Foreign happy New Year Welcome back to the podcast today! We're talking about how to be successful as a real estate agent in 2023, so buckle up! We got a bunch of different ideas I got my brother Patrick Ferry in the house Patrick What's up man. just rocking and rolling. So we were reflecting back on the last couple shows we've done. All with huge numbers, lots of value.

There's a lot of uncertainty in the marketplace right now, right? there is interest rates, inflation. Uh, geopolitical, local politics. There's so many things. and and and you know, recently I had Patrick David on my shows I Loved it and he's like home Prices are going to go down by 20 as long as these horrible things all happen.

Every person listening knows there is going to be a market inside of every. Market There was a market in 2007 at 9 10. For people that were willing to find the market, there was a market in let's just call it post 911 which really shocked the real estate industry. There was a market in 2001 when the.com bubble exploded.

There was a market in 1989 after the stock market crashed in 1987.. there's always a market. so Patrick We want to talk about what the person listing right now can do to really make sure they knock it out of the park. Next year you got a bunch of ideas.

I got a bunch of ideas. Who wants to go first? I'll go first. Let's my my thing with what exactly what you said is the agent today has to have a good plan that they gotta double the amount of opportunities that they generate from their lead generation initiatives to be able to make the same amount of money and income. And I think we saw.

Okay, let's break that down so the hypothesis is yes. Let's let's say if last year if I looked at all my numbers and all my marketing and all my referrals and all the leads that I generated in order for me to make the same money I have to double all those numbers I Gotta double the lead generation I Got to create more opportunities. Okay right. So and because you know if we really look at it, you know we're going to see the number of sales go down a little bit.

right? So the the total number of transactions gonna go down the you know, the 2.5 five percent interest rate where everybody wants to buy. Everybody wants to sell. Everybody wants to trade up that that's gone away. We saw that in 2022? Yep.

so I just want my clients and all of our friends to be mentally prepared that we do need to generate more opportunities so that we can actually close those ones that have to buy have to sell. Which is exactly what you said. There's always a market in every market, right? So in December I had uh, myself and David Childers from keeping current matters and we actually looked at a slide that was basically the MBA right? Mortgage business versus Nar versus Fanny versus Freddy And the median prediction average prediction was 5.1 million individual units sold right in 2023. Now that included new construction.

Nice that included new construction. So 5.1 million individual units sold is still a big number. certainly better than what we had this. You know this this last year in 2022.

So so again, give me the hypothesis: I'm going to have to talk to more people or I'm gonna have to generate more leads I'm gonna have to double the number of appointments. Make it more clear for me what what do I need to do more of? Well, let's and you. and I you've been coaching for a long time I've been coaching for you for a long time and what I realized was in in 2021. We were hustling so much, right? Every client that we got it was very difficult unless it was a listing to sell.

Yeah, right. And so I found a lot of my clients and including myself. By the end of 2021 we were kind of burnt out for sure. And so in terms of our business plans, our lead generation plans as I was going back and reviewing all of my plans with everybody I was like wow, you kind of just kind of chicken scratched a plan and it wasn't really that good.

Yeah, and so I'm I'm just challenging everybody. This is not the year to do that. this is the year that your business plan and your lead generation plan needs. To be specific, it needs to have a math equation.

It needs to be on point. This is not the year to just go into this thing saying Tom I'm just going to be consistently making my calls I'm just going to be more consistent with doing video like I Don't want to hear that I want to I want to know exactly what we're going to do and go all in on Double Down on where the money is going to come from and where those opportunities are going to rise. So that's kind of what I'm saying like this is what we've got to do. We got to go deep.

This is not the year. So so let me throw one for the listener. I Literally just finished all of my personal conversations with all my clients. basically setting the tone for what we want to do this year.

And you know some are a little bit behind when they compare 21 to 22. Certainly because of the rates, you know somewhere ahead everybody is forecasting a more productive 2023. And when we looked broadly at what everybody was focusing on, there was basically let's call it three primary goals. So if you're listening this right now, even if you've already set your goals, even if you've already written your plan I'd like you just to consider the following: When you have more than three goals, the old line is one, two, three, too many, right? Like, too many things, too many distractions.

And there's already enough distractions in your business. So I would want to see three primary goals up in visual, in your office, probably on your bathroom. You're at home every single day, so you can review it in no order? It would be number one. What's your volume goal? What's your transaction goal? What's your gross commission income goal, and what is your profit after taxes goal? So that would all be number one, right? So hey, I want to do 8 million in volume or I want to do 800 million dollars in volume? Whatever.

that number is the number of transactions closed right? You could break down, buy side, sell side. That would be a really good idea. What what your expectation for gross commission is and what your profit's going to be. That's number one.

That should be very clear, and it needs to be. As we say, smart, right? specific, measurable Etc attainable, Realistic, attainable? yes, and have a timetable on it. And then of course, the second goal that the vast majority of my personal clients have have set their intentions around goes back to some of the early data that we saw certainly in early days of Social, But really, it got put on steroids during Call It 2020, 2021, 2022 And that was whoever put out the most content and content could be email. It could be text, It could be direct mail, it could be a billboard And of course you can be Facebook Instagram Tick Tock.

It's all of that. Basically, they position themselves not just for no like and trust, but mostly for like. They want to be the most likable brand in the marketplace. And the marketplace is their own past clients and centers influence, right? Their own database, their own areas that they're serving with.

There's Geographic Farm or an entire city or entire town or entire County right? So the segment really would be brand right? I want to be the most likable, most called upon agent my Marketplace and the third one and the one that kind of playing off your point. The reason why I'm bringing it up is I Believe in 2023, an agent today that doesn't have a goal set for the number of appointments they're going to go on doesn't have a plan, right? If you can't tell me my current percentage and I'll give you just some examples, right? So if you said easy math I Want to have 24 closed transactions in a year and I want 12 to be listing sold in 12 to be buyer sales just playing out the easy math, right? Um, let's actually go 10 and 14 to make it even easier, right? So I want 14 listings sold and I say all right. Well, in this environment, you're probably gonna have to go on three appointments to get two to have one cell. Just saying just in case.

