4 Worst Real Estate Strategies
Online Real Estate Training: 4 Worst Real Estate Strategies – Podcast #50
Hey all you future 4X’ers…welcome to 4X Formula Real Estate Training. Thank you for joining me today. Today we are going to talk about the 4 worst Real Estate Strategies that are being taught on Youtube and everywhere right now and it is driving me nuts!
You can search a lot of these topics on Youtube and these people have a lot of followers. I am blown away at their commitment to these activities to be honest. Here’s the thing. The National Association of REAL ESTATE tells me that 20% of the licensees practicing real estate right now are new…under 1 year in the business. That is good news! BUT if you are one of those people and you focus on these tactics, I believe, you are going to hit burnout and be out of the business within the next 24 months and you will become a statistic. Over 2 thirds of you will be out of the business. I believe, it is because of this kind of training. I don’t mean to put these people down…its what is taught. They believe that they are doing good. Its what they were taught. It’s what I was taught. Over my 20 years of seeking information to implement into my business, these are the things that were taught. For me, the net result of applying these principals, is that I was literally depleting all of my resources and currencies. My energy. My money. My time. It left me EMT. See what I did there. That “boiler room” mentality doesn’t work anymore. That ABC Attitude. Always be Closing. Doesn’t work. Its an uphill battle. All I wanted was more and more and more. More listings. Bigger Ads. Bigger Team. Bigger Volume. But what I got was bigger bills….bigger payments…bigger headaches…Bigger Stress…Bigger Challenges… and it was a never ending cycle. It’s the Sales Cycle. The Public Fears the SalesPerson. The persona of the sales-person is being affirmed in these activities and that is the core of the problem.
That is why I created the 4X Formula Real Estate Training course and that is why I am doing this video right now. I spent 17 years banging my head against the wall. I tried everything. But after it all, when I finally put everything on pause and actually broke it all down…I figured it out. I figured out how to simplify the real estate business. But it depends where you focus your energy – where you spend your money and where you spend you time. Knowing what to do is half the battle. This is the truth. Most people don’t know what to do to build their businesses properly so that they can create longevity and create momentum. DO you agree? That’s why you are here. So let’s talk about what NOT to do first…
So let’s get to it….These are the top 4 Worst Real Estate Business building Strategies.
- COLD CALLING – Are you being taught that you have to get good at COLD CALLING? Just working the phones man. Just working the phones. Dialin’ for Dollars.
- INTERNET LEADS – Are you being told to invest with LEAD GENERATION companies? Another version of cold calling really. Except you are paying for this opportunity.
- DOOR KNOCKING – Are you being told that you must door knock in neighborhoods in order to generate leads? Picking random neighborhoods and going door to door asking people if they have thought about buying or selling.
- FREE CMA! – Postcards / Doorknob Ads / Mail-walk Brochures / Or any type of massive mailouts. Just helping to fill up those recycling bins.
Now before I go any further on this…I want to say that if this is the only thing left to do and you have performed other more productive tasks throughout the day and you have time left over and you feel that you want to ambitiously perform, some activity, in order to do more than just simply go home, then, good for you and I say go for it. Doing something is better than nothing. Action is better than reaction. But do it with a plan and make sure you are giving some sort of value. The truth is, if you don’t know what else to do, then some sort of action is better than being a prisoner of Hope. So if you are willing to do it for that reason then honestly, I applaud you. I mean that. You have the right attitude. And you are the perfect candidate to become a 4X Agent. These activities are not horrible if you are working with a plan that is wrapped around these activities. We do go over this in the course, but alone, as an isolated activity, they are not the solution. All 4 of those activities are what I refer to as a “C” Activity. The most time and effort for the least amount of results.
I want to talk to you about this because, people are soaking this up on the internet and there are a bunch of videos talking about this stuff as if these are the best and most fruitful activities in order to obtain business in Real Estate and I want to state very clearly…that, in my humble opinion, it is absolutely not True. They call it “Prospecting”….no its not. Now hear me, I applaud the people that are doing what they are taught. I applaud the people that take what someone has told them to do and then they go out and do it…that is awesome and I love it….BUT I was also that guy. I was just like you. I was willing to do what I was told to do. I read a bunch of books, and went to many seminars and training sessions. I got myself all pumped up and I went out there into the battlefield. I can tell you after 23 years that those are NOT the best strategies to build a real estate business. I have done thousands of transactions and made a lot of money and it wasn’t until I lost it all and had to start over again, that I was able to create the success Formula for the DREAM REAL ESTATE Business. The 4X formula. Let’s talk activity. Let’s talk about the thought process for any activity. For any plan of attack.
This is what I call, the 4 C’s in business building. CLARITY – CONSISTENCY – CONVERSION – CURRENCY. You need Clarity in order to make a plan. In order to create Clarity you need to obtain information and then you execute the plan…make sense? Conversion occurs from the execution of the plan. And then finally Currency is the Value of the execution of the plan.
The higher the CONVERSION rate the higher your CURRENCY goes. Your Dollar per Hour is one way of measuring your Currency for sure and that is really important. You want to Increase your dollar per hour. I will do a whole video on this alone.
Let’s talk about the other aspect of Currency: Your Value to others. How do you become a person of Value? Educating yourself. Getting good training. Filling your brain with belief. Know what to do on a daily basis to produce results. Knowing how to win the day….that is what Successful Agents do. Consider this. If you are going to knock on a door….are you going to give the person who answers that door…Value in some, way, shape or form? Is there a reason for them to be thankful that they met you? When you employ this mindset, then you don’t have to be a fantastic salesperson. You don’t have to have a special personality. You don’t have to study tricky scripts. You can be you and make a great income in real estate. Those 4 Activities just put you in the same bucket as all of the other sale people out there fighting for the scraps. A Tricky Script will not save you. Or learning about body language or tonality or Neuro Linguistic Programming will not save you. Because they are not a lead. You are interrupting their peace and invading them in their home. Their happy place. This is where they escape from the craziness of the world.
