In 2016, 321 Biz Dev LLC introduced sales systems training to U.S. real estate agents. This training was mostly to train agents how to prospect for buyers and sellers.
But because real estate agents were so enamored with Zillow, we put real estate prospecting on-hold since 2017.
Agents were so excited that Zillow would charge agents outrageous, in my opinion, annual subscription fees to put leads in their emails or make agents' phone ring.
As a South Florida agent, (let's call her Marlena) now a broker, told me in 2017, she was paying several thousands of dollars per month for Zillow leads. Then, she discovered some interesting things about the leads which I will not go into the details in this article.
The reason why I will not discuss the details has nothing to do with sharing the Zillow features that many agents did not like. I believe each consumer must make a decision on their own based on what they are willing to pay for the product or service offered. In my opinion, Zillow has every right to receive compensation for their services if real estate agents feel the service will help them be successful.
After one year of paying these high fees and dealing with the details with securing buyers, Marlena did not renew her subscription. In June 2020, I spoke with Marlena and she was emphatic about not never buying leads again.
Marlena sells mid- to high-end properties valued at $500,000 up to $2M. So let's move on to why real estate agents need to learn how to prospect on their own instead of paying $500, $1,000, $2,000 or higher, per month, for real estate leads.
Disclaimer: 321 Biz Dev prospecting training never uses the word "lead". In our opinion, the word lead is very 'misleading' <insert chuckle here> about the nature of communicating with potential real estate clients.
I can write and talk about the section which follows for hours. 321 Biz Dev has 4-hour training sessions and action steps dedicated to helping agents learn how to prospect. So, I will try to keep the text within a 5-minute read.
Learning how to prospect for real estate clients IS the real estate business. Buying leads IS not the real estate business. Meaning, if agents are buying leads, agents are missing out on and avoiding very critical sales training and knowledge. Training and knowledge translate into experience. Buying leads rarely adds to agent growth, in my opinion.
The process of buying leads creates an order-taker environment for the agent. Buying leads never allows the agent to grow into a full-fledged business owner. Buying leads installs the employee mindset in the agent's brain. Selling real estate is a business owner function. Mastering how to prospect is key to any business, including real estate sales.
Real estate door-knocking is a form of prospecting. But more can be done.
Prospecting mastery is developed by receiving training in several areas. 321 Biz Dev prospecting training features the following modules:
The definition of business
Why selling is a capitalistic function
Transitioning from employee to independent contractor
Transitioning from independent contractor to business owner
The definition of growing market share
Why people will buy from you
Why people will not buy from you
How to be friendly even if you are not a friendly person
How to turn on your friendly personality
The 16 personality styles and how to mirror prospects' styles
The power of creating a sales pipeline
Obstacles preventing salespeople from prospecting
How to professionally prospect
How to master prospecting using F.O.R.M.
How to turn on your prospecting machine
Well-trained introverts are best at prospecting
Do not be afraid to ask for the business
Selling without appearing to sell
How to always get referrals
Please note that none of the above training modules list real estate rules, laws and regulations. Real estate rules, laws and regulations are extremely important AFTER agents have buyers or sellers. The real estate industry, in general, does not provide the necessary training BEFORE the agent has a buyer or seller.
Summarizing the above training modules, most agents have never been exposed to professional sales systems. The majority of agents have only worked in hourly or salaried occupations before transitioning to real estate sales. And, unfortunately, most real estate brokers have only worked in hourly or salaried occupations before becoming brokers.
There is a thought-process in the real estate industry that selling real estate is about knowing all the rules, laws and regulations, and how to complete the paperwork. The rules, laws, regulations, MLS knowledge, and completing paperwork represent only 30% of real estate sales. Seventy-percent (70%) of real estate sales is prospecting and 321 Biz Dev can prove it.
Here's the proof.
If a new agent passes out his or her business card to a potential buyer or seller, what happens next? Obviously, the new agent does not know all the steps to help the buyer or seller, but the agent has done the most important function as an agent: a buyer or seller was identified through prospecting.
Next, the broker or the team leader can take the buyer or seller through the mechanics of buying or selling a house. That new agent does not need to know all the TASKS involved in buying or selling a house. The new agent successfully completed the EFFORT to identify a potential buyer or seller.
The 321 Biz Dev prospecting training defines EFFORT sales activities and TASK sales activities. EFFORT work represents 70% of real estate sales activities and TASK work represents 30% of real estate sales activities.
Timing is everything. Now is the time for real estate brokers or individual agents to improve their skills to masterfully perform the most important real estate activity which is prospecting for clients.
Real estate brokers have everything to gain and nothing to lose by giving their agents access to 321 Biz Dev prospecting training. Every agent should be able to CLOSE their first deal within 90 days after receiving their real estate license. The myth it takes up to 12 months for agents to close their first transactions should be removed from the lips of any real estate sales trainer.
A broker's main responsibility to agents is to help them become successful. The financial return to the broker to have the majority of agents close deals is HUGE. If the broker can increase agent transactions from 15% to 45% of agents closing real estate deals every 60 days, this is a 200% increase in broker revenue.
The training is reinforced over a 3-month period with many add-ons and business development services to help agents close more transactions in shorter periods of time.
Interested parties can contact me, Rick Nappier, CEO, at (833) 321-3212, or Yeilyn Rodriguez, VP, Business Development Specialist (bilingual) for English or Spanish contacts, at (786) 697-3400.
321 Biz Dev LLC offers 6-hour sales system training to help white-collar salespeople improve skills and increase business development efforts.
Business owners can also complete a 5-minute Questionnaire by clicking the Services tab on our website. Also, click the About and Podcast tabs to see and hear more about 321 Biz Dev LLC.
I hope readers enjoyed this article.