacted by someone from halfway across town about selling his house on my website. Instead of providing a timely response, I'll be busy annoying neighbors who most likely don't need a realtor at the moment.

So go ahead, knock yourself out knocking on doors. There are much bmore effective ways to market than walking the farm and hanging flyers. Networking is different. Joining a club for some activity is a good idea, since it creates a word of mouth reputation about you among the members who will think of their friends who need a realtor and suggest you.

The key here is: Targeted advertising works best. Online, networking, etc.

Non targeted advertising is a waste of time and really just another from of spam: walking the neighborhood, sending mass mail, etc.

Rebel - I'd love to see you come up here and walk the farm, or Montanta or the like where there can be MILES between houses and each house is 25-200+ acres. Walk your heart out. Have at. Let me know how many pair of shoes you go through. - - ok, that sounded snotty, and it wasn't meant to, but we dont have gridding up here, or subdivisions, or neat square little neighborhoods to canvas. It'd be nice though.
:-P
Trick or treating on halloween can burn 1/2 tank of gas as you must drive house to house because walking is too far.
We get out there, just in other ways: networking, getting involved in the community, volunteering, where people get to know you personally. We have small communities. My hometown has less than 5000 people in it, but covers a very big area.
You can't compare oranges to apples. Your methods obviously work for you, and I for one am not saying it shouldn't be done, every area is different. I am not saying farming is a no go, I am just saying that up here it is not an effective strategy, and we have to come up with other ways that fit the area we work in. Farming simply won't work everywhere - life would be too easy.
I did the local dog census for a couple of years. At times it could be scary. Even with magnets on your car, the police got called, and I met up with a shot gun more than once. YES a shotgun (we are a right to carry state) -get out in our version of the boonies and it can be hicksville. It's not Dukes of Hazzard but it IS old farm country. Even the J Witnesses are subtle here - they rarely knock. LOL
so walking the farm - heck, DRIVING the farm, if you will, can be a bit out of touch for this area. A dirt road up a mountain is 20 miles long, dead ends at somebody's estate or trailer - flip a coin - and there are only 2 other houses on that entire road, on the extreme end what happens if you get lost, get a flat, get stuck - there is no cell tower, trust me, and if you are a woman, weelllllll....
It sounds completely uncivilized. I imagine we might go into culture shock if we switched places. ;-)
Farming works in a lot of places. It is not a good stategy here. Pure and simple. One answer will not suit every question. I am glad you have it easy and it works for you, I really am. There are days I wish for it.
Instead you WILL find me ""out there"", at the humane society walk a thon, and the bake sale, at the community center, and playgroup, at the music festivel, at the fair, at the horseshow, the penny sale, the assisted housing lawn sale, the policemans ball, picking trash on green day...................................
And so will my husband, my daughter and my dog, whom everyone knows as well, and therefore trusts, because I minded my manners, respected their highly valued privacy, showed interest in helping the community and being a pert of it, and made myself VAAV: visible, available, approachable, and valuable.

Besides all the sniping, Rebels point is valid, unless you are out there, however it is you are accomplishing that, you aren't getting business.

Whether it is by walking, all the social events you can squeeze into the week, or checking your email 400 times a day, all three of you are arguing over the same thing.

Seriously, is it that hard to understand that?

atxdude,
Hate to break this to you but walking and knocking does work and it is free to do and also good exercise.

Yes it is old fashioned and far less glamorous than other prospecting methods but the fact remains it Does work but it is just not for everyone. Granted there are neighborhoods where it is not practical or neighborhoods where it is prohibited but the majority of areas it works just fine.

So what evidence or stats do you have to backup your statement that walking and knocking your farm areas is not an efficient method to get your name out? Granted there are better less in your face methods but after all we are in the people business and the goal is to get a face to face.

Lets say there is a guy thinking about selling and comes across your website. He reads your information and decides he definately wants to sell. His door bell rings and it is one of your competitors who is out getting some fresh air and passing out free market data sheets along with his business cards. On the market data sheet is a list of al the homes sold in his area in the last 6 months and has a breakdown showing the range. On the sheet is also a current list of all active properties in his neighborhood and it contains full contact info to the agents website. Do you think that agent standing on the porch is going to get an invite to explain that market data report to that person that is considering selling?

