With thousands of real estate licensees leaving the industry, there is a fantastic window of opportunity for those who are the real estate professionals.

Why not offer to “buy” the business from those who are leaving. A few of our coaching clients are employing this and are having fantastic results by asking those folks who are leaving the industry the question – “Do you want to sell your business?”

It works like this, you ask the FL (Fleeing Licensee) to send a hand-off letter to their sphere of influence who they have been working for the last couple of years.

The letter explains how they are going back to their previous career and appreciate all the support they have received, and how they have found a real estate professional who is unbelievably talented and will give them amazing service and that you are the recommended choice for their future real estate needs.

You then absorb them into your “VIP” SOI program and continue the warm relationship.

As the transactions come in, you will offer to pay a referral fee for the first year to the referring licensee, the second year it is ½ of the first year’s fee and the third it is ½ of the prior year’s fee. You have created a win-win for both your business as well as given some value to those jumping out of the business (and may even push some of them over the edge who are just thinking about it).

Carpe diem,

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One of the greatest challenges in America today is financial mastery. The Social Security Administration says that only 2 out of every 100 people in the richest country in the world will ever have enough to retire when they reach 65 without needing to depend on relatives, charity or the government.

Our own personal freedom with our time is directly related to our financial freedom. We have found that there are a number of agents out there making in excess of $750,000 who are in worse debt and financial trouble than those who make $75,000. How does this happen? Good or bad money will only amplify your character and habits.

We need to start thinking differently than most if we would like to be the minority who make it to that top 2%. The principles below have been tested and will work for anyone, but are especially useful for those that have varying incomes like real estate salespeople. The principles are no respecter of age, race, color, creed or sex. Follow them and you will live in your wildest dreams – ignore them and your will live in your worst nightmares.

Here are some of the characteristics of the rich from researcher Thomas Stanley, PhD -

· They follow and maintain a long-term vision.
· They follow their plan no matter what – even in the face of financial challenges.
· They study wealth and wealthy people and do not rely solely on expert advice.
· They believe in deferred gratification.

Here’s the step-by-step plan that I picked up over the years that allows you to grow wealth despite the irregularities of Real Estate income-

Step #1 -Set-up your accounts
Set-up the following accounts at your financial institution.

Professional Operating Account – Money to run your real estate business.
Personal Operating Account – Money to fund your life.
Income Tax Account – Money to pay taxes.
Charity Account – Give, give, give.
Security Account – No risk and low return investments.
Growth Account – Higher risk and higher return investments.
Fun Account – Second cars, vacations, special events, etc.

Step #2 -Divide Your Income
Transfer 25% (If working solo) – 50% (If working as a team) of your earned income to your professional operating account.

Total what is left and divide it as follows:

· Personal Operating Account – 45%
· Tax Account – 25%
· Charity Account – 10%
· Security Account – 10%
· Growth Account – 10%
· Fun Account – 0% (yes, it’s 0% but don’t worry we get to it later)

Step #3 -Redistribute Your Funds
Every quarter, take the profit from your growth account and any special moneys that may come in (gifts, inheritance, etc.) and divide it equally amongst your growth, security and fun accounts.

Step #4 -Plan Your Financial Future
Review a professional and personal profit and loss statement, and a personal net worth statement monthly.

Step #5 -Educate Yourself
Seek good, financial, insurance and tax advice – but make your own educated decisions.

· You must study investments yourself and only invest in what you know well.
· If you think education is expensive – try ignorance.
· Be patient, wealth is like a tree, it grows from a very small seed.

What some more help in the financial mastery arena? Here’s a short list of a few books worth reading for wealth building:

How to Be Rich — by J. Paul Getty; Paperback

The Richest Man in Babylon — by George S. Clason; Paperback

The Millionaire Mind — by Thomas, Ph.D. Stanley; Paperback

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy — by Thomas J. Stanley, William D. Danko; Paperback

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money–That the Poor and Middle Class Do Not! by Robert T. Kiyosaki, Sharon L. Lechter

Secrets to Successful Branding – The Law of Contraction

If, we, as the real estate community really understood the concept of branding and its importance, we would save a fortune by cutting the misplaced dollars we are spending in the name of “getting their name out there.”
Most of us are re-treads – people who fell into this business and came from some other background. In 15 years of asking, I’ve only found one person who grew up wanting to be a real estate agent (and she is no longer in the business). I can’t tell you how many people I’ve interviewed as a Broker that said the reason they wanted to be an agent was because they liked houses and people. If that is the sole reason they are here my advice to them has been – “Don’t get started in this business because in 6 months you will hate them both.”

Those that make it in this industry in today’s world are those that approach it with an amount of business prowess. Unfortunately, that isn’t taught in the “learn everything you need to know to become successful in real estate in two weeks” class. So, we throw the newbies to the vultures (vendors who sell BS products tat do nothing but line the pockets of the vendors and serve as filler our nation’s dumps). We let them sling mud on a wall and see what sticks and hope against hope that they will be one of the very few fortunate ones who will survive the first three years.

