Solutions to Four Common Challenges with Showing Assistants

Showing assistants are responsible for finding and showing homes to interested buyers, and are also fairly recent additions to many real estate agents’ organizational charts. In the 3L Blueprints eBook,  KellerINK explores these four common challenges with showing assistants:

1. Testing the waters instead of making a commitment to the success of the model.

2. The position has not been sold to the team as an opportunity for income growth.

3. Buyer agents are cherry-picking leads.

4. Dropping the ball when passing a buyer to a showing assistant

Challenge 1: Testing the waters instead of making a commitment to the success of the model.

What is happening: Too many people discount the benefits of having a showing assistant on a buyer team, so they do not spend time to make the necessary changes to their business model in order to successfully incorporate this position and reap the benefits.

The problem this is causing: Similar to when agents look to introduce an inbound or outbound sales associate to their team, they aren’t taking the time to get training on hiring at a high level and working successfully through other people. Without these key steps, agents don’t have the tools to succeed with a showing assistant and don’t commit to the model.

Solution: Once the decision to hire has been made, an agent should commit to becoming an expert on hiring. The first step is to pinpoint the qualities that a showing assistant must have to be successful in the role. Once the right fit has been made, an agent must be all-in and commit to the time-consuming process of onboarding and training the showing assistant on the systems and processes of the team so that the person has a chance to succeed in the role.

Challenge 2: The position has not been sold to the team as an opportunity for income growth.

What is happening: The benefits of a showing assistant are not portrayed accurately to various team members, so they do not buy in or support

the position.

The problem this is causing: When team members do not accept the position and feel that its existence will decrease their overall earning potential, they are less likely to give it a rightful chance.

Solution: Similar to how other concepts take time to gain traction, agents often don’t recognize the benefits of having a showing assistant until they find themselves bumping up against a ceiling. If the vision and concept of the showing  assistant is introduced to an agent during their time of “pain,” they may be more willing to see how it can help them break through to the next level. An agent who plans to introduce the showing assistant model to their business should focus  on the opportunity that it provides rather than the commission split. Although the percentage split may decrease from what other team members have experienced previously, emphasis should be placed on how the showing assistant model  exposes them to more home sales and provides an opportunity to make more money with fewer responsibilities than they had before.

Challenge 3: Buyer agents are cherry-picking leads.

What is happening: Buyer agents who have not been convinced of the benefits of the showing assistant model are not utilizing showing assistants to their full potential. Instead, they are giving the showing assistant leads that they themselves  do not want to handle.

The problem this is causing: If a showing assistant isn’t given the opportunity to do their job showing homes to all buyer leads, they cannot make a good enough living with the leftovers. Likewise, a buyer agent who does not use the showing  agent to their full potential isn’t getting enough leverage.

Solution: If an agent utilizes a showing assistant model, the team must all agree to put all buyer leads through the showing assistant so that the showing assistant can show these clients homes, giving buyer agents more time to build the  business. Without complete buy-in from the team, the model will not function. However, once the team acknowledges the added earning potential that having a showing assistant can create, the buyer agent becomes invested in the success of  the showing agent. In turn, the showing assistant also becomes invested in the success of the buyer agent.

Challenge 4: Dropping the ball when passing a buyer to a showing assistant.

What is happening: Agents feel like they are not giving buyers the proper treatment they need when they give the client to the showing assistant and relinquish their own constant interaction.

The problem this is causing: If the pass-off does not happen organically and a client senses that the agent is hesitant to give them over to another team member, the client will likely be unhappy as well. Further, when a client does not feel that they are important to the agent or getting  enough attention, the agent will lose the deal.

Solution: Agents that explain the transaction process and introduce the key people early on to a buyer set proper expectations from the start. For instance, agents with a team approach benefit by walking through the various roles played by  each team member with the client. By taking the time to explain that a showing assistant shows all the properties and once the property is decided upon, the buyer agent takes the reins again to write and negotiate the offer, the client  understands that they will be interacting with multiple people and won’t feel like they are being passed off because their agent was too busy to interact with them.

The information in this article is from the 3L Blueprints: Leads, Listings, Leverage eBook. Download your FREE copy from KellerINK today to read more.