If you have not tried it then you Are just making excuses and that is just a cold hard fact.

The other thing that walking, biking or other methods of transportation does for you is to Really learn the areas. This also applies to more rural areas since knowing what is out there and how to get there is very important.

BTW: Cold Calling also works just ask anyone that has been through the Sweathogs program. It is one of the most difficult methods for most people to do.

Ok... I PROMISE... this is the LAST post I am going to add to this.

I totally get what you all are saying. Of course if your in places where there are miles between homes, your going to do other things.

I think the bigger picture I was trying to get to by using too much of a specific was that in the time I have been in this business, I have heard just about all the excuses from agents about why they are sitting at their desk in the office instead of getting outside where the clients are.

Sadly, I got my axle wrapped around the "walking your farm" mantra where the mantra should have been "Go out amongst them".

Now it sounds like we all do similar things, I just happen to make walking a farm part of mine. I never meant to imply it was the end all be all of prospecting... it's just an easy thing to start up doing if your new, and since this was a question in the "aspiring agents" forum, I figured "start with the basics".

Of course ALL the ideas posted here that involve getting your ass out of your chair and in front of potential clients are good ones. That was really my point all along, just made poorly.

Finally, part of evolving in this business is recognizing what works and what does not. All the suggestions made here are going to have varying levels of success based on the specifics of where your using them.

Ok.. I think that is it.

Go Out Among Them,
R

Exactly scofla & Rebel. Well put.

There are many ways to succeed at this business (doorknocking, networking, marketing, etc), but most agents just spin their wheels or do nothing at all.

When I made the initial post over three weeks ago I never knew it would get this kind of response. There are many ways to do this business apparently. I'm going to try and do a mix of all of them. Its really pretty overwhelming for a new agent reading about all the things to be successful nowadays. I want to get some good systems going quickly--am leaning towards the Powermarketing center--looks like a great program, but I really suspect theres too many of us behind the computers and working on the technology when we should be out there pressing the flesh. While I'm probably more comfortable behind the computer, this is a people business and the only way I can see being successful is being where the people are.
I loved Robert's idea of meeting at least ten new people a day.
The thing is--one day when this business is weeded out and all the agents are on the internet, its still going to take the person who can really relate to other people as the deciding factor in who they choose for an agent.
I hope to sharpen my people skills by being out there among them.
Thanks everyone for all your ideas and help!

I'm not making excuses. Here's the evidence I've gathered against door knocking.


Many people I've asked confirmed that they'd not consider a realtor who knocks on doors to be very professional. Many people have this image of realtors who are desperate and cheezy, running around town beggin for business.

We have a girl at our office who gets 1 listing a month door knocking, and we have a guy who got 2 in a week from pay per click on yahoo, without leaving his desk. He gets several a month consistently.

I'm trying to perpetuate an image of myself as an efficient agent well versed in technology, who can save my clients time and spend more time servicing them instead of beggin for business. Door knocking perpetuates the old stereotype that people hate, as I've mentioned, so it doesn't help with my personal marketing.

I've lived in a medium priced neighborhood for a year, which had several top producers working it. A few times they listed a house down the street from me. Not once did I get any kind of packets or door knocks from them. They're busy selling homes and people who are thinking of listing will look at their results.

Door knocking works, but it's a very inefficient way of doing it. It speaks of desperation. I don't live in the neighborhoods where I want to do business, so it's hard to use the "out for a walk" excuse. I'd rather handle a few dozen leads a week through a website than shake a few hands of people who probably have no interest in what I'm saying.

The advise to new agents should be not to go out and shake hands, but this:

Use whatever marking gives you the most results with the least amount of expenditure (time and money). Constantly measure your return on investment and seek out more efficient ways.

This is a business, and the goal is to make the most money with the least effort. Real esate is not about schmoozing with everyone in hopes that someone will give you a handout.

