All Businesses Can Learn From High Producing Real Estate Agents

I have always believed that if you want to know what makes people successful, the best way to find out is to ask them. So, when the question of what makes real estate agents successful arose in conversation with a real estate broker, my obvious response was to suggest that we ask them. This comment led to my surveying high producing real estate agents to identify their best marketing practices. This in turn led to How Agents Succeed in Real Estate, my report on the study.

Real Estate Agents Operate Their Own Businesses

Before discussing the report and how the findings relate to your business, it’s important to understand that individual real estate agents operate their own independent businesses. They generate income by assisting clients on the purchase and sale of real estate. In a typical real estate transaction, the seller pays a commission, a share of which ultimately goes to the agent or agents who represented seller and buyer. In order to generate this income, agents spend money on such things as advertising, operating a motor vehicle, running an office, telecommunications and so on.

Every business owner, regardless of the business, can and should learn from the success of other owners. Thus, I believe that we can all learn from what makes real estate agents successful.

Attracting Clients

Long story short, the four strategies that high producing agents use most commonly to generate new business are referrals, advertising listed properties, open houses and networking. In effect, an open house in the real estate business serves the same purpose as a free sample for businesses that sell products or free trial for those selling services.

At first glance not only do these strategies appear unrelated, they seem to have little if any relevance to marketing in other small businesses. But at another level, there are, in fact, some remarkable consistencies.

When selecting a service provider (and regardless of what they sell, all businesses are service providers), among the key factors that potential customers and prospective clients require are competence and trustworthiness. They ask themselves, 'can this business do what it says it can?' 'is this business trustworthy?'

Referrals

It has been estimated that in North America, 85% of new business comes from referrals and word-of-mouth recommendations. In effect a referral or recommendation to a specific business, is third party confirmation that the business is competent and trustworthy. Thus, the challenge for owners is to increase the number of people who believe that their business is sufficiently competent and trustworthy to recommend it to other people. This reputation for competence and trustworthiness doesn’t just happen--it has to be earned.

Advertising

For real estate agents, advertising properties that they have listed for sale represent implied endorsements of their competence and trustworthiness. After all, the owners of the properties advertised for sale must have believed the agents to be competent and trustworthy; otherwise they would not have hired the individual agents to sell their properties. Testimonials from satisfied clients serve the same purpose. Undoubtedly you have satisfied clients; how can testimonials from them help you?

Open Houses Are Free Trials

Open houses allow real estate agents to showcase their technical expertise and personal characteristics. By interacting with agents at open houses, prospective clients can assess the individuals agents’ competence and trustworthiness and by extension, how the agent can help them. For prospective clients, it’s like test driving a new car. What’s your equivalent of an open house or test drive? How can you demonstrate to prospective clients that you can satisfy them?

Networking

Networking is the most multi-faceted, versatile and effective marketing tool available to business owners. Among other things, it allows us to exchange information, meet or get referrals to people we need to know, and showcase our trustworthiness. Regardless of your business, networking allows you to interact with other people, who ideally will like and trust you well enough to do business with you and refer others to you.

All Businesses Can Benefit

Regardless of whether or not you are a real estate agent, you can benefit from understanding the best marketing practices of high producing agents. By effectively applying these strategies, you too can attract more clients and generate more new business.