Over time, those that emerge as mega agents realize that to truly win in this you must realize that it is a business not a career (and there is a major difference) and start learning how to become the “RainMaker.” Although we have dozens of proprietary campaigns to generate more leads, from time to time, we need to strip back to the basics and dive into the philosophy to align ourselves with the right thinking to launch our business to the next level. This week, it’s all about how to brand effectively so that you may maximize your ROI in any marketing or advertising program your engage in. From Al Ries, a master of marketing and branding in the retail sector, we take the lessons and apply the fundamentals to our real estate businesses.

One Secret In Branding is a Law of Contraction

The power of the brand is inversely proportional to its scope. Think for a second about what agents put as the intro to their website and we will see how as an industry we violate this rule to its very core. As we take a virtual stroll through cyber land we see on the front page of our web sites that almost universally we represent buyers, sellers, tenants, landlords, residential, some commercial, land hunters, first time buyers, investors, and well, as long as we are honest about it, anyone who can fog a mirror and pay a commission.

When we put your brand on everything, the name loses power. We must become very particular on how we use your logo, where it is placed, on what it is placed and what you are using it for.

Remember this important truth, unless you alienate a part of the crowd, you will never attract the portion you want to work with and vice versa. When you allow yourself to focus, you can become the expert and develop an expertise not available from anyone else and thus stand out from the sea of faces that crowd our industry. The programs, tools and services you develop as an expert can become unique and boost value (and hard earned commissions). Good things happen when you narrow your focus.

Remember, a brand only becomes stronger when you narrow its scope.  

Carpe diem,

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“I don’t care where you’ve been, I care where you are going.”

I don’t look at someone’s resume when I hire people.  It’s not that it doesn’t matter, nor do I appreciate the effort and time that went into stretching the truth for my benefit or the quality of the paper to dress up the little propaganda piece.   But in reality, I don’t really think it’s all that important.  Yes, I guess it would matter a little more if I were coaching hospital administrators and we were hiring doctors, but, I work with real estate people.  Let’s face it – the technical side of this business can be taught fairly quickly.  There are only so many forms, rules, procedures and such.  It’s the intangibles that aren’t reflected in the resume that are tough to teach.  Character issues like being a self-starter, the entrepreneurial spirit, and overcoming adversity.  My experience has been that the more education someone has the harder it is for them to make it in this crazy business. 

When looking to fill out the team – don’t concentrate on where someone has been look to where they want to go.

Carpe diem,

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Networking is one of the best business building strategies I have ever used.  As a matter of fact, I built my business through networking, so I know that it works.  I was truly inspired by the great book: Never Eat Alone! (Ferranzzi) http://www.keithferrazzi.com/

Very often, people tell me that networking doesn’t work for them. I used to wonder why networking was so good to me, but so useless for some folks, until I realized that the people who say that networking doesn’t work for them simply didn’t understand the concept.

Networking is about connecting with others.  Those connections might turn into sales, or they may yield a steady stream of referrals, alliances, advice, support, friendship, or extra special care when working on your projects.  All of these are valuable, although few will ever happen at the first meeting, because networking is a process that takes time and effort, so if you’re going to network, you have to do it right.

Here are Five ‘Secrets’ you need to know about networking to make it a great strategy for your business:

1. Networking is more than face-time; it’s about really getting to know others.  And most people make one of two mistakes when they’re networking — doing too much, or too little.

Doing too much networking means attending meeting after meeting, but failing to really connect with other people in a meaningful way.  Just showing up at networking meetings isn’t enough; you need to spend some time getting to know other people, learning about their businesses, and understanding how (and who) to refer to those folks, just as you are hoping they will do for you.

Doing too little networking means joining groups but not attending meetings, or attending meetings but not interacting with others in the group.  Just being on a membership roster isn’t networking, and if you really want to network, you have to be prepared to step out of your shell and actually talk with other people.

2. Where you network matters.  When you network, you are looking to connect with more than just your prospects — you are looking for referral partners, potential alliance partners, and perhaps even colleagues with whom you can partner on large projects, or send prospects who are not a good fit with you.  That means that at least one of your networking meetings should be with colleagues, another with prospects, and third with non-competing businesses who serve the same client you do.

3. Not every person you meet is a prospect, but nearly every person you meet can be a valuable part of your network.  Just because someone isn’t a prospect right now doesn’t mean she won’t be in the future.  And once you have her trust, she’ll be able to refer others in her circle of influence to you.

4. It is your responsibility to mingle and connect.  Too many people go to networking events hoping to make connections, but self-consciousness or shyness keeps them cowering on the sidelines, so the meeting is a waste of time, effort, and money.  Everyone at the meeting is there for the same reason — to connect — so there is nothing to feel self-conscious about.  Approach someone who is standing alone, introduce yourself, and ask him what he does if you want to get a conversation going. Do this three times at every meeting you go to, and soon you will know everyone there, and will be comfortable (not to mention popular!).

5. People get bored or turned off really easily, so you need to be prepared to speak clearly, concisely, and positively about what you do.  If the first words out of your mouth when someone asks you what you do are along the lines of “well, it’s complicated,” or “it’s hard to explain,” then you need to figure out what you can say that will be memorable, interesting, and explain what you do and for whom in just a few words.

