Transcription (was completed by automated process. Please ignore any speech-to-text errors)
[00:00:01] Well, hello, everyone, welcome back to this next session of Get Sellers Calling You, I am joined again by my good friend Beatty Carmichael. Beatty is the CEO of Master Grabber and the creator of Agent Dominator, one of the top marketing experts in the real estate field. Beatty. I’m super excited to be joined with you again today. I think we are continuing our conversation on geo farming, if I recall.
[00:00:29] That is correct. And so this should be the final session. And we’re going to talk today, Penny, on kind of we kind of had these things out of order because what we’re going to do today is talk about the most important thing to do at the beginning, which is how do you identify the right farm and pick the farm that’s going to make the most money. So. So if we could redo this again or if you’re thinking through the whole process, start here and then begin at the rest at the other stuff we just did.
[00:01:03] That’s right. Awesome. Well, good. I’m excited.
[00:01:06] Yeah. So let me catch us up to date also on a couple of things. So let me share my screen and we will make this work. Let’s say it’s wrong. There we go. OK, I think we can see everything, so this is the final session of jail, farming mastery and just as a quick review for those who are catching in on this and some of the others. So the first thing we start talking about is how do you market for listings? And we talked about the story of Schlitz beer, how they hired a guy who’s started to take their inside reality of what made their beer pure. And by educating the public on that, they went from number eight to number one and national ranking in less than a year. And this is the issue that we have in real estate, is as long as the home owners believe that you’re just like everyone else, it doesn’t make any reason why they should choose you over someone else. But once you can identify what makes you unique and articulate it, then they start to do business with you. We identify that in a simple formula that we created called the three S’s, where you consistently show off your sales and explain the secrets behind those sales and then have some sort of a unique selling proposition. You can also use good marketing to identify sellers by getting them to raise their hand and using stealth technology to identify who they are. And those two things start to drive in business. OK, so that kind of advances us to where we are now. And I want to talk about geo farming fundamentals basically as we start to get into the how do you pick a farm? So do you remember all of that? And are you up to date with where we are?
[00:03:07] Yes, I am. I’m ready. I’m ready to go on to the next important topic.
[00:03:11] Great. So one of the things I wanted to start with before we get here is I want to reiterate one thing, and this is so important. I want to talk about this a little bit later as we talk about what type of expectations you should have in terms of creating a farm and getting results. But the most important thing in the farming arena, whether it’s the fancy postcards or whether it’s identifying sellers or whether it’s any of these other components, there’s this undercurrent of what drives results. And that undercurrent of what drives results is what we call trust and trust is all about. Sorry, you got to make a quick note. Yeah, you’re fine. Trust is all about do they trust you as a person or do they trust you as a realtor? And I want to tell you the story of of two farms. I want to take this off a screen for a moment just so we can talk this way. So one of our clients that we started working without, show him in just a little bit is a guy named Nelson. But what’s really interesting is he’s just outside of Los Angeles. And what happened is Nelson started farming a farm of fifteen hundred homes, gets results immediately, goes from nobody to the number one selling agent in that fifteen hundred home farm in 12 months. By the 18th month, he was out selling the number two agent by seven times. OK, just lightning growth. And so all of the other top producing agents in his brokerage wanted to do what Nelson was doing. So they started to do the same thing and they started to target all the farms right around him. And guess what happened to them?
[00:05:10] Same thing, no, they got zero results. Yeah, and so it was a conundrum.
[00:05:17] Ok, as I like to use the word, what’s going on and why. Yeah. And what we started to realize and it wasn’t it took us a lot of time to piece this together. But here’s ultimately what’s going on. There is this element called Trust and trust says I recognize you enough that I now trust you. I know you personally. I trust you. And so what had happened is, unbeknownst to us, one of the big things that had happened with Nelson is he had developed trust within the community through different things that were just outside of postcards. They saw him. He was active in social media. He lived in the neighborhood and just all these components that built up this element of trust. So they instantly felt comfortable with his marketing. The other agents had never marketed their before. They did nothing to build up trust. And so when it all comes down to that final analysis, if you look at this, that stuff in the funnel. There is a there’s a plug at the bottom of the funnel that if you don’t take that plug out, nothing comes through that plug is this whole element of trust. And we started to see this and across the country, so if you are at, say, trying to think which way is this on your left or your right, that’s on my left.
[00:06:39] That’s on your left. OK, great. So so let’s go over here. So if this was the United States right here, over here is going to be New York and over here is California. Is that right? Yep, that’s right. OK, great. Because, you know, when you’re doing these videos, everything’s just kind of flipped around in a mirror. So I kind of get lost, which is which. OK, so here’s what’s interesting.
[00:07:01] If you look at the country and this format over here on the eastern side, the New York side, OK, we start to get a lot of results organically. And then as you move toward the western side of the U.S., toward California, those results drop off precipitously. Now they’re actually congregated. If this visual is the United States, the results are congregated mostly down here and up. That is that eastern seaboard. Once you get to about Arizona, Utah, New Mexico, Colorado, Kansas, Kansas, California and Oregon and Washington, once you get in that area, that’s when results are really they start to fall off. And I share this because for those clients and those agents who are watching this, I want you to have the right expectation that it’s more than just cool marketing, OK? You can’t do it without great marketing, but there’s other elements of trust. And that’s where you have to really be more engaged in that farm. And once you develop that trust, then the results go through the roof. The good news on all of this is because it’s harder to break through on the on the trust level as you go out west, then very few people break through, which means if you follow the right patterns, not only will you break through, but now you have a competitive advantage over everyone else because they don’t understand it and they don’t make it through.