Stanford Publishes Study on Keller Williams Culture

Researchers at the Stanford Graduate School of Business have published a report in their Closer Look series on the importance of culture at Keller Williams. It marks the third time that the prestigious business school has studied Keller Williams. A PDF of the nine-page report by David F. Larcker and Brain Tayan is available to download for free.

Download the full study here

The new study reviews the company’s operating model in detail and answers:

How important is culture as a determinant of economic outcomes?

Are culture and incentives the same, or is culture something greater?

Are some elements of culture “more important” than others?

How are the values and behaviors within an organization influenced by the “tone at the top”?

“As an education-based company, we’re honored that Stanford has chosen to study our company to teach business students about the importance of culture,” Keller Williams CEO Chris Heller said.

Keller Williams is the world’s largest real estate franchise by agent count. In 2015, Training magazine named Keller Williams the No. 1 training organization across all industries.

Stanford has studied aspects of the Keller Williams business model twice previously. A 2007 case study reviewed the economic and cultural models that led to the success of Keller Williams. A follow-up study in 2011 evaluated the actions taken by Keller Williams in response to the residential real estate market downturn. The 2007 and 2011 case studies can be purchased online through Harvard Business Review.

Building a Green Network to Help Your Clients

From plumbers to architects, as a real estate professional, you refer clients to industry-specific experts. One area that has gained increased popularity is green living. Here are some tips for building a green network that will help you help your clients ‘Green Their Home!’

As their real estate agent, you can help your conservation-minded homeowners form a “green team,” according to Green Your Home, the guidebook from Keller Williams Realty. This group of professionals can assess properties for green opportunities and prioritize the projects that will make the biggest impact or cost the least to do, or both!

A GREEN TEAM includes:

Real estate professionals. While you don’t need to be an expert on energy-conserving measures, you have a solid vantage point on which green features matter most to potential buyers. That’s information that sellers would love to know as they make their properties market-ready.

General contractors. Greening a home can prove time consuming and become expensive if you don’t have a game plan and someone to monitor progress. That’s where a general contractor comes in handy. These individuals can make real-time changes during construction to avoid snafus and maximize results.

Skilled tradespeople. These are the people who can help your clients with jobs that require professional oversight. DIY projects can be rewarding and cost-effective, but some tasks are best left to the experts.

Architects and design-build professionals. An architect or design-build professional can create spaces that maximize energy and natural resources, such as sunlight.

Eco-consultants. This is an expert you might not have in your contacts list. If that’s the case, it’s time to change that. Eco-consultants are often “the first to arrive on the scene” when a homeowner wants to make green improvements. They can assess a property’s air quality and energy efficiency and draw a road map for a successful “Green Your Home” adventure.

Now that you understand your key role in building a green team, take another look at your contacts list. Are there gaps you need to fill? Perhaps you know some great general contractors, but how knowledgeable are they in managing green improvements? Are the tradespeople you know up to date on green materials and technologies?

As more homeowners seek greener paths to living, you and your sphere of influence can be there to help every step of the way!

In celebration of Earth Day, we are excited share the first chapter of Green Your Home. Please click here to download. To purchase Green Your Home click here. This book makes a great client gift!

Excerpts from this articles originally appeared on the KW Blog post Why Green networks offer a win-win for you and your sphere of influence.

Farm Your Way to a Rich Harvest of Leads- Keller Williams Associates Share Lead Generation Tips

“There are two things that every agent should master—the database and something listing-specific in strategy that you can do in high volume,” says Steve Schlueter, BOLD Coach, MAPS Coach and OP for the Round Rock, Texas, market center.

One strategy that fits the second bill is farming. During Family Reunion, Schlueter, along with agents Michael Perna, Cindy Baglietto and Allison Van Wig, shared their tried-and-true door-knocking tips and other techniques that have helped them reap huge rewards from their geographic farms.

First, find the best area for your farm. “I’m always looking for a 7-percent turnover rate in a neighborhood,” Detroit-based Perna says. “Five percent is the bare minimum. If an agent has 30-percent market share, I skip over that neighborhood because I don’t want to go to war and triple-spend to build my brand.”

For Baglietto, picking her own neighborhood in Frisco, Texas, proved to be the most fertile ground. She started by direct-mailing to all her neighborhood’s houses, having open houses every weekend and calling around for listings. After a year, she had spent very little money but had 50-percent market share in her neighborhood. “Get a sign rider for your sign that says you’re that neighborhood’s specialist,” she says. “If you host community events, you’re allowed to put an ad for free in the community newsletter.”