Yeah, just being conservative. And if they all sell winner winner chicken dinner, right? So I got to go on three to get one to sell. So what's three times fourteen? I think that's going to be 30 42, right? So I need 42 listing appointments? I'd make the argument too. In the past, if you had a buyer consultation and that's the only appointment I refer to I'm not talking about showing appointments I'm talking about straight up I'm going to talk to you about selling your house or straight up I just showed you a property.

Now we're doing a buyer consult or I'm doing a buyer consult and then I'm gonna go show your property. Most would argue you're going to convert one out of three, right? And and the reason why that number? It could be one out of four during the pandemic times, Because it was just impossible to get offers to get accepted. So if you know your numbers, you're like no, I'm one out of two or I'm one for one like Coach Elisa Ashley right? Big shout out to Alicia she would say no I'm one for one if I do a buyer consult, they sign a buyer brokerage agreement. They're absolutely getting into a house with us, right? Whatever that number is, whether it's 10 15, is it 20, You need to know that number because last time I checked the only leading indicator to a closed transaction is an appointment.

So I'm going to make the argument that if I walked into your bathroom mirror I'm going to see your transaction goal, your volume goal your GCI and your profit goal profit, profit not hey, I I grossed this much and then you live in New York or you live in California or you live in Toronto Ontario Canada 62 Tax right? Like just straight off the top I Don't care about your gross though I care because it's a measurement. What I want to know is how much do you want to profit at the end of the year to pay off some debts to save some cash to make some? Investments to put your life in a better position why you worked your face off for that profit? Then your brand goals will get more in depth on that. and then I want to know how many appointments you're going to go on I have multiple people I'm working with Stephen Cohen Big Shot Stephen Cohen New York City I Just made him a ten thousand dollar bet I said I got 10 grand says you can't go on 150 listing appointments in a year and I said and if you lose, you got to pay me in Shekels I want them straight from Israel right? like just just making some fun of it now. Steve If you're listening, the odds are he's not gonna do it.

Sorry Steve right? he's so competitive, he's gonna be so pissed that I even said that. But here's the deal. The odds are he's not going to do it because maybe this year he went on 80. So to go from 80 to 150 is a big jump, right? But what happens in your mind, What happens in your experience when someone has a big monster goal like that with a little accountability? What happens, they always perform.

they're more focused, right? So so the worst case scenario, he's he goes on 142 right and has his absolute best year of his career because whoever goes on the most listening appointments is going to win the most listings. Period. End of story. So that's my first big Point What? What's your what's your next big point for people I Just didn't want to make this year the best year I Just want to reiterate something incredibly valuable that I that I Personally, um, dismissed and it was a huge mistake and I'm pushing not I do it myself now and I Do it for all my coaching clients is the up and visual goals is the single most important.

Yes, it's just weird when I when I have a coaching client that not even sure why I hit the gun. But in case you're listening for good points, you know they're distracted, they're unfocused, they kind of lose track. It's usually just because they just don't remember. So like the bathroom mirror up in the office like they've got to just look at it every single day.

Yep, and I know that as soon as I implemented that productivity went through the roof and it was like surprise surprise. Tom's been doing this for you know, 20 years like you know? why is he so successful? Because he's reminded every single day of exactly what he said he was gonna. He was gonna do and keep some focused and keeps them accountable. So it's like it's how you move it from a business plan to a part of your life.

a ritual. a routine. Um, you know when Kath and I first got married we were like on our bathroom mirror. How much debt do we have right? how much savings do we have? And literally we tracked as we paid off all of our debts and our net worth went up and she still to this day it's like 30 years of marriage.

She still talks about the power of that and that's why if you come to either one of our houses, all of our goals are always there. Yeah, see it every time. The only the one other thing I want to add to that too is and and we've talked. you've talked about this non-stop You say marketing is math and then this year I was like okay I want to see more math equations on your plan so so you know you've got your appointment goal? That's great.

So now let's go into lead generation pillars. so your past client center of influence? Yes! So I got some stuff there. Here's you know. so one of the the the first and forem like first and foremost I want to see every single one of my great coaching clients and friends out there.

do the purchase anniversary Equity review right? And yeah, shout out to David Caldwell and all the great people on Tom Ferry Ecosystem Been talking about this Yes. Kind of evolved from the CMA a day and then 2. Too many of our great clients have too many past clients right? So CMA day didn't make a lot of sense. We really needed to move it to a purchase anniversary.

I Agree. The Counterpoint though is a lot of people absolutely took a a ton of listings by doing CMA a day. No, No, of course yes yes. so it's a way to operationalize it.

Yes if you have a big database of Pascal Yeah! so I like in the in the fourth quarter of Tony 22 we got everybody to do the CMA today, then set up the CRM set up and task set up the system for 2023.. So what is that? What is that anniversary look like? What's the deliverable for the consumer? Yeah so a couple things and we I've had to deal with a lot of clients so they're like should I do a cloud CMA Should I do a full extensive CMA I do these You know two page long spreadsheets I was like look, the bottom line is we want we want your past clients to know that you put some thought and attention into this and it needs to be significantly better than yeah, Like anything, that's it. So it's just a matter of making sure that the perceived value is there and then I said look, hey, Base by the way, we're all supposed to be looking at the hot sheet every day Anyways, so we're just looking at the hot sheet of your past client, right? And that's going to keep you in tune with the market, in tune with your pricing. So there's a lot of value for them to actually commit this time.

