Lead Generation 36:12:3 Power Session 6: Farming Lead Generation 36:12:3 Slide 2 In this Power Session 1)Introduction 2)What Is Farming? 3)Myths about Farming 4)Selecting Your Farm 5)Working Your Farm 6)Putting It All Together Page 1 Power Session 6 Lead Generation 36:12:3 Slide 3 Ground Rules 1)Arrive on time. 2)Form groups quickly. 3)Limit side conversations. 4)Turn off cell phones and pagers. 5)Be comfortable. 6)Respect time. 7)Respect each other. 8)Help each other. 9)Respect confidentiality. 10)Have fun! Page 3 Introduction Power Session 6 Lead Generation 36:12:3 Slide 4 Page 4 Introduction How You Will Learn Learning Methods 1)Manual Models/Systems Exercises/Discussion Stories 2)Classroom PowerPoint slides KWConnect videos Classmates/Instructor Power Session 6 (continued) Lead Generation 36:12:3 Slide 5 Page 4 Introduction How You Will Learn Accountability Methods 1)Lead Generation Action Plan 2)Accountability Partner/Program Power Session 6 1. Set Goals 2. Do Key Activities 3. Measure Results 4. Evaluate Process 5. Make Adjustments Accountability Feedback Loop Lead Generation 36:12:3 Slide 6 EXERCISE Where You Are Today 1)Lead Generation Activities 2)My ahas from these activities 3)The most difficult part of these activities 4)What I will do differently in the next 24 hours Time: 10 minutes Page 5 Introduction Power Session 6 Lead Generation 36:12:3 Slide 7 Why You Are Here How do you target a specific group of Havent Mets? Page 6 Introduction Power Session 6 You are here! Lead Generation 36:12:3 Slide 8 Why You Are Here The Power of Prospecting to a Targeted Market Read, underline, and share Page 7 Introduction Power Session 6 Lead Generation 36:12:3 Slide 9 Introduction What Will Make This a Great Training Experience Page 8 Power Session 6 Lead Generation 36:12:3 Slide 10 Page 9 What Is Farming? Farm = market segment =narrow market = niche 1.Where do they live? 2.Who are they? 3.What do they like? Power Session 6 Lead Generation 36:12:3 Slide 11 What Is Farming? Page 10 Power Session 6 Lead Generation 36:12:3 Slide 12 What Is Farming? EXERCISE Which Type of Farm Is It? 1)Mark the following as geographic (G), demographic (D), or psychographic (P). 2)Be prepared to discuss your answers. Time: 5 minutes Page 11 Power Session 6 Lead Generation 36:12:3 Slide 13 Myths about Farming Myth 1 Farming takes too long and costs too much. Farming can become the core of your business. Truth Page 13 Power Session 6 Lead Generation 36:12:3 Slide 14 Myths about Farming Myth 2 Someone else already dominates the area. No one is ever as dominate as you think. Truth Page 14 Power Session 6 Lead Generation 36:12:3 Slide 15 Myths about Farming Myth 3 A farm limits you to that area or specialty. A farm does not have to be your only source of business. Truth Page 15 Power Session 6 Lead Generation 36:12:3 Slide 16 Myths about Farming Myth 4 Its all about mailers and mass marketing. Its the synergistic impact of both marketing and prospecting. Truth Page 16 Power Session 6 Lead Generation 36:12:3 Slide 17 Myths about Farming Myth 5 You can stop and start your farming efforts. You must pursue your farm consistently and persistently. Truth Page 17 Power Session 6 Lead Generation 36:12:3 Slide 18 Page 19 Selecting Your Farm Niche within a Niche Niche categories overlap Select a farm and intensify your efforts Power Session 6 Lead Generation 36:12:3 Slide 19 Page 20 Selecting Your Farm Geographic Farm Power Session 6 10 Factors to Consider 1.Your Goals 2.Your Budget 3.Size 4.Location 5.Havent Mets vs. Mets 6.Average Sales Price 7.Turnover Rate 8.Market Conditions 9.Competition 10.Your Fit for the Farm Lead Generation 36:12:3 Slide 20 Page 21 Selecting Your Farm 1.Your Goals Market Share Gross Closed Income Number of closed transactions 2.Your Budget Time Money Prospecting Based, Marketing Enhanced Power Session 6 Lead Generation 36:12:3 Slide 21 Page 22 Selecting Your Farm 3.Size of Geographic Farm Option to start small Grow to adjacent streets or neighborhoods Easier to meet everyone Power Session 6 Lead Generation 36:12:3 Slide 22 Page 23 Selecting Your Farm 4.Location of Farm Accessibility Existing geographic boundaries Kind of homes Desirability 5.Number of Havent Mets vs. Mets Power Session 6 Lead Generation 36:12:3 Slide 23 Page 24 Selecting Your Farm 6.Average Sales Price Will this support your goals? 