Following up on yesterday's blog about making sure your prospecting goals are compatible with your business model (in a nut, don't set goals that will force you to sacrifice your quality of service, if providing quality service is important to you)...
The agent who inspired yesterday's blog is following a popular prospecting program that's making the rounds these days. It encourages agents to spend so many hours every day doing X (basically, some form of cold or warm prospecting), with the goal of reaching Y number of prospects every day, with the ultimate goal of securing as many new clients as possible by the end of the program.
Y'know, your basic Numbers Game strategy. Fair enough.
He's all ramped up about it because he says that another agent who is participating in the program got 41 new listings in 30 days. My agent friend is very impressed.
Initially, so was I. But then my cynical side kicked in and I said "hmmmmmmm."
Let's do some math.
41 new listings in 30 days. Assuming these aren't batch listings (10 building lots from a developer; 15 spec homes from a builder, etc.), I'm wondering how this is possible. Not saying that the agent in question isn't capable of securing 41 listings with her Super Sales Pitch, but in a month?
That means that she did at least 41 listing presentations (probably more as it's unlikely she has a 100% success rate, but let's be generous and say she does). That's 41 CMA's, 41 sets of contracts and disclosures, 41 copies to seller and broker, 41 keys-in-the-lockbox, 41 MLS entries, 41 signs-in-the-yards, 41 whatever-she-does-to-market-her-listings, etc. etc. etc. And none of this includes explaining the process of being on the market to those 41 new sellers, answering the inevitable questions that arise as showings for 41 sellers begin (or don't begin as the case may be), keeping up on the market in all 41 seller's neighborhoods, pursuing and delivering feedback, and managing offers that come in.
Have we mentioned the time that this agent was dedicating to her daily prospecting for these 41 listings, or the time she was devoting to her existing clients or to her family? And let's not forget eating and sleeping. All the while, preparing for, going on and processing these 41+ listing appointments.
I call BS. I don't think it's logistically possible to get 41 new, individual listings in 30 days. Could you list a developer, builder or bank and find yourself with 41 listings? Sure. But 41 individual sellers? I don't buy it.
What's my point? I dunno. Maybe just to demonstrate how smart I think I am to see through the nonsense and call it what it is. Or maybe I just want to assure agents that this sort of production isn't realistic and not be discouraged if they don't experience it themselves.
Probably a little of both.
Jennifer, I'm so with you on this one! I want listings i can sell not just heap out there for numbers sake..great post & voice
This program assumes you have the technology and assistance to manage that many listings. That is usually not the case. Thanks for the post!
I'd say unless there is a team in place to run around and collect keys, hang signs and put out lockboxes it would be impossible to do this all on your own. That doesn't even count all of the other things you mentioned.
I would have to form a team and hire an assistant. There's just no way!
41 Keyboxes at my board = $4100
41 Brand New Signs @ a Cheap $20 ea = $1025
41 Sign Ups w/ Sign Company @ Average $40 ea = $1640
Just for keyboxes and sign ups you are going to spend a pretty penny.
Got flyers?
Jennifer - This would be impossible for an individual agent to accomplish. I'm with you, this is a whole lot of BS.
This has gotten me thinking....What would that cost me:
41 lockboxes ($80 - Sentrilock) (41) = $3280
Signs (I'm being fair - half of what I do are condos/coops) $35 (20) $700
Post cards for open house - ($200) (41) = $8200
41 NY Times online listings ($50)(41) = $2050
41 Property business cards ($65)(41) = $2665
41 Ads for open house in local news ($65)(41) $2665
41 ehanced postlets ($5) (41) = $36
41 batches of flyers ($60)(41) = $2460
41 internet ads ($100) 41) =$4100
Yikes thats $23,500 approx
If I got rid of the open house print ad and the post cards you are down to $12,626. The print ad I'm toying with doing away with. The cards??? Oddly enough I've gotten a few listings from the cards. Mine are a bit unique but last year I did 6 sets of listing cards and grossed $17k from it directly - but if you've got 41 listings - who needs the cards?
Either way - I hope this guy has a good credit rating - he won't for long, but he'll need to support the listings.
OK Logistics-
1.I take about 200 photos and put 30 in the mls after tweaking - That's 8200 photos....to be taken and 1230 photos to be photoshopped and tweaked and put into the MLS
2. 41 postlets
3. Who on earth is going to put labels on the post cards - 200(41) - that's 8200 labels!
4. Each of my llistings gets its own domain name and web page so 41 domain names need to be bought (more $$$) and 41 web pages need to be made....
5. Copy is different for MLS - postlets - Realtor.com- web page - and NY Times Listing copy (41)(5) = 205 pieces of copy
I could go on - but I'm exhausted thinking about it..
Btw, who is going to handle 41 open houses....???
Judy - I do wonder what the *real* story is, though...
Renee - Wow - I totally didn't think of the dollars angle.. Good catch!
Lina - Even with an assistant, I don't see how it's possible. A team of two or three listing agents? Yeah... and maybe THAT's the real story.
Cindy - Agreed.
Sam - good point. I wonder if that's covered in the training for the program?
Ginny - thanks!
I also think it''s the impossible dream. However, if the agent works toward his dream he his going to have some success. Time and experience will tell him what he's capable of and what type of assistance he'll need.
But first, since he's a new agent, the focus should be on getting an education in real estate immediately after getting the license.
Didn't you learn enough from a commenter from the previou post, Perception is REALITY. Only a percentage of these listings need to sell. As a homeowner/ Seller, you hope you are one of the handful.
It gives me a huge headache just thinking about that many listings!