So make and then craft a really good email and let everybody know what you're doing, that you're doing this for everybody, that you're committed to this process of being their advisor and doing this annually and some people need to make this announcement Now Yes, they need to tell everybody hey I'm committed to doing this. It sounds like putting your butt on the line like Hey where's my yeah correct I Love it and you know the so there's accountability once you make this announcement right. And the one thing that I find with a lot of my friends in this and this is you know shout out to Tom Ferry and your guy's company every year the biggest companies always announce new features and services to their business, trying to improve the quality of the service that they provide their customers. So we're just making an announcement.

Hey Guy! hey past clients and good friends This year I've decided I'm going to add this new thing into my business to provide more value, more service to my great friends and clients. And here's what I'm committed to doing I want to be your resource for anything regarding home values. So let's set the stage up front for that and announce it with pride. Not we're like oh no like I haven't been doing it for five or six years.

Great. Make the announcement and be excited about it, right? So that was a couple things I had to deal with this last year just trying to get everybody to implement this. then I think so so I Want to go back though first before you very jump I Actually think if you go back to I want to be the most trusted, most likable brand in my Marketplace it It's hard to argue against. Now you know your brand, You know your clients.

If it just shows up in an email, it's another email, right? If it shows up in an envelope with a handwritten note, right? That's a different experience if it shows up in a box and it's beautiful and it's well packaged, thank you very much. That's another experience if you took seven photos of their house when it was for sale and you added those photos in and you you just if you just go back to plusing enhancing it's Mike Vance101 right like can I add scent to it Can I add visual to it Can I add taste to it. you throw in a couple Glenda Baker You know cupcakes inside there I mean I Know you might be saying oh my goodness, this sounds like a daunting task, but before you go I Want to remind everybody? there's only two questions on the mind of every homeowner right now: How much is my homework today and what's it going to be in the next year? Yes, and all we're trying to do is answer that at scale and deliver the value that everyone can say deliver, value, deliver that. What do I want I Want to know what's my home worth? Yeah, and what do you think it's going to be worth based on what everybody's saying in the future? Let me give us a couple simple things on that customization.

So shout out to Zach Nelson In Denver one of my great clients him and his marketing person yeah uh took this concept and really knocked it out of the park. and so one of the things that he did is he said hey, you bought a home with me in this you know month this year you bought it for X dollars and I remember one, two, three, four five Yeah. So he put in that kind of custom information right? which made it feel kind of more relevant, more valuable right? you know? And then he said then after looking at all of the current you know what's going on with the market homes were sold, then actively, here's kind of the range. If you haven't done any improvements, you know I look forward to reviewing this with you.

Let me know if you've made some improvements and we'll talk a little bit more about that. You know, blah blah blah yeah, right? So then it's the E You know, for me, with a lot of clients that have a lot of past clients, then it was the text hey, I sent you something Then it follows up with the phone call and let's do the phone conversation I do love Uh, David Caldwell with the annual Equity review face to face right? So you know even if that's on Zoom yeah Zoom So you know we all have you. We just have to figure out what's the right plan for us and then a lot of my coach you know, coaching clients this year were like they're still overwhelmed with that project and so I said, would you please just download every single one of your past clients out of the MLS right? And let's look at the date, the price, let's and then let's just go through that list. Let's create a spreadsheet.

let's print it out and let's just check them off like let's just build a system. That's we can get it done. Yeah now. so here's what I'm noticing in terms of results and let's go back to Math Equation.

So a lot of my clients will write on their plan. It'll say you know, annual Equity reviews be consistent with my past clients I was like yeah, no, no, no, how many yes and they're like, well, how many addresses do you got Okay, so it's a hundred and ten yeah and then I'm saying to them, hey guys, I'm noticing that at least if if you're an okay agent, one out of 10 of these that you do, you're generating an opportunity. Yeah, what's an opportunity I get I Oh Patrick I Just got an amazing referral. I Just did the CMA Great What happened? Well I was talking to Tom and he said hey, Patrick you need to talk to my neighbor they're thinking of selling I was just talking to Tom and he said Patrick you need to call my son Michael he needs to buy a house So the opportunity just came through that conversation and they're introducing them to these referrals and it was literally one out of ten.

Now we know that a referral from a past client has a very high conversion rate. so conservatively we can say 50 conversion. So wow, here we are one out of ten. So here's the Math equation.

You've got 110 clients. That means in general we're probably going to create 11 opportunities and not a 50 conversion. That's five to six sales, right? So I would want to see that on the plan. Yes, right, that's real and not where I can I can hold them accountable, but the actual plan now holds them accountable well.

And what I love that's great is now you know I know we're going to get to. You know what are your seven daily actions Like what are the every single month when you when you walk into your business like I you know I can walk into all my businesses and I can essentially say show me the health of the business right? and I see 15 numbers on my main business and I go on track off track On track On track On track off track off track on track on track on track. Okay, who do I need to talk to to get all those other ones back on track? Yeah, right. and I guess the argument? Maybe maybe we need to back up I'm looking you right in the eye if you're just listening only.

We're making the assumption that you want to make a lot of money, that you are committed to your practice and you wouldn't already be listening to this podcast unless you weren't that person. But but be clear. He started this by saying we're gonna have to do more in 2023 to get the same or better results. So so we're talking about a lot of stuff here.

They got to have three goals: They got to go deep with their database. You got to have visual tracking of everything should they be tracking how many annual home reviews they do? Absolutely for sure, because wouldn't it be nice to know I did 178 of them in the first you know, six months and got 29 referrals from that? Yes, or took seven listings from that? Exactly cool. Yeah, and you know, have the spreadsheet. just have a spreadsheet and go down the list and you'll and have it in order.

I mean it's fine and or if you're fancy, put it in your CRM as a reminder and you need to look at it once. The problem was sometimes with the Crms and these reminders is I find a lot of Agents Kind of avoid it. Yeah, so if you're really not against Pro with your tasks and reminders in your CRM then please print it out. This is super important.

