Mets and Haven’t Mets: Database Foundations

The Dichotomy: Mets vs. Haven’t Mets

At the core of an effective contact database lies a fundamental classification: Mets and Haven’t Mets. These categories define the relationship (or lack thereof) you have with individuals and dictate the strategies for engagement and conversion. Properly categorizing and managing these groups is crucial for maximizing lead generation and nurturing long-term relationships.

Defining the Categories

Underlying Principles

The distinction between Mets and Haven’t Mets aligns with established marketing principles:

• Warm vs. Cold Leads: Mets represent “warm leads,” where a connection exists, allowing for personalized and relationship-based strategies. Haven’t Mets are “cold leads,” requiring initial awareness-building and trust establishment.
• The Law of Reciprocity: Engaging with Mets leverages the psychological principle of reciprocity. Individuals are more likely to respond favorably to someone they know and feel indebted to.
• Targeted Marketing: Segmenting Haven’t Mets into Target Groups allows for laser-focused marketing campaigns based on shared characteristics and needs, increasing efficiency and ROI.

Mathematical Representation of Conversion Rates

Let:

• M = Number of Mets
• HM = Number of Haven’t Mets
• C_M = Conversion Rate for Mets (e.g., Clients/Mets)
• C_HM = Conversion Rate for Haven’t Mets (e.g., Clients/Haven’t Mets)
• N = Number of new clients acquired.

Then:

• Clients from Mets = M * C_M
• Clients from Haven't Mets = HM * C_HM
• N = (M * C_M) + (HM * C_HM)

This simple equation underscores the impact of database size and conversion rate on overall client acquisition.

Real-World Application: McKissack Realty Group

Brad McKissack of McKissack Realty Group emphasizes the importance of including even a small number of contacts (50-100) in your database. This highlights the potential value of nurturing existing relationships, regardless of immediate transaction prospects.

Case Study: Achieving 320 Closed Transactions

The Millionaire Real Estate Agent outlines strategies for achieving 320 closed transactions per year, providing insights into the relative contribution of Mets and Haven’t Mets.

Scenario Analysis:

• Option 1: Mets-Focused: 1,920 Mets (12:2 conversion rate with an “8x8” and “33 Touch” program) + 0 Haven’t Mets = 320 Sales
• Option 2: Haven’t Mets-Focused: 0 Mets + 16,000 Haven’t Mets (50:1 conversion rate with a “12 Direct” program) = 320 Sales
• Option 3: Balanced Approach: 960 Mets + 8,000 Haven’t Mets = 320 Sales

Caveats: These models assume consistent and systematic engagement. Initial database build-up and relationship nurturing take time.

Scaling Down: Achieving 36 transactions requires approximately 216 Mets, but this assumes an established database and consistent engagement.

Step-by-Step Methodology: Classifying and Migrating Contacts

1. Initial Assessment: Categorize existing contacts based on the “Mets” vs. “Haven’t Mets” definitions.
2. Sub-Categorization: Within each category, further classify contacts into respective groups (General Public, Target Group, Network, Allied Resources, Advocates, Core Advocates).
3. Engagement Strategy: Develop tailored engagement strategies for each group. Mets require consistent communication and personalized offers. Haven’t Mets need awareness-building and value proposition messaging.
4. Migration Path: Implement a process for moving contacts between categories. For example, nurture Target Group contacts to become Network Group members and ultimately Advocates.

Visual Representation: The Inner Circles

graph TD
    A[General Public] --> B(Target Group);
    B --> C{Network};
    C --> D(Allied Resources);
    D --> E((Advocates));
    E --> F[[Core Advocate]];
    style F fill:#f9f,stroke:#333,stroke-width:2px
    style E fill:#ccf,stroke:#333,stroke-width:2px

This diagram illustrates the progression from Haven’t Mets (outer circles) to Mets (inner circles), with Core Advocates representing the most valuable segment.

Challenges and Misconceptions

• Misconception: “Haven’t Mets are a waste of time.” Reality: Targeted marketing to Haven’t Mets can generate significant new business, especially with long-term, consistent campaigns.
• Challenge: Maintaining consistent communication with a large database. Solution: Utilize CRM software and automated marketing tools to streamline engagement.
• Misconception: “All Mets are equal.” Reality: Different Mets groups (Network, Allied Resources, Advocates) require distinct engagement strategies based on their potential value and relationship status.

Data & Statistics

• 80/20 Principle: 20% of your database (Core Advocates) can generate 80% of your business.
• Lead Conversion Rates: Conversion rates for Mets are significantly higher than for Haven’t Mets, emphasizing the value of relationship nurturing.
• Customer Lifetime Value: Advocates have a higher customer lifetime value due to repeat business and referrals.

Mathematical Formula: Customer Lifetime Value (CLTV)

CLTV = (Average Transaction Value * Number of Transactions) * Retention Time

Where:

• Average Transaction Value = Average dollar value of each sale.
• Number of Transactions = Number of sales per year.
• Retention Time = Average number of years a client remains active.

This formula illustrates that retaining existing clients (especially Advocates) has a significant impact on long-term revenue.

Sources for Building Your Mets Database

• Family
• Friends
• Neighbors
• Home service providers (e.g., grocer, dentist)
• School contacts
• Sports and hobby groups
• Former employers, co-workers, suppliers, customers
• Organizations

Building Your Haven’t Met Database

• Title Companies: Often provide contact lists free of charge. Consider co-marketing opportunities.
• Third-Party Vendors: Credit bureaus (TransUnion, Experian, Equifax) and marketing services offer purchased lists. Keller Williams Realty provides a list of approved vendors on its intranet.

The Daily 10/4

The KWU IGNITE program emphasizes the Daily 10/4:

1. Make 10 new contacts
2. Enter 10 people into your database
3. Write 10 notes
4. Preview 10 homes (weekly)

This consistent effort builds a robust database over time.

Expanding Your Mets Database

• Phone calls and personal visits with existing contacts.
• Networking through school, church, community events, etc.
• Open houses
• Geographic and niche farms
• For Sale By Owners (FSBOs)
• Expired listings
• Agent-to-agent referrals
• Internet leads

What to Feed Your Database: Essential Information

1. Name (accurate spelling)
2. Home address
3. Home phone number
4. Email address
5. Business card (details date met, and where you met)

This information enables effective follow-up and personalized marketing.

The FORD Technique

Utilize the FORD technique to gather additional information:

• Family
• Occupation
• Recreation
• Dreams

This approach builds rapport and allows for targeted communication.

Critical Analysis of Different Approaches

A “Mets-first” approach is generally recommended initially due to the higher conversion rates and lower acquisition costs associated with warm leads. However, neglecting Haven’t Mets limits long-term growth potential. A balanced strategy, combining consistent engagement with Mets and targeted marketing to Haven’t Mets, provides the most sustainable path to success.

Conclusion

Mastering the art of classifying and nurturing Mets and Haven’t Mets is fundamental to building a powerful contact database. By understanding the underlying principles, employing effective methodologies, and addressing common challenges, you can unlock the full potential of your network and achieve sustained business growth.