I generate all of my business through expired letters, SOI, committee work (Realtor, non-profit, alumni, etc), website, intermittent advertising, charity work, online social networking, geographic and niche farming, talking to people I meet every day, etc. No COLD CALLS ever! I prefer to build relationships. That way I don't have to worry about people setting appointments to work with me and then cancelling because they signed with someone else. That has NEVER happened to me and I have never had to be suspicious or wary of my own clients. I know them, of them, or have common ground before we ever get started.

I have taken 3.5 years off from actively listing (I moved markets and just didn't want to list for a while), but the few listings I have taken in those years have all sold. My first 8 months in real estate, I took 48 listings, sold all of them except for the lots (12) before I moved. Average sales price really is irrelevant as it depends on the market. In my first market, it would have been about $65,000; in my current market, it would be well over $350,000.

You said that you don't WANT to make all your cold calls, but you do it because you want the money. Some of us prefer to put the relationship first, and the money easily follows. I am not knocking your method; it just doesn't work for everyone. But that's not to say that we all can't find success in our own way. Clients are just as varied as Realtors, and they are receptive to different approaches just as we are prone to different methods.

***Having had Canadian clients, I will concur with our Canadian's friends on how their system works. Before banks in Canada provide a pre-approval, they have already done the legwork. The process is not that much different, except that the banks are better at vetting the applicant and are much more conservative than our wonderful American banks. Thus, very few transactions hit a glitch after the option period. The closing rate is more a testimonial to a better banking system than it is to any real estate professional.

Those against cold calling are stuck on the relationship aspect. The cold call is simply a first contact, a foot in the door. Its no different than meeting somebody in an elevator and introducing yourself. Its the first step to building a relationship.

Either way you get the sense if you are bothering somebody or if somebody really is interested in what you are saying.

I have no desire to cold call, I don't even like "warm" calling expireds - I totally suck at it because I hate it.

My strengths are elsewhere. And I'm not small minded or stuck on mediocrity because I use other methods of getting business - that's probably the thing that sticks in everyone's craw every time this issue comes up.

The "Do's" think you're a loser if you "Don't" and that's just NOT true. Some people are totally awesome at telephone work. I am not. I admit it, and I find ways to make my business work. Last year, I DOUBLED the gross commissions I made the previous year. My broker expects me to DOUBLE it again this year though I'm more conservative and will be happy, in this economy, if I can match or even do 1.5 times what I did last year.

Is it settling for mediocrity if you try to be realistic in your goals? Perhaps. I'm not consumed and driven to make as much money as humanly possible in this business. I am driven to succeed - and that's a different animal all together. It's not about being as rich as possible but being successful and happy with what I've managed to accomplish.

At my age I've learned that the most important things to strive for are not preceded by dollar signs. Relationships, respect, friends, and family ARE. Everything else is secondary.

I just don't like it when someone suggests that I'm stuck on mediocrity - because frankly, I think the poorest man in the world is the guy with all the money and all the toys and has few true friends because everyone else thinks he's an [censored].

You got it right Dayton. Cold calling is simply measurable, cost and time effective LEAD generation. I do 100 contacts before most agents have finished their coffee. Of course I build relationships too but not at 8:30 AM. This is when I generate NEW business and GROW my business. My goal is to build my SOI to over 1000 and work it effectively for a 10% return or 100 deals. I am accomplishing this thru active LEAD generation/prospecting/cold calling. I calculate I make $600/hour prospecting and it costs me nothing but my time. I like it! I like the money! I got into this business for the money! I like the relationships too but not without the money....let's be honest! We are not social workers. LOL.



/K

Yesterday, sold my second home for the year to a buyer lead I got from one of my sign calls last fall. Yes, I built a relationship with her. I even sent her a christmas basket ( I send baskets to everyone who buys a home thru me each christmas an I always add in a few of the hotter leads to the list. I find the baskets show I am thinking of them at holiday season). I should be listing her home in about a week after they get it prepared. I also have an 8:00 am listing appointment I generated from cold calling yesterday. She says she is moving out west to BC in a few weeks. I pressed her to consider me as a "second opinion" even though she had chosen an agent. The market is fiercly compeditive here for listings as our inventory is down by 35%. These appointments are long shots but my goal for this year is to go on 100 listing appointments or as close as possible to this number and since my closing ratio is approx 65% this could conceivably get me 65 listings therefore 65-70 deals. ( I average 1.2 deals per listing taken). Approximately $700,000 in income. I have never gone on 100 listing appointments yet in my carreer. The most listings I have taken was around 55 and they were spread out in different areas when I used to work expireds and they were in a wide range of prices. Now I concentrate within 5 miles of my home where the prices are higher and so I spend less time in my car on the road.