[00:08:44] So. So you’re like a big fish in a little pond at that point? Yeah. Yeah. Does that are all that makes sense. Yeah, it does, absolutely. OK, so one of the things that we’ll do on another session is what are these things that you can do to create that trust? I’ll talk in some stories in just a moment with just one or two things. But with that said, let me now bring up our. I are sharing here. And let’s see, OK, so what I want to do now is I want to go through just the fundamentals of picking a geographic farm and some other basics that happened to do with that. So when you start to choose a geographic farm, here’s a big key. Not every farm operates the same. OK, not every farm is going to produce a good income because what happens is not every farm has the same economic value. And what most agents end up doing is they say, hey, I think I’ll pick this farm over here because I want to sell there. And so I always ask them the question, well, are you more interested in and selling in that farm or more interested in making the most money for the least amount of effort and expense? And what do you think most agents tell me?
[00:10:03] Probably the most amount of money. Yeah, yeah, it all comes back to money, doesn’t it? Yeah.
[00:10:09] And so it’s amazing when used to when you phrase it that way, they go, well, I think I want to make the most money.
[00:10:14] Ok, so if you want to make the most money, then let’s pick the farm a little bit differently than simply where you think you want to be. OK, so I’m trying to get my watch to stand up because you remember what happens, what it means when you have a Baptist preacher that takes his watch off and sticks it on the podium and means absolutely nothing.
[00:10:32] That’s right. I mean, definitely nothing. But when you take a Heisey like me, he’s very diligent on time. It means something special. Yes.
[00:10:41] Ok, the problem is, I forget when we started and how long we’ve been talking, so I’m not sure how long we’ve been on this thing.
[00:10:51] I would probably say ten minutes. OK, that’s what I was thinking too.
[00:10:54] Ok, so let’s talk about selecting the top high producing farm. So there is a formula. The first formula is you want to identify what’s called the turnover right now. Do you have any idea what the turnover rate is?
[00:11:14] If we’re talking about a G.O. farm, my guess would probably have it would have something to do with people like moving in and out of the state or the area.
[00:11:25] Yeah, exactly. It’s it’s the number of people that are turning over in that farm. OK, so that’s based on the people moving in and those people moving out to make room for them. But what’s interesting is this is a key component of geographic farming is a very key component of identifying the right farm to go after. But most agents don’t really understand what a turnover rate is. I want to make it real simple. The turnover rate in its truest form is simply the percentage of homes that sell every year. Yeah, OK, so the way you you calculate that is you take the number of homes that sell and divide that by the number of homes that are in that area. And when you do that, that gives you the number. So let me see if I can pull this out real quick. Can you see my calculator OK?
[00:12:24] I cannot, but I probably have my box in the way, so that’s because I have the wrong sharing on.
[00:12:30] So let me share it this way. One moment. Now, can you see my calculator? Yes, yeah, I see it right. All right, so let’s assume for a moment that I have a farm of, uh, three hundred and twenty five homes. And in the last 12 months, you always want to do this in the last 12 months, not the last calendar year, for example, if today is August, OK, and I want to see what the turnover rate is. I don’t want to start January to December of last year because I’ve just lost seven or eight months of this year, which has impact and based on trends. So you always want to calculate this based on the last 12 months. So I have a farm of three hundred and twenty five homes. And let’s say that 20 homes, actually twenty two homes sold last 12 months. So what’s the turnover rate? So what I want to do is I want to take the twenty two homes that sold and I’m going to divide that by the three hundred and twenty five homes that are in the farm. And that gives me a six point seven percent turnover rate.
[00:13:42] Wow. Does that make sense to show this a little bit easier? Let’s say I have a farm of one hundred homes and 10 homes sell what is ten as a percentage of one hundred. One 10 percent, now 10 percent. So the way you come to that math is it’s ten divided by one hundred and it’s 10 percent. Does that make sense? Yeah. So that’s all we’re doing. If that farm was twenty two homes divided by three hundred and twenty five homes set in that farm, that’s six point seven percent.
[00:14:20] So that’s all the turnover rate actually is. It’s the percentage of homes that are turning over in the community. And why do you think the turnover rate is important?
[00:14:36] My guest is.
[00:14:39] Well, if people are not leaving and they move into an area and they stay, then you’re less likely to resell that same house over and over and over again.
[00:14:50] Bingo. So let’s say and hypothetically, you have a farm of three hundred and twenty five homes. And zero homes sold in the last 12 months, if you start to invest your time and effort to farm that area. How likely are you to get sales?
[00:15:11] Not very likely. And why is that?
[00:15:14] Because nothing so that’s right, there’s no sales. OK, so you’re you’re you’re digging into an area that has no turnover, let’s say, on the other hand, that same area.
[00:15:27] Oh, three hundred and twenty five homes that there were 50 homes that sold last year. Do you think you have more opportunity to pick up cells if there are 50 cells going on, then if there is zero?
[00:15:39] Absolutely. OK, so this is just simple math. And the way that we start to quantify it is this thing called turnover rate.