Carpe diem,

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I had the opportunity to go to an event with Mark Sanborn, author of The Fred Factor. Mark’s life purpose is to create passion in your work and life can turn the ordinary into the extraordinary. Here are the major take away points that I got from his seminar -

· Everybody makes a difference
· First job of a salesperson is to prove significance
· Ask yourself everyday, “What kind of difference did I make today?”
· Everything is built on relationships
· Human-ness is what makes the difference
· The ability to create value for clients is the most important job skill you can possess
· Present day alchemists don’t make gold from medals they make gold from ideas
· No one can prevent you from being extra-ordinary, it’s your choice
· Create value continuously though passion creativity and commitment

Carpe diem,

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These are three of the most helpful words you can read while looking at a large map and unsure of where you are.

Have you ever visited a new city and got turned around while driving?  I can’t be the only one who has felt that very uncomfortable feeling of being in an unfamiliar place and being hopelessly lost only to have the anxiety amplified by the gnawing feeling of dread from already running late for an appointment and watching time click by as you look for any sign to help you get back on the right route.

Based on thousands of conversations with agents over the last couple of years, my guess is that those feelings have been echoed not only in foreign cities but can also apply to your business in uncertain times.  The good news is there is a map to get back on track, even in this economy and crazy times.  But a map is only as good as a point of reference of where to start.  When planning a trip there are several different ways to get where you are going, but the turn by turn directions need a basis from which to start from. You need a “You are Here” marker.

It’s with this in mind that we are launching our completely re-developed business analysis tool (Here’s a Sample Report).   We usually charge $750 for our non-clients to go through this with us and get the report, but we are offering the new Mastery Coaching Business Analysis to the first 100 agents free of charge as we work out any bugs with our web programmers.  To take advantage of this truly remarkable tool and gain some incredibly valuable insight into your real estate business as you plan for 2010 – click here.

Carpe diem,

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There are six types of questions that Real Estate Salespeople ask according to Tom Hopkins in his book How to Master the Art of Selling Real Estate.

1. Piggybacking – Piggybacking is asking your next question based on their last answer.
Salesperson – “Where do you live now?”
Prospect – “in San Clemente”
Salesperson – “What do you like most about San Clemente?”
Prospect – “I like being close to the ocean.”
Salesperson – “What do you like most about being close to the ocean?”

2. Alternate Choice – Alternate choice questions have two answers – both of which indicate they are moving ahead.
Salesperson – “We can meet today at 2pm or tomorrow at 4pm, which works better for you?”

3. Involvement Questions – Involvement questions are questions they must answer as if they already own the home.
Salesperson – “Where would you place your couch in this living room?”

4. Tie Downs – A tie down isolates an objection or gives an affirmative answer.
Salesperson- “Wouldn’t you agree that this yard would be perfect for your kids?”

5. Feedback – “Feedbacking” takes a minor objection and gently feeds it back to the prospect in the form of a question.
Salesperson – “You want a larger lot? Could you elaborate on that?”

6. Porcupine – Answer the question with a question, just like if someone threw a porcupine at you, you’d want to throw it right back.
Prospect – “Is the refrigerator included?”
Salesperson – “Would you like to have the refrigerator included?”

Carpe diem,

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I am not an advocate for very many outside products or services.  One, there are millions of them out there and two, I am very, very picky as to which ones I endorse and put my name behind.  But every once in a while, something comes across that is so innovative and spectacular that I feel compelled to put it out there.

Everyone is familiar with the FICO score.  It’s a predictive analytic that helps financial institutions guess who will pay their bills and who is more likely to default.  Imagine if we could have something similar to help us market or prospect more effectively by only focusing on those who are most likely to move in the next 6 months.

Now we can.  There is a group who had 3 PhDs working 24 month to create the Predictive Analytic algorithms.  By leveraging over 255 different variables they can generate a prospecting list ranked from most likely to least likely to sell in next 6 months.

I was skeptical, but looking at the data and results it became evident that you could cut 80% of your marketing budget and accurately predict almost half of the sales increasing your return on investment 235%.  For those who were slightly more savvy, they multiplied their market reach  5x and used the same marketing dollars they already allocated and they were able to increase their business exponentially.

There is a cost to the service, but it is amazingly affordable and is exclusive to you.  As I talked to the guys, we brainstormed for a few minutes and found at least two dozen ways to make a list like this pay off in spades.  If you want more info, shoot me an email to chris@mastery-coaching.com and I’ll send you over an info packet.

Carpe diem,

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When dealing with the roadblocks to your success, come to recognize the six signs of being unresolved with something: regret, remorse, shame, anger, denial, continuing sadness.   Those things are the tell-tale signs of baggage that is slowing you down as you reach for the stars.

Baggage from your past does contribute to your character, but does not need to define who you are.  Let’s stop living in the world of yesterday and learn the art of living in the serenity prayer -

“God grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference.”

Carpe diem,