The following is a guest post by Dan Corkill. Dan is the co-founder of Follow Up Boss, a high powered real estate CRM (Customer Relationship Management) program designed specifically for successful real estate agents and teams who attract leads from multiple sources and want to manage them all in one place.
How To Figure Out Your Ideal Real Estate Client Type
Most people think they have an ideal real estate client type, but in most cases, it’s based off of feelings rather than data. Many people know the type of people they like working with, but those aren’t always the types of people who are best for their business. Defining this ideal real estate client type can be difficult and even a little bit uncomfortable. You’re going to have to go back through past sales and fails and make notes about what’s happened. Try to look for patterns, and figure out where things went wrong that caused people to not turn into a sale in the end. This can often be an emotional process, and it’s easy to get worked up all over again about that sale that didn’t work out. That’s OK though, because this will help to ensure you aren’t working with those types of customers again.
Then start going through things and figure out what things are actually pushing the needle forward. What income class of people are converting to sales most often and what types of homes did they end up buying? These are the types of people you’re going to want to start targeting and serving on a more regular basis.
There are actually hundreds of different things you could be looking at to qualify or disqualify a certain type of customer. The key is to figure out the ones that are most important to your business in particular. Every real estate agency will be different. For example, some will do better with selling modest houses to people with average incomes, while other agencies will see much more success selling luxurious homes to people with almost unlimited money to spend. Those two agencies will do much better not trying to serve people who don’t fit into that description.
Why You Need to Learn How to Say No More Often
Let’s not beat around the bush – you probably need to start saying “No” to customers a lot more often. At first, this can sound incredibly counterintuitive. How could turning down a potential customer make you more money? That person could potentially turn into a sale – why would anyone ever suggest that you tell them no?
The reason is because every customer that doesn’t fit into your description of an “ideal real estate client” is zapping up your company’s mental energy and time. You’ll never be able to get that time back again, and if you spend too much time on these types of customers, you’ll have far less time to spend on the types of customer who actually are proven to move your business forward.
We aren’t trying to say that it’s time to start stereotyping your customers. At the same time, many types of customers have enough things in common that you can make some broad assumptions about how things are going to play out. At first, you’ll probably make some incorrect assumptions and turn away the type of people who are actually right for your business – and this can lead people into thinking that they are making the wrong decision by turning down their customers.
If you get good at this type of customer identification though, it soon becomes far less of an issue. As with all things with a learning curve, you’ll have to make a couple of sacrifices before things get better, so be prepared to possibly lose a couple customers, in order to gain exponentially more customers in the near future when you figure out your ideal real estate client.
Getting Over The Mental Hurdle Of Saying No
At first it can be very difficult to say no, because it’s almost like turning down money. In reality it is turning down money, at least in the short term. In the long term, it’s a great way to ensure that you’ll make a whole lot more money, because you’ll only be serving the types of people who make you the most money.
When you spend your time serving the people who fit your ideal real estate client profile, and no time on the people who simply take up your time, well, you can just imagine what kind of effect that has on your bottom line.
Our thanks to Dan for this great post. If you are looking for a great real estate CRM product to streamline your business so no leads slip through the cracks, make sure to check out Follow Up Boss.