Realestate can be likened to a war. Each day you get in to the battlefield (the office) and there is someone, somewhere wanting to take your prey, by either getting their listings or selling them a a property that you could potentially get the commission for. Therefore, make no mistake, when you head in to the office, you need to be going above and beyond the agent next to you in order to get ahead.
A recent study published by the Keller Center at Baylor University (which you can read here) in regards to measuring the effectiveness of real estate agents making cold calls, delivered some interesting stats.
- Of the 160 agents who said they would make cold calls, only 30% do - Lesson 1: The average agent won't make cold calls and that is why they stay average.
- Of the 30% who committed to making calls, or 50 agents, they made a total of 6,264 calls which averaged 125 calls per agent. Lesson 2: By making cold calls, you automatically get ahead of 70% of your competitors who aren't making calls.
What happened once the calls were made?
72% were not answered or failing numbers.
If I could stop the article here, the one take away would be that 7/10 of your cold calls may have zero effect and make you feel like you are wasting your time. But that doesn't mean stop here.
28% of calls DID connect.
Of the calls that did connect, and appointment was set about 1.07% of the time, which means you are going to need to make a lot of calls to get an appointment. Just under every 100 CONNECTS netted an agent an appointment. But we all know you don't speak to every person you call, it will take you nearly 350 DIALS to get that one appointment.
Ultimately 1 appointment was set for every 209 Dials.
So why in the world would I make 209 dials, to get one lousy appointment?
Well we all know appointments turn in to sales.
Considering the average property price in Australia is around $570,000 and agents generally earn anywhere from 2% - 4% commission (as the price gets higher the commission slides down, so let's say on average it is 3%)
If these appointments land you listings and sales, it certainly starts to be lucrative. An average sale will net you, as the agent, just under $18,000. Say you only convert 1 to a definite sale after 5 appointments, then that equals each appointment is worth $3,600 and each call you made earned you just under $3.50
These statistics are based off cold calls, so it is safe to assume you would have much more luck with warm clients, or even people who have come through the property to gauge the price guide.
How to run an effective cold calling session?
- Allocate a time each day/week to make cold calls and shut EVERYTHING down to do it. Power blocks of 30-60 minutes work best for focus.
- Have your list prepared. Know who to call and have up to 200 calls ready to be made, you will get a lot of no answers and left messages so be ready to make the next call.
- Use a CRM, allocate people to lists, and make notes on each call. Allocate a follow up date for each call with lengthy notes so when you make the call back, you know what they want more information on.
- Have your intro planned. Know how to explain who you are, and why you are calling.
- Call between 10am and 2pm
About the Author:
Todd Schulberg handles all things marketing for Homely.com.au - Living and breathing property, Todd has a keen interest in the movements in the market and how agents can utilise new tools and technology in order to be more connected. Using all things social, Todd suggests different ways that agents can engage and think outside the square with their marketing approach.