Let's talk about the script. So I There's three questions to have on that conversation. Question number one is probably my best question ever designed in prospecting, which is do you have any questions about values in the neighborhood or with what's going on with the market? give me the question one more time. If you have any questions about values in the neighborhood or with what's going on with the market, I Love it.

Okay, that question, what's up there with your has anyone taken the time to show you X Y and Z no, no one showed me that. has anyone reviewed with you all the off-market opportunities to see if any of those are good fit for you? Yeah, that one's going to be amazing in 2023 guys. But so that question number one that opens up a great conversation. We just sent him a CMA Let's talk about it right? That gives all my clients an opportunity to practice their ability to present the market and to field good questions for your next housing market video that you're going to do as well so it's good practice.

Then question number two: Hey, do you guys have any plans for your property in terms of upgrades? you know, Solar Agu? You know, a remodel that I could maybe you know, refer you or help you out with give you some good advice Yeah Question number two then question number three is hey, right? Do you have any any thoughts about buying an investment and property in 2023 2024? Good idea. Yeah right. Do you want to buy a vacation home this year? Good idea. Or you know a second home or anything is there in? Do you? Are you guys thinking in within the next couple of years that you want to start planning Now for this next thing? Kind of alluding to one of the great questions which is you know at in the door knocking script there's a great question which is within the next two years have you had any thoughts of selling? Yes and it takes a little modifications to Tim Smith's yes in the next two years Yes, yeah, it's great because it kind of takes all the pressure off people.

So so someone is going to say I don't know if it's you but someone will say you know but Patrick I don't know like you don't understand like I know my customers, nobody's moving right? everyone's gonna move there. And then I say death, Divorce, diplomas, diapers, diamonds and distressed? Yeah. Relocation. 60s that drive the market all well Dre Location yeah, 70s relocation and I don't Obviously we don't wish that on anybody.

But like when people say to me no, no one's I'm like tragically, someone's going to die uh, someone I mean in the state of California 60 of the people get divorced, right? Not you? Not me Right here we go. If that happens, someone's going to get a diploma and want to move up or some kid's gonna move out and they're going to want to downsize. As an example, diapers, babies right? diamonds, new relationships and distressed. Yeah, which we're watching the numbers in.

In Market by market, you're seeing some distressed assets or opportunities start to show up. Those are all opportunities that will continue to move the market regardless of interest rates. Let me just give an exit. So so I got uh Zach again Zach Nelson in Denver Shout out to him.

Executed this right away and within the first 30 days of him kind of doing this, getting back on the horse he was like a past client was like you're not going to believe this. We just got a job transfer. Yeah, okay, so job transfer Another one said I want to keep this property and keep it as a rental and buy a new one, right? Genius. Yeah right.

keep your low interest rate and buy a new one. Yeah, and then the third one was a referral. Yeah, back, you need to talk to. So that's what happens in this.

So you know those plus all these other opportunities. Okay, so my friends just do the thing and I promise you it will work. Give me the three questions one more time. Do you have any questions about prices in the neighborhood? We're talking really fast and this person's writing it down.

Do you have any questions about prices in the neighborhood or with what's going on with the market, right? Such a great question because they're gonna say what's gonna happen the future. Where's it going I'm reading the national news, it all sounds horrible. What's question two? Hey, do you have any you know plans for your property? You think about me making some upgrades, making some improvements, any maintenance you know, any any kind of solar anything that I could help you with, or anyone that I can refer you to. Yeah, right.

Which we'll talk about the Home Service Rolodex strategy. one of my favorite. Oh yeah, right. Okay, Summit 2020.

that was a big Trend And then number three is the you know. Is there any other future plans? You know, buying a vacation home? You know, buying investment property and or you know, making a move considering a move, right? So you know I would start with the other two first because they're easy, right? Yep, and fun. And everybody should be buying an investment property. and we all should be talking to our clients about buying investment properties and Building Wealth with real estate.

So let's start there yeah and then let's move to the final right? So those are the three questions that'll make it super productive and then everybody, trust me will get I Mean I would imagine. So the good agents who have a really strong brand and like like kind of overdo the service and everybody loves them. I would imagine it's one out of five? Yes, I agree. Maybe for some of the newer agents who haven't talked, you know, kind of.

You haven't talked your past clients and you don't You haven't really established a quality relationship with them yet. It might be one out of ten. Yeah, that would be the worst case scenario. So we can.

We can create a math equation right now for total number of sales from this one strategy in 2023 right now. So I'm gonna make the argument for the person that maybe is listening. maybe there's maybe someone that just got into real estate like December 29 Yes And and you've had a little run. you've sold 18 homes, 36 homes, 40 homes.

whatever. The number was right. Six, nine, seven thousand. It's hard to argue against right now also calling every person you sold home during the pandemic.

We've talked about this on multiple shows. We know that 25 of consumers that were surveyed that bought a home during the pandemic basically said I hated the experience. They didn't say they hated the agent, they just said they hated the experience. It was a bad experience.

But the more important number the one that stood out was 80 percent of consumers said I compromised on the home purchase yeah I didn't get in the school I wanted the school district I didn't get the bedrooms I wanted to get the space I wanted and get the the ZIP code. There's so many compromise because of the velocity of the market, the number of offers being written right, so it's hard to argue against the same exact strategy being. Hey, Patrick I'm just calling you and Carly you know August 15th 2020 you guys bought that brand new home I Was so honored to work with you guys I Just wanted to find out how's it going check in but the question is, how's the home working out for you right? You just shut up. How's the home working out and then they go wow right? and that's and you say well Would? Has anyone shared with you that 80 of consumers have bought a home during the pandemic actually said they felt like they compromised on the home, but the good news is you paid X it's now Worth right.

