Lead Generation 36:12:3 Power Session 6: Farming
Power Session 6 In this Power Session … 1) 2) 3) 4) 5) 6)
Introduction What Is Farming? Myths about Farming Selecting Your Farm Working Your Farm Putting It All Together
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 1
Slide 2
Power Session 6
Introduction
Ground Rules 1) Arrive on time. 2) Form groups quickly. 3) Limit side conversations. 4) Turn off cell phones and pagers. 5) Be comfortable. 6) Respect time. 7) Respect each other. 8) Help each other. 9) Respect confidentiality. 10)Have fun! Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 3
Slide 3
Power Session 6
Introduction
How You Will Learn Learning Methods 1) Manual • • •
Models/Systems Exercises/Discussion Stories
2) Classroom • • •
PowerPoint slides KWConnect videos Classmates/Instructor
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
(continued)
Page 4
Slide 4
Introduction
Power Session 6
How You Will Learn Accountability Methods 1) Lead Generation Action Plan 2) Accountability Partner/Program 1. Set Goals
5. Make Adjustments
Accountability Feedback Loop
4. Evaluate Process
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 4
2. Do Key Activities
3. Measure Results
Slide 5
Introduction
Power Session 6
EXERCISE Where You Are Today 1) 2) 3) 4)
Lead Generation Activities My aha’s from these activities The most difficult part of these activities What I will do differently in the next 24 hours
Time: 10 minutes Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 5
Slide 6
Introduction
Power Session 6
Why You Are Here How do you target a specific group of Haven’t Mets?
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
You are here!
Page 6
Slide 7
Introduction
Power Session 6
Why You Are Here The Power of Prospecting to a Targeted Market
Read, underline, and share …
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 7
Slide 8
Power Session 6
Introduction
What Will Make This a Great Training Experience • • •
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 8
Slide 9
Power Session 6
What Is Farming?
Farm = market segment =narrow market = niche
1. Where do they live? 2. Who are they? 3. What do they like?
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 9
Slide 10
Power Session 6
Lead Generation 36:12:3
What Is Farming?
Š 2008 Keller Williams Realty, Inc.
Page 10
Slide 11
Power Session 6
What Is Farming?
EXERCISE Which Type of Farm Is It? 1) Mark the following as geographic (G), demographic (D), or psychographic (P). 2) Be prepared to discuss your answers.
Time: 5 minutes
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 11
Slide 12
Myths about Farming
Power Session 6
Myth 1 Farming takes too long and costs too much.
Truth Farming can become the core of your business.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 13
Slide 13
Myths about Farming
Power Session 6
Myth 2 Someone else already dominates the area.
Truth No one is ever as dominate as you think.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 14
Slide 14
Myths about Farming
Power Session 6
Myth 3 A farm limits you to that area or specialty.
Truth A farm does not have to be your only source of business.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 15
Slide 15
Myths about Farming
Power Session 6
Myth 4 It’s all about mailers and mass marketing.
Truth It’s the synergistic impact of both marketing and prospecting.
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 16
Slide 16
Myths about Farming
Power Session 6
Myth 5 You can stop and start your farming efforts.
Truth You must pursue your farm consistently and persistently.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 17
Slide 17
Selecting Your Farm
Power Session 6
Niche within a Niche • •
Niche categories overlap Select a farm and intensify your efforts
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 19
Slide 18
Selecting Your Farm
Power Session 6
Geographic Farm 10 Factors to Consider 1. 2. 3. 4. 5.
Your Goals Your Budget Size Location Haven’t Mets vs. Mets
Lead Generation 36:12:3
6. Average Sales Price 7. Turnover Rate 8. Market Conditions 9. Competition 10. Your Fit for the Farm
© 2008 Keller Williams Realty, Inc.