[00:15:48] So then what we look at is the higher the turnover rate, that means the more homes are selling as a percentage of the home. Mm hmm. And if you want to target a good farm, then ultimately you want to target a foreign that has the most percentage of homes selling because that gives you the most opportunity to pick up some sales. Is this making sense? Yes. Yeah. OK, so just kind of keep it simple. So that’s the first step. Then the second step is what we call an average sales price.
[00:16:23] Now, do you know what an average sales prices would be, the price that most homes that are similar in size and location, what, their sales prices?
[00:16:36] Yeah, those just you take the total number of sales and all the prices and you divide it by the total number of sales and you come up with an average sales price. OK, so what the average sales price tells you is in each individual farm, what the average price of that home is, and that allows us to start to quantify what we need to do. And then the final thing is what we call a sales turnover metric. So I want to show that to you in just a moment, but I want to give you an example real quick. So let’s say that we make a list. So the first step you want to do is you want to make a list of all the places you’re thinking about farming. And here we have a list of Cahaba Heights, Brit Land and Jefferson Farms. All these are different communities or subdivisions or or however it’s laid out in your area. And I have listed the number of homes and each of those farms and the turnover rate. So based on this information, can you discern which is going to be the best farm, the most profitable farm to target?
[00:17:42] Britain and Britain and why do you say that higher turnover rate, higher turnover rate, OK, so great job.
[00:17:50] This is the way most agents target. They focus on high turnover rate, which is you can’t go wrong doing that. But there there’s a better way. And that’s by first looking at the average sales price. So now we have the average sales prices. Do you start to see a difference between sales prices? Oh, for sure. OK, so now Britain, who has the highest turnover rate, has the lowest ever sales price. The question is. Is it still the best form to target? If you were to take a guess, what would you say are these three forms? Which one is going to be the better form to target?
[00:18:31] So my goal is based on that question, which one’s going to be the better one to target? That’s going to make me the most money. That’s right. The key is to making the most money. OK, then I’m going to have to say. Galilea Cahaba hides in Jefferson Farms are closed and percentage for turnover, but their sales price is quite different. So my brain is thinking Jefferson Farms because the sales price is higher, but the turnover rate is is the lowest. So even though I might be making more money per sale and I am I going to be basically.
[00:19:14] Ok, let me pause and let me make one quick statement for those who are listening on the audio version only there are graphics going along on this. If you can watch the video, you’ll make a lot more sense. That’s right.
[00:19:27] So now here’s the here’s the conundrum again, if we want to use that word, the conundrum is how do we make sense? Which one is the better one? We really don’t know until we come up with one more calculation. And this is what we call the sales turnover metric. The sales turnover metric is you see right now, what we’re struggling with is we can’t there’s no apples and apples. Everything is apples, oranges and bananas. And we can’t compare one versus the other. We really don’t know what’s going on. But the simple thing is it’s all a mathematical formula because making money is all about numbers and numbers always have a pattern. So what we want to do is we want to take the. Sales price and multiply it by the turnover rate, and that gives us the sales turnover metric at this point, the sales turnover metric puts everything on an apples to apples comparison. So now you can clearly measure one farm against the other, regardless of how many homes are in that farm. But the turnover rate is or even what the sales prices. Is this making sense so far? Yes, it is. So then when we look at the sales turnover metric, this is now the only number that really makes a whole lot of sense in the big scheme of things. Which of these farms looks like it has the highest economic value?
[00:20:53] That would be the Jefferson Farms, the one that has the lowest turnover rate, but the highest sales price.
[00:20:59] Isn’t that fascinating? Mm hmm. So what this is saying ultimately is if you can get the same percentage of the market in any of these farms, then that percentage of the market for the dollars amount spent to get there is going to be more effective in Jefferson Farms than in the other ones. OK, yeah, these are just quantifiable measurements. There’s other things that go in play here. OK, you can’t just say which has a highest economic value because there are some other things to take to take in consideration. The most important part is going to be that trust. OK, well, if it takes twice as much time and effort to build trust in Jefferson Farms as it does in Britain, then you’ll probably make more money in Britain than Jefferson Farms simply because trust is a real key issue to getting results. But we don’t have a good measurement right now on how to calculate trust. OK, so that’s more of a subjective analysis, but I just want to throw that out. So this then are the first two things in picking a farm. And these are the first two most important things to pick a farm is, is the turnover rate, the average sales price and all that funneling in to the sales turnover metric. So any questions on this before I move the next step?
[00:22:25] No, this is good, nice and clear and makes me want to go sell some houses. Yes.
[00:22:30] So were you good in math? Did you like math in school?
[00:22:35] I did. I was I was the one that kind of went all the way in math. So you’re the nerdy one, but it’s been a while.
[00:22:42] So but this is this is the this is the math class right now. And it shows that even if you did not like math, if you make friends with math, it can make you money.
[00:22:54] That’s right. That’s absolutely right.
[00:22:57] So let’s now look at the other things that you want to start to assess. OK, so we now have the sales turnover metric that allows us to compare apples and apples. Everything else is starts to be there. Still objective measurement, but it’s subjective in quantifying the impact for the farm. So one of the things is days on market. OK, so now days on market makes an impact in this way. Let’s say I’m comparing two farms that are relatively similar in terms of economics. When I use the word economics, I’m talking about the sales turnover metric. One farm has a days on market of.
[00:23:43] Two hundred days and the other farm has a days on market of 10 days and all else being equal, which is a better farm, the one that’s on for 10 days. And why is that? Because they’re selling faster. They’re selling faster.