Why Massive! Why have you guys had any thoughts of trading up making an adjustment? You know, like what do you guys want to do? yeah it's that's an easy. the number of people that have text me DM me sent me emails I see them at events and they go that one thing I just called every single person I transacted with and just said how's the home working out and you get the we love it thank you so much we totally appreciate it. Then you could ask all the questions about the market or they say uh yeah and that's you know there's an opportunity to serve yeah I love it. Yeah so let me let's talk about past client sphere.

One more thing on that point right there. Good. So and I experienced this too because I I It felt like when I got in and started selling houses, it was that kind of typical. You know I spent 90 days with them, six months with them, and then it was like oh man, I kind of like I ghosted him right and and I noticed that for even you know even me I've been, you know I'm trained in this business to not do it and so I was like what's wrong here, what's missing and I needed a little bit of an ingredient that I figured out.

Okay so here's the ingredient and this is my challenge to all my friends and this is the question I'm asking on my coaching clients: I'm like hey, I just bought a house with you I bought a two million dollar place with you Tom you made 50 Grand Roughly Yeah, right? Okay, so you made 50 Grand I hand you the keys right and then or whatever and or you hand me the keys and I say Tom what should I expect from you now I really enjoyed spending the last six months with you I really like you. This is super fun! I'm a business person I know you are, but how is this going to go from here? Yeah! And when I'm challenging my clients to be able to answer that question because if you can't answer that question, that means you really don't have a marketing and communication plan for your past clients. So can we say or a long-term relationship strategy for your best customers? Yes, Correct! And so what's this relationship? So our hey I'm going to check in with you. hey you should call me when you have things like this.

I'm going to send you you know emails and I'm going to be focused on things like the housing market and tips and strategies. Maybe some I have some clients that need some help. I'm going to be you know, orchestrating a couple different events throughout the year to just try and get you know clients and friends together and maybe introduce you some other people, right? Just try and you know, provide some value you know in appreciation for you. Yeah, right now there's a line that kind of worked for me on this.

There's two lines. Number one was Welcome To My Real Estate family Oh I like that I loved this line because I couldn't figure out the relationships some of my clients I was like I don't really want to talk to you guys ever again but I would love to talk to you about real estate and some of my clients. we have cocktails and and you know and I'm inviting them over for you know, whatever sports games the World Cup right? So some of them it's like we're like best friends and some of them are like I would love to still talk to you about real estate if you if you needed that. So how do I do this? Welcome my real estate family and then I wrote the second line which you're like and some family I spend time with and some family I don't except it's a holiday season right? So the second line was I want to earn the opportunity to be your realtor for life Oh I like that I want to earn these I want to earn the opportunity and let me, let me change that to be your real Estate advisor for life I want to earn that opportunity.

So when I put those two phrases together, it gave me permission to go. All right. What are all the real estate conversations that I do want to have? Yes and how do I Define This and that really opened the whole world up for me. So now I tell all my clients Okay, cool after they you know purchased a home I want you to, you know I love the big the big strategy of like get him some food on move-in day.

that's a great move and I was like oh my gosh, it's genius. Why didn't I think of that and then you know a good John Jay out in palm Palm Desert You know because they have a high turnover rate, he prints out the transaction and he puts it in a branded binder and he delivers that. Now we had like the little USB chip. yeah but I was like wait a minute.

This is a perfect sequence right? So I I buy the food for the move-in day. then a couple days later I bring the binder in the binder I can just write out my past client VIP plan everything I'm committed to and then present it to them. Yes, right? and then inside there. I might have my list of referrals and references home services and that's just a good experience that we can just kind of at.

Scale right? We can build that system right? I Like that even more so when someone's moving from one part of town to another or transferring in. Oh yeah, you've never lived in San Antonio before. Help? Yes, right? Here's like top 10 restaurants we love. Here's all stuff that they could Google I know, but it's coming from my my real estate advisor right who's letting me know.

Here's the fast track. Here's the things you need to know: Etc love that last thing on this point. Um, is what I call the permission script. Okay, so here we go.

So everybody wants more referrals, right? I Do find the term referrals because you know me. I'm very meticulous I'm super analytical when I think of the term referral, the average person may or may not totally understand what that means. Yes! So I was like, well, what do we really want I want more introductions to Opportunities Which is where I like the rumor script. Yeah, Have you heard any rumors about someone thinking of selling? yes And then I want more opportunities? Hey hey Patrick you need to talk to my neighbor? Yeah, Because right we all know if you door knock and you do good door knocking, they tell you the rumors right? So why don't we just use that in our scripting.

Have you heard any rumors of someone thinking about selling? Then the other thing I want is recommendations I Okay I love the rumors line because everybody you know like the vast majority, they get that I mean if you're any rumors of anybody thinking about buying or selling real estate and it's a huge opportunity. So remember in 20 in 2020 and 2021, we had to go the extra effort for our buyers and as we move into 2023, you know what we're going to do for our buyers and our value proposition is going to be very powerful and we'll talk about that on on a next episode, right? But you know? So if I say to you hey, Tom by the way you know I do have a lot of other buyers. Is it okay with you that I check in with you if I have a buyer that's interested in your neighborhood or Community just to see if you've heard any rumors of someone thinking of selling? yeah I want permission for that? Yeah up front yeah and they go. Oh of course no problem.

The second thing is I have to say I just heard a stat and so I don't know if this is entirely accurate, but I trust the source. Uh, he told me 40 of every transaction in Highland Park right where I kind of live near Dallas right? all sold off market and all sold friend to friend. yeah, you know, broke Brokers helped him agents help them they're like uh Patrick uh Kelsey wants to move. she wants to sell like I'll make an introduction.

let's get a deal done. We want you as a neighbor. 40 of all the transactions right? Whether that was 10, 20, 30 or 40 we know like he it was a substantial number and I trust the source but I was like yeah, it's all about the rumors. Yes, it's all about the stories.

it's all about figuring out who do you know and what's going to happen next. And you know, let me go over there and see if I can help on my Geographic Farm which we're going to talk about next. Yeah, the I have a buyer letter is the most successful Camp Direct Mail campaign that I thousand in my opinion that I think exists right when it's real and it's clear. yes we'll talk about that in a second.

the Ike's piece. Yeah, so let's at the end. So this is kind of what I said to Zach All right Zach do your do the presentation Hey here's what you can expect from me moving forward and then just say may I ask you a big favor. Yeah, there's two things that I want right? and they're like is it okay with you if I occasionally check in with you to see number one.

