Having a listing based real estate business allows you more freedom and more income. This article will explain why and how to build a listing based business.
“I’d rather come to an event like this, and know how many hours it is and I’m going to get as much content from that convention as I can. The fluff and parties are fine, but my goal is to get as much content out of it as I can” – Jeff Glover
Jeff Glover | GloverU | LiveUnrealRetreat
- Why Have a Listing Based Real Estate Business?
- Jeff Glover’s Backstory
- How to Set and Achieve Goals
- 12 Benefits of a Listing Based Business
- 25 Sources of Real Estate Business to get to 1000 Transactions
- Lead Follow up and Conversion
- Follow Up Method
- Pre-Qualifying Process
- Personality Types
- Win Listing Presentation Panel
- Real Estate Challenges
- Presenting to certain personalities
- Real Estate Guides
Why Have a Listing Based Real Estate Business?
- Market Conditions: The reality is in most markets, the inventory level is the lowest seen in 10 or 20 years depending on the market. When inventory levels get low, they start to shift their focus to other areas. When you take your focus off listings, you wind up buying into what the market is telling you which is “listings are low”. When listing inventory is low, most agents, even good ones mentally check out of the listing business. There is more to go around for those that focus on having a listing business.
- Listings are the path of least resistance which leads us down the path of most freedom. Whether it’s a sellers or buyers market, the listing business is more difficult. It comes with more stress and rejection. The challenge we have as agents or teams is to take the path of least resistance which is buying leads or “buyer” leads. Being a listing based business leads to more freedom and flexibility. You must have a disciplined agenda every day.
- Buyer leads are becoming more expensive. The ROI today is not the same on buyers leads as it was 5 years ago.
- There is way too much buzz going around about technology and how it’s going to disrupt the industry. The challenge is that we buy into the fact that we are going to be replaced soon.
- Not enough people are teaching how to get listings. Remain in production as long as it takes to be sharp and on top of the game.
- A listing based business leads to an unreal life in real estate. We need to live “our best life” which comes from a listing based business.
Jeff Glover’s Backstory
Jeff Glover was 15 years old and transferred from a Blue Collar (maybe even poor) area of Michigan to an upscale area to go to a better school. My Dad bought a trailer in a trailer park so Jeff could go to a great school. He was the “poor kid” that lived on a dirt road in a trailer going to a good school system. Jeff was picked on. In art class, everyone was talking about their great neighborhoods, and Jeff was shy.
Jeff said proudly “Highland Hills Estates” and then kind of tried to change the subject. Someone realized it was the trailer park. Jeff got $100 a year for school clothes maybe where everyone else had nice clothes.
Jeff decided he was going to live the life the others were living. He knew he wasn’t going to be “given” this life. He had to earn it. He went to work at Circuit City as a commission salesperson at 15. He became the #1 salesperson in the state of Michigan for Circuit city. He was only allowed to work 18 hours a week at that age and was #1 in the state at age 15.
Then, he decided he should sell cars. He took all his certificates and awards to the car dealerships and they wouldn’t hire him. Mainly because he was in school and the hours conflicted. He wound up going to a furniture store and did the same there. He got a job at the furniture store because a sales manager took a liking to him. He started in the clearance section.
He was given a “layaway” book. His job was to get these people to pay off their layaway. He finished #3 the first month on the floor because he didn’t sit around and wait for people to come in the store. Instead, he prospected for business. Someone there talked to him about getting into the real state business.
At 19, he sold 34 homes his first year. His 2nd year, he was recruited by a real estate company. His goal was to teach and train agents to do what he did. At 20 years old, he was running a small real estate office that had 16 agents and was failing. After 18 months, they had 60 agents and were the fastest-growing office in the area.
Now, he’s 22 and was the director of recruiting. He knew his calling was to help people see things in themselves they do not see.
When he got back into real estate, he knew he had to be so attractive through personal production that people would be drawn in. Then, he could teach them the same thing and turn them into success stories.
GloverU was born out of that. While Jeff loves selling real estate, it’s because he wants to be credible and sharp. His true passion is to work with others helping them see what they don’t see in themselves.
How to Set and Achieve Goals
Why do people who desire to be a high achiever wind up not going anywhere? Why does the American dream turn out different than what we imagined?
The American Dream is a Myth.
Hard work is an accelerator, not a determiner. Ask yourself, who do you know that has worked hard their entire life and doesn’t have much to show for it?
High achiever syndrome: We take the bulls by the horn and we go for it yet the decisions we make don’t line up and support each other.
Are the decisions you are making taking you closer to where you want to be at the end of the year?
