Referrals Received

Modeling Your Business Serving Real Estate Investors

We’re going to continue working through The Real Estate Investor’s Agent One-Page Business Plan™ spreadsheet.

We’ve already covered the following blocks in the Real Estate Investor Group section:

• Group Members

• Per Meeting

• Total For All Meetings

• Meet One-On-One

And the following in the Clients section:

• One-On-One Meeting to Client Conversion Rates

• Signed Agency Agreement

• Showings

• Offers Made

• Under Contract

Plus, the results with the Closed Purchase and Totals section.

And, we started to go through the Marketing section:

• Organic Growth of the Real Estate Investor Group’s Meetup

• Podcast Subscribers Joining Real Estate Investor Group

• Mailed Newsletter to CRM

Now we’re going to discuss receiving referrals from word of mouth.

Referrals

Even if you were not specializing in working with real estate investors, you’d generated significant referrals by the amount of contact you make throughout the year from your marketing of the real estate investor group efforts.

Let’s look at traditional estimates for referrals generated from:

• Gary Keller et al in The Millionaire Real Estate Agent,

• Larry Kendall in Ninja Selling and

• Brian Buffini in Work by Referral, Live the Good Life!

First, let’s start with…

The Millionaire Real Estate Agent

In the The Millionaire Real Estate Agent he recommends that real estate agents spend 3 hours per day doing lead-generation.

He recommends that when you first meet someone you put them on an 8x8… that is 8 contacts with valuable information over 8 weeks. That’s basically 8 contacts over the first 8 weeks you meet someone new to help establish yourself as a serious real estate professional that can help them when they’re ready to buy or sell a property.

Then, once you’ve finished with your 8x8 they go into “gen pop” (my term, not his) and they get contacted a recommended 33 times a year.

For that, he suggests that you will get 2 transactions for every 12 people in your “gen pop” CRM mailing list.

One of the 2 transactions will be from someone in “gen pop” and the other will be a referral of a family member or friend.

If you choose to do marketing to people that have never met you and that you have not done an 8x8 to, you can expect a single transaction for every 50 people you contact 12 times a year.

If we’re teaching a real estate investing class every week to our real estate investor members, people in our real estate group will be getting—probably at a minimum:

• An email announcing the class each week directly from Meetup (not even from us personally)

• An email usually from us each week announcing the class recording from the live class is available on the website and podcast.

• A printed, mailed in the US postal service newsletter once a month with helpful real estate investor information and the class schedule.

• And, those that come to close will see you face to face up to about 50 times per year.

33 contacts a year… maybe in the first month! [insert maniacal laugh here]

If you’re doing the bare minimum running a weekly investor club, you’re…