If you've heard any rumors of a neighbor thinking of selling or anyone that you think that needs help with buying or selling, Yeah, just ask for permission. Yes, yes. And then they will say yes of course, right? right? So if we just do the permission script then all of that weirdness of the referral conversation goes out the door. And you know when you do that, When people say thank you, of course when they say thank you, you say hey, will you do me a favor People will say yes.

When Pat thank you so much, you're like oh, no problem, It's what I'm here to do. Will you do me a favor? They say yes one thousand percent of the time and you could literally say I want your firstborn child right? Like they just say yes automatically because you have done so much delivered so much gone the extra mile for them. Solve the problem, slay the dragon, got the deal closed right? Got the you know, got the mortgage done on time, everything worked out and they're like thank you thank you thank you. That's when you ask.

will you do me a favor? Yeah and I so what? I noticed too. And for a lot of my agents out there a couple times at the end of a buyer transaction, it gets wonky. Yeah, and so there's a weird awkward maybe 24, 48 Hours where it gets a little strange. weird things happen.

It's not our responsibility, but we kind of take it on as if it was our responsibility. So that's why I thought the the gift card or the food delivered on the move-in day kind of great. Nice touch. It breaks that apart and then that next touch of the transaction.

Yeah, and now we're now. we're into a new phase of this relationship. So there's a lot of agents that kind of where you know one out of four transactions will wonky at the end. so this strategy will kill it for that.

Yeah, Okay, good. all right, let's jump into uh Geographic Farm You ready? I'm hell of hit I'm ready. you're on fire man. Yes, of course this is like the easiest podcast for me.

Okay, here's the T Here's the golf club. Go. Exactly So Geographic Farm I got a couple of things that I just want to Are you advocating for Geographic Farm in 2023 100 I mean a thousand percent. And let me let me give some backstory because I think it's helped for a lot of the people out there that are kind of near the Tom Ferry show or newer to Tom Ferry right? I was not a geographic Farm guy right coming from our history, your history and then when I came over to work with you, you were like Geographic farm and I was like I Don't even understand why this makes any sense And so it's taken me a long time to really deconstruct.

What does it take to be as successful in a Jri farm? And what a Powerhouse So I'm making it absolute. You have to have a geographic Farm if you want to coach with me. Period. Okay, so I'm gonna back up with the person that's saying.

you could probably go back if you're on my YouTube channel to just type in Geographic For me, there's got to be 25 videos on it. Absolutely. The first thing is the size of the list. How many homes could you manage financially? Or Sweat Equity that's number one.

Number two is what is your Association to that Community Do you know the develop the developers? Builder Do you live there? You take your entire database, lines and sphere and you run them into Google Maps and you realize I have 38 relationships in that 2500 home subdivision? I've got leverage? That's a good idea, but the third one is is their turnover, right? If your sales price is north of a million dollars, you could have a turnover of four, three and a half. And it makes sense. Three and a half properties. you know, three and a half percentage of the total properties sell on an annual basis turnover.

But if it's a lower sales price, it probably makes sense to be six or even seven. And Lido right here in Newport Beach There was a time, but it was trading at ten percent, right? People were like oh my God We're so excited to live here on the water. Then they open up the window and they touch their neighbor's house and they're like maybe I want a bigger lot, right? And that was one of the reasons for the turnover. So one is list, two is leverage, three is turnover, four is who is the dominant agent and how dominant are they right? right? So here's what most people are going to see when you do the research: Sit down with your title rep by the way and you can do the super easy and your channel reps love to do.

This is typically in a community of 500 Irvine Terrace Right right now, there is not a single dominant agent in my old neighborhood in Newport Beach right? There's a dominant agent in the high-rise that living in Dallas right? Two gals from Compass seem to get the majority of all the listings. Big shout out to: they're not. They never listen to my show I'm gonna have to bug them about that. Maybe they're listening right now.

They're like say my name. Nope. Not gonna say it all right. But here's the thing.

They do the vast majority of the listings so it looks like this: Hey, there was 12 transactions, five were done by Missy right? and then it was one. one one one one one one. And when you do the research, you'll see all the one-offs that got a listing in the marketplace. The vast majority of them aren't even in the city.

Yes, right. They live out of town so so you got to beat them and figure out how am I to be the dominant agent. But I'm sure we'll get into some of those I've got Yeah, I've got a strategy for that one too for that. Just want to clarify every person listening like it's it's all.

the money is made in the prep and the selection of your farm agreed. And then the fun number that I like to look at on top of the turnover rate is as I'm like, all right, let's get the average sales price. Yeah, let's and then let's take the total number of sales. Yeah, let's get the total sales volume and then let's multiply it by 0.5 because there's a buyer and there's a listing.

and when we look at and this is why I said talk like this whole addressable commission opportunity is. or let's say it even more painful. the total amount of commissions paid to a real estate agent last year was yeah and then they're like this morning Tim in in Virginia He's like there was a million dollars paid to agents last year in that 350 home Farm next door to my house right? I was like right? Tim right? A million dollars. It was paid out to agents and you live in the neighborhood and you sell a ton of homes around there and they're like oh yeah, I should I should be farming.