If this is true I want in on the program. But like you I am a bit skeptical about the numbers. I have been following this I am wondering where it is going. But maybe your dunno says it.
They can do 41 new listings in 30 days with 100% success rate, and very little contract work, if they take 41 overpriced listings. Follow up and find out how many of the new listings that the other agent got actually sold.
I have heard these pitches and they all involve getting the back office team together while you only work 4 hours a day (and never nights and weekends). Some agents can really work a team situation well to maximize productivity, but it is still "work" and things go wrong.
I had a escrow go very wrong and I had to get down right mean to even talk to the "agent" as the team was screwing up everything. The agent seemed really discounected and had no knowledge of what was going on, and little ability to solve the problem.
I think that the thought of breathing, or eating were not calculated in the process... lol
JA - I didn't see VT's mentioned anywhere either. Mo' time & money!
This has been an amazing topic. I am reading so many posts from the original feature and now you are cluttering my mind with numbers that truly do not make sense. This may be a bit far fetched.
Thanks to Renee and Ruthmarie, I have been pondering what the price point, which has never been mentioned. You see I work in the biggest (agent wise) real estate office in Calif., at least that is what we are told, we have about 190 agents. Of the top agents, TOP producers, and these are teams, they have 56 listings between them that are active and 199 that are in escrow. That averages about 50 listings per team but carries over 45 days.
Our price ranges are as follows in our county which encompasses 4 cities;
781 active listings with a median, not average, $730K
142 pending listings with a median $426K
302 CYB listings with a median $496K
So why I can't fathom having even 15 listings, as the most I have ever had is 7, the people that have responded saying they have 50-60 are these prices considerably lower than let's say $200K? I have only been thinking residential it sounds like some examples have been land and specs and much lower value? I know we have a lot of variables based on where you are across the states so prices fluctuate.
Based on my readings I have felt that I have not been doing what I need to be doing but based on all your comments I need to ramp up my volume and do better. (I know the answer to that by the way ). Do other areas flourish because the price point is lower?
I forgot to mention I am an individual not a team. I would sure like to know so I can feel good or kick myself in the @ss.
I'd be fascinated to hear the results of those 41 listings. I 2nd your call for BS. No way individual could do all that. Even if it were some package listings, unless you're talking about identical new construction where you can use the same ads etc, that's still only eliminating the prospecting and listing appt steps...
Hey Jennifer,
I'm sure the service will be veeery personal...
all the best..
I agree with the BS.... it is not possible to maintain a pace like that, it could be possible if the past three months you talked to a bunch of folks that all woke up one morning and said: "ok we are ready" but from scratch, NAH, dont buy it.
and the next few months will be 0 business, the business wave of ups and downs that needs to be flattend out. Slow and steady wins the RE race
I'm not sure I call BS, but I certainly call TI ....That would be Temporary Insanity! Think about the Real Estate business as a process. Wouldn't it be better to have a flow of listings rather than an instant gush and a big mop-up? Robert (#20) has it right. This rate would result in 1,230 listings in a year's time, and without a thoroughly trained, very efficient team, the end result of the sudden influx is not profit, it's chaos! Better to build the business and the experience of the team at the same rate, looking more at the month-to-month incremental increase in sales and net profit, not just listing contracts. My career goes back to several other types of companies, and we in real estate are the only ones who try to measure our results by wish lists listing contracts.
Okay, I cannot even fathom WANTING 41 listings...clearly he is a new agent who has no concept of what having a listing means. Unless he has a supporting cast whereby he does nothing but prospect, it's simply unrealistic. As an individual agent, no way could he begin to service 41 listings...even under perfect circumstances, never mind if something went wrong!
Interesting discussion and learning's. I am all about doable numbers and processes to fill the pipeline.
@Ken Barker - I think that sales volume is area dependent. I come from Westchester NY - If you have 5-6 listings at any one time you are in the big leagues. The volume that I hear people discussing boggles mind. I pointed out in Jennifer's previous post that if any one agent had 35 listings in my city (population 60,000) they would literally have over 7% of the active listings in the city. I don't know of any one agent - even the huge heavy hitters that have anything like that. Impossible for rookie - I don't care how many doors they try to knock down.
Ruthmarie, I appreciate the comment and it makes me feel better. I still need to do better but some of these comments indicated 50-60 at a time. They have to be the $100-200K range.
Jennifer - I agree with you and love that Renee did the "financial" math - most agents trying to get a bunch of listings don't have the cash to make it work. That's one of the missing links - and as others said - taking overpriced / non-sellable listings is just "wasting your own time and money" - thanks for sounding the BS meter ;)
It would be interesting to see the agent comment who received the 41 listings. I would think that it probably was some sort of batch listing as you put it. The cost is not the issue to support the listings, but the resources are in terms of marketing, advertising as well as handling the phone calls.
Two of the hardest agents I know and are in the top 2% of real estate agents in my area sell anywher from 75 -150 homes a year. So, I too am with you Jennifer! And I would say our price point is very reasonable.
Just curious as to what happened with the new agent...Is he still headstrong in trying to get that many listings in 90 days??? Seems like reality would have to kick in at some point...
CHANDA PANDA
I wonder what kind of customer service listing 1 got while she was in the process of getting the other 40? My guess is none.
You are completely right, but I did secure 38 listings in 30 days and I remember it being CRAZY. I was able to do it but I worked 7 days a week from 6am until 11pm EVERY DAY. In fact, it was at about day 25 that I realized how out of hand it was all getting and hired an assistant(YAY I had to spend more time to train someone on how to do what I was already doing!!!!). It is difficult but can be done.