[00:23:59] I mean, if I’m going to spend time and effort to get a listing, I’d rather go and be sold now than half a year from now. That’s right. So now a lot of times it’s not quite that far apart. OK, but that is something to consider. Days on market. If you say one day’s on market, that’s just a lot higher than than another. Take that into consideration in your overall planning. The fourth item and selecting a farm is what I call the dominant agent analysis. Now, this takes a little bit of work because what you have to do is you have to go through and look up every one of the cells in that farm and just make a list and put who is the listing agent on those sales, OK? And you then add up all of the cells by the listing agents cumulative. So you can now have this agent produce this many cells, this agent produce this many. And we’re going to now rank all those cells based on agent dominance. Does that make sense so far?
[00:25:02] Yes. Yeah, absolutely.
[00:25:04] And what we’re doing is what we’re trying to figure out is, is are there any agents that actually control the mindshare of the mental positioning in the homeowners? Might you remember the question I asked you a while back on thinking on toothpaste brands? Yes. OK, and you picked up, if I remember, three brands.
[00:25:27] Three. OK, so the typical homeowner can usually recall quickly two or three brands.
[00:25:35] If you have an agent that dominates most of the cells or large portion of the transactions, then that means that that agent is typically one of those brands that those homeowners always think of. So let’s just make this real simple. If one brand is always in every homeowner’s mind, then that means you’re competing for one of two slots. Yeah, OK. If those homeowners only remember two brands and one brand is already taken, then you’re competing for one slot. So the more slots, the fewer slots you’re competing for with everyone else, the harder it’s going to be is basically a way to look at it. So generally speaking, a dominant agent is considered someone, somewhere probably between 20 and twenty five percent of all of the listings. OK, now, just because someone is the number one agent doesn’t mean they’re dominant. A lot of times the number one agent may only have eight percent of the sales. So there’s one hundred sellers going on. They only got eight listings. So that means that no one really owns that, that my mindshare positioning in the homeowners mind. So it’s a lot easier to try to influence them. But once you find those people that start to dominate, you know, twenty, twenty five percent or more of the transactions, then you can still go after that farm. But it is going to take a lot more time and money to push them off the pedestal so you can get on that pedestal yourself. Does that make any sense as you drink my tea?
[00:27:09] I got to have my nice hot tea.
[00:27:11] That’s right. So that’s your dominant agent. And then there’s another analysis that you do that is not as important, but all this stuff starts to get at fine tune. OK, so probably if we were to look at the 80, 20 rule, probably 80 percent of all the analysis is going to be items one into your turnover rate multiplied by your average sales price that gets you there. Everything else that’s going to take that 80 percent and get it down to a perfect fit for the long term. So so some of this gets to too complex or in depth or too much work. Don’t worry about is all I’m saying. But if you’re in this thing for a really long term and you’re going to put a lot of money behind it, you want to be strategic. These are the things that you do. Item number five is called success ratio. Would you have any idea of what a success ratio might be?
[00:28:07] Well, no.
[00:28:09] Ok, and you’re in the same boat. Yeah, but almost every real estate agent does watching this.
[00:28:16] You’re in the same boat. OK, so the success ratio is, what, percent of the listings that come on the market succeed in selling them into the success ratio. So if you’re in a farm and so now you look at in the last 12 months how many listings came on the market. Let’s say that one hundred listings came on the market and how many sales came on the market and one hundred sales came on the market, then what percent is that success ratio?
[00:28:47] Ask me again, listing’s OK, one hundred cells.
[00:28:54] What’s the percentage? One hundred percent, hundred percent, good job. All right, so now if there’s one hundred listings and 20 sales, what’s the percent success rate? 20 percent. Right. What is the impact of the success ratio?
[00:29:13] Is it going to be the 80 minus the 20?
[00:29:17] Well, here’s the impact. If you have to list five homes to get one to sell, that’s a lot more work than you have to list one home and in all, and it always sells. So which would you prefer to do? Do five listings to get one sell or do one listing to get one sell?
[00:29:38] Well, one less thing to get one cell is much less work.
[00:29:41] Yeah, OK, so that’s the value of the success ratio. It helps you understand how much work you’re going to have to do in order to make a cell.
[00:29:50] Yeah, OK. So if it’s all about winning the listing and then you got to get that listing the cell, then the success ratio plays a part. So this is how you start to select a farm. Is this making sense and do you have any questions on it? Yeah. Now this is great. OK, now there are two other things. This is what I call our crystal ball analytics.
[00:30:12] You know what a crystal ball is, right where you get to. Yes. Oh, crystal ball now. I’m a Christian, so I don’t believe in this. But, you know, in the the theory of the fairy tales. Oh, Chris, Chris, crystal ball. What does my future hold? Right. And he says our future.
[00:30:27] Hold this. Yeah. So what the crystal ball analytics does is allows you to take the same theory of the magical crystal ball and actually apply it to mathematics to see what’s going to happen in the future. So watch this. If we were to go back and I wish I had a graph on this and I don’t, but if we were to go back and we found two farms that looked identical, actually one farm was actually going to produce better results based on my analysis in numbers one through five. OK, then you might pick this farm over here because it’s got more results. Does that make sense? Yes. Yeah, but what if this farm is on the way down and this one’s on the way up and next year like this, the next year like this, the next year like this, would you have picked the right farm? No, no. So what’s happening then is sometimes if you pick the farm based on where it is right now, you could make a mistake because it takes time to grow a farm and you’re going to be in a long term. And doesn’t it make sense that the long term you want to be in the right farm for the next five years and not just the farm for the snapshot of the last 12 months? Absolutely. OK, so what is the best way to predict the future?