Ideas for community events that these agents have sponsored include:

-Pumpkin-decorating

-Easter egg hunts

-Visits with Santa

-Calendars listing local junior high and high school sports events

-Partnerships with the PTA

-Ice cream trucks in summer

Van Wig, who specializes in the Long Beach, Calif., neighborhood of Lakewood, suggests investing your money locally through geographically targeted Facebook and Google ads. “I started doing reverse open houses,” Van Wig says. “After I sell a house, I pass out postcards that say, ‘Come see what this house sold for. Get cookies and a market analysis on your house for free.’”

Using the Keller Williams Models to Innovate and Expand

Investing in Innovation

Home4Investment’s Ben Kinney uses the Keller Williams models to innovate and expand.

When Ben Kinney decided to launch a couple of startup technology companies, he turned to the Keller Williams models and systems that had helped him create one of the nation’s top producing real estate teams. If it ain’t broke, he reasoned, don’t fix it.

“From the first day I started my career in real estate at Keller Williams, I knew I was going to learn how to follow the models from The Millionaire Real Estate Agent (MREA) and build a successful team,” Kinney says. “What I never realized was that, from the beginning, Gary Keller meant to teach us not just that, but really how to build a business of our own.”

Kinney came from humble roots and was selling and installing cable television when a real estate agent passed along Keller’s bestselling book. A decade later, Kinney’s a mega agent. He owns and operates seven Keller Williams franchises and the Home4Investment Real Estate Team in Bellingham, Wash. Kinney’s real estate empire is home to more than 700 agents in six different counties.  Kinney’s 2014 closed sales volume has surpassed $75.6 million with several months to go.

“The models I have learned along the way from Keller Williams apply to my real estate business, but really the economic, budget, lead generation and organizational models are the foundations of  every successful business,” he says. “After building my team, the other businesses have been a piece of cake.”

Leverage Allows Time to Innovate

In 2014, Inman News named Kinney its Innovator of the Year, primarily for launching several successful technology startups that have the potential to transform the real estate industry. Two of his technology companies are Brivity and  Blossor. Brivity is a “transparency tool” that blends customer relationship management, marketing and task management into one platform that fosters stronger communication between agents and clients. Blossor, a long-tail listing portal,  provides a consumer-friendly platform that includes state-of-the-art search capabilities. The industry buzz Brivity and Blossor have generated makes a powerful case that Kinney was innovating at the right time and with the right tools.

“I believe we all earn the right to innovate,” he says. “Innovation before you have earned the right can cause business failure and financial stress, and in the end, it will affect your health and your relationships. This is why KW teaches going  from entrepreneurial to purposeful. Do the ‘P’ first, and then add some ‘E’ when you have earned the right.”

For real estate entrepreneurs who are considering taking the leap into innovation, Kinney stresses going back to basics.

“In order for you to innovate, first make sure you have succeeded in following a proven model like building a real estate team following the MREA,” he says. “The MREA models and systems do not require innovation because they are already  tested and proven. John Maxwell says that systems make the ordinary extraordinary. That is what growth is really about – creating and sharing systems that have the ability to empower others to have successful careers and amazing lives.”

Kinney has done just that through his teams. He follows the Recruit-Select model when adding members to his team with the aim of training them to become future leaders in the much larger organization into which he hopes his businesses  will evolve. One specific goal he’s committed to is making 10 people in his organization into millionaires. With a goal like that, it’s no wonder that Kinney devotes fully half of his time to recruiting the strongest cache of team members possible.

“Your most valuable asset will always be your time,” he says. “I split 50 percent of my time evenly between managing my sales teams, running my brokerages, leading my software companies and training agents. The remaining 50 percent of  my time is committed to my ONE Thing – finding and hiring talent for all of my companies. I believe that, when you resolve to make your life about the ‘who’ instead of the ‘what,’ your life potential becomes truly unlimited.”

The time to focus on the who is one of Kinney’s biggest keys to productivity in both his real estate business and his tech companies.