The fastest path between two points is always a straight line. Most people “meander” and don’t walk the straight line.
The North Star is our goal, the place where we are going. So how do we live a life and make decisions that get us there?
Three Components of the North Star
- Your Career or Business that produces income
- Life by Design funded
Wealthy people talk about money all the time. As Gary Keller says money is good for the good that money does. We must pursue it in some way. It is selfish to not want to make money.
Exercise: Close your eyes and get really clear on what your perfect career would look like. Then write down what things need to happen to get to that place. Then imagine the perfect life. Who are you with? Write down what you see and what you are fulfilled by. Close your eyes again and imagine the legacy you are leaving behind. Who did you touch? Whose lives did you change?
Before we “do”, we must understand where we are going.
Life happens. We get off course. So how do we get back on course?
The Appollo mission to the moon was off- course 97% of the time. It took rapid course correction to navigate back to being on course so that the mission was never jeopardized.
Most of us get off course and never get back on.
We get distracted. We follow shiny objects and jump on “opportunities”. We continue off course even when we move forward.
Just because an opportunity is a good opportunity doesn’t mean it’s right for us.
Shiny Object Syndrome is the curse of the high-achiever. You must become ruthless in your priorities.
In life every choice we can make falls into 1 of 4 buckets:
- Urgent and Important
- Important and Not Urgent
- Urgent and Non Important
- Not Urgent and Not Important
Get out of the habit of thinking everything is urgent and important. It’s part of your natural psyche the is lying to you. Urgency triggers the fight or flight syndrome. Most people don’t have a wealth building plan because they can’t determine that it’s urgent and important.
Most people spend more time figuring out what they are going to order to eat than they do about how they are building wealth in their life.
The longer we stay in urgent mode, it becomes easier to defend why are not doing the other things. You can go your entire life waiting to prioritize family time or wealth but you don’t because you are feeling other things are important.
If we want to travel miles, we must first travel inches.
Higher performance is a habit. Anyone can perform high during 1 day. High Achievers build a habit around high performance. Those that don’t build a habit produce less because they are inconsistent in their activities.
E to P: Entrepreneurial to Purposeful
E is Natural
P is Unnatural
The income per hour of an entrepreneur is typically less than someone that is paid in a job.
Dreams die because we think big and then life shows up and puts road blocks in front of us that we don’t know how to get around. When the dream dies, we program ourselves to become “realistic”.
- Natural Behavior
This is not your ceiling. It’s only the natural style that will take you through your first road block.
When you get stuck, your energy drops. It’s harder to get going in the morning or stay late to finish the activities. Our results go down.
When your energy goes up, your business goes up. Your natural ceiling doesn’t change.
Every time we hear about someone who’s “killing it” in a certain lead source, we enter the danger zone “following”. Our energy goes down, our results go down, and this is where dreams die.
Typically, people will “resign themselves that “this is all I will ever be”. It’s worse than quitting. It’s contentment. This is the ultimate dream killer.
How do we break the ceiling? We go from E to P.
- Strategic Options
Accountability must be external. You shouldn’t be trying to hold yourself accountable.
12 Benefits of a Listing Based Business
- Employee vs. employer
- Brand recognition in the neighborhood as a home seller
- Credibility to prospect for more listings
- More Referrals go to listing agents than buyers agents
- You can predict your future income (based on inventory)
- 2 to 1 Formula: 1 listing = 2 Sales
- You develop stats for marketing which are credible
- You have more control of your income, you set the commission rate
- It’s market proof
- You can still convert as many buyers as you want using showing agents
- You have more control of your time
- The Timing analysis of Buyers vs. Sellers
Jeff Glover’s Study: A buyer takes 38.5 Hours without assistance. A seller is 19.5
Types of Prospecting
- Making Outbound attempts
- Inbound Lead Generation
We need to accept the fact that we need to do real estate at a high level, we must lead generate as a priority.
Jeff Glover’s Study shows: 8-10 AM has the most prospects per hour. He defines a contact today vs yesterday as “A response from a decision making adult”. This can be “go fly a kite” or an appointment, either is a contact.
5 years ago, we could make outbound attempts from 8-10 and talk to 25-30 people. If I was focused, I was talking to 10-12 people.
Old definition – “a Hello from a decision making adult”
Today, to do the same, I have to add other sources: text, social media, email.
We recommend 10-12 contacts per hour.
If you aren’t hitting it, you have too many distractions or you are lacking intensity.
Jeff keeps his phone on silent so he’s in control of his schedule. Do You want your time back? Check your phone on your schedule.
