Real estate agents are often so stuck in a particular mindset that they can't change their thought processes. Unfortunately, that's the very thing agents need to do if they hope to increase their incomes and break that elusive six-figure barrier. The following 12 strategies will help lead agents down the six-figure path. -- Editor

1. Formulate a business plan.

The first strategy is: You must have a business plan. Where do you want to go? How big do you want to get? And how are you going to get there? Just as a professional baseball player knows his batting average and which pitches he hits, you need to know what your "batting average" is, based upon your own statistics and those of your real estate board.

2. Seek out leverage.

You should only do things that give you leverage. Here's a good example: Let's say you have an opportunity to show homes to Mr. and Mrs. Smith all weekend long. You take them out; you show them houses all day Friday, you show them houses all day Saturday, and you show them houses all day Sunday. They finally buy one. What do you get out of that? Usually one paycheck.

But what if you had the opportunity to meet with four or five builders and spend time with them for three days? What's the chance of getting a listing from them; and what's the chance of getting multiple listings from them?

That's called leverage. Always try to restrict yourself to those things which will give you more than one paycheck.

3. Install a direct phone line in your office.

You must get a direct line into your office, so you can measure your responses from all of your advertising. Now, you might say, "I can't get a direct line. My broker won't let me have one." Then how can you measure your advertising? The ones who are making the biggest incomes, however, usually have a direct line right into their offices.

You might ask, "What if I'm out of the office?" There's a simple solution: Get an answering machine, and turn it on. It's better to have sellers or buyers leave their names and numbers on an answering machine than it is to have their calls go to the up-desk, where somebody else takes the lead (and the paycheck) that you've spent all of this time, energy, and money generating. If you're averaging $4,000 commission per sale, how many of those leads can you actually afford to lose?

4. Direct response marketing.

You must do direct-response marketing. Is your advertising so compelling that somebody would look at your ad and say, "I want to call this person to list my home"? If your answer is no, you'd better change your ad. And if you run the same ad over and over again, and nobody calls, why would you keep running that same ad?

5. Hire a personal assistant.

You also need to have a personal assistant to push yourself into a six-figure income. If you're going to make $100,000 a year, you have to be making $40 an hour. How can you afford to do mailings, work on your computer, put up songs, and pick up signs? That doesn't pay $40 an hour. That pays between $6 and $8 an hour. So if you want to make $100,000 a year, you don't want to be a slave to your business, and you don't want to work more than 50 hours a week, somebody else has to put in some time.

When asked to name the biggest mistake they've made in business, 80 percent of agents say, "It took me too long to hire a personal assistant." If that's what they're all saying, then you should get an assistant right now.

You might ask, "Well, how can I afford it?" How can you NOT afford it?

6. Prospect 90 minutes a day.

Next, you need to prospect at least 90 minutes a day, but don't spend your time cold-calling and door-knocking. Spend your time calling expired listings and for-sale-by-owners.

7. Computerize your databases.

Computerize your databases, and send mail to those prospects every week or month. You must establish a database system that enables you basically to pigeonhold everybody you meet. Are they future buyers? Are they current sellers? Are they current buyers? Do they want to buy right now? Do they want to buy in six months?

8. Prequalify your buyers.

You must also prequalify all of your buyers yourself. You should be spending your valuable time listing and selling, so find a way to use your phone to generate leads. As mentioned above, let your answering machine take the names and numbers of your callers. When you call them back, prequalify then and there. Here are five questions to ask, in this sequence:

• Are you working with a real estate agent? (If you have one already and have signed to a buyer's contract, you probably can't help them.)
• Do you have a down payment?
• How is your credit?
• What is your income?
• What are your current long-term debts?

Then do a simple analysis and, based upon a FHA ratio, determine whether or not they qualify. If they don't, you must tell the callers that you are unable to work with them on this particular house. Think of it this way: If you went to the doctor today, and you had a pain in your chest, wouldn't you tell the doctor about the pain? Well, when the buyer calls you and wants to look at a home, why would you spend your time telling them about a home if they don't qualify?

9. Master scripts and dialogues.

You must become a master at scripts and dialogues, and you must have the best presentation in town. And don't leave your prospects until they have signed the contract! That has to be your attitude. Here are a few recommendations for your presentation: Go over the listing presentation, review pricing with the prospects, and then do a net sheet. Ask them directly to sign a contract. If they're not going to sign, find out why. If they say they are interviewing other real estate agents, then do the other agent's presentation. Have your local newspaper and local MLS book with you. Show them how much business the other agents in town are actually doing in order to convince them to list with you. You must learn to role-play to be successful.

10. Give yourself time.

And remember, sign up all of your listings for 12 months if at all possible, or for as long as you are able. Get price reductions every 30 days.

11. Call your clients weekly.

You need to frequently contact your databases by phone or mail. Call every buyer you have under contract, every week. Contact every listing you have under contract, every week. Contact all of your "pendings" every week. You must constantly keep in touch with them to make sure they are happy with you and that they know you haven't forgotten them.

12. Make yourself a celebrity.

Make yourself a local celebrity. Do this through advertising your face on everything. Put your face on yard signs. Get your face on television. There's nothing better than somebody walking up to you and asking, "Aren't you that real estate person?"

People should recognize you and know how valuable you are. They should come and talk to you about buying and selling real estate. Do these things rather than spending all of your time knocking on doors and cold-calling, hoping these people want to do business with you. Make yourself a local celebrity. Also, have some fun with it.

Published: August 21, 1998

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