Page 20
Slide 19
Power Session 6
Selecting Your Farm
1. Your Goals – Market Share – Gross Closed Income – Number of closed transactions
2. Your Budget – Time – Money Prospecting Based, Marketing Enhanced Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 21
Slide 20
Power Session 6
Selecting Your Farm
3. Size of Geographic Farm – Option to start small – Grow to adjacent streets or neighborhoods – Easier to meet everyone
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 22
Slide 21
Selecting Your Farm
Power Session 6
4. Location of Farm – – – –
Accessibility Existing geographic boundaries Kind of homes Desirability
5. Number of Haven’t Mets vs. Mets
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 23
Slide 22
Selecting Your Farm
Power Session 6
6. Average Sales Price – Will this support your goals?
7. Turnover Rate – National Average is 16.6 percent – Target a farm of at least 10 percent
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 24
Slide 23
Selecting Your Farm
Power Session 6
Tenure in Previous Home Less than 1 year
6%
1–2 years
24%
3–4 years
19%
5–6 years
11%
7–10 years
12%
11–15 years
11%
16 years or more
18% 6 years
Median Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Source: “2006 NAR Profile of Home Buyers and Sellers”
Page 25
Slide 24
Selecting Your Farm
Power Session 6
8. Other Market Conditions – Days on market – Expired listings
9. Competition – Market Share vs. Mind Share
10. Your Fit for the Farm – Can I relate and fit in with them? Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 26
Slide 25
Power Session 6
Selecting Your Farm
Demographic and Psychographic Farms 10 Factors to Consider 1. 2. 3. 4. 5.
Your Goals Your Budget Size Accessibility Haven’t Mets vs. Mets
Lead Generation 36:12:3
6. Average Sales Price 7. Motivation 8. Current Trends 9. Competition 10. Your Fit for the Farm
Š 2008 Keller Williams Realty, Inc.
Page 27
Slide 26
Power Session 6
Selecting Your Farm
Popular Niches • Specific Generations • Hispanics/Latinos • Foreign-Born Customers • Second Home and Investment Buyers • Luxury Homes Clientele • Other Real Estate Agents Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 28
Slide 27
Power Session 6
Selecting Your Farm
Other Niches • Single Buyers • Pet-Friendly Neighborhoods • Student Housing • Waterfront/Golf Course Properties • First-time Home Buyers • Condos/Urban Development Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 28
Slide 28
Selecting Your Farm
Power Session 6
Building Strong Relationships Chris and Nikki Buckelew
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 29
Slide 29
Selecting Your Farm
Power Session 6
Boomer or Gen Xer? • Matures (born before 1947) • Boomers (born between 1947-1966) • Xers (born between 1967-1980) • Generation Y/Echo Boomers (born after 1980) Maximize your marketing efforts Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 30
Slide 30
Power Session 6
Selecting Your Farm
Hispanics/Latinos • Fastest-growing group of buyers • Prefers to be closer to extended family Foreign-Born Customers • Homeownership #1 priority
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 31
Slide 31
Power Session 6
Selecting Your Farm
Finding Success with Foreign Customers 1. Be prepared to explain. 2. Focus on one or two groups. 3. Understand their needs. 4. Take it slowly. Lead Generation 36:12:3
5. Develop core resources. 6. Make the buyer feel comfortable. 7. Get your CIPS designation.
Š 2008 Keller Williams Realty, Inc.
Page 32
Slide 32
Power Session 6
Selecting Your Farm
Additional Tips 1. 2. 3. 4.
Learn the language. Learn their customs. Market in their language. Check the census numbers.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 32
Slide 33
Selecting Your Farm
Power Session 6
The Second Home and Investment Buyers • 40 percent of home sales are second homes. • Buyers are typically baby boomers. Millionaire Systems Check out The Millionaire Real Estate Investor, MREI Client Workshop Kit, and FLIP. Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 33
Slide 34
Selecting Your Farm
Power Session 6
Luxury Home Clientele • 92 percent of buyers are 40-65 years old • 51 percent of buyers are entrepreneurs www.kwluxuryhomes.com
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 34
Slide 35
Selecting Your Farm
Power Session 6
Other Real Estate Agents • See Power Session 9: Agent-to-Agent Referrals for more information Truth Determining your farm or niche is only limited by your imagination and your opportunities to target them.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 34
Slide 36
Power Session 6
Selecting Your Farm
Defining Your Identity and Positioning • Personality • Fit • Image • Values • Interests • Lifestyle Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 35
Slide 37
Selecting Your Farm
Power Session 6
EXERCISE Refine Your Style Analysis 1. Brainstorm your personal style. 2. Determine what type of farm you could support best. Time: 10 minutes Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 36
Slide 38
Selecting Your Farm
Power Session 6
EXERCISE Brainstorm your USP Review the USP you created in Power Session 1: Building Validity and Positioning. Time: 10 minutes Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 37
Slide 39
Working Your Farm
Power Session 6
Myth I don’t have the money to lead generate.