The cost of a transaction through outbound vs inbound prospecting:
- When we pay for a lead, our ROI on our time is lower than we practice outbound prospecting.
- Working an inbound lead is a lower ROI because most outbound leads just don’t count as much money
25 Sources of Real Estate Business to get to 1000 Transactions
(Source: Jeff Glover)
Best time to door knock is 4: – 5:30 PM
“If I did not go on an appointment today, what did I accomplish?”
Your business will increase once you focus on adding value to your clients.
- Past Client and Past Client Referrals: (4x2x1x12) 4 Pieces of Mail, 2 Calls, 1 client event, 12 emails (1 each month / Infotainment Newsletter)
- Sphere of Influence and Sphere of Influence Referrals (People who have not done business with you but like you and trust you)
- For Sale By Owners
- Expired Listings
- Internet Leads
- Just Listed, Just Sold, Circle Prospecting
- Agent Referrals
- Online Referral Sources: homelight, agentmachine, top agents rank
- Open Houses (most effective when listing inventory is low)
- Sign Calls and Sign Riders
- Small to Medium Size Investors: Buy/Flip, Buy/Hold
- Current Client Referrals: The best time to get a referral is in your first 7 days after taking the listing
- Orphan Clients: Clients who bought our listing where we represented the seller. 87% of buyers say they would use their agent again but less than 20% do
- Social Media: You have to be there but you can’t be there like you used to because the algorithms have changed
- Small to Medium size builders, generally without a salesperson that sits in a model
- Direct Mail – This helps with outbound calls because they have seen our brand from the direct mail. Direct mail supports outbound prospecting and increases conversion. Hybrid farming is 100-200 homes that have a lot of turnover in a market average price range and make 1 reach out attempt per month for 12 months. I’ll give an update on the market and what’s listed and what’s sold. No flowers, no pie. I will be the neighborhood expert.
Lead Follow up and Conversion
Lead Follow up is the frequency and the methods in which we are reaching out to a prospective client.
Lead Conversion is what we say to the leads In order to convert them.
70% of your appointments will come from the follow-up and conversion, not on the 1st call. We must have a strong lead follow up system, method, and script.
The definition of a lead is someone you have engaged in conversation with about real estate that is interested in doing business at a given point and time.
A prospect is a “name”, purchased “lead”, web contact that you have not spoken to.
The #1 reason we do follow up is to determine motivation. Then we can decide whether to go for a close. Motivated clients love a motived agent. A non-motivated potential client will find you annoying.
Once we determine motivation, we can decide how to follow up, drip campaign, follow up in 30 days, 60 days, 90, etc.
Determine the motivation as quickly as possible.
Our job as salespeople is to talk to people and sell them on meeting with us only AFTER we determine their motivation. Stop looking for a system to do this for you.
You will only have a big business if you get in front of a lot of people. Unless your system is getting you on an appointment every day, your system is broken.
You master this and then go teach other people to do it.
We need to spend less time figuring out how technology will help us to follow up with our clients so we don’t have to and more time on our sales skills.
Follow Up Method
Outside Sales Method: 3 x 3 x 3 Model
3 Calls, 3 Text, 3 Emails within 3 days. Most clients take 5-6 touches to respond. The greatest opportunity to conversing a lead is talking to them.
Step 1: Call the lead ASAP
Step 2: If no answer, Text, and Email right away (open-ended)
Step 3: Seller Drip campaign
Step 4: Reminder in CRM to call them again
Step 5: Send another Text: “What time do you have available ….”
Step 6: Another reminder and another text
Step 7: After 72 hours, drip continues without our focus
It helps us identify the motivation of the prospect. It helps determine if it makes sense to go on the appointment or continuing to have conversations.
It’s our decision if we want to go or not go. If you don’t go, stay and make another appointment.
Three rules on Pre-Qualifying:
- Prequalify 100% with no exceptions
- Ask every question, 100% every time
- Determine if it’s worth to go on the appointment or stay back and prospect for another one
1.) If what I say makes sense.. and you feel absolutely comfortable and confident that can sell your home are you planning to get started with me when I come out on (date/time)?
Here you are looking for a clear answer.
2.) Are you looking to interview more than one agent of selling your home?
(Determine your position)
3.) Tell me again, where are you moving to? What takes you there?
(The why is more important than the where. Go 3 deep on questions here and on others where you can.)
4.) How soon do you have to be there? What’s important about meeting that timeline?
5.) When I see you… how much do you want to list your home for?
- As a professional real estate agent, I study homes and prices everyday.. therefore I assume you’ll list with me… at a price that will cause your home to see.. correct?
don’t battle this over the phone. Don’t talk price after their answer.
