Aug 31, 2020
THE REFERRAL BUSINESS
Tune in to this very informative conversation between Dean and Kevin Kauffman. Dean is a 30+ year veteran in the real estate business using his expertise in marketing and applying this knowledge to real estate.
HOW MUCH HAS CHANGED in the REAL ESTATE BUSINESS?
Dean’s reflection on how much has changed in the Real Estate
world and how much hasn’t changed. In the beginning, Realtors had
all of the information contained in a book and searches for
properties were physical – you had to go to the open house, read
the newspapers, talk to other agents. Now, everything is online and
Buyers oftentimes know more than the Realtors. Back in the day,
people desired getting top dollar in the least amount of time with
little to no hassle. This was true 30 years ago and is still true
today with the added benefit of
more opportunities to make it happen. What hasn’t changed is Days on Market and the asking price percentage.
(Kevin) How have you taken your Real Estate experience and your marketing experience and brought them both together? What’s really happening in the Real Estate world?
(Dean) I spent 30 years to study how to crack the code of the real estate puzzle pieces of:
1. Getting listings
2. Multiplying your listings
3. Getting referrals
4. Converting leads
5. Finding Buyers.
One area that is competition proof is the referral business. Dean employs the Dunbar Number and markets to his Inner Circle of 150 people defined as this – these are the people you recognize by their name, you would stop and have a conversation with them, and you know your position in their life.
(Dean) So then the problem to solve is – How
can you manage this ‘Relationship Profile’ as an asset for a 20%
yield (which is the target and gold standard) to generate 30
referred transactions a year? For example: Take the number of
repeat and referrals you had in the last year and divide by the 150
in your inner circle). Fifteen referrals yields a 10% repeat, 5
referrals yields a 3% repeat yet the goal is a 20% Return on
Relationship and this requires real orchestration. 80% of
referrals are passive and 20% are reactive. This makes up all referrals but leaves out the proactive referrals.
What is an Orchestrated Referral Program? Ex: When showing a home in a particular neighborhood call or email a friend who lives in that neighborhood explaining what you are doing and ask if they know of anyone in that neighborhood who is interested in selling their home.
This is a proactive referral. Discussion on the psychology of
the herd – changing mass behavior, making people feel good to do
something for you and elevating their perceived status and giving
them opportunities to do so. We are all hard-wired to provide value
to people in our inner circle of 150 and are constantly looking for
an opportunity to
(Kevin) Yes, it’s like invoking the law of reciprocity. How can you make this happen?
(Dean) By deconstructing the mechanics of how a
referral works and
orchestrating the situation in the mind of your inner circle of 150.
1. Get them to notice when a conversation about real estate is happening
2. Get them to think about you in that conversation
3. Get them to introduce you to the person they are having the conversation with.
4. Get them to keep you on their mind so you come to mind in their
conversations with others
What are the high probability conversations? Anyone buying, selling, moving up, downsizing, vacation home, investment home, sweat equity, winterize your home, etc.
INTRODUCTION TO THE WORLD’S GREATEST POSTCARD
To stay on people’s minds, Dean sends out a postcard to his
inner circle of 150 to stay on the minds of his friends. In this
way, he manages his relationship portfolio asset for a 20% yield in
new business by changing the mindset and conversation
and programming this into the minds of his friends using the postcard as a proactive referral tool.
LISTING MULTIPLIER INDEX
Explanation of the Metric Index for listings. Take how many listings you obtained from one listing and divide by 10 to get an index.
Each listing should yield 5 opportunities for more business:
1. Get is SOLD
2. You find a buyer for this listing
3. A buyer in interested in another property from you
4. Another listing
5. A referral from the seller before the transaction is closed
(Kevin) Using the two metrics of the Listing Multiplier Index and the Return on Relationship Asset to find out where you are at in your own business and how to increase those numbers speaks to the ‘competition proof’ solution that Dean talks about.
(Dean) There’s always been constant challenges in this business but the bottom line is people will gravitate to the most convenient thing.
(Kevin) I learned an important lesson from you that you can’t remind people to come to your event or to refer you; speak about the 9 Word Email.
(Dean) There are always two timeframes: NOW and not NOW. I am in 100% pursuit of NOW and that is where the 9 Word email came from. The old mindset of (pre) judging leads as being good or bad has been replaced with the 9 Word Email. The reality is leads are what they are (is what it is) and nothing is going to change that. We all look for the 5 Star Leads which is a compilation of people willing to engage in a dialogue, are friendly and cooperative, they know what they want, they know when they want it, and they would like us to help them get it.
How to discover the 5 Star Prospects from all the rest of your leads?
Everyone has leads that have slipped through the cracks or were prejudged as not good. Gather up those leads and send the 9 Word Email which revives dead leads from NOT now to NOW.
DEAN JACKSON BIO
There have been men throughout history who have captured ideas seemingly plucking out them out of thin air and giving them to an incredulous population.
Dean Jackson is one of those men.
Dean’s greatest joy in life is to find a new idea and share it with those around him.
This is Dean’s unique approach to marketing. His inspirational approach to marketing is bringing new DNA to the net. His approach is to compartmentalize your business model into three phases: Before, During, and After and using a steady drip campaign finding the multipliers to launch your business into a new dimension.
(Conversation is condensed and paraphrased for convenience and flow.)