Btw, Paul Oaks, I can generate those reports by email in about 5 minutes. The guy who comes to my website will get them in under 30 minutes and will be impressed with my response time.

Also, the Austin board of reltors forbids using MLS data about specific homes in general marketing pamphlets, so I'm out of luck. Gotta protect people's privacy.

Finally, sold statistics are useless for generating business. People don't sell a home because someone tells them the market is good. They sell a home because they need to.

Here's an example of targeted marketing: a guy comes to my site and tells me he lives here and wants to buy a bigger place for the least amount, and wants my opinion. I reply within an hour or so and if I sound convincing, he'll probably list with me and use me as a buyer's agent.

Door knocking, I have no idea who the people are or what their motivation is. I can come up with a much more complelling reason for people to working with me if I can adress their very specific needs. That won't happen with broad (and very useless) market statistics.

ClearLake:

Here's a suggestion for how to press the flesh wihtout humiliating yourself as a door-to-door salesman.

Work residential leases. A lot of people rent a house or condo before they buy, especially if they're new to the city. You'll be providing a valuable service, meeting potential future clients, and making a reasonable paycheck. They may hear of someone who's selling so you can get a listing out of it as well.

Worked very well for me.

atxdude,
You are totally missing the point with this topic.

Door knocking works and is Free so it is something all new agents should at least try! They should also try other things and the ones that work for them they should continue to do!

Agents fail because of people like you that say oh no don't try that cause there are newer methods of prospecting out there. If your try something and it does not work for you move on and find something that does! If you do not try a particular method it will automatically fail!

The key is get out there and do something!

BTW how many listings has your website gotten you this year and last?

I appreciate the advice and from a fellow Texan, but I don't consider farming in the same line as a door to door salesman. For one, door to door salespeople must close the sale on that visit and secondly, unless the house is going on the market soon there's no selling (or sale) involved.
Its marketing pure and simple. Sure, its not fine tuned targeted marketing but it is targeted marketing to a neighborhood where one home in five has a chance of moving that year.
I'm willing to try all of it and I'd like to hear what you're doing up in Austin thats so successful. Can I see your site?

I don't have one yet, I've mostly gotten my clients through the leasing, but I'm working on it.

I know one guy in my office has a lot of listings, and his site is nothing special. The trick is that he'll do search engine marketing, and given that there are thousands of searches for "austin real estate" in any month, there will be clicks on his page and leads. People with questions, some who want a custom search etc. All you have to do is follow up, send a periodic newsletter (also called drip marketing) and eventually try to have a face to face meeting. At that meeting is where you finally convince them that you're the best agent for the job. If throughout the interaction (initial lead to face2face) you demonstrate knoledge of the market and responsiveness, it'll be an easy sell. Meanwhile, there will be others who show up at his door once and he never sees them again.

Considering how most people go online, you can't beat the cost effectiveness of this kind of lead generation. If you don't have a website, condier signing up for HomeGain and buying leads. I know it's not the best way but can be used to get started. You'll make less, but you'll have something to do and spread the word about yourself.


In the end, any form of real estate comes down to having a good personality, etc, but I'm trying to say to these people here is that until someone trusts you enough to listen to you, it's best to spend as little time and money as possible trying to win that person over. Knocking on a door and shaking a hand won't convince someone that you're trustworthy. Most won't be planning to sell a house and your packet will go straight in the dumpster.

Wow, paying for internet leads?

ScoFla:

I never had to, but I don't see why not for someone who's just starting out and needs to make some money. HomeGain will only charge a referral fee if the sale closes (plus a $25 monthly fee) so you don't lose anything by trying it out.

I don't recommend those sites which charge per lead. That's a ripoff.

This may not be the smartest way to do it, but in the time it takes you to wear your shoes out banging on random doors, you could be working with paying clients.

Door knocking on LI does work, so I do not think it should be a problem where you are. Try weekends.

What about going to open houses hosted by FSBOs? Hit up 10 of them on the weekend, write up some kind of marketing proposal showing how much they could get if they sold through you, and what kind of exposure they'd get. That's what I do sometimes, and it works once in a while.

