Double. That is the potential in your database. Everyone knows 2 people who will be doing some sort of transaction in real estate in the next 12 months. If you have 100 folks in your database they all know 2 people who could use your help. That’s 200 transactions, 400 sides.
That is just math. Statistics. I heard that number a long time ago and as a recovering engineer I had to check it out because I just did not believe it to be true.
I did some research via the census data, Gallup Polling and the National Association of Realtors and found it to be accurate based on the average time folks stayed in a house, number of people we all know and how many homes are owned in the country. We don’t always appreciate the size of the United States but we are the 3rd largest country in the world. I won’t bore you with the math but if you want to see how I got there, comment below and I’ll share it.
My point is the value of your database. If there are 400 deals in it for this year, how many can you expect to get?
Most folks would say you get about 10-16 out of 100 folks in your database if you connect well with the past clients and sphere of influence but most agents are terrible at follow up and staying in touch. NAR says 88% of all sellers were satisfied and would use their agent again but only 12% do. Why the difference? It’s because the seller can’t remember the agents name when they’re ready to use or refer them.
Who’s fault is that?
It’s the agents!
I’ll tell you too that I get about double out of my database of that average number. I see between 20-30 transactions from my database. Last year it was 8 repeat clients and 16 referrals from my top 100. That’s because I do a great job staying in touch with my best clients and connections. I don’t have any automated drip campaigns because no one likes to get dripped on! I write articles on a blog, email regularly and send out physical mail once a month. Dropping by with a gift or just checking in with folks in a real, authentic effort to find out what they are up to and what I can do to help. It all counts and it works if you’ll do it.
Some will but most won’t. We are notorious about looking for automatic ways, gimmicks so we don’t have to call and trolling for ‘leads’ on Facebook and other internet paths. Cold calling and all the other transactional methods can’t produce with the same efficiency as a relational business. Transactional costs far more in time and money and at the end of the day is less satisfying as a human who wants to connect to other humans.
It ripples like a stone in a pond when you do the work. We’ll share more on the who, what, when, where and how of working by referral but know there is more than enough business in your database and you don’t have to spend all the time and money chasing folks you don’t know.
Thanks for listening,
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