How many doors or how many cold calls or How many mailouts does it take to convert to a lead and ultimately to a sale? How many?…that is your conversion rate. Do you know? I will show you in a bit. It will blow your mind. The problem with these 4 tactics for getting business is that there is no Clarity and the by-product of that is that, your consistency, then becomes impacted. Doesn’t it? Its true – right? It does. Why does it make you so nervous? Why is it the last thing you want to do? Why do you have to psych yourself up? Why is it so uncomfortable? Why do most agents quit doing it?
Can I ask you this…in your experience…While Door knocking or COLD Calling- Have you ever secretly….come on be honest here….secretly hoped that nobody answered? Come on. I know it has entered your mind. But you know what, This is what is taught – if you are ambitious, and if you are a “go getter” and you want to succeed above the rest….then you will suck it up Buttercup and do it. It’s a numbers game. Just overcome.
Sound Familiar? Now if that is true about you, then, You will. You will overcome. You will suck it up and do it. I believe that. I believe that some people enjoy a small level of success. Sure…there are always the 20% of the top 20% that will buck the trend. These are the people making the videos. It’s a numbers game right? Have you ever heard someone say that? It’s a numbers game. The next lead is right around the corner…just keep knocking. Just keep dialing. One more call.
Ok…so let’s look at whether or not its worth it for you to do it – Let’s say, you do suck it up….and simply focus on those skill sets. Practice, those, door knocking and cold calling scripts. Spend a bunch of time and energy role playing with Script partners to persuade people to say YES. Get to the YES. Become a YES Master. By the way…Did you know, that, even if, someone says yes to you. 2 out of 3 times, its not a real YES. WHAT? There are 3 different types of YES. 2 out of 3 Yes’s mean nothing. They are actually dismissive. Has anyone ever told you that? So, once you determine that you might have a lead, because you tricked them into a YES, it then distills down to possibly a “maybe” or most likely, an eventual No. The Truth is, A YES, can actually hide deeper objections.
According to Chris Voss the leading Hostage Negotiator for the FBI, for decades, there are truly, 3 kinds of YES…Counterfeit – Confirmation and Commitment. From his Book “Never Split the Difference”. I encourage you to get the book. The Counterfeit, Yes, is simply to make you go away. The Confirmation Yes, is just an innocent yes. It just happens to be the right answer. If you ask me an obvious Yes, question phrased a certain way to make me say YES…then I am simply being honest. BUT, its Not a commitment and definitely, not going to spur me into action or allowing you to build a trusting relationship with me. I actually wish I could say no…but I don’t want to lie…so I answer with the obvious answer. Yes.
But there is a 3rd one. The Commitment YES…this is the one that we are always seeking. Are people going to commit to you on their doorstep or over the phone? Sending out mailouts with the words, FREE CMA on it. Let’s say you actually get a phone call, or someone spurs into action to contact you from your Mailout or drop-off or from your Doorhanger ad…What do they want? They want a FREE CMA…This is your “Foot in the door”, you say…You got a meeting. You spend an hour or two preparing for this meeting and then you show up, give them what they want and spend an hour with them…then its over. You go away thinking that you have a LEAD…
But the truth is, they got what they wanted an appraisal of their home. What is your percentage conversion for this activity? What are your Conversion Opportunities for these activities? Even if you can argue that this is a good way of business building and you personally have achieved a certain level of success. What are the Conversion Rates? Well, The National Association of REALTORs did a study on this.
What activities create the best conversion rates? Well here it is. Look at the TOP 4. Surprise! Surprise! Look at the Conversion Rates here. Mailouts – COLD – 2000 to 1. Remember these are just leads…not Clients. We don’t know the conversion stat from LEAD to client but in my experience it is 10 and 2. So then in order to work with 2 Clients and help them with real estate I need to send out 20,000 mailouts. INTERNET LEADS 1600 to 1. SO with the conversion rate…16000 to get 2 Clients. PHONE SOLICITATION 500 to 1 and DOOR KNOCKING 100 to 1.
Now remember we have to times these by 20 in order to be true to the 10 and 2 Rule. Phone 10,000 people to close two. Knock on 2000 Doors to Close 2. SO how do you stack the cards in your favour? How do you increase your odds and conversions? What do you need to do? Where is your time best spent? What activities are best to do without a “Salesperson” skill set? We are not sales people. Our role has changed now. We have to create relevance in our communities. We need to be seen as a trustworthy resource. Someone who is in their corner and someone who has their best interest in mind.
We need to make sure we are top of mind for when it is time for them to make a decision and there are many ways to do that that are far more efficient and cost effective. We want to obtain MINDSHARE. But that needs to be a focussed activity with a proper plan. Look at these other activities – pink is warm and the red it hot and look at the Conversions for Referrals!! 3:2!! That’s exciting.
Imagine if over 50% of your business was from referrals. Do you think that you would experience less stress? Do you think that your business would be more profitable? Do you think that it would be nice if you spent the biggest part of your days in planning and listing and offer processing? Writing deals on the board? Yes…that’s the dream business.
If you feel that you want to build a relational business and you are ready to learn the truth about how to build a rock solid business that doesn’t involve Door Knocking or Cold Calling or Paying for Internet leads or relying on expensive mailouts that are a waste of paper….then go to 4xformula.com and Click on the FREE Training. Check out our TOOLS section and see what we have to offer. This will give you some clues into how this training is different than the rest. I break it all down for you. Go to 4xformula.com and take the FREE Training and then watch your business blow up! That’s it for today…. More content is coming. Take care and make a great day!