On another note; my postcards came today.
My database will receive their first piece wuthin 10 days. I will be measuring their effectiveness and have committed approx $10,000 to this marketing this year.

Current income....$126,000, closed and pending.

I'm sure you don't still work expired listings do you?

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Lucky, have you ever tried cold doors and run the numbers to see if it's more profitable per hour vs. cold telephones?

I think there is good information to be had here, even if all you get out of it is that working your sphere of influence is important. Than you got something good!

Bottom line here, consistency is key, put a system in place that works for you and do it 100% of the time.

So true. And to grow your SOI quickly, cheaply while making money at the same time we need some sort of Active prospecting!

Of course everyone is free to make up their mind on how to build and run their Real Estate Business......
Here is my take on MAKING LOTS OF MONEY and RUNNING A REAL ESTATE BUSINESS ON BUILDING RELATIONSHIPS;

a) I am a professional...no different than a Brain Surgeon, Doctor, Lawyer or any CEO. Of couse it is nice to be liked BUT it is most important to me to be RESPECTED as a Professional first and foremost, which is exactly what I am. The aforementioned Professions/Career people do not concern themselves with being my friend and I would not want them to either. It would be very weird for my doctor or lawyer to ask me out to dinner etc.
I just did a deal with the #1 individual agent in Canada for RE/max....she is a friend of mine, she grosses around $1.5 M and most of her business is social and relationships. This system certainly works and has rewarded her and many people very well but is very time consuming. She is with her clients alot if not all the time.
Personally the only Relationships I care about is my family and a few close friends. My clients are NOT my friends and I am NOT their friend! I could never handle dozens and dozens of friends. This does not mean i am not empathetic towards them. I am a professional providing a professional service and that is all!

b)this is a business....and should be thought of as a business. A business like a human being must grow. There is no such thing as being stagnant. This business is always changing and evolving unless you are in a sleepy town (no offence if you are, it's where you live) If a business is not growing it is just a matter of time before burnout sets it and it starts to slide and fall apart. To grow a business must set exciting goals. Most businesses have goals of growing by 10-20% per year, knowing full well they will not achieve this but this goal keeps it exciting and keeps them alive. Our business is not much different. you hear of Agents suffering from Burnout all the time...this is because of the lack of exciting goals.
Set some exciting goals....a few years down the line when you look back, you will be amazed that you have achieved them.

c)Money is not evil....it is the measurement used in a democracy and a capitlalistic society. If you or I feel we have too much of it then give it away to a good cause. Do not hoard it! IF you achieve more in this business you can help more people with your achievement. There is nothing wrong with earning lots of money and giving lots away. Here is an example of a worth Goal.

To each his own....just my opinions of coarse:)

I did not say money is evil.
I did not say my business is not a business nor is it stagnant.
I did not say my clients become my friends (they dont)
I am a professional too. I am just a professional who does not cold call.

What I take issue with here is the lines you seem to be drawing here - I get the feeling that you are saying YOU are the professional and are taking "the professional" route... and I am not.


I could say you are not very professional by not utilizing the internet and not having a website. I do. I spend a great deal of time blogging and perfecting my websites and that's where most of my business has come from. I am no less professional and I don't take my business any less seriously than you do simply because I use different methods and have different ideals/goals than you do.

If this implication was not your intention then I stand corrected but will maintain that is the impression *I* get from your post.

It would even be more weird for them to call you out of the blue on the phone and ask you if you would like to have a surgery or get divorced, or perhaps knew of someone who did.

*ROFLMAO*

TB, that had to be the funniest comment I've seen on this board in a LONG time!!!

OMG, I'm glad I didn't have anything in my mouth when I read it or it would be all over my keyboard. LOL

Glad I could help! It's really that simple, isn't it?