Want to know more?   Contact us today.

Money In The Bank

Database - Money in the bank

What most real estate agents refer to as Marketing is really nothing more than Advertising. Advertising is just one small component of the large umbrella that is Marketing.

Agents place ads on websites, in newspapers, they erect signs, they place leaflets in letterboxes, but all of these are advertising. What other MARKETING do they do? Not much really.

I see agents place ads in newspapers, sit in open houses, and watch as ‘buyers’ wander through the ‘open’.  At the end of the open, they close that property, travel to the next one, open that and… guess what?… many of the same people attend the next open house.

Do you see what is happening here? The agency paid for two advertisements – one for each property opened for inspection – and many of the same people attended both opens. 

THE AGENCY PAID TWICE FOR THE SAME LEADS.

No marketing expert will say this makes sense. The idea is to advertise once, gather the leads, and then continue to keep in contact with those leads until they either turn into sales or until the prospects ask you to stop marketing to them.

 

This means you need a Database. A good database is like money in the bank.

Most agencies do not have a reliable database that grows by a significant number of prospects each month. These agencies are doomed to continue their programs of expensive advertising – often with diminishing returns.

Here is what one leader discovered with his database:

  • He has 20,000 contacts in his database
  • It produces reliably 10 listings a month on average
  • If only half of these sell, this is 5 sales a month
  • At an average selling fee of $12,000 the return from database sales is $60,000 a month, or $720,000 per annum
  • This agency has a gross profit of 30 percent ** so the profit from sales that came off database leads is $216,000 per annum.

A database IS
.

I nag our leaders and salespeople to build databases. I can’t believe that in the 21st century leaders are still so short sighted that they do not build a database.

There is plenty of good database software out there. You don’t need much more than to be able to enter names, addresses, phone numbers, and email addresses, and the ability to send personally addressed letters and emails from this data. Don’t make it too complicated.

At the Pittard Training Group, we believe this is such an important aspect of marketing that we have under development an online database that we will web host for our clients at no charge. For too long now we have watched many of our leaders put their databases into the ‘too hard basket’ and so we intend doing half the work for them.

I say half, because a database is only as good as the data that goes into it. For this, EVERYBODY on the team is responsible. Everybody who talks to a client is responsible for gathering the relevant details from that customer and obtaining permission to enter them into the database and to stay in touch. This cannot be left to the leader alone, but it is the leader’s responsibility to follow up with every team member every day to instil data gathering as a HABIT.

If you found a $20 note on the ground, would you walk past it?  But a 3 x 5 card with a client’s details on it is worth far more to your agency than a $20 note. But how little attention is given to ongoing marketing to that lead?

Without a database you devalue your business. People pay big money for databases and, when you go to sell your business, a buyer will pay big money for yours.

But long before then, if you build a database and market to it, you will see that the return on investment is huge. You will already know that a good database is money in the bank.

** I try to put good information into these bulletins and not use them to advertise our training programs, but sometimes I have to explain some of the figures I use. If 30 percent gross profit seems unachievable to you, you really need to review your management and sales programs because they are costing you huge amounts of lost profit. We say to our leaders that 25 percent gross profit is the MINIMUM profit level you should be achieving. The average industry agency is lucky to achieve 10 percent without the principal listing and selling. The difference is in the management programs you use.
Recent Articles

Talent Scout and Coach

To maximise profit, two of the leader's most important roles are Talent Scout and Coach.

Leadership: Not Just Bossing People About

In the 21st century, employees work with leaders, and not for them. "Generational differences have changed the face of employment" says...

Pipeline of Prospects

"The30-Day Rulestates that the prospecting you do in this

Price and Time

In this short sales session, real estate agency profit consultant, Gary Pittard, discusses the danger in allowing sellers to stay on the market ov...

Marketing

When the market turns down many agency leaders wisely cut expenses. But there is a right way and a wrong way to do this. Cut the wrong expenses and yo...

The Forgotten Rookie Syndrome

Many salespeople either become sales managers or move into a leadership role as owners of their own real estate businesses. Gary Pittard, CEO of t...

Hard Tasks Pay

In 30 years I have interviewed countless winners, and have noticed one big difference between winners and their mediocre counterparts: ...

Make the Most of a Golden Opportunity

"This is truly a great career. I wonder how many real estate salespeople actually appreciate the golden opportunity their real estate career offer...

Think Profit

With another financial year behind us, it's a good time to ponder: "Are you happy with your profit?" Stating the obvious: Profit is the mo...

Succession Planning All Talk or All Action

In this short leadership session, real estate agency profit consultant, Gary Pittard, discusses Succession Planning. Many agency leaders talk abou...

Short Attention Spans

A common complaint from leaders is that their salespeople lack focus. It has a been constant theme in my 30 years as a real estate agency profit consu...

Ask for Price Feedback

Property sellers need accurate information from the market if they are to develop an understanding of the correct market price at which their prop...

Want to reach your profit potential? Contact us now.

Pittard


Suite 71, Level 4
330 Wattle Street

Ultimo NSW 2007
Australia


Mailing Address
PO Box 2045
Strawberry Hills NSW 2012


: (02) 8217 8500
Fax: (02) 9281 4198
AUS Free call: 1800 663 600
NZ Free call: 0800 448 065
International: +61 2 8217 8500

: info@pittard.com.au

Contact Us