Building Your Database: Mets and Haven’t Mets

The Foundation: Defining Your Contacts

A robust contact database is the cornerstone of a thriving business. To effectively manage and nurture leads, it’s crucial to categorize them accurately. We broadly classify contacts into two fundamental groups: Haven’t Mets and Mets.

Haven’t Mets: The Untapped Potential

Definition: These are individuals you haven’t personally met and who are currently unaware of your existence. This category represents a vast pool of potential clients. Haven’t Mets can be further segmented:

• General Public: A broad, undifferentiated audience. Reaching them requires mass marketing strategies with low conversion rates.

• Target Group: A specific segment of the population identified based on shared characteristics (e.g., demographics, geography, interests) making them potential clients. Strategic, targeted marketing efforts have higher conversion rates than the General Public. Example: Residents in a specific geographic area (geographic farm) or individuals interested in luxury properties.

Characteristics:

• Lack of existing relationship or familiarity.
• Require initial outreach and introduction.
• Conversion rates are generally lower compared to Mets.

Challenges:

• Obtaining accurate contact information.
• Breaking through the noise to capture their attention.
• Establishing trust and credibility.

Mets: Your Existing Network

Definition: Individuals you have already met, either in person or through phone or email communications, and who are familiar with your name. Mets represent a warmer audience with a higher likelihood of conversion.

Subcategories of Mets:

• Network Group: Individuals who know you because you have met them. Potential to do business with you.

• Allied Resources: Professionals in real estate-related fields (e.g., mortgage lenders, title companies, appraisers, home inspectors) who you expect to collaborate with or receive referrals from regularly. These represent strategic partnerships.

• Advocates: Clients who have done business with you in the past and will continue to do so. They actively recommend you to others. This group provides a significant source of referral business.

• Core Advocates: A highly influential subset of Advocates who are well-connected and can generate a steady stream of clients. These individuals hold positions of authority or influence within their respective networks (e.g., business executives, community leaders).

Characteristics:

• Existing relationship and familiarity.
• Higher likelihood of repeat business and referrals.
• Requires consistent nurturing and relationship building.

Benefits:

• Higher conversion rates compared to Haven’t Mets.
• Serve as a source of repeat and referral business.
• Provide valuable feedback and insights.

The Business Impact: Where Does Business Come From?

Understanding the source of your business is critical for resource allocation and strategic planning.

• Mets:

  • Repeat Business: Returning clients who have previously transacted with you.
  • Referral Business: New clients referred by existing Mets.
  • New Business: Additional transactions from existing Mets (e.g., upgrading to a larger home).

• Haven’t Mets:

  • New Business: Primarily generate new client acquisition.
  • Referral Business: (Less Frequent) As Haven’t Mets become familiar with your brand through consistent marketing, they may provide referrals.

Mathematical Representation:

Let:
* B_M = Total business from Mets
* B_HM = Total business from Haven’t Mets
* R = Repeat business (from Mets)
* Ref = Referral business (from Mets and Haven’t Mets)
* N = New business (from Mets and Haven’t Mets)

Then:
B_M = R + Ref_M + N_M
B_HM = Ref_HM + N_HM

Where:
* Ref_M = Referral business from Mets
* Ref_HM = Referral business from Haven’t Mets
* N_M = New business from Mets
* N_HM = New business from Haven’t Mets

Database Size and Conversion Rates: The Numbers Game

The size of your database directly influences your potential for generating leads and closing deals. Conversion rates vary significantly between Mets and Haven’t Mets.

• Mets: Higher conversion rates due to existing relationships.
• Haven’t Mets: Lower conversion rates as building trust is required.

Example: Achieving 320 Closed Transactions Annually

• Mets-Focused Approach: 1,920 Mets in your database could potentially yield 320 closed transactions. (based on a 12:2 ratio through an 8x8 and 33 Touch program)
• Haven’t Mets-Focused Approach: 16,000 Haven’t Mets in your database could potentially yield 320 closed transactions. (based on a 50:1 conversion rate through a 12 Direct program)
• Balanced Approach: 960 Mets + 8,000 Haven’t Mets to reach 320 closed transactions.

Scaling Down for 36 Closed Transactions:

Simply scaling down the ratios for Mets alone (12:2) suggests 216 Mets. This is misleading for the following reasons:

1. Requires a pre-existing database of 216 nurtured relationships from day one.
2. The benefit of repeat and referral business takes time to realize (2-5 years).

