Updated: Dec 20, 2020
This is really the crux of the matter for most small business owners but especially real estate agents. The majority of U.S. real estate agents do not like to publicly prospect for new buyers and sellers.
Note: social media prospecting does not count.
Many new agents starting real estate sales are told to do everything but prospect for new clients in face-to-face (F2F) settings. When I used the phrase 'prospect in F2F settings", I am referring to real estate agents introducing themselves to people at banks, bakeries, soccer practice, school functions or any gathering where people randomly see each other.
Just to be clear where this article is headed, door-knocking for buyers and sellers IS F2F public prospecting. In fact, door-knocking, in my opinion, is a lot more difficult than F2F prospecting random people in public settings!
Why? Because agents never know what to expect when knocking on someone's door. I've done it when I was an agent in the past and will probably return to door-knocking when I reenter real estate sales.
F2F prospecting has some major advantages over door-knocking which include:
Agents can determine how much money they want to earn with F2F prospecting!
It's easier to prequalify buyers when agents see how people dress, family size and cars driven.
People are generally on their best behaviors when out in public and more likely to be cordial than rude.
Agents can observe, read people better and decide who they choose to prospect.
Agents can connect with more people in less time especially if prospecting is done in a major metropolitan area or city like South Florida, Atlanta, Phoenix, Los Angeles County, Detroit, Seattle or Philadelphia.
There is a professional approach to F2F prospecting which all agents can master over time.
The first item is the subject of this article...agents can determine how much money they want to earn.
The most motivating component of F2F prospecting is the agent's ability to determine how much money he or she wants to earn.
Let's start with the premise that talking to zero people generates zero dollars. So, we must conclude that talking with someone or, many people greater than zero, has the potential to put agents on the path to generating income. Said another way, talking to one person is much better than talking to no one.
F2F prospecting requires agents to set daily contacting goals connected with how much income they desire to earn. It's highly unlikely agents can talk to one person per month and make $10,000. It's not impossible, but highly unlikely.
It is recommended agents set daily F2F prospecting goals. If public prospecting makes agents feel nauseous, it's because 95% of agents have not had sales system training to build confidence in F2F prospecting.
Here's what agents can expect with moving through the F2F prospecting learning curve after 321 Biz Dev sales system training:
F2F prospecting will get easier.
Agents will see people are more approachable than initially believed.
Most people are friendly when approached professionally.
Many people are lonely and they love meeting and having conversations with new people.
Agents will learn to talk less, listen more and sell more real estate.
Agents will become eager to read books about relationship building.
Agents will find it easier to set F2F prospecting goals to earn $10,000.
The numbers of people to publicly prospect and make $10,000 will drop from 1 out of 50 prospects to, perhaps, 1 out of 30 because agents' prospecting skills will improve.
Agents who professionally prospect may get referrals from people not ready to buy or sell now, but know people ready to buy or sell now. This will change the ratio from 1 out of 50 to, perhaps, 4 out of 50.
F2F prospecting offers unique benefits than the money earned selling a home to 1 out 50 people you meet. F2F prospecting actually elevates agents into true business owners and puts agents in the driver seat in growing their businesses.
Just imagine if you can firmly state that you will make $20,000 in February because you know your prospecting numbers. You may need to F2F prospect 85 people in December. Most will say no. Some might say maybe, not now. And a few might say: "YES, I was actually looking for an agent and I am glad you introduced yourself to me".
Agents should record no, not now contact information (phone numbers, emails) and connect with these people in 60-90 days
As agents continue F2F prospecting, agents can say with conviction that every month they prospect 100 people, they will earn between $10,000 and $20,000.
Just to let you know, I prospected two people in 10 minutes for my Realtor wife as I was on my way out to jog. One person was not looking to sell, but the postal carrier is looking to buy a home. And, I am not a Realtor.
Agents can successfully navigate their own financial destiny by learning how to F2F prospect.
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.