“When you focus on the who, you’re only one great hire away from any goal you ever want to achieve,” he says. “That might be an employee, a company or a coach. If one of my businesses is struggling, I know it has everything to do with the  people I have in place. Either I have the wrong person, they are not being held accountable or they need more training. It’s why I have taken Recruit-Select more than 10 times and have a collection of AVAs that look like the Encyclopedia  Britannica.”

Time Management and Prioritization

The other two keys to productivity that Kinney relies on are time management and prioritization.

Time management is essential for people who want to run more than 1 business at a time. @benkinney

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“I have taken time management to a new level for my own life. I have eliminated all alerts, vibrations and rings on my phone. I deleted social media accounts, I share an office with others so I can’t hide when I am being unproductive, and I  try to only do what is written on my calendar.

“Priority is another key. In The ONE Thing, Gary (Keller) and Jay (Papasan), they say that every yes must be validated by one thousand no’s. If you’re not being productive, start saying no to a lot more things. Every dollar I have made has  been because of a few important no’s.”

Throughout his decade-long journey from cable guy to Innovator of the Year, Kinney has faced innumerable bumps in the road. Along the way, he uncovered the following advice for others seeking to become mega agents or innovators – or  both.

“Slow down!” he implores. “Make sure your business right now is making a solid net income and that you have reserves for your business and your personal life. Expansion expands your opportunity to levels agents have never imagined. At the same time, it also expands the inefficiencies, mistakes and lack of systems. If I could share one thing, it would be don’t model yourself after agents who sacrifice health and relationships for success in the workplace.”

How to Sell a House in Five Days (It Can be Done!)

Bob Lucido was at the top of his game until the market crashed. By carefully calibrating his return, he’s back STRONGER THAN EVER.

Before the housing market crashed in 2007, Bob Lucido was selling upward of 3,000 new homes a year. That proved unsustainable, but fast-forward to 2014 and Lucido’s developed a solid business plan to close 500 units and drive millions in gross commission income annually. HE SHARES HIS STRATEGY FOR HOW TO SELL A HOUSE IN FIVE DAYS AND ZERO IN ON A PROFITABLE NICHE.

A 25-year real estate veteran, Lucido joined Keller Williams Realty in 2013 with a long track record of success. His original real estate venture, Builder’s First Choice, reached nearly $1 billion in sales before he sold it in 2007. The Home  Builders Association of Maryland named him #1 Realtor of the Year in 2009, 2010 and 2011, and he led the top RE/MAX team in Maryland and the Central Atlantic Region. “After successfully representing builders and reaching our peak in  2006, I thought life was pretty sweet. I even thought maybe I was smart and had figured out this incredible process,” Lucido recalls. “Then the crash came in 2007. I went from having 300 employees and six offices, sales in 16 states and plans to franchise our business to survival mode. We closed our doors.”

Discouragement Inspires Determination

A candid Lucido admits 2007 was one of the most discouraging years of his life. More money was going out than coming in and he had no clear vision for the future. “Uncomfortable” is not a strong  enough word to describe his mindset. Lucido and his wife, Tracy, were down, but they refused to fizzle out with the declining market. In 2008, the duo launched The Bob Lucido Team. They didn’t  take a paycheck for two years and worked seven days a week – but they were determined to rebuild. Lucido dusted off all of his “positive” success training books and seminars and developed a  strategy he was sure would help him start over smartly and sustainably at age 50. He sold several rental properties he owned and liquidated stocks to infuse cash into his new real estate venture –
then he started knocking on doors in his parents’ neighborhood to, as he puts it, “retrain his brain” and get back to basics. Lucido determined to shed his “big shot” mentality and prove he was willing to do anything that he would expect his  future team members to do. It worked. Since 2008, the Lucidos have added more than 50 team members and will earn more than $5 million in gross commission income for 2014. A year after joining the Keller Williams family, The Bob  Lucido Team is already one of the top-producing teams in the company. “There was a lot of sacrifice and risk-taking, but we charged forward and are today opening our second expansion office and our third and fourth are on the drawing  board,” Lucido says.