6.) How much do you owe on the property?
7.) Have you ever thought about selling it yourself?
Until you believe you can do a better job than they can, you won’t win with a for sale by owner.
8.) Would you please describe the home for me?
9.) I’ll be sending over a package of information… will you take a few moments and review it?
10.) Finally, will all the decision makers be there?
11.) Do you have questions before I arrive?
12.) So you know, our meeting should only take between 15 and 30 minutes, is that OK? I look forward to seeing you on (date/time).
A lot of people have personality-based businesses. This means people do business with you because they like your personality. You might be losing out on 50-75% of your appointments if you use YOUR personality to sell rather than mirroring theirs.
- Makes Decisions Quickly
- Loves Action
- Bottom Line Oriented
- Sometimes Argumentative
D Personality Challenges
- Generally insensitive
- Rushed and Impatient
- Appear aloof and arrogant
- Challenged with versatility
- Can be careless
- Can move too fast
- Strong Willed
- Extremely Outgoing
- Fast Decision Makers
- Very Relatable
- Most “natural” sales person
- Too Outspoken
- Too Gregarious
- Too opinionated
- Most manipulative
- Extreme Emotions
- Always Late
- Struggle with Focus and Intensity
- Fear Rejection
Rejection is the Bridge to higher production. The more rejection I get, the better I do.
- Fast Based
Challenges with the High C
- Overanalyze Things
- Avoid confrontation
- Dry sense of humor
- Extremely low on emotion
- Struggle with versatility
- Most adverse to change
- Friendly and Warm
- Best listener
- Values Harmony
- Always giving
Challenges with a high S
- Seek acceptance too often
- Avoid conflict
- Are generally slow in taking action
- Soft Spoken
- Prefers to live in a comfortable box
Win Listing Presentation Panel
Erick Monzo, Frank Montro, Seychelle Van Poole, Daniel Beer, Kristie Smith
Eric Monzo runs a team at Keller Williams in Mount Clemens outside of Detroit and has a team of 30 agents. He closed 780 homes last year.
Sources: Referrals, Repeat Business, and Investors
We had to work on this as a team. Most real estate agents don’t enjoy working with investors. Today is a more traditional market. The bread and butter investors who are always looking, are stable. The concept is not just that I’m going to sell to investors. What you really want is someone that is going to “be an account”. This means they will come back again and again rather than a one time deal. Don’t look at your client as a “transaction” but rather an “account”.
Frank Montro – Keller Williams Preferred Real Estate Orland Park, IL, $64 million in 2019
I had to pay my bills and keep my lights on, so I worked both. One day I realized that I had more control when I worked with sellers. When you transition, you work a plan to make sure you have money coming in before you go “all listings”. You need to know where you are going to find your sellers. Keep your business going until you can fully transition.
Sources: Finders, Auctions, and Off-Line Actions
Start looking for Bird Dogs and go to Real Estate Meetups. You’ll meet a lot of new investors here. Figure out your value, know the office numbers if you don’t have your own.
Seychelle Van Pool Keller Williams: from Dallas did $74 million, 225 deals in 2019
I got into real estate in 2004 and worked buyers in a “hot” market. In 2007, I realized I wanted more control of my time. We brought in a buyer side and I went to listings. I could control the expectations I set which allowed me to have a life I wanted. I was able to grow as a leader which allowed me to better grow our business.
We are very intentional about marketing to various price points.
We believe in working through long relationships with people. I want a database of a few hundred people that I am getting to know well. I work to create top of mind awareness. We have a raving fans quarterly package we send out and buy from local businesses in their “off-season”. We had 163 in 2017, last year we had 225. It’s cost-effective, your branding is all over it. It’s like Show and Tell and it’s fun and a surprise.
Daniel Beer: San Diego eXp: 303 transactions, 250 Million in 2019
Daniel shares that he got stuck in the “messy middle” and had worked his last buyer. I didn’t give up my business. I Got a buyers agent and gave up 40% of my profits to get 100% of my time back. It could have been less with a showing agent model.
I didn’t like the life I was living anymore.
I started to study scripts, learned how to prospect expired listings, direct response marketing. Today I’m very marketing heavy. I decided to learn how to generate income to replace what I gave up on the buyers’ side. I had a financial plan.
I didn’t spend years getting ready to get ready. I calculated and then jumped in and took action.
Sources: Farming, Radio, Marketing our inventory
We invest in our farm. We are very direct mail heavy. We mail 2 times per month. It’s 16,000 houses reduced from 32,000 homes.