[00:31:57] We’ll look at the past, that’s right.
[00:32:00] You read my notes as you look at the past, you look at the trends over the past and at the trends are in an upward slide, then that means the trend will likely continue going up and at the trend is in a downward slide. It means that the trend will likely consider continue going down. So the trends that we look at are the success ratios. If three years ago the success ratio was 100 percent, then two years ago it was 80 percent. One year ago it was 70 percent. And this last year it’s now 50 percent. What does that tell you? It’s dropping. It’s dropping. Is that the place you want to be? No, probably not. So then if you look at the sales turnover metric and you say that three years ago that economic value was twenty thousand dollars, and then two years ago it was eighteen thousand, and then one year ago it was fifteen thousand, and last year it was fourteen thousand.
[00:33:04] Don’t want to be there. Don’t want to be there. So now all the numbers are saying it’s losing economic value and it’s getting harder to make us sell them. But if you look at so if you start to take the same farms that you’re looking at, you say, I like these farms that had these numbers, and then you apply the crystal ball analytics and you you run those same analytics for the previous three years, not just the one year. Then what happens is you can start to see general trends and one of the trends you may find starts to grow. Let me give you an idea of just one one thing that makes a trend happen. OK, so have you ever seen a subdivision where they just built it maybe two years ago and and everyone who’s living there, they’ve just moved in recently?
[00:33:56] Mm hmm. Yes. Are they thinking about selling this here? No.
[00:34:01] Ok, but now fast forward that same subdivision five years from now. Now, those people have been there for five and six and seven years. Do you think some of them are thinking about selling? Sure. Absolutely. So one thing that will influence these trends is how long since it was developed, if it’s a new area. OK, other things that will create trends are going to be economics and and what’s happening in industry and in the area. So these things give you a simple way to start to calibrate. Where do I pick the fun? And once you do that, then you’ve got a really good. Pinpoint that now you can start to invest your money because taking a farm and doing geographic farming is all about financial investment, whether it’s money that you spend or your time that you could be spent making money doing something else. So that’s why this is so important. This is where you want to start, is picking the right for any questions before I move on?
[00:35:01] No, I just feel like I’m just thinking overall, this is such a it just appears to be such a small amount of time that agents would need to put into this in order to reap such amazing benefits.
[00:35:15] Yes, I remember one of a good friend of mine and one of our clients, his dad was a contractor and the rule of thumb was measure three times and cut. Once you measure three times, take the time to do it right. Because once you cut it, it’s. Yeah, that’s right. And so once you get invested in a farm, you’re pretty much invested. So take the time to do it right. And and then it’ll work well for you. So then the question comes up is how long does it take? How long does farming take? Do you have any idea how long farming takes?
[00:35:52] I have no idea. Well, I’ll give you the simple answer. It depends on what your farming. That’s true. So if you’re farming corn, it takes two to three months. If you’re farming figs, it takes two to three years. I love figs, yes, but if you’re farming homeowners, it usually takes 12 to 18 touches to get in the door, no pun intended. OK. And so it takes time to do this.
[00:36:22] And what you’ll find is in farming results start slow and then they start to gain momentum the longer you do it. And that momentum that they gain is on an exponential curve. It’s not just a straight line curve, because what’s happening is as you’re doing farming over here. Everyone else is trying to do it, too, so you’re competing with a lot of folks, but as they drop off, your momentum starts to pick up because you’re losing competitors, because they’re giving up early.
[00:36:53] And so now the consistency of the momentum is that consistency and the homeowners mind that they constantly see you. They constantly say your successes, they constantly say your secrets. They constantly say your unique selling proposition. And the more they see it in the exclusion of saying something consistent with everyone else, it just kind of ramps up. Is that making sense? Yeah, it does, yeah. So when you start to do farming, it’s a long term commitment and you really need to be committed to give it the time that it takes for those sellers to begin to trust you and for it to bear fruit. And and this is where I was. I started today’s session off that it’s that trust issue. And there are things that you can do to increase the trust faster than simply doing some form of marketing or let’s call it postcard marketing. The other thing that we found is, is if you only do one type of touch and that’s it, you get only a bit of results. But once you add another touch, the touches are synergistic, meaning. So, you know, math, right? Yes. One plus one equals what you write in math. One plus one equals two. But in farming, one plus one equals three because there’s a synergistic approach. The more additional touches you add in different capacities it takes that that trust level up higher, faster than simply touching them the same way all the time. I don’t know if that makes sense, but I’ll tell you some stories to try to articulate it.