How He Really Does It – How to Sell a House in Five Days

Lucido’s strategy was bigger than knocking on doors. He developed a “Sell a house in five days” program and accelerated his lead generation through open houses. He personally does 44 open houses a year on Sundays and his team does an  average of 30 a week. Here’s how the five-day house selling program works: Lucido lists a home on Thursday that is priced right, staged perfectly and advertised strategically. Often, offers start coming in Friday or Saturday, but Lucido won’t  sign a full price offer until after the Sunday open house. Lucido says this strategy creates a fear of loss and higher bids. “We just sold a house listed for $585,000 for $612,000 in five days. Open houses work. Don’t fall into the lazy approach  or buy into the lie that open houses just attract neighbors or lookers. I have listed so many neighbors’ houses I could fund my kids’ college educations with just those leads,” Lucido says. “Open houses work.”

Succeeding in Niche Markets

Working with what Bob knows best, The Bob Lucido Team has a new home division that focuses on builders. The team generates referrals from new home agents who work for builders such as Ryan, Lennar and Beazer. This gives Lucido and  his team leverage. Then, there’s the “Silver Group,” a division within his team dedicated to providing specialty services to address the challenges associated with a senior move. “Seniors are downsizing and need to sell their homes. We offer a  list of services and offer them downsizes, estate attorneys, stagers and essentially remove the burden,” Lucido says. “Our percentage of business in this area is growing nicely and we are looking for more ways to offer more services – and to  offer these same services to out-of-state assisted living communities, attracting residents from Maryland.”

Never Stop Learning

Lucido is big on training and coaching because he believes nobody should ever stop growing or learning. For his part, he attends every Keller Williams Mega Camp and Family Reunion. He says he learns so much his biggest challenge is  implementing specific action plans. Lucido compares the evolution of his business to the ongoing success of Cal Ripken Jr., baseball’s “Iron Man” who played 21 seasons with the Baltimore Orioles.

“Cal Ripken Jr. is one of the most  extraordinary people I have had the pleasure of working with and knowing. His work ethic, integrity, passion for the game and humble attitude is unparalleled in sports and life,” Lucido says. “He never let up in his approach to the game and to life. He was always looking for better ways. He constantly changed his stance to adjust to his aging body. That is what we must do in this business – adjust and adapt to achieve optimal results.”

If Lucido has learned anything in 25 years of  real estate success and challenges, it’s the power of a team. As he sees it, success depends in large part on the people with whom you surround yourself.

“We have an incredible group of dedicated team members, all of whom have contributed  to our success. I call them all partners because they are,” Lucido says. “My wife and partner Tracy and daughter Lauren, who is our director of marketing, work tirelessly and never let up. I couldn’t find two better partners who inspire and lead the rest of the team with effort and passion.”

Keller Williams Offices Dominate REAL Trends 500

Keller Williams Excels on List of Top Real Estate Offices

Keller Williams is once again home to more offices on the REAL Trends 500 than any other real estate franchise. The world’s largest real estate franchise by agent count is represented by 143 offices ranked by the number of transactions and 140 ranked by sales volume – increases of 13 percent and 11 percent, respectively, compared with 2014. The REAL Trends 500 is an annual ranking published by REAL Trends, Inc., a leading source of analysis and information on the residential brokerage and housing industry.

The Keller Williams brokerages on the list increased the number of transactions they handled by 17 percent year over year. (This compares favorably to the 0.001 percent increase from 2014 to 2015 for all offices on the REAL Trends 500.) Moreover, Keller Williams offices increased their sales volume – that is, the cumulative sales price of all properties sold – by 22 percent (compared with a 6 percent gain for the overall list). The Keller Williams representatives on this year’s REAL Trends 500 handled approximately 443,000 transactions and more than $117 billion in sales.

Keller Williams offices on #REALTrends500 had 443K transactions & closed $117B in sales

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“Keller Williams continues to set the pace for growth in the real estate industry,” CEO Chris Heller said. “We’re attracting the top talent in the real estate industry and giving them the training and tools to grow their businesses.”

In the three full years since Keller Williams launched its Growth Initiative – a companywide training and accountability program led by President John Davis – the number of transactions handled by Keller Williams representatives on the REAL Trends 500 is up 71 percent and closed volume has more than doubled. The Growth Initiative is contributing to record productivity and profitability gains. Indeed, Keller Williams impressive showing on the REAL Trends 500 mirrors the company’s achievements in 2014:

• Becoming the largest real estate franchise by agent count in the world.
• Being named the #1 training organization across all industries by Training Magazine.
• Distributing $98 million in profits to associates through the company’s Profit Share and Growth Share system.

