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Farming for Business
The most commonly discussed long-term method of prospecting is farming. A farm can be a geographic area, such as a particular neighborhood or area around a particular school, or it can be a property type, such as historic homes, farms, vacant lots, or town homes. The downside to farming is that you will need to contact the same group over and over until they begin to recognize you. It may take a year to eighteen months to actually see any results from your work. The upside to farming is that once you become known as the specialist in that area or property type, it becomes very difficult for another Realtor to unseat you.
In order for farming to work, whether you’re targeting a geographic area or targeting a type of property, you must be consistent in your message and you must be in front of the group regularly.
The most effective farming, like everything else, is face to face. If face to face is impractical, you can try mixing methods. Try interspersing phone calls to the farm and mailing to the farm. Simply mailing to the group will take far longer to build any sort of relationship. Remember what we discussed earlier in this book about those individuals who open their mail over an open garbage can. You may never impact many of the people in your farm area simply by mailing.
One of the country’s top sales trainers and an incredible motivational speaker, Tom Hopkins, was a master of farming. He would visit the same geographic area on a monthly basis, meeting each owner in person. His consistent effort to be in front of his farm area led him to be one of the top real estate professionals in the country.
One of the stories about Tom Hopkins that is most often repeated in real estate circles is how Tom hired neighborhood kids one year to help him deliver pumpkins to everyone in his farm area. He was so well remembered for the pumpkins that he put a picture of a pumpkin on his business card. Tom is also a member of BrokerAgentSocial.
[Loren Keim is the author of "Real Estate Prospecting: The Ultimate Resource Guide"]
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The best way to farm is either door to door or face to face. Anything else is a waste of money |
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When you do door to door farming in person do you get many angry homeowners that feel like you are bugging them. |
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Hi,
Thanks for your comment. In regard to your question about whether or not people are nice when you door knock, real estate super trainer Floyd Wickman did an extensive study of America and found that there are only 6 mean people in the United States... of course, they move around a lot!
In all seriousness, you will be bothering some people - that can't be avoided. What you WILL find, however, is that there are lots of great people in the world who would love to chat with you, and are looking for a person like you who can help them with their real estate needs.
When you hit someone at "just" the right time, they'll think it's fate!
There are lots of methods of prospecting. There are many methods of contacting clients, from phone calling to mailing to making "special deliveries". I have a book out on Amazon and B&N JUST about different prospecting methods and systems (both online and offline).
The truth, however, is that nothing is more effective than face-to-face contact. You can't list a property over the phone (well... not very easily anyway!), you can't sell a home over the phone or through email, and you really can't build as stong a relationship with someone without physically meeting them.
If you read Tom Hopkins books or Gary Keller's first book, you'll see a recurring theme. Many of the very top agents in the country built their businesses around targeting an audience and connecting with that audience on a continual basis. There are some today that attempt to do it with email. There are some who simply mail "stuff" to the same people over and over... but physical contact simply works best. It takes far longer, but it absolutely works.
Good luck!
Loren Keim Century 21 Keim Realtors Allentown, PA |
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As tempting as it is to allude to the "them what can't do teach" saying I won't... partly because I teach!
Farming is a cute, non-connotative word, that means prospecting. It's perhaps unfortunate that we tend to think of it applying only to getting listings and equate it with "knocking on doors."
There are rules against telemarketing for a reason. Most people consider it "intrusive." We have rules regarding junk faxes and spam. Some communities actually have ordinances requiring a peddler's license for those who would go door knocking. (All those who'd like to be referred to as a peddler, please raise your hands!)
One certainly can't disagree that "face to face" contact is ideal, although more and more we are seeing a resistance on the part of consumers to getting too involved with an agent early. (Look at the desire for transparency on web sites... "we'll call you when we're ready.")
Greater creativity is going to be required from those who would "farm" for business. I think, for example, one needs a program that allows and encourages satisfied clients to help with "farming." You want people knocking on your door, not the other way around.
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1 topics 18 posts
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Well, I can tell you from experience, farming does work and the best way to farm an area is door to door. My partner and I moved to a new market 5 years ago. Our move was about 150 miles north of where we had been practising real estate. In the city that we moved to we didn't know a single person. So it was like starting real estate over as a brand new agent.
Our advantage was that I had been in real estate at that time for about 15 years and my partner for 8 years. Experience does help.
We started out by choosing an area with a good turnover and a pretty large price spread. Then we started farming. We knocked on 3,000 doors the first year and the same 3,000 doors the second year. We did send out some mailers to the same area but it was the door knocking that made us the money and the repeat business.
We now work on a referral basis and repeat clients. But whenever we feel that we need to step it up we go out and knock on some doors in the area. |
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Not one thing about real estate 5 years ago is the same as real estate today. But door-knocking as a team would certainly be safer than going on your own.
I think door-knocking can be dangerous in the current environment, especially for women. |
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I've had success with postcards. I custom create them and that way I can personalize them any way I choose. Sure its work. But I've been able to secure a few listings from them and I've also driven buyer clients to my website with postcards! It works for me and its safer than going door to door.
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I LOVED THE PUMKIN STORY!! I need help, i do a mailout, targeting ranches from 30 acres up in my county (about 2600+ post cards with a photo usu with my camo RTV showing vehicle or a dog or longhorn, etc), my target is ranches, recreational land for hunting and retreat... DOOR TO DOOR won't work, it would take me FOREVER driving from one ranch to another. I did do a 20 tomato deduction off my commission one contract (1 tomato given by owner was worth $50/each)...another story, another time... my point - I LOVE THINKING OUT OF THE BOX, and i need help with my own version of the pumpkin story. Everyone has a dog in the country, a dog wash and dip....naw, someone might get bit......HELP! I have to identify with these folks, and true, about 1/3 of bosque county in texas are not local owners; this is why my post cards work fairly well, but i need MORE. I dont hv children in local schools, i always do alot of veggies in my garden to give away - ANY IDEAS? i hv been in real estate for 11 yrs now, and this year is THE FIRST AND BEST YEAR for my listings, i hv great ones, sorry it has been in a bad market during election.... but i dont want to slow up now, i need to keep it going. I sure appreciate any ideas that would help me with the ranchers and land owners. i actually thought, when i came to this forum, we are addressing FARMING (as in RANCHING)...lol, ok, admittedly a blond thang... ANYONE, help me think out of the box. I sure appreciate any creative ideas.. i look forward to them. ______________________ Shauri B. |
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Unless you have a lot of money to farm consistently, I'm not sure if it's worth the effort. I guess it depends on where you live but knocking on doors is extremely time consumer, there's not enough hours in the day for that. I think farming is becoming dated, with all the technology we have out there now, there's more efficient ways to prospect in my opinion. |
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