Throughout the past 10 years, approximately 15% of my incoming referral business has been generated from 3rd party company referrals. When looking at my 2010 business plan I questioned that business. Is the time and money spent to manage this business worth it? Should those efforts be redirected to securing other more profitable business?

Real estate brokerages are comprised of independent contractors who affiliate themselves with a company because they feel they will be provided with the best business platform to be successful. The company’s success is determined by the professionalism of those contractors.

Corporate clients want their relocating employees to be provided with a comprehensive relocation program. The core of this program is to assist their employees with either the purchase or sale of their home in order to facilitate their relocation, and they typically outsource this task to relocation management (3rd party) companies. As long as these corporations believe that their programs are being administered in their best interest and at a reasonable cost, they will continue to work within those 3rd party relationships.

Networking is one of the most valuable tools for business development in any industry. Let’s face it: conference networking is especially integral to the continued success of any business as it puts ‘a face with that name and number’. Networking is about making initial contacts appropriately, building relationships and creating opportunities. Great networking goes well beyond the initial meeting – it takes discipline to develop and sustain the relationships.

The first rule of networking is being prepared to talk to strangers, something even the most outgoing personalities can sometimes find daunting. Conference networking is easier in that those attending are engaged in the same industry, revealing an immediate commonality and topic of dialogue. For first time conference attendees, the idea of networking may be especially intimidating. If you are a first time attendee, shift your mindset – it’s easy – here’s how:

First of all think of yourself as a unique source of knowledge on your company, the services offered and market(s) covered – you have much to offer! Secondly, realize that you are a new source of business for other attendees – you are a very valuable contact!

Following are additional tips to ensure success.

Before you go:

Prepare a list of those you would most like to meet. If you are attending the LeadingRE annual conference in Las Vegas, simply click on the link below for the attendee list updated in real time:

http://events.leadingre.com

You might think that my trip to Las Vegas is for a chance of luck. But it is quite the contrary. If I don’t go to Las Vegas for the Leading Real Estate Companies of the World^® Annual Conference I would be taking a huge risk. This year’s conference is an exceptional value and is worthy of your time and money. The return on your investment is a sure win!

If you are uncertain if you will attend, consider these reasons.

• Re-Energize Yourself: The conference has a history of high energy and exciting experiences, and this year will be no exception with the partnership of the lights and dazzle of Las Vegas.
• Re-Tool Yourself: The conference is known for the quality sessions and speakers, and this year will be no exception. In fact, the conference program has been expanded and enhanced to provide a broader audience with valuable take home information.
• Re-Kindle Relationships and Make New Ones: It has long been known that conference is the best time to build relationships and re-kindle old ones. It is a wonderful opportunity to put faces with those voices we have long been talking with. It is commonly known that people want to do business with people they know, and if they don’t know you, how can they do business with you?

Thank goodness 2009 is over! What a tough year it was for all of us. But… we survived!!

Now it’s time to start thinking about 2010 if you haven’t done so already. One of the best ways to get your New Year started off in the right direction is to finish up 2009 and bag it for good. In other words, “Clean Some Things Up” and get a clean start in 2010. Listed below are some good tips to help us complete that clean up and set ourselves up for Great Success in 2010.

1. Clean that Computer up!

• Now is the time to clean up all those old e-mails.
• Go through your Contacts and make sure they are all correct and needed.
• Purge your My Documents file. Transfer all of the documents and files you want to keep to your Server, an external hard drive or to a thumb drive for safe keeping.
• Check your computer out for performance issues. Do you need a new one? Is it time to transition to a laptop? Check your memory and see if you may need to add additional memory. How about your virus software? Is it up to date? Have you defragged your hard drive recently? How about your software? Do you have the most up to date versions? Great sales going on right now, and it is the perfect time to upgrade.
• Finally, it’s time to update all of your Social Networking sites and information. Do you need to un-friend some folks on Facebook or My Space? Do you have all the right contacts in Linked In and other Business Networks? How about your Profile? Is it correct and up to date and do you have an up to date photo?