Easily one of the greatest business mistakes I made was not implementing the geographic Farm in La Costa Valley in in Carlsbad Yeah I just didn't understand. So I'm going to hit point number one because everybody just goes just send direct mail. Yeah, and that is not it. This was the main thing that I didn't understand I didn't understand that the event strategy is easily the best strategy that exists for Geographic farming Mega Open houses Monica cars ice cream I mean like there's so many people Big shout out to Monica Carr I Broke it down into three categories just because: I You know because too many people Missy and Eileen from compass in Dallas I just I Feel so good they're not listening.

If you're listening, you let me know the next time I See you in the building Okay, so there's you. Tip well. First of all, let's break down to the basics. Number one is A This is you're building a relationship with the community.

Yep, and if you could be perceived as someone who is serving the Community First not a realtor first. Oh You mean likable? Yes, Yes. And so that is the number one thing. Now here's the thing.

The reason why I want at least six events is because you literally will be talking to 5 10, 15, 20, 30, 40 people per event and those conversations are all about doing something for them that has nothing to do with real estate. Yeah and all I want is I want people to say thank you Tom yeah thank you for doing this Yes thanks thanks for the Easter egg hunt, the Shredding Events the junk removal, the garage sale right the you know Dave Robles and his you know book drive for charity like there's so many simple little things now so so oh my God Big shout out to Dave Robles Did you hear about this he presented at one of our crazy masterminds. We did and team where he said and what we did is in our farm. We published a letter to everybody and said if you have a child that would like to win a thousand dollars towards their college yes write us a letter A Blog about why you love living in this community yes so I want you to think about if you get 20 or 30 people their kids write a letter why they love.

First of all those are all going to go on my website Yes I'm gonna publish them all They're going to be the best SEO on the planet and and for that you donated a thousand dollars to one kid and he tells the story when we were together in Dallas he says and by the way I'm taking this three million dollar listing and the person said and by the way we just thought it was so fantastic. Here's my daughter. She wrote one of the letters and he's like in his mind, did she win the did she win and the answer was no, That person didn't win, but they were so moved by the fact that they it's that likable connection to our community. Yes, and you serve somebody else.

Even though my daughter didn't win, Here's a three million dollar listing. Yeah! Dave Davis the inspiration for to me where I realized the event strategy where you are the person that's contributing to. he's the guy that I went. That is what works Then Direct Mail is the most glorified drip campaign on top of yeah I Really like that guy, right? right? So look, he just made another sale.

Oh, he gave me a market update. Oh, right, of course. Exactly Okay. Next, Uh, Dave David Caldwell doing the you housing market YouTube Advertising strategy Geo targeting their zip code.

Yep, Brilliant. monthly. The impression cost is literally three cents. So when we talk about a viewer, So just to be just to be clear, we're talking Yeah, yeah, yeah, he creates you.

You've probably done this yourself. You create a video where you say hi, it's Tom Ferry Banana Real Estate giving you the March 2023 real estate news what's going on in home prices right here in 92625 exactly And then you break down all the numbers. He does all that and you know Dave if you're watching Dave doesn't have like this outgoing presentation, he just kind of talks like a newscaster, right? Like something for you know I don't know, like something I think his wish is he talking like a newscast, right? he? but he's just getting more boring. he's like.

But here's the difference. He then takes that goes into Google and he runs ads so people that are in that zip code get fed that video over and over and over. He's been doing this every month now for a couple years and it's always good for a boatload of transactions. It because he is the trusted Source on pricing in his community.

The YouTube advertising strategy in a geo-targeted area is the cheapest and absolute best dollar you're going to spend. Yeah, period. End of story and and thanks. We were on a podcast and I was sitting there listening to Dave talk About It Jason has been outlining this, you know in the Tom Ferry show.

so he's got a really good playbook step by step. and then when I heard Dave and I was like oh man and I was like okay, this makes sense. So I'm getting everybody on that. So literally it costs three to five cents per view.

Yes, and then an impression cost you nothing. but you got it. Yes, so you're getting a free impression. there.

She is there. She is there. She is in a view I Forget what the metric is, but they have to watch 15 seconds or more or something like that. Can I see is that right on? YouTube I Think it's three seconds.

No, No No No No no, you don't get charged if they. Oh yeah, Skip Yes, Correct. I Think correct before 15 seconds. Yes! Now what what I've been doing with my coaching clients? They're literally people are watching two minutes.

So a two minute view cost you three seconds. In a geographic territory where you talk about the housing market in their neighborhood, right? That's unbelievable. Yeah, that is the cheapest best advertisement. He actually presented that at the very first Legacy meeting for all of our team clients in Napa Valley and you could just see everybody.

Like wait a minute. So for like a couple hundred dollars a month I could blanket YouTube and have everybody that I want in that ZIP code or in that Community to see to see me over and over again. You can select homeowners and you can select renters. Then you can go over to life events and you can select Moving Soon Purchasing soon.

Yeah! I can select my Geographic zip code and those four categories and it cost me three to five cents to put a YouTube video in front of those people. Hello! Okay, so we gotta operator. Yeah, we got to be mindful of time. otherwise it's going to be the 11 hour podcast.

Um, Okay, before you finish, uh, Geofarming I Want to back up and say to my friend listening? First of all, thank you. Um, if you haven't liked, subscribe and hit the notification button, please do so. Now. Seriously, Number One 2023 is going to be an interesting year, right? It's going to be for summer slugfest.

For some it's going to be a year of growth expansion. For others, it could just be I don't know. One of their best years ever. one of their worst years ever.

And I think it's all going to be predicated on your early point, which is, we got to double our efforts. You got to make it a math equation. I'm making the argument. you got no more than three goals: the number of appointments, how you're going to get your brand.

Kind of talking about this: YouTube strategy and this event strategy as an example. All of that, and then your transactions, your volume your GCI and your profitability up and around you everywhere. And the one I didn't get to talk about was create the guard rails for your goals, right? Like remember taking your kids to a bowling alley and if there weren't those little bumper Deals They went in the gutter and they didn't feel like bowling anymore. But the second they put those little rubber, you know, bumpers up there now.