“Keller Williams associates are achieving success on a level the real estate industry has never seen,” Davis said. “They’re dialed-in to our training and coaching, they’re mastering our systems and models, they’re providing great value to clients and they’re creating more opportunities for themselves and their families.”

For more information about the REAL Trends 500, visit realtrends.com.

Keller Williams, Where You Belong!

KW is taking the real estate industry by charge. Find out why Keller Williams is turning heads.

Overcoming the Five Challenges with Institutional Buyers

Challenge 1: Improving market means fewer investment opportunities

Institutional buyers were interested in acquiring bank-owned REO properties and distressed units. However, as the market continues to improve around the country, decreasing distressed inventory and rising prices are causing homes to move outside the purchasing criteria set by larger institutional investors.

The problem this is causing: The decrease in available properties meeting the set investment criteria has caused large investor companies like Blackstone to dramatically decrease the amount of properties they acquire. As these institutional  clients move away from home purchasing strategies, many real estate businesses who were servicing them are finding they need to shift to a more traditional business model.

Solution: Keep nurturing your investment buying firm contacts
When an agent sees that institutional purchasing in their area is beginning to dry up, they can stay ahead of the curve by moving their focus to building their traditional business while keeping an eye on the next big institutional  opportunity. This means staying in touch with contacts at large investment buying firms in order to be on the inside track in case these institutional investors decide to sell off their inventory. If these homes are sold down the road,  institutional investors will once again find themselves in need of reputable agents to help them do so.

Challenge 2: Time and lack of loyalty

Working with institutional investors is time consuming for agents. Despite the time required of an agent to find properties that meet the investor’s criteria, investors are focused on performance and their return on  investment rather than on building loyalty via a partnership with the agent. Because investors are aware of the large amount of business they are bringing to the table for the agent, while they are unconcerned about  the costs agents need to front in order to service them, expectations of both the investors and agents are often misaligned. Both consider themselves to be the client in the relationship.

The problem this is causing: In order to meet the demands of their clients, agents often add costly leverage to their businesses that are investor- specific, such as appraisers and field representatives who only research and inspect the possible properties to determine if they fit the investment criteria given. Once an investor decides to cut ties, agents have to find other places in their company for those employees, or risk losing talent.

Solution: Top agents always lead their businesses with revenue
When institutional buyers revise their investment strategy and move away from purchasing in a particular market, agents often find themselves needing to alter their own  strategies as well. This may result in helping staff that were initially hired to ensure the agent had the infrastructure in place to service the institutional investor to find other opportunities if the agent cannot continue to support the larger team structure.

Challenge 3: A strategy to obtain the property in high competition
What is happening: With low inventory comes high competition. Agents are struggling to find products that meet their clients’ needs and are fighting for what’s left of the distressed inventory. The problem this is causing: A lot of the larger institutional investors have dramatically dropped off their purchasing.

Solution: Identify the basic need of the institutional investor
Once the agent has identified what the investor’s intended purpose is for the property, they may be able to pinpoint real estate that wasn’t initially in the consideration set. For instance, the agent may be able to find the right inventory by broadening the parameters of a geographic area. Many investors purchase homes all across the country.

Challenge 4: Some agents don’t feel comfortable with investing
What is happening: In order to work with institutional investors, agents need to be able to speak their language and personally be comfortable with investing. The problem this is causing: Agents who are not familiar with investing are struggling to work with these large buyers because they approach home purchasing differently than a traditional client. The rationale of investors is often  misunderstood because agents tend to think that investors are more attached to the home than the rate of return, when this is typically not the case.

Solution: Education
Agents who educate themselves on the ins and outs of investing in real estate will be better positioned to handle investor clients. KellerINK offers three top-notch books on real estate investing: The Millionaire Real Estate Investor, HOLD and FLIP. After familiarizing themselves with the basics of investing, agents can learn through experience by working with smaller investor groups. Small investments provides experience and “learn as you go” education.

Challenge 5: Nonemotional clients
Institutional investors are all about the bottom line, and have a reputation for being “nonemotional” during the home-buying process.
The problem this is causing: For investors, the purchasing decision is all about the rate of return on the property. If a home fails to meet the investor’s parameters during the home-buying process, the investor may choose to walk away from  the deal. Clients on the other end of the agreement, who have prepared to move and have possibly even purchased a new home, may find themselves receiving the short end of the stick. This leads to some tough conversations for agents.

