The desperate agent model

Too many Agents operate with Buyers from a mindset of desperation or scarcity. They use the four-step desperate agent model, applying it over and over again, hoping that the odds will miraculously shift in their favor at some point.

1. Talk to the potential customer with the goal of establishing rapport.

Too often, we believe that if we keep the prospect on the phone longer and find common ground or common ground, we can secure their business. We feel that if they like us or think we are nice, we increase the probability of a sale. We want to keep them on the phone long enough to secure their phone number so we can follow up with them. Our goal as a desperate agent is to secure a lead. The focus of a Champion Agent is not to secure the lead but to secure the appointment. Lead has a limited value; the citation has significant value.

2. Offer to send the prospect…stuff

The average agent wants a phone number and email address so they can send information to the prospect. There is nothing wrong with acquiring a prospect’s full contact information. The problem arises when that is our main objective, instead of getting a date. When emailing properties to them becomes our “be all, kill all” way of converting leads, we’ve lost the sales game. The conversion rate of an email contact decreases significantly compared to a face-to-face or even phone contact.

The use of lead matching software for Buyers is so overused that the perceived value to the consumer is negligible. It is not an exclusive feature of any agent in the market. We often use this excellent tool to make up for our lack of phone contact.

There is no substitute for the call. I worked with a dynamic young couple in the Atlanta area. They are effective internet marketers. They had about 300 potential customers who even had phone numbers. These 300 potential customers were getting information on property matches based on their preferences as homes came on the market. They produced a couple of deals a month from this internet strategy.

When I started working with them, I asked them why they hadn’t called the 300 people they were “working” with. They said, “We get a few deals a month on this, why bother?” I told them to call all 300 in the next week. They called 79 and reached 39 people at home. Of those 39 with whom they spoke, they booked 16 face-to-face presentations. That’s a 41% close ratio. They had conducted 11 face-to-face interviews with buyers while committing 7 to a buyer’s agency contract. That’s a 64% close ratio. They had already sold two houses but expected to sell several more in the coming weeks. They ended up selling six houses in the next 30 days from their 7 clients, 11 appointments, and 39 leads. They also discovered that out of the 40 people they tried to contact for a few weeks, when they finally contacted them, they had already bought and sold with another Broker.

The sales stuff shipping philosophy cost these Agents over six figures in Buyer-side commissions alone. When they booked the appointments, the probability of their income and indeed their actual income skyrocketed.

3. I hope your stuff is better than the other five Agents who are sending them stuff.

Unless you can clearly prove and show that your marketing materials, philosophy, sales strategies and track record are superior, it will be rare to convert a Buyer through properties you email them based on a profile.

If you secured them through a publicity call, signing call, open house, or the Internet, you should assume that other agents have all the information you have. If you can convince them to share their email address, you must assume that five other Agents have it as well. Whoever finds them face to face wins.

We all send the same property matches because they receive the same property from every agent they come into contact with.

4. Pray that I finally get a date.

There was a big difference in results when my partner from Atlanta went after business by scheduling an appointment. They stopped waiting for the prospect to call when they were interested in a house. They went after the prospect that other agents knew but were waiting for the call, as they usually did.

When I say appointment, I am not talking about an appointment to show a property. I’m talking about an appointment to conduct a Buyer interview; to determine the prospect’s desire, need, ability and authority; to assess the odds that you will serve this customer and earn a commission. Imagine for a moment that you are a personal injury attorney. As a personal injury attorney, he offers a free consultation. The reason you want the consultation is to determine the probability of winning the case. The approach of a Champion Agent is the same. We are evaluating the prospect based on the likelihood of achieving the client’s objectives and serving them well. We are also evaluating how much we will earn, how soon we will earn it, and how much it will cost us in time, effort, energy, emotion, and dollars invested.

A Champion agent knows that the primary purpose of a sales call, whether inbound or outbound, is an appointment. The truth is that Champion Agents have more dates than other Agents. They make more money because they have more dates. Underperforming agents look at champion agents in awe. They think there must be something magical about the way they operate. The truth is that they are more fundamentally sound in their philosophy, skills and approach. They are clear that the goal is a greater number of citations.

Underperforming agents need “The Deal” too much.

They often show need, even desperation to get a new client.

Champion rule: “When you need it more than the prospect, you lose control.”

If you need the deal more than the client needs you… you’ve lost. It’s hard to take a risk, create a little tension, close firmly if you need the deal to cover your mortgage or other bills. To be effective and successful in sales, you must be willing to risk losing the lead or prospect. This willingness first manifests itself in the form of asking people to make an appointment to meet. You follow through with the conviction that you ask the prospect to work with you using the service system you have set up for him. You are the expert, so why not use your system for service? It is difficult to guarantee successful results if you use someone else’s system or approach to home buying, especially the Buyer’s.

A Champion Agent is an Agent in command. They are in command of the prospect, their customer, the service they provide, and how they deliver it. They are also in command of their time and knowledge. Most other agents are on demand. They are at the beck and call of the prospect, the client, another agent, or others in the transaction, such as the lender, inspector, and appraiser. The necessity of the deal can cause an Agent to lose all control. Being willing and able to walk away from a potential customer if he doesn’t follow his procedures in doing business increases your chances of gaining value from him. As an agent trying to reach the level of champion agent, he must act like a champion now…now.