You may have been reading the various “top 10 2009 real estate stories” assessments while relaxing over the holidays, as I have.

On CBS MoneyWatch.com, Alison Rogers viewed 2009 from a macro consumer perspective in her analysis, citing things like increasing foreclosure numbers, the ongoing credit crunch, and increasing rentals.

A more cut-to-the-chase recap was that by Steve Harney. Steve just states the “facts of the year” rather than his opinion, backed by statistics. While it’s not necessarily fun reading, the good news is that we’ve navigated it so far, and his real service is to underscore the areas where great real estate professionals can make a difference. Creating strategies to solve these specific problems for clients provides a powerful action plan for 2010 for real estate practitioners.

A more internally-focused review of 2009 comes from Stefan Swanepoel on Active Rain’s blog. Several of Stefan’s picks were right on the money – the impact of the housing credit on sales, foreclosures and short sales, RPR – while some others seem a bit random. The change of one brokerage franchise brand to another? The creation of NAR’s credit union? GMAC changing its name when that had been expected for over a year? One comment on the post read, “I didn’t know about a lot of these happenings before,” perhaps because they didn’t really rise to “top 10” status?

The National Association of Realtors^® Profile of Home Buyers and Sellers 2009 again shows the power of a referral and responsiveness.

p. 62, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

p. 94, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

Over fifty percent of buyers and forty-nine percent of sellers who used a real estate agent found their agents through a referral by friends or family, another real estate professional, or from an employer or relocation company. What attributes lead to increased referrals? Let’s look at some more NAR data below to find a plausible answer.

p. 60, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

p. 96, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

These charts reinforce what we already know: buyers and sellers want knowledge experts. Help with negotiations, finding the right home, competitively pricing a home, and marketing expertise are among the most important attributes to your potential clients (and likely your past clients, too). What other attributes do buyers and sellers find important?

p. 64, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

p. 97, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

These charts show that reputation, honesty, and integrity are among the most important attributes for an agent. Responsiveness and listening skills are also important. As you plan for the next 90 days and for next year, ask yourself whether you want a reputation as a lackadaisical agent or a consummate and engaged professional, ask yourself what skills (like negotiation) should I build-up to reinforce my reputation, ask yourself what attributes I need to hone to increase positive recommendations and referrals from current and past clients.

p. 63, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

p. 94, National Association of Realtors^® Profile of Home Buyers and Sellers 2009

Sixty-six percent of buyers and sixty-four percent of sellers contacted just one agent to assist them with the purchase or sale of a home. What this tells me is that responsiveness, already a key point in selecting an agent, is likely a key factor in gaining business too. The first agent to pick up the phone, answer an email, respond to a chat, reply to a Tweet, comment on a status update, etc, increases their odds of gaining a new client or retaining an existing one.

Are the charts above simply a representation of common sense? Treat people like you like to be treated? Likely. But it’s also useful data to use to ensure that you’re providing as superior and meaningful and remarkable (as in Seth Godin’s definition) and memorable experience as you can to your current and past clients, which will inevitably have a positive impact on your business.

Posted By: Eric Bryn

Hosting a local talk show, All Things Real Estate, has created a synergy, goodwill factor and an opportunity to show our company culture of service to the public. This educational marketing strategy has fostered immediate benefits for our company and associates.

The talk show format is upbeat, conversational and real. The guests come from all tangential industries to ours such as attorneys, appraisers, lenders, other brokers, interior decorators, insurance representatives, inspectors and clients who all have a story to tell. The weekly topics are easy to fill and there is no shortage of guests willing to come on the show and share their valuable information.

We are not selling anything on the show other than straight information. People can say all the right things but if they have an ulterior motive in trying to sell a product, service or property, it comes across as disingenuous. We are transparent and if we are not genuinely sharing information for the public good, we would be found out rather quickly. The indirect benefits of appearing on the show are reward enough. The seeds are sown with the potential future customer listening to the show.