Solution: Be up-front with sellers
Agents are best suited to be up-front about the process of working with an institutional buyer when interacting with potential sellers for the deal. By doing so, they can better manage the expectations of everyone involved in the investment sales process.

The information in this article is from the 3L Blueprints: Leads, Listings, Leverage eBook. Download your FREE copy from KellerINK today.

Building a Strong Client Relationship-Based Business

Relationships have formed the foundation for successful businesses for centuries, but how those relationships can benefit a business has evolved over time. Today, client relationships that result in referrals can fuel your growth and success both online and off.

Christie Cannon, a Keller Williams Luxury Homes International agent who specializes in Frisco and its surrounding communities north of Dallas, has put those referrals to work for her in a Texas-sized way.

“More than half of our business comes from referrals,” Cannon says. Through sourcing her business, Cannon finds that many new clients heard about her from a previous client.

Cannon’s results speak for themselves. Her team’s current closed sales for 2014 top $60 million with 20 current listings and 31 contracts in closing, not to mention plans for a 20 percent increase in production in 2015. Those plans undoubtedly will be aided by her strong referral program.

“Reaching out to current, past and future clients is so important because they all have a referral to give,” she says. “The most important part of building a referral-based business is building strong business relationships with your clients along the way.”

In order to build those relationships, Cannon and her team have created a solid referral protocol for each and every one of her customers and clients. “Every person in our database is on an action plan of some kind. Each action plan is set up to cater to the specific needs of each contact. The activities in our action plans will vary, but they all include offering something of value to each person. Our contacts are the heart of our company, and we treat them as such.”

When the team receives a referral, the client is sent a handwritten thank-you card as well as a small gift. That strategy has paid dividends dating back to Cannon’s very first client in 2003.

“Ironically enough, one of my very first transactions was a small $48,000 home, and to this date, that client has completed five other transactions with me and is still referring business to me,” she says. “I started getting my systems in place  early on, and the systems are what helped me get organized and get in touch to grow and foster relationships with my clients. They have helped us maintain a consistent year-over-year growth pattern and get to where we are now.”

Now that Cannon and her team are part of KW Luxury Homes International, she has discovered that those referrals are even more valuable to her success.

Luxury home buyers and sellers are very seasoned,” Cannon says. “They rely heavily upon referrals. Keeping your name in front of the luxury market is important in maintaining a strong referral base.

While clients are the first ones that referral strategies are typically aimed at, Cannon also works hard to earn referrals from her local real estate colleagues and peers. To that end, she is committed to participating in networking events with other agents in and around her area. The best method she has found for earning those referrals is an unyielding dedication to professionalism.

“We have had agents – even within our own area – refer business to us,” she says. “It is such an honor to get a referral from another colleague. It’s important to maintain a professional relationship with not only your clients but also with your  colleagues, as you may work with them multiple times over.”

For agents who are working to assemble a solid referral strategy, Cannon suggests keeping the client as your central focus and going back to basics to increase your referrals.

“A big mistake I see in a lot of agents is making this business all about them,” she says. “While we want to brand ourselves and relate to our clients, it’s not about you. This business is about catering to the needs of our clients and offering  them a service and skill they can’t get anywhere else.”

With the client as your central focus, Cannon suggests going back to basics in order to up your referrals.

“The models and systems are there, so don’t skimp on your lead generation,” she says. “As part of your lead generation, you should be reaching out to your sphere and past clients every day. Put everyone you know into your CRM and get  them set up on some type of action plan. Reach out to your contacts on a regular basis by sending handwritten notes, making phone calls and sending items of value to them. This is all part of an action plan.”

Cannon stresses that an action plan only works if you keep your clients’ needs in mind.

“If you’re sending something of value to your contacts, they have a reason to continue to receive information from you,” she says.

‘‘At the end of the day, Cannon credits the Keller Williams models and systems for her team’s impressive growth.

“It took me trying to invent my own models and systems several times over and failing before I realized how much Keller Williams Realty has to offer,” she says. “When I come across a topic I need another perspective on, I love that I can scan through interviews on Agent Mountain and find several interviews on that topic to help me. I love attending Family Reunion and Mega Camp. Both have helped me grow and improve year over year.”