Truth Lead generation doesn’t have to cost money.
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 39
Slide 40
Power Session 6
Working Your Farm
Establish Your Reputation First • Reputation vs. Relationships • Be sincere about who you are
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 40
Slide 41
Power Session 6
Working Your Farm
Prospecting in Your Farm • Relationship Farming • Prospecting Based, Marketing Enhanced
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 41
Slide 42
Power Session 6
Working Your Farm
EXERCISE Geographic Farm ____ number of homes in my farm á ____ weeks I will knock on doors = ____ x 3 minutes = ____ minutes I will devote every other week Time: 5 minutes Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 42
Slide 43
Power Session 6
Working Your Farm
Work Smarter, Not Harder Mary Harker: • Find your “bird dogs.” • Core Advocates who refer business.
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 43
Slide 44
Power Session 6
Working Your Farm
Come from Contribution 1. Have something of value to give. 2. Meet people face-to-face.
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 44
Slide 45
Power Session 6
Working Your Farm
Come from Contribution 1. Create a directory. 2. Organize a neighborhood yard sale. 3. Start a website. 4. Create an email “list serve” group or blog.
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 45
Slide 46
Working Your Farm
Power Session 6
EXERCISE Low/No Cost Items for Giveaways Brainstorm low/no cost items to drop off. Time: 15 minutes
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 46
Slide 47
Working Your Farm
Power Session 6
Housing Update Newsletter •
•
Average List/Sale Price Sales to List Price Ratio
•
• •
Average Days on Market Current Inventory Number of Expireds
Question How can you modify this for your niche? Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 47
Slide 48
Power Session 6
Working Your Farm
Be Where Your Customers Are • • •
Walk your neighborhood. Repetition is key. Join a club.
Internet Lead Generation Be sure to check out KWU’s Internet Lead Generation course.
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 48
Slide 49
Working Your Farm
Power Session 6
Be Prepared • •
Learn your scripts. Ask for referrals.
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 49
Slide 50
Power Session 6
Working Your Farm
EXERCISE 12 Direct 1. Determine how many people you need 2. What would a balanced database look like? Time: 5 minutes Will the farm you selected support your goals? Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 50
Slide 51
Power Session 6
Working Your a Farm
Create a mini-farm–with a call to action!
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 51
Slide 52
Power Session 6
Working Your Farm
Question What are 12 items that you might send as part of your 12 Direct plan?
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 52
Slide 53
Power Session 6
Working Your Farm
Question What are some actions you can take to make your 12 Direct plan more effective?
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 53
Slide 54
Power Session 6
Working Your Farm
Build Trust and Recognition • Market your listings aggressively. • Concentrate your open houses. • Host seminars and classes. • Join local organizations. • Get to know the renters and landlords. • Contact every FSBO and expired listing. • Create a local flavor for your marketing. Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 54
Slide 55
Power Session 6
Working Your Farm
Question What are some services you could offer to establish yourself as the expert?
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 54
Slide 56
Working Your Farm
Power Session 6
Working Toward Higher Goals 1. Increase the size of the farm • •
Increased costs Increased efforts
2. Increase Prospecting •
Increase efforts
3. Increase Marketing •
Do you consider a different farm area all together?
Increased costs
4. Increase all three Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 55
Slide 57
Power Session 6
Putting It All Together
Power Session Aha’s
Your Lead Generation Action Plan
Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Page 57-58
Slide 58
Putting It All Together
Power Session 6
The 3-Hour Habit 1) Time block 3 hours every workday before noon. 2) No skipping. If you must erase, then you must replace. 3) Allow no interruptions (unless they truly are emergencies).
Lead Generation 36:12:3
Š 2008 Keller Williams Realty, Inc.
Page 59-60
Slide 59
Thank You for Being Here! Don’t forget your evaluations! Lead Generation 36:12:3
© 2008 Keller Williams Realty, Inc.
Slide 60