Sudden the bulping, bing bing bing bing and it eventually hits the pins by creating structure. What we do now is we tell our friends, we tell our spouse, we tell our coach, we tell our manager we tell a couple of our office mates that we're close to. it's up and visual around you. The more structure you create not just for your goals, but for the discipline and the Habit that you're looking to add on that corner that quarter.

That's how you really activate it. That's how I've been able to do this for as long as I know, Just tell everybody what I'm committed to including people. but I know, don't like me? yes and want me to fail? Yes because I'll walk by me again Very, how's it going right and I'm like oh, it's all the motivation I need to go out and just kill All right? So I want to distress that then we talk past line since fear now we're talking Geographic Farms I got I got for my new agents I want to help them with their Geographic Farm All right, let's hear it. but then can I have a Shameless plug for my YouTube channel? George Patrick Ferry yes YouTube channel yes So come come hang out with me a little bit over there I think I have a total of 2 600 subscribers.

Uh, moving up, let's see if we can get that to 2601. Anyways, all right so let's Shameless self-promotion Shameless Self-promoting over here. Did he pay for that? Yeah Is there an advertising I Saw the contract earlier. What's his last name again? Oh okay, it was in blood.

Little brother rules. Okay, so here we go: New Agent Geofarming. Let's talk about new age and Geofarm. Couple things number one is you talked about the other bro, the out of area broker who gets the listing in your farm Yes I want every single one of my new agents on the phone that varies next day saying congratulations out of Area Broker Boutique Broker Property Manager Broker Schmucketelli Realty Broker right? Hey Congratulations I Live in the area This Farm is super important to me.

If there was any opportunity for me to do an open house, I would be super grateful and I would be super respectful and I'd be a good salesperson for the community. I Want everybody on those open houses especially if it's vacant and then let's get the buyer from that open house and then we're going to turn around everybody. And do not forget, you Must do the I have a buyer letter back into the farm So all of my top agents who resist a little bit of doing the open house I want you guys to get the buyer, then do that. I have a buyer letter and let's talk to three or four new sellers.

Absolute no-brainer Okay, new agents, my new friends. there's this thing on Zillow This is a secret I Don't want anyone to really know about this, but I'm going to do it anyways. on Zillow two your Geographic Farm zip code and you can go to for rent and then you're gonna go over and you're gonna unselect condos and apartments and you're gonna see town homes in houses for rent. You're gonna Click on each one of those and you're gonna scroll down and it's going to say either two things: property listed by property manager or as to say listed by property owner And so my friends in your Geographic form I want you making friends with every single one of them Yes! and let's take two listings this year.

So I've been nine under occupied I've been doing I've been doing the analysis. Okay, so let's just go down the list. there's 10 and we look at each one. Maybe it's 30 percent our property owner maybe it's 60.

Maybe it's one percent or ten percent I don't care now if we play that out. Okay, so now that's let's say that there are six property owners that you can talk to per month. We'll play that out all the way throughout the year. We know for sure two or three of them would list and sell their property if you approached them and just said, would you at least be open to a strong offer if I were to get one right.

Slam dunk, right? That's two to three listings in a geographic form that you just broke into. That is a game changer for the trajectory of your business. Yes, so everybody get that one done the next thing too. Of course we're going to see some expireds and cancels show up this year and so my friends, would we all please just have a protocol set up for that? I Was even talking to one of my great clients this morning.

Amazing agent and he's like I don't want to call expireds and cancels I said I'm not telling you to spend three hours a day, five days a week. You know when do you plan on October Please work the expireds in your geography Yes I'm like so you're telling me that my client Lisa and Laguna literally hi I heard your home didn't sell Exactly. That's all she had to do. They're like Lisa We knew we should have listed with you and I was like I mean just stunning.

High-end yes, you know, real estate agent Laguna Beach Knocking on the doors at the expireds at like 5 30, 6 o'clock on a Tuesday I Heard your home didn't sell I'm so sorry exactly and every time Lisa we knew we should have listed with you. Yeah, and if you do a good job on the farm, right? they already know you. They know exactly No. They listed with the Cheapo with their sister-in-law who you know lives in you know, five cities over.

Yeah, you know with whatever they just they made a bad decision. They didn't list With the right agent. so I Love that and good agents will get the call 30 days before it expires. Anyway, Exactly.

So anyways, let's let's do that and then the open house the Zilla for rent and then at the open house we have to pick up that buyer. Okay, can we do? We have time for one more? No. Okay, we're already 15 minutes over. Why don't you come back and do another show with me? I Would love to do another show? Okay, we do need to talk about the value prop position in 2023 for your buyers? Yes.

And so we need to go back and and do that again and spend some time on that. I Agree. I Agree. Has Has anyone taken the time? Yes, Yes.

All right. You dropped some really good scripts today too. I Really like this? Um, so for my listener, make sure you check out Patrick's let's get him to like 3 000 subscribers. Something like that? Maybe four thousand, five thousand? Who knows.

Um, really really cool show. Uh, obviously they can reach you there. they can follow you on. Instagram Patrick Todd Ferry yeah Patrick Todd Ferry Instagram and Facebook down in San Diego California Big shout out to you! Thank you so much for being on the show! I Love you as always.

You're my favorite little brother exactly and the only little brother he does all right. Thank you so much for watching. Give us some comments. What else do you want to see? What did you learn most from this show? And hey, this is probably one of those shows you might want to share with a friend or two.

Maybe it's a friend that it's a veteran agent that's been in the business for a while and they need a little resuscitation, right? Maybe it's a a newer agent that just you know came into your office. You're like, hey, you might want to watch this show. Here's some great insights, some great scripts, some great tactics for you, and a lot of focus and concentration to make sure you win. So thank you so much! It's killer show! We'll see you guys soon! Foreign.

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