- A 30-person database could yield 16 or 17 transactions if you do your job keeping in touch.
- Your database will atrophy at a rate of about 15 percent per year, so you need to continually add to it.
Fact: You are surrounded by an abundance of opportunity.
Do not get caught in the trap of the scarcity mindset!
Too many people believe that there are a finite number of business opportunities and become envious of others who win listings and convert leads.
But these opportunities are all around you, too — you just need to have the right mindset so you are focused on the right things.
The numbers don’t lie. Here is what we know:
- 12 percent of Americans move every year.
- The average person knows up to 4 people who move each year.
- 72 percent of buyers definitely would recommend their Realtor.
- Plus 16 percent who probably would.
- 67 percent of sellers definitely would recommend their Realtor.
- Plus 17 percent that probably would.
- Your clients will meet 4 people who will buy and sell real estate during the time you are working with them.
Let’s take a simple database of 30 people. Fifteen percent of those people will potentially buy and/or sell each year.
Factoring in that about one-third of those will be first-time homebuyers, you have a 20 percent transaction opportunity directly from your database. In this case, six potential transactions per year.
Those 30 people know up to 4 other people who will buy and/or sell real estate, too.
There is sure to be redundancy in that statistic, and some people will migrate out of your service area, so let’s call it two potential transactions from each person in your database. That’s an additional 60 transactions!
Can you capture all of these potential opportunities? Maybe, but it will be difficult.
Let’s say you can get about 25 percent of those opportunities. That’s 16 to 17 transactions per year just from a 30-person database!
There is a problem, though. Your database will atrophy at a rate of about 15 percent per year.
So you need to continuously be adding to that database. If you can add just 2 people per month, you’re adding another 15 transaction opportunities per year!
Don’t forget about your current clients. They will be meeting people who need to buy and/or sell while they are working with you.
Those are more transaction opportunities just waiting for you.
The conclusion? You are swimming in abundance!
You may be asking, “This is great — but how do I get the opportunity to be the Realtor involved in all of those transactions?”
This is a great question. You need to build and maintain strong relationships with your database so that you become the person that they know, like and trust.
Only then will you have the opportunity to do business with them. In the next post we will discuss some strategies that will help you accomplish this.
Have a great week!
Matt Bonelli is a manager and broker associate at Turpin Real Estate, Inc. in Chatham, N.J. You can check out Matt’s blog at www.matthewjbonelli.com and find him on Facebook at facebook.com/matthewjbonelli.