7.Turnover Rate National Average is 16.6 percent Target a farm of at least 10 percent Power Session 6 Lead Generation 36:12:3 Slide 24 Page 25 Selecting Your Farm Power Session 6 Source: 2006 NAR Profile of Home Buyers and Sellers Tenure in Previous Home Less than 1 year 6% 12 years 24% 34 years 19% 56 years 11% 710 years 12% 1115 years 11% 16 years or more 18% Median 6 years Lead Generation 36:12:3 Slide 25 Page 26 Selecting Your Farm 8.Other Market Conditions Days on market Expired listings 9.Competition Market Share vs. Mind Share 10.Your Fit for the Farm Can I relate and fit in with them? Power Session 6 Lead Generation 36:12:3 Slide 26 Page 27 Selecting Your Farm Demographic and Psychographic Farms Power Session 6 10 Factors to Consider 1.Your Goals 2.Your Budget 3.Size 4.Accessibility 5.Havent Mets vs. Mets 6.Average Sales Price 7.Motivation 8.Current Trends 9.Competition 10.Your Fit for the Farm Lead Generation 36:12:3 Slide 27 Page 28 Selecting Your Farm Popular Niches Specific Generations Hispanics/Latinos Foreign-Born Customers Second Home and Investment Buyers Luxury Homes Clientele Other Real Estate Agents Power Session 6 Lead Generation 36:12:3 Slide 28 Page 28 Selecting Your Farm Other Niches Single Buyers Pet-Friendly Neighborhoods Student Housing Waterfront/Golf Course Properties First-time Home Buyers Condos/Urban Development Power Session 6 Lead Generation 36:12:3 Slide 29 Page 29 Selecting Your Farm Building Strong Relationships Chris and Nikki Buckelew Power Session 6 Lead Generation 36:12:3 Slide 30 Page 30 Selecting Your Farm Boomer or Gen Xer? Matures (born before 1947) Boomers (born between ) Xers (born between ) Generation Y/Echo Boomers (born after 1980) Maximize your marketing efforts Power Session 6 Lead Generation 36:12:3 Slide 31 Page 31 Selecting Your Farm Hispanics/Latinos Fastest-growing group of buyers Prefers to be closer to extended family Foreign-Born Customers Homeownership #1 priority Power Session 6 Lead Generation 36:12:3 Slide 32 Selecting Your Farm 1.Be prepared to explain. 2.Focus on one or two groups. 3.Understand their needs. 4.Take it slowly. 5.Develop core resources. 6.Make the buyer feel comfortable. 7.Get your CIPS designation. Power Session 6 Finding Success with Foreign Customers Page 32 Lead Generation 36:12:3 Slide 33 Selecting Your Farm 1.Learn the language. 2.Learn their customs. 3.Market in their language. 4.Check the census numbers. Power Session 6 Additional Tips Page 32 Lead Generation 36:12:3 Slide 34 Page 33 Selecting Your Farm The Second Home and Investment Buyers 40 percent of home sales are second homes. Buyers are typically baby boomers. Power Session 6 Millionaire Systems Check out The Millionaire Real Estate Investor, MREI Client Workshop Kit, and FLIP. Lead Generation 36:12:3 Slide 35 Page 34 Selecting Your Farm Luxury Home Clientele 92 percent of buyers are years old 51 percent of buyers are entrepreneursPower Session 6 Lead Generation 36:12:3 Slide 36 Page 34 Selecting Your Farm Other Real Estate Agents See Power Session 9: Agent-to-Agent Referrals for more information Power Session 6 Truth Determining your farm or niche is only limited by your imagination and your opportunities to target them. Lead Generation 36:12:3 Slide 37 Page 35 Selecting Your Farm Defining Your Identity and Positioning Personality Fit Image Values Interests Lifestyle Power Session 6 Lead Generation 36:12:3 Slide 38 Selecting Your Farm EXERCISE Refine Your Style Analysis 1.Brainstorm your personal style. 