[00:38:34] Let me show you one other graph to help you put some this in perspective, OK? So when you talk about just marketing as a whole and this goes back to the first sessions on doing marketing for geographic farming, this thing we call persuasion marketing, which is the three SS, this is primarily trust marketing. If you want to use the word trust, it starts low and over time it builds up. Now, it’s not a straight line like this, but it’s easier to illustrate in a straight line. So over time, it’s going to grow like this. But if you look at the stealth tracker, which is identifying the sellers before they come on the market, getting them to raise their hand first, then you’ll find that that starts to pick up listings much quicker. And at some point you get more listings from stealth tracker than through the persuasion marketing. But there is going to be that crossover point that the persuasion marketing takes off and stealth tracker or identifying sellers continues to stay level. The cool part is it is additive. So if I get this many listings from stealth tracking, identifying sellers and I get this many listings from persuasion marketing, I get to add them together. And now I’ve got all those listings together. That’s what you’re seeing kind of with this. But with that is I was going somewhere and I totally lost my train of thought.
[00:40:10] That’s OK.
[00:40:11] So in in farming, what you really want to do is you want to cash it out quickly, because as soon as you make the first sale, then that farm will start to fund itself. You want to get that farm to be investment net zero where you’re no longer putting money out but is producing OK. And so that’s where identifying sellers comes to play a lot, a lot in farming because it’ll help cash it out so you can then reinvest those funds back into your farm and push that persuasion. Marketing up with that kind of gives you an idea of expectation for time. A couple of things about dominating farm people ask, well, how frequently do you male and let’s test your your marketing knowledge. How frequently do you think you ought to be mailing every year?
[00:41:01] Oh, gosh, at least once a month, at least once a month, I got it right there on the screen, you asked me, I had to guess so my guess is once a month, so.
[00:41:16] Well, you’re right. At least once a month.
[00:41:18] Ideally, it’s going to be probably 18 times a year when you’re first getting started. You want to do more touches than maybe that. But there are other things you can do in addition to mailing. But mailing 18 times a year is about every three weeks is it keeps you always in front of them. You’re keeping your content fresh and and all that. So now the other thing and this is kind of where I was talking about, you want to engage your farm personally, you want to do other touches because one plus one equals three when it comes to geographic farming. And one of the things that you can do is, is understanding the impact of what we call a met versus a not met. A Met is someone that you have met. That homeowner and not met is someone you have not met. That’s right. OK, call someone you have not met if you’ve met them statistically, they are eight to 10 times more likely to do business with you than if you’ve never met them. Yes. So the most important thing to do is to meet them. And if you can’t meet them personally, at least meet them vicariously through other forms so that they get more familiar with you and therefore begin to recognize the relationship and begin to trust you.
[00:42:37] OK, so this is why you want to engage the farm personally. So there’s a number of things you can do. I want to talk about a couple of these on this, but I want to mention something real quickly. You can take that list and like we have a data partner that will take your list and reverse engineer the list or what we call data appended and actually identify the email addresses for those homeowners and 50 or 60 percent of the phone numbers for those homeowners that now it gives you other ways to start to touch it. You can start to email them. You can start to text message them and and things of that sort. One of the things that’s really cool is when you’re once you’ve been active in a farm for a couple couple of months with postcards and other things, and they now start to recognize you. Think about this one typical just do text blast. Hey, pulling up and listing some of the homes in your area. I’m Beatty with ABC Realty, and I wanted to find out if you’re thinking if you have interest in selling your home this year. OK, just a text me a text blast personalized to you. You’re getting my postcards.
[00:43:45] You get this. Now, it’s kind of personal and you might say, yeah, I’m thinking about selling and four months. OK, so you do things like that that help pick up more more business and also be personal. But I want to talk about two things. Community Facebook groups, community events and things of that sort. So let me show you a story I mentioned at the first of this call, a guy named Nelson out near Los Angeles. He was targeting fifteen hundred home area called Horse Thief Canyon. He was a nobody when he started. He started to use us for the postcard mailing and he was also involved with the community Facebook group. What what’s really interesting is at the time, the Facebook group only had two hundred members, so the first thing he did when he started with us says he went in, doorknocked the community and he met homeowners. But he also put out a doorknocker that invited them to join the horse. They’ve Kanyon Facebook community group. So by going through the neighborhood, he got that group from two hundred to eight hundred and it’s now like it closer to twelve or thirteen hundred. So he was able to leapfrog it up. Why do you think that was important to him in his strategy?
[00:45:03] Just developing trust and letting people know who he is and that he’s actually in my opinion, if I were the consumer, I would just be thinking, well, this guy lives around here. He’s local, he knows the area. He kind of probably knows what he’s doing.
[00:45:20] Yeah, yeah. So they start to see him more what what he wanted was a way to be personally engaged with them. And you can do that with Facebook. So then what started to happen is every time a new person would join the group and he found out who they were, he would send them a personal message through Facebook and add them to his personal Facebook account. Perfect in that great idea. Yes. Yeah. And then every time he would list a home, he would send out a post on the Facebook community group, community Facebook group that said Coming soon.
[00:46:01] And then when he listed, it just listed. And then he would hold an open house, open house this Saturday, and then when it went under contract under contract and then when it sold, just sold.
[00:46:16] So for every home, he pushed out five different touches that got people seeing his name, trusting him, saying he’s doing all this activity. And what they see is they see all of these things going on. They don’t really go back and calibrate, oh, well, that’s all the same house. Yeah. But it gave him an opportunity to touch in other ways. Does that make sense? Absolutely. Here’s what here’s what here’s what happened at the end of the first 12 months directly from the postcard mailings with us. He generated one hundred thousand dollars, a generated fifty thousand dollars in sales directly from the Facebook marketing and touches everything. So you made one hundred and fifty thousand dollars that first year just in his farm. Well, then, six months later. So now he’s in the farm for 18 months. He’s got twenty two percent of all of the listings going on in that farm, outselling the number two agent by seven times. Wow. 18 months after that, he grew to 50 percent. And so what this what I’m sharing is, is it’s not just postcard mailings. It’s these other touches that allow you to engage the farm personally, that drive the business forward. And if you leave those touches out, then you lose a huge opportunity. Absolutely. Yeah, that’s great. The next type of touch I want to share is what this guy did.