The radio format helps me to establish instant credibility not only with the public but with our guests who are in many ways, our partners. And it helps me foster even better relationships with our most important adversaries: our brokers.

Yes it can! In September 2004, prior to the devastation of four hurricanes and the recession, Pruitt Real Estate had seven offices and 207 agents serving Brevard County. As the largest independent company serving the Space Coast of Florida, we enjoyed a commanding 19% market share in our primary market area.

Back to back active hurricanes at the end of 2004 coupled with the economic recession resulted in a 58% decline in sales from 2005 to 2008. This downturn required us to take immediate cost cutting measures; however, I along with my management team was cognizant not to make the wrong decisions and risk losing key producers.

Today, we have 3 offices and 142 agents serving the same territory. Market share now stands at 12.3% in our primary market area, a declined shared by most companies ranked in the top ten. Market share fragmentation has occurred in the last two years due to the rise in small start up companies. When asked how I was able to accomplish this productive retention rate of agents and market share, I can attribute this success to these factors:

As real estate marketers dive with enthusiasm into the lastest social networking and cloud computing offerings of the web 2.0 world, there are some basic questions to be asked. Concerns regarding the ownership of content, security, and what could happen next are discussed in this prezi.com presentation below. This is the first in a series on this topic - please post any thoughts and comments below.

Posted By: Neil Elver, Sr. Web Developer - LeadingRE

There has been plenty of gloom and doom in real estate for quite a while now, but I’m fortunate to be exposed to shining confidence and enthusiasm for the future of our industry. There are many who inspire me and others with their positive attitudes and willingness to share.

Some of the best examples come from our Power Producers, an elite group of top performing sales associates participating in the LeadingRE Institute, our network’s education portal for sales associates, brokers and managers. These professionals meet monthly to network, brainstorm and share success tips on various topics. In between calls, they have ongoing dialogues via a listserv.

What we’re hearing from them is energizing and validates why we have every reason to be optimistic. They are reaching out to one another, and even to competing agents in their markets, working together to overcome new hurdles in the closing process and ensuring positive outcomes for their clients.

Our business is (unfortunately) known for following a one-size-fits-all approach, whether it’s the same commission rate charged for the novice or the 20-year seasoned veteran, or for the listing that is sold in a few days versus one with high carrying costs over a multi-month period of time.

Likewise, we’re in a box when it comes to online leads. We pretty much assume that this term is synonymous with inquiries that come to a website from a consumer searching listings. Well, of course, search is the primary way in which consumers engage us online, but why should it be the only way? And while the listing agent may know the most about that particular home, is that the best way to choose an associate to vet and analyze and advocate for a particular buyer?

We now have the perfect platform to proactively engage consumers looking for trusted advisors – blogging. But even with blogging, we’re taking the traditional inside-out view: “What do I the blogger know and want to blog about?” versus “What is the audience I want to engage and what do they want to learn about?”

Many brokerages across the country have managed their online presence and successfully served clients on their websites for years. Others know they need to…and it’s never too late. A successful strategy to serve consumers on your website, often referred to as Internet Lead Management (ILM), must first start with an analysis of your goals, your company cultural, and your resources. I’m a firm believer in the under promise and over deliver philosophy.

So what is your goal when creating this ILM strategy – fast response times, 24 hours a day coverage, and the ultimate in lead capture? How about quality consumer engagement and a real a value added for sellers…or is it more about agent appeasement? Maybe it’s some version of all of the above. How will your agents view this new initiative – big brother or helping hand?

One misstep firms often make is to create a strategy where consumer inquiries on their agents’ listings are routed directly to the listing agent with no company follow up or notification (and no support). In these same firms questions on competing companies’ listings are immediately engaged by a company staff member, receiving a rapid response and connection to a quality agent. I understand the original thought behind this approach, as it takes away a lot of the “big brother” factor, but when you boil it down are you not simply providing a higher level of service to your competitors’ listings than your own?