The size of your farm should be what you can sustain at least 2 X per month, forever.
We do 60 sign open houses ($80 on Craigslist). They see the signs, the meet us in person, they continue to think about it and get a mailer and then see sold signs. We put up sold or pending the minute we can when it goes under contract.
If you aren’t using STRONG marketing, the consumer doesn’t notice and tosses it immediately. You have to make your mail uncomfortable. If you are the “friendly” neighborhood agent, you are going in the trash.
Kristie Smith: Indy Home Team, goal in 2020 is $75 million, 160 transactions
I didn’t want to be in the listing business, I wanted to be in the “sell a house” business. We figured out why houses sell and doubled down on that. We used “science”.
Sources: SOI/Repeat, Website, Direct Mail
Double down on content. We write about things people actually search. People google things like “what are the neighborhoods that have a community pool”. People make buying decisions based on neighborhood.
Real Estate Challenges
- Some real estate agents don’t reach salary goals because they don’t know how to visualize what their life will be like at each level. They haven’t thought out the difference in incomes. If they are not sure what it means for them, they won’t put in the stress and intensity it takes to achieve those goals.
- You have to identify where you are before you can go where you want to be.
- Agents don’t believe in “one thing” with blind faith and belief that it will work.
Presenting to certain personalities
Consumers make decisions based on who they have rapor with” – Jeff Glover
- 3-5 relevant Comps
- Do not bring information that does not directly affect the sale of their home
- Say “I don’t want to waste your time”
- A Driver doesn’t typically care about “stats” as much as they do wht’s happening now
- Say, I Don’t want to waste your time
The High D Real Estate Agent Needs to
- Seek first to understand and listen more
- Practice taking a breath or count to 2 before responding
- Do not finish their sentences or cut them off
- Watch your tone and your body language
- Recognize others and pause to make sure all decision makers are on the same page
- If you get too comfortable, you may have actually lost raport
- Expressives (high I and high S) Might be the hardest to relate to as they base decisions on emotions quite often
Client is a High I
“The High I values more than anything, being included”
- Lighten up. Don’t be overly serious. They like to have fun
- Engage, Ask questions and keep them talking
- Go 3 Deep
- Let them talk Out and Through things
- Don’t be boring
- Don’t get into too many details or statistics
- Include them as much as possible
- A high values belonging
- Use “Flowery” language
- High I’s love to communicate with emotions
- Use Grand sweeping, big picture language
- Compliement them on their style
- They want to be friends
- Notice and ask about things in their home, keep them talking
The High I Agent needs to:
- Get better at managing your time
- You have to learn to tone it down
- Your natural style is “too much” for 50% of the population
- Your enthusiasm will overwhelm them and turn them off
- Listen, Pause, Breath, Engage
- Don’t put stock into your emotions, observe the feeling, let it come and go, and don’t react to the feeling
- Don’t let boredom dictate your next move
High S Client
A High S makes a Great showing agent
- Show Sincere Interest
- Do not force a quick response
- Add speedbumps. Stop and ask how they are feeling
- Chit chat and break the ice
- Never Interrupt and listen to understand
- Avoid Conflict and Gossip
- Show appreciate and use the word “feel” a lot
- Build trust over time by doing what you say you are going to do
- Use words like appreciate and appreciation
- Use “comfort” words, what price do you “feel”?
- Look and Listen for what’s not being said
The High S Agent should:
- Not hold judgments or resentful
- Learn to say no, you don’t have to commit to everything
- Accept that change is inevitable and is part of the process
- Practice increasing your rate of speech and the volume at which you project
Client is a High C
- Be early and OVERLY prepared
- They will want to “think it over” and details matter
- Do not make a statement without data and evidence to back it up
- Be comfortable talking with facts and figures to justify your point
- Slow down your speech and tone down your enthusiasm
- Don’t speak in broad generalizations. Be specific
- Respect their time to give it more thought
- Say “I know you have given this a lot of thought and consideration
High C Agent needs to:
- Get out of analysis paralysis
- Understand in the sales business that there are grey areas.
- Not be too critical
- You don’t have to know it all to take action
Real Estate Guides
- KW Command | The Contact’s Health Score
- KW command Training – Complete Overview
- How to Mega-PURPOSE your Megacamp, by Lori Ballen
- How to Route Leads in KW command
- The Best Real Estate CRM’s for Real Estate Agents
- How to Add a Contact to KW command
- How To Promote a Real Estate Listing On Pinterest
- Building a Listing Based Business
- Why Should You Use an Open House Sign In Sheet?
- How Much Does A Real Estate Agent Make