Real Estate Agents Can Take Their Business From Local To National
Jul 3, 2009 Real Estate Properties
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WARNING: What I’m am going to suggest in this article is not easy, but it offers three very profitable opportunities for your business. In fact, you’ll have to launch one very challenging business to tap into the three profitable opportunities I will share.
I coach agents in markets all across North America, some in pretty small markets. Small markets mean small populations, which mean difficulties for agents trying to build large, sustainable businesses. Generating enough leads is hard in a small market, and leads drive sales.
One way to side-step this small-market challenge would to take your business to a national level. You could do this by marketing in national publications. For example, run your best lead-generation advertisement in USA Today, a national newspaper with a subscription base of more than 2 million . Think about the number of leads you would be able generate from just a single ad!
OK, this might not make a lot of sense to you right now because the majority of these readers aren’t looking to move to your area. However, if you shifted your marketing toward real estate investors, you might be surprised to find hundreds or thousands of people that might be willing to buy an attractive investment property in your area.
In order to capture these national sales, you’ll need to offer property management services. This is where my warning comes into play. Property management is a tough business to start. There are numerous challenges and hurdles to overcome.
However, property management services allow you to sell homes to investors outside of your market area. This ability to take your business national could be extremely profitable for you. Think about advertising in the Wall Street Journal or Investors Business Daily. What type of prospect would you attract to your business?
Most agents who consider property management services only “see” the monthly management income. This income is attractive and can be engineered to cover all of your overhead expenses. If you have 50 homes under management and you charge $100 a month, your business collects $5,000 a month without having to sell one home. Not bad.
An additional profit opportunity available to you with property management is the ability to sell the homes you would have under management. One agent I coach adds a clause in his management agreements that gives him the ability to sell his managed homes and earn full commissions on each sale. Obviously, the terms of the sale would have to be acceptable to the investor. Think about this: If you 50 homes under management with clauses that allowed you to sell them, you would have 50 listings in your pocket. This would be an extremely attractive asset for your business.
But let me tell you, property management is a tough business. You should consider all the challenges before getting involved. Also consider the option of finding a great property management company and referring clients to that company. This could give you the ability to take your business nationwide but without having to provide property management yourself. Of course in this model, you would lose two of the profit opportunities available through property management: monthly income and the listing of homes under management. You’d still have the ability to generate leads in national publications.
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Tags: a, b, business, c, Commissions, e, how to get clients, l, lead generation, m, marketing, o, r, Real Estate, real estate marketing, Real Estate Properties, Real Estate Sales, real;estate, s, sale, Sales, selling
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