Clear Lake Houston,
Before you even think of following atxdudes bad idea of buying internet leads I suggest you look into Brian's PowerMarketing stuff. You are better off turning your own site into a lead generator instead of buying extremely questionable leads.
Do a search on Homegain and other lead seller site and read what other agents have to say about them.

PaulOaks:

You're not reading what I wrote. I know HomeGain is ultimately a bad idea. All I said was try it for several clients to make a few $$$ and get your name out. Than once you get a website going and other marketing, let that take over. I know agents who use HomeGain leads ocasionally, at least for Buyer representation it doesn't really cost you anything. No pointless CMAs to perform.

If you know it is bad why did you suggest it? That money is better spent on getting a personal website for a new agent. These lead generators depend on the new crops of agents who are desperate for any lead they can get. Even worthless ones and this has been discussed many times in various threads. Door knocking will get you better leads than HomeGain and some exercise as well...sorry but I could not resist!

Actually, I read the postings about internet leads...Several people felt HomeGain was worth using..the rest were garbage. I haven't tried it myself...They want 30% of my commission and I'm not even sure if that would ALL come out of my side of the deal...my office being what it is. Although my area is pricey - you need every penny you make in order to LIVE.

Also, commissions, particularly for buyers, have been cut to the bone. Once I add franchise fees I see about 0.9% of the sale price and that's before taxes. Since I do a lot of condos an coops, my profit margin is pretty much razor thin.

Any kind of sales comes down to the numbers game and hard work. Relationships and the number of them you develop are the key. The number of quality relationships that you can make will drive whether you succeed or fail.

Work hard, learn from your mistakes and you have a great chance of succeeding. Most people arent willing to put in the time or the work so they aren't successful. Dont be like them.

I thought this was interesting article for you, CL:
http://recenter.tamu.edu/pdf/1340.pdf

atxdude

I have been reading some of you post, what I want to get across is that we are not going to door asking for a listing. At least I am not. I go to the door and give some give some info and leave. No sales pitch, no pressure, just free info. If someone fell disrespected or is pissed f**k them. They are just angry at the world and bored. Move to the next. Sitting in front of a computer waiting for leads is a joke. With the smart phones today you can get leads and reply to them well walking the area. My broker is in the top 1% of agent in the US. He got there by walking and getting face to face. Just my two cents.

No one goes up to the door and asks for s listing, we all just dispense info, trinkets and strike up a converation. That in turn can lead to a listing. I think you have the wrong idea on how walking and door knocking works. I have a farm area, we give out plants in the spring and other things throughout the year, mail to them on a regular basis and build a relationship.

And how has that farming worked out for you, Barbara? Has the effort paid off?

Yes it has. I have had at least 3 listings from that area, and it have a few that are not ready to sell yet. And considering that I have not be as intense about it until recently, I do not thibk it is too bad

What would you do if you lived in an area that was almost exclusively condomniums, and the few houses in the area are either commercially zoned or over 4 million... How do I farm this area and how would I door knock even if I wanted to.Yes, I am a new re agent in South Beach, a ridiculous seciotn of Miami Beach and the firm I have chosen has absolutely no prescence here.... I just read through the sunday re guide and they did not have 1 listing, not here or in their other office about 30 miles NW of here... Do I quit now? I just signed and havent even been in the office yet....

Becca,
How did you come to choose a brokerage that has no market share in the area you live? What made you choose them over other firms with a market share in your area?

As for farming condo's you can forget knocking doors, not because it won't work but because the vast majority will be posted No Soliciting. The best approach is to do mailers to everyone in the association. You also better get familiar with the restrictions on all the developements in the area. You want to become the condo expert if you want to work that market. You also need to learn which developements have the majority of investor owners as many banks will not loan on developements whose percentage of ownership is higher in investors than in owner occupieds.

Oh Paul... I just jumped on the first place that offered me a good split without researching enough first... I was too impatient... I am painfully new in the business world.. sorry about my other post... I appreciate you taking the time to reply to me