Practical Recommendation:

Adopt the “Daily 10/4” strategy to build your Mets database.

• Make 10 new contacts daily.
• Enter 10 people into your database daily.
• Write 10 notes daily.
• Preview 10 homes weekly.

Calculation:

• 200 working days/year * 10 new contacts/day = 2,000 new Mets annually.

Classifying Contacts: A Journey to Core Advocate

Your database is dynamic. Contacts move between categories as your relationship evolves.

1. Haven’t Met: Begin with a Target Group (e.g., mortgage loan officers).
2. Met: Initiate contact and build rapport.
3. Allied Resource: Establish a working relationship, doing business together.
4. Advocate: Consistent collaboration and mutual benefit.
5. Core Advocate: A trusted partner who actively promotes your services and provides a steady stream of referrals.

The 80/20 Principle:

20% of your database (Core Advocates) can generate 80% of your business. Focus on identifying and nurturing these key relationships.

Building Your Mets Database: Where to Find Them

Leverage your existing network to populate your Mets database:

• Family
• Friends
• Neighbors
• Personal connections (e.g., hairdresser, doctor)
• Former colleagues
• Members of organizations (e.g., clubs, associations)
• Sports and hobbies groups

Building Your Haven’t Met Database: Strategic Acquisition

Expand your reach with strategic Haven’t Met acquisition:

1. Title Companies: Often provide contact lists free of charge, especially for co-marketing opportunities.
2. Third-Party Vendors: Purchase targeted lists from vendors like TransUnion, Experian, and Equifax. These also manage marketing campaigns (e.g., Just Listed/Just Sold postcards).

Daily Database Maintenance: The “Daily 10/4”

Consistent effort is key. Adopt the “Daily 10/4” to grow and maintain your database.

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

The Power of Consistency:

Gary Keller emphasizes the long-term impact: adding 10 people to your database daily for 200 working days results in a valuable database of 2,000 names, the foundation of a Millionaire Real Estate Agent’s success.

Expanding Your Mets Database: Proactive Engagement

Go beyond your immediate network:

1. Database Maintenance: Regular contact with past clients, sphere of influence, etc. Gather updated information (birthdays, anniversaries).
2. Community Involvement: Engage in school, church, neighborhood, sports/hobby activities.
3. Open Houses: Gather leads and build relationships.
4. Targeted Farming: Geographic or niche farms.
5. FSBOs (For Sale By Owners) and Expired Listings: Target these specific segments.
6. Agent-to-Agent Referrals: Network with other agents for referral opportunities.
7. Internet Leads: Capture leads from online marketing efforts.

What Information to Gather: Feeding Your Database

Collect essential information to enable effective communication:

1. Name: Accurate spelling.
2. Home Address: Verify through property tax records if applicable.
3. Phone Number: Obtain permission for follow-up calls.
4. Email Address: Ask after obtaining their home address.
5. Business Card: Note details on the back: who they were with, date and location of the meeting.

Aim to gather enough information to implement 8x8 and 33 Touch marketing plans.

The FORD Technique: Building Deeper Connections

Use the FORD technique to gather insightful information during initial interactions:

• Family: Learn about their family structure and relationships.
• Occupation: Understand their professional background.
• Recreation: Discover their hobbies and interests.
• Dreams: Uncover their aspirations and goals.

This approach allows you to:

1. Identify Buyers or Sellers: Understand their real estate needs.
2. Assess Urgency: Gauge their timeline for transacting.
3. Engage Spouses: Build rapport with all decision-makers.
4. Determine Personality Profile: Adapt your communication style.
5. Collect Personal Details: Birthdays, hobbies, and children’s names for tailored communication.

Buyer and Seller Data: Specific Information Needs

Collect specific data based on whether the contact is a Buyer or Seller prospect:

Seller Prospect Information:

• Property Address
• Purchase Date
• Purchase Price
• Assessed Tax Value
• Desired Sales Price
• Occupancy Status
• Lease End Date (if applicable)
• Listing Expiration Date (if applicable)
• Mortgage Balance
• Loan Type
• Interest Rate
• Property Description (style, number of bedrooms/bathrooms, etc.)

Buyer Prospect Information:

• Pre-Approval Status
• Desired Property Type
• Desired Location
• Desired Price Range
• Timeline for Purchase
• Financing Plans

These data points will further help you in relationship building and better service to your clients.