[00:47:48] So this is Stuart, and he starts to target a thousand home golf community named Berry Creek. He had two agents who had been the dominant agents. They weren’t dominant. One was 10 percent or 10 or 12 percent of the market, and the other one was two percentage less like eight or 10 percent. But together they form a pretty decent group of sales. So he starts coming in, we’re doing the postcard mailings, and then he goes through and he starts to preview all the homes that are on the market because he says, if I want to focus on Berry Creek, keep in mind this isn’t just a marketing deal just to start getting sales. Now, this is long term. He’s going to become the Berry Creek expert. So he starts to learn all the homes, find out what prices they’re selling. He walks through every home that is on the market and where he is. He he has a realtor. He just calls it. The homeowners say, hey, can I come preview your home? And so he’s able to do that. And he would actually meet the people because I would let him in and he would walk through the home and they’d always ask him, you don’t have a buyer, why are you doing this? He says, Because I focus on Berry Creek.
[00:49:06] I make it my job to know every home that’s on the market. The condition is in the price. It is what’s causing the price when it buy, when it sells what what the seller’s prices. So I can advise my buyers which ones are going to be best fit their needs. And for my clients who want to sell their homes, I know what the market is and what the top price is going to be for the various things that they got. And they’re always going, wow, no one else has done this, OK? And so then he would always leave it in. I’m sharing these things because I want you to understand his pattern, because it’s the patterns that duplicate continued success. So when he would leave the house, he would always leave a note. He has a fold over note card, OK, that has his brand in the Stewarts and in his information and he would lead that note card is a little card. He would leave that with a note. Hey, thank you for letting me see your home. It’s really beautiful. And if there is any suggestions he had on improvements, he would add those. Hey, I think if you did these things, it would increase the cell, the cell ability of your house.
[00:50:18] Now, keep in mind, it’s listed by someone else. He’s giving free advice and he makes nothing out of it. Yeah. Would that impress you? Yes. OK, so let me share what happened in his first seven months. He gets fourteen listing appointments out of that form. Wow. And guess how many of those listing appointments came to him? All of them now go get gas just to process. What was it that caused that homeowner to call Stewart the card that he left? Well, OK, but now that those homes were already listed. Oh, they were already listed there already. He’s previewing homes are already on the market.
[00:50:59] Yes, yes. Yes, you’re right. Word of mouth. People telling people that had the card, that had their house listed. They would give his information to somebody else almost.
[00:51:10] So you actually had it right the first time and then you backed up. Here’s what it was. But I had to catch you on it because you didn’t. Because you weren’t expecting it. A large majority of those 14 listing appointments were the homes that were on the market and they expired without selling, those homeowners were so impressed with Stuart. That they trusted him and they called him up and said, my home did not sell, would you come sell it? Wow. And that amazing and so poor guy being the expert by simply doing what he should be doing. He won there, hears the word again, trust. Right. OK, so our postcards are going out all the time. They’re constantly seeing him. They’re seeing sales going on. They’re learning about him, but they met him personally. They trust him. And what ended up happening is by the end of the first year, he leapfrogged over everyone, became the number one selling agent is maintain that position for the last six years and on and on. So these are the things that you do. And geographic farming, both in picking the farm and expectations and going out, making sure that you do more than just one touch of postcards and nothing else. But it’s the accumulation of all of these things that cause people to drive themselves in that farm. Pretty cool. Yeah, that’s awesome. We have just a couple of minutes before we have to run. So let me cover the last thing real quickly. This is a bonus. OK, so geographic farming is when you farm a bunch of addresses in the same geography.
[00:52:46] Expired farming is when you farm the same addresses that are expired.
[00:52:51] They may not be in the same subdivision, but here’s what’s going on with expired listings. Most of them relist, yes, which means we know they’re going on the market, so this becomes a high market opportunity. So there’s actually a hidden opportunity. How did most agents go after experts? Do you have any idea?
[00:53:15] My guess would just be looking in the malls, OK, and then what do they do to market to them? Probably call them and say something like, you know, so-and-so couldn’t sell your house, but I can.
[00:53:30] That’s exactly right. That is it.
[00:53:33] As soon as it’s delisted in the MLS, a little message pops up thing. I’m on the phone. Hey, Penny, this is Beatty Carmichael with ABC Realty. I see that your home just came off the market. Are you interested in selling it? Because I can get it sold for you when another agent may not have been able to. Right. OK, that’s not the words I say about. That’s essentially the approach. And so what happens is the moment your home goes off the market. You’re getting phone calls all the time. Yeah, everyone’s competing and we compete for that for about a month and then the phone calls start to stop. Yeah, this is the hidden opportunity. I want to show you some statistical analysis. This is really cool. If you if you embrace this, it will make you a lot of money and save you a whole bunch of time. One of my friends and clients was doing, if I’m correct, about 50 transactions a year term expired listings. And he never picked up the phone, wants to call them. Wow. So they simply called him. That’s the way to do an expired listing. Yes. So if you look at now, we did a study in the city of Austin. But one thing I’ve learned about people is people are so different all over the country, they’re all the same.