With business planning season in full swing, it is important for all of us to look ahead to the coming year and outline specific objectives to ensure our success. What do you plan to do differently in 2010? What actionable goals do you have in mind? Now is the time to evaluate where you want to go and how you plan to get there.

With this aim in mind, we invited noted industry coach Steve Harney to be the keynote speaker at the upcoming LeadingRE Sales Rally and Executive Exchange, being held during the NAR conference in San Diego on November 13. Steve will share “Five Keys to Preparing for a Great 2010” to inform and motivate us.

A panel of top producing agents will offer more inspiration, sharing success tips on topics ranging from luxury marketing, to mentoring, to green initiatives and social networking. And, brokers and managers will participate in a lively and informative brainstorming session where they set the agenda and share ideas on current challenges and solutions.

We invite you to attend and get started now on a terrific 2010!  LeadingRE members can learn more here: conference.leadingre.com/salesrally. You do not have to be registered for the NAR conference to participate in this meeting (but your company does have to be a member of LeadingRE).

Posted By: Dan Schmitz, LeadingRE Director of Broker Resources 

How many times have you either asked that or thought that? Today, it’s a tough question being asked in the relocation industry. In fact, I’m not aware of one organization – whether corporate, third party, or brokerage – that isn’t being asked to redesign our service menu, reduce the bulk, offer leaner items, and create a healthier diet for us all.

Challenging? Yes, it is…it’s not easy to slim down. Achievable? Yes, it is…when we set our goals and work towards them.

Everyone’s financial diet is being trimmed; there are no “seconds” available on our tables. We are doing this at home and at work. We are cutting back on out-of-date and unnecessary expenses, overhead, and jobs, while trying to increase and grow revenue at a time when not too many companies and transferees are biting.

Weighing In:

1. Can the relocation industry continue to support the zero-fee pricing model as a viable solution? No.

2. Can broker referral fees and supplier participation fees continue to be increased either internally or by their valued clients? No.

3. Can a corporation see relocation costs continue to rise, yet achieve more with less? No.

4. Can we really expect each other to survive if we continue with the same old diet? No.

What if we don’t change our old habits? Will we be the next ‘biggest loser’?

With all the chatter and “hype” around using social media for selling real estate there inevitably comes the questions: “what is the ROI (return on investment)?”, “Is anyone actually making money using these sites?” and “give me a concrete example of success.”

Realistically the ROI for social media is hard to calculate (but so is the time you spend at social events), but people definitely are making money, and, YES, there are success stories. Social media is a “soft” sell/tool and shouldn’t be measured directly by time in, results out – but by overall results. By a “soft” sell, I mean it’s not about posting listings to your Facebook page or Tweeting them via Twitter and expecting to find that perfect buyer.

That said, here is a great example of how social media can work for you. Chrissy Smith, the marketing director at Peabody & Smith in Franconia, NH, recently shared a great success story about one of her agents – Joy Moore , CRS, GRI (and btw Lakes Region Board Realtor of the Year 2009).

Joy is an agent in her early 60s who isn’t intimidated to try new things. With Chrissy’s help, Joy jumped on the social media train, joined Facebook and immediately began connecting with friends, family and even her 30-ish daughter’s friends. Low and behold, one of her daughter’s friends was in the market for a home, was reminded of Joy’s career through their Facebook connection, and ultimately ended up contacting her and buying a home, with her assistance, that was far above their marketplace average.

Chrissy and her team have helped lead the social media charge by holding classes to make her agents more comfortable with these tools and even help them to build profiles. She’s counciled her agents about how social media is just one more touch point and encourages them to blog and write in their real voice – i.e. if you are writing from home, talk about home. If you are writing from work, talk about work. Chrissy’s advise is “be real, be yourself and be out there.” Clearly it’s working.

Posted By: Stephanie Pfeffer