2.Determine what type of farm you could support best. Time: 10 minutes Page 36 Power Session 6 Lead Generation 36:12:3 Slide 39 Selecting Your Farm EXERCISE Brainstorm your USP Review the USP you created in Power Session 1: Building Validity and Positioning. Time: 10 minutes Page 37 Power Session 6 Lead Generation 36:12:3 Slide 40 Working Your Farm Myth I dont have the money to lead generate. Lead generation doesnt have to cost money. Truth Page 39 Power Session 6 Lead Generation 36:12:3 Slide 41 Page 40 Working Your Farm Establish Your Reputation First Reputation vs. Relationships Be sincere about who you are Power Session 6 Lead Generation 36:12:3 Slide 42 Page 41 Working Your Farm Prospecting in Your Farm Relationship Farming Prospecting Based, Marketing Enhanced Power Session 6 Lead Generation 36:12:3 Slide 43 Working Your Farm EXERCISE Geographic Farm ____ number of homes in my farm ____ weeks I will knock on doors = ____ x 3 minutes = ____ minutes I will devote every other week Time: 5 minutes Page 42 Power Session 6 Lead Generation 36:12:3 Slide 44 Page 43 Working Your Farm Work Smarter, Not Harder Mary Harker: Find your bird dogs. Core Advocates who refer business. Power Session 6 Lead Generation 36:12:3 Slide 45 Page 44 Working Your Farm Come from Contribution 1.Have something of value to give. 2.Meet people face-to-face. Power Session 6 Lead Generation 36:12:3 Slide 46 Page 45 Working Your Farm Come from Contribution 1.Create a directory. 2.Organize a neighborhood yard sale. 3.Start a website. 4.Create anlist serve group or blog. Power Session 6 Lead Generation 36:12:3 Slide 47 Working Your Farm EXERCISE Low/No Cost Items for Giveaways Brainstorm low/no cost items to drop off. Time: 15 minutes Page 46 Power Session 6 Lead Generation 36:12:3 Slide 48 Working Your Farm Average List/Sale Price Sales to List Price Ratio Average Days on Market Current Inventory Number of Expireds Power Session 6 Housing Update Newsletter Question How can you modify this for your niche? Page 47 Lead Generation 36:12:3 Slide 49 Page 48 Working Your Farm Be Where Your Customers Are Walk your neighborhood. Repetition is key. Join a club. Power Session 6 Internet Lead Generation Be sure to check out KWUs Internet Lead Generation course. Lead Generation 36:12:3 Slide 50 Page 49 Working Your Farm Be Prepared Learn your scripts. Ask for referrals. Power Session 6 Lead Generation 36:12:3 Slide 51 Working Your Farm EXERCISE 12 Direct 1.Determine how many people you need 2.What would a balanced database look like? Time: 5 minutes Will the farm you selected support your goals? Page 50 Power Session 6 Lead Generation 36:12:3 Slide 52 Page 51 Working Your a Farm Create a mini-farmwith a call to action! Power Session 6 Lead Generation 36:12:3 Slide 53 Working Your Farm Question What are 12 items that you might send as part of your 12 Direct plan? Page 52 Power Session 6 Lead Generation 36:12:3 Slide 54 Working Your Farm Question What are some actions you can take to make your 12 Direct plan more effective? Page 53 Power Session 6 Lead Generation 36:12:3 Slide 55 Page 54 Working Your Farm Build Trust and Recognition Market your listings aggressively. Concentrate your open houses. Host seminars and classes. Join local organizations. Get to know the renters and landlords. Contact every FSBO and expired listing. Create a local flavor for your marketing. Power Session 6 Lead Generation 36:12:3 Slide 56 Working Your Farm Question What are some services you could offer to establish yourself as the expert? Page 54 Power Session 6 Lead Generation 36:12:3 Slide 57 Page 55 Working Your Farm Working Toward Higher Goals 1.Increase the size of the farm Increased costs Increased efforts 2.Increase Prospecting Increase efforts 3.Increase Marketing Increased costs 4.Increase all three Power Session 6 Do you consider a different farm area all together? Lead Generation 36:12:3 Slide 58 Power Session Ahas Your Lead Generation Action Plan Putting It All Together Page Power Session 6 Lead Generation 36:12:3 Slide 59 Putting It All Together Power Session 6 Page The 3-Hour Habit 1)Time block 3 hours every workday before noon. 2)No skipping. If you must erase, then you must replace. 3)Allow no interruptions (unless they truly are emergencies). Lead Generation 36:12:3 Slide 60 Thank You for Being Here! Dont forget your evaluations!