[00:54:53] Yeah, the dynamics are always the same. So what we did is we looked at all of the expired listings over the last five years. Then we calibrated. When did they relist if they did at all? And then we looked at the timeframe between the time they listed, the time they relisted and we came up with some analysis and and there’s a thing called a half life in radio and radiation, like a radioactive isotope. There’s a thing called a half life. If you’re a good in math, you probably did something in science. Do you know what half life is all about with radiation? I’m going to make an analysis here. I don’t recall. So if a radioisotope has a hundred units of radiation, then the half life is how long does it take before it only has 50 units of radiation and another half life? It goes down. So half life is when it reduces in half. That’s essentially what’s going on with the experts. When you look at the experts, how many actually relist and how long does it take to get to half of those are going to have already reenlisted. So here’s the net of it all. Out of a thousand homes that expire. Sixty five percent actually relist within twenty four years, twenty four months, two years, so the half list.
[00:56:14] So if we’re looking at a thousand expiries, sixty five percent relist, that’s six hundred and fifty homes are going to go back on the market. Are you following that math? Yes. OK, so rather than calling it a half life, we call it a half list of what points to half of those relist. So here’s what’s interesting. In the first month, half of them have already relisted. Wow. So out of six hundred fifty three hundred and twenty five relist. Three hundred and twenty five remaining, half of those released by the end of the third month, and so another hundred and sixty two have reenlisted and now there’s another one hundred and sixty two there are going to release, but haven’t yet follow me. Yes, half of those relist by month six. There’s 80 remaining half of those released by the end of the year, month 12, and the other half relist in the next year. So if you know that this is the pattern, what does this tell you as an opportunity that first month is key, that first month is key? Yeah, and that’s where everyone focuses. And that’s why they all missed the hidden opportunity, because here’s the hidden opportunity. Most people give up after the first month.
[00:57:37] Yeah, and that means all of those people that have not relisted yet but are going to relist are not being marketed to by anyone.
[00:57:47] So the hidden opportunities you can use direct marketing, i.e. postcard, text blast, email blast, things that sort to then go after those who are who have been listed, but not yet relisted. Now, this is how my friend was doing, 50 transactions a year in the card industry and export sales. He simply put them on a good postcard marketing campaign that touched them. And he didn’t worry about those that were going to the list in the first month because he left that up to everyone else who spent all their time making phone calls and grinding it out on the phone. He preferred to sit back and just wait for those postcards to bring the business in. And he would go spend time with his family. He would go have fun on the weekends. He he rarely worked the phone. He got so tired of working the phone once he understood marketing. Don, that seem like a lot easier way to do it, just like your marketing do the selling rather than you. Absolutely. That’s the hidden opportunity using the same approach and everything we’ve done thus far in this in this training and now applying it toward experts. And you can get those same type of results. That’s awesome. Because and let me make this one last comment. The thing that drives a homeowner in a geographic form to choose you over anyone else is the identical thing that drives that homeowner who has listed their home and are thinking about selling it in to choose you as well, because it’s the same homeowner. That’s the key. Most people say, well, this is a different list. It’s the same homeowner. Yeah, you’re right. The choice is the same. All it is, is how you segment it so that you can find one group of people to target versus another group, but their decision process is all the same. Yeah.
[00:59:45] You know, I’m looking at this graph, and for those who are listening online, I highly recommend your you try to watch this podcast at some point, but I’m looking at this graph Beatty and that that month, that first month where half of the people listed, most likely there’s going to be a lot of agents competing for that first month. But like you said, the key is the the latter months, the three, six, twelve and twenty four. And you could be the agent that dominates every single one of those months. For every single homeowner that I’ve put, how simple this is.
[01:00:23] Look at month 12. Yeah, out of a thousand homes has expired there, 40 homes that go on the market between month seven, eight, nine, 10, 11 and 12, 40 homes. If all you do is start marketing to that group of experts and you keep those 40 homes on your list that you’re continuing to market to and no one else is marketing to them. Do you see the competitive advantage you have for those 40 listings? Absolutely. There are six to 12 months out from now, but no one else is targeting them, which means they’re up for grabs. And if you’re the one there, you get to grab it. Yes, the beauty and the power. This type of marketing.
[01:01:03] Yeah, that’s awesome. So we got to wrap up.
[01:01:07] Oh, boo. Well, this was great. Thank you so much, Beatty, for putting your time and effort into this. Is there any final thoughts you have before we say goodbye to our listeners for today?
[01:01:20] Only final couple of thoughts. So make sure that you subscribe to our podcast so you get this stuff all the time. OK. Number two, if you want help in doing this, go to our website at Agent Dominator Dotcom and learn more about us. And you can request information. And number three, have a very blessed day and know it takes time. Put the time and most importantly, study it. Make sure you do the additional touches. Make sure everything you do is focused on trust. And you do that, you will definitely succeed.
[01:01:58] That’s awesome. I totally agree. Do your homework. Yes, that’s what I tell my kids all the time. Do your homework and you’ll succeed. Well, this is awesome. Thank you so much, Beatty. I really appreciate it. And to all of our listeners, thanks for joining us. And we will be chatting with you again very soon. Have a great day.