The one thing that convinces your prospects to buy from you the most… is proof that you can help them get the results they want. That’s why, when you’re just starting out, the very first thing you should focus on collecting evidence showing you can deliver. However, collecting all that data is not enough. You need to present it in such a way that your prospect immediately understands what that _means for them_.
what I’ve done in my real estate business is I’ve created a series of metrics showing how working with me can multiply my prospects’ transactions. But what’s particular about these metrics is that _I own them_. I’m the only one who’s talking about them, they are associated with me, and they are unique to my program.
I’ve simplified one of those metrics down to an index that I call the Listing Multiplier Index. And, I came up with a way to calculate it. Like so…
Each time a realtor gets a listing, they have five opportunities that come with it:
- They’ve got the opportunity to get that listing sold.
- They’ve got the opportunity to find the buyer themselves.
- They’ve got the opportunity to find a buyer who buys another house.
- They’ve got the opportunity to get the next listing in the neighborhood, and…
- They’ve got the opportunity to get a referral from the seller.
In other words, there are five transactions that could happen as a result of getting that one listing. From the Realtor’s perspective, it means they need to have only one listing to get 5 transactions… and all the commissions that come with that! Most of the Realtors out there don’t focus on anything other than putting that listing in the MLS and hoping that somebody brings a buyer for it. So now, with my Listing Multiplier Index, we can go back and look over their last 10 listings… and calculate how many points out of a possible 50 they’ve got.
Maybe they’ve got all their listings sold (10), maybe they’ve found another buyer for a different house (1), and maybe they’ve found one or two new buyers themselves (2). So maybe, in a typical scenario, they’ve got 13 or 15 out of 50 points. The next thing we do is divide that 15 by 10, and we get our Listing Multiplier Index of 1.5. This means that their current system is generating 1.5 transactions each time they take a listing.
And here’s the thing. In my world, it’s not uncommon for people to have a Listing Multiplier Index of 3.5. So now, when I present these data points, they start comparing their numbers. They can clearly see that people who work with me more than triple their transactions. And the moment they see that, you know what they’re thinking? That’s right, they’re thinking about the hundreds of thousands of dollars they could be making over the course of the next year. if they start working with me on improving their Listing Multiplier Index.
And here’s the beauty of it: I don’t have to say a word to convince them I’m the right person to work with. They have the proof. They understand it. And that did all the work on my behalf.
So tell me…
Can you find a way to turn the results you can get for people into a simple-to-understand metric? Something that helps your prospects see the gold at the end of the rainbow? Better yet, can you turn that into your proprietary index?
I’d love to hear what you’ve got 🙂
If you’re still looking for inspiration, head over to the podcast. Kirsten Fox and I have some more insights for you.