Most REALTORS® I speak to understand the importance of building a database of prospective, current and past clients. Few however consider how big that database needs to be.
As part of my rolling research project to track and measure the progress of newer industry members, I get to discuss the subject often.
Those REALTORS® who have in a previous life built a large Sphere of Influence (SOI) do not have concerns and they should not.
Those REALTORS® who have chosen to join a team that has created a marketing program intended to identify potential clients, particularly home buyers also have few concerns.
It’s those REALTORS® that are planning to go it alone and creating a database from scratch that worry me. When I ask most REALTORS® how many people, they could add to a list of folks that “know like and trust them” the answer is sometimes concerning. Many REALTORS® tell me they only know 5, 10, 25 or perhaps 50. These numbers are simply not enough to ensure their success.
Consider what I call ‘The Rule of Ten’.
Based on industry research its generally accepted that on average people move home every 10 years (up from 8 years a while back). That means that if you wish to help 15 clients move home each year would need a database of 150 people.
If your database is for example only 25 people, that means you can identify 3 people that will require REALTOR® services this year.
That is simply not enough to sustain you, is it?
Of course, when you are new to the industry you have the second complication of no reputation. Why would your friends collaborate with you when you have no experience? I should mention that home buyers are usually far less particular than home sellers.
Most home buyers interview 2 REALTORS® before they chose one.
Home sellers are usually much more selective and will look for deep experience, a solid reputation and perhaps some kind of unique value proposition.
I have a Zoom workshop coming up on November 20th at 10.30 am. 3 Ways to Build Your Client Base Outside of Your Sphere of Influence.
You can book your spot here: Stuart Neal Basic Training Series.
Attendance is FREE and open to everyone.
About the author:
You can read more about the author of this blog by clicking this link - Stuart Neal, Broker, Career Coach, REALTOR® & Team Lead.
You can watch and hear Stuart share other ideas on his You Tube Channel: Stuart Neal, Edmonton Real Estate Career Coach.
Follow Stuart on his Facebook coaching page: Stuart Neal, Edmonton Real Estate Career Coach Facebook.
Want more information about becoming a team member or Associate REALTOR® with Ambergate? Call Stuart our broker owner at: 780-760-2014 ext. 3 or go to our Careers page - Ambergate Realty Advisors Careers.
Posted by Stuart Neal on
Leave A Comment