Building Your Database: From Contacts to Core Advocates

Chapter 1: Building Your Database: From Contacts to core advocates❓❓

This chapter will delve into the science and strategy behind building a robust real estate database, transforming initial contacts into loyal core advocates. We’ll explore the critical aspects of database construction, from identifying potential❓ contacts to nurturing them into advocates who actively promote your business.

1.1 The Foundation: Understanding Your “Mets” and “Haven’t Mets”

Your database consists of two primary categories: “Mets” and “Haven’t Mets.” Understanding the distinct characteristics of each group is fundamental to tailoring your communication and maximizing your conversion rates.

• Mets: Individuals you already know – family, friends, acquaintances, past clients, etc. They possess a pre-existing level of trust and familiarity with you.
• Haven’t Mets: Individuals you have not yet established a personal connection with. These are typically potential clients within a target demographic or geographic area.

The business generated from each category differs significantly, as outlined below:

• Mets: Offer potential for repeat business, referrals, and new business. Their existing relationship with you makes them more receptive to your services and willing to recommend you to others.
• Haven’t Mets: Primarily generate new business. Building trust and rapport is crucial for converting them into clients. Targeted marketing and consistent communication can, over time, lead to referrals from this group.

1.2 Quantifying Your Database: The Lead Generation Numbers Game

Determining the optimal size of your database is crucial for achieving your business goals. The Millionaire Real Estate Agent model provides a framework for calculating the number of Mets and Haven’t Mets required to reach a specific transaction target.

• Conversion Rates: Conversion rates represent the percentage of contacts who ultimately become clients. They vary significantly between Mets and Haven’t Mets.

  • Mets Conversion Rate: Generally higher due to pre-existing relationships. A target rate of 12:2 (12 contacts leading to 2 transactions) after consistent implementation of an “8x8” and “33 Touch” program over 12 months is a common benchmark.
  • Haven’t Mets Conversion Rate: Typically lower, often around 50:1 (50 contacts leading to 1 transaction), requiring sustained marketing efforts such as a “12 Direct” program throughout the year.

• Calculating Database Size: To achieve a target of N closed transactions per year, the required number of Mets (M) and Haven’t Mets (H) can be estimated using the following formula:

  • N = (M / 6) + (H / 50) (Assuming 12:2 and 50:1 conversion rates, respectively).
    • Where, 6 = 12/2 and represents a Mets database conversion ration factor
    • Where, 50 is the Haven’t Mets database conversion ration factor

  • Example: To achieve 36 transactions solely through Mets:

    • 36 = M / 6
    • M = 36 * 6 = 216 Mets
      • Important Considerations: This calculation is theoretical and relies on consistent engagement and relationship building. It’s also a snapshot in time. You are growing the list and will also need to consider the time necessary to implement a marketing plan for each contact type.

  • The reality is that a database will be in constant growth, so a more accurate mathematical equation will use a calculation of M’(t), which indicates the Mets database size growth as a function of time, and H’(t), which indicated the Haven’t Mets database size as a function of time. Thus, a more accurate representation of your database size is:

    • N = (M’(t) / 6) + (H’(t) / 50)

1.3 Building Your Database: Step-by-Step

1. Identify and Classify Your Contacts:

   • Categorize individuals as either Mets or Haven’t Mets.
   • Within the “Mets” category, consider further segmentation based on relationship strength (e.g., family, close friends, acquaintances, past clients).
   • Visualise these categories to ensure that they are accurately maintained with appropriate data:
     • General Public -> Target Group -> Network -> Allied Resources -> Advocates -> Core Advocates
     • Haven’t Met -> Met -> Met (inner circle)

2. Gather Essential Contact Information: Aim for a minimum dataset for each entry:

   • Full Name (correct spelling)
   • Home Address
   • Phone Number
   • Email Address
   • Source of Contact (how you met)
   • Record interactions with dates

3. Identify Mets Sources: Expand your “Mets” database by systematically mining your existing network:

   • Family
   • Friends
   • Neighbors
   • Former colleagues
   • Members of clubs, religious institutions, or other community groups
   • Service providers (dentist, doctor, etc.)

4. Acquiring Haven’t Mets Contact Information:

   • Title Companies: Often provide contact lists free of charge, potentially for co-marketing opportunities.

   • Third-Party Vendors: Purchase targeted mailing lists from reputable vendors, including credit bureaus (TransUnion, Experian, Equifax) and marketing service providers.

   • Important Notes: Be aware of data privacy regulations and compliance requirements when acquiring and using contact information from third-party sources.

1.4 The Daily 10/4: A Model for Consistent Growth

Consistent database maintenance and expansion are vital for long-term success. The “Daily 10/4” model, as emphasized in the Keller Williams University (KWU) course IGNITE, provides a structured approach:

1. Make 10 New Contacts: Engage in activities that facilitate meeting new people (networking events, open houses, community involvement).
2. Enter 10 People into Your Database: Add new contacts and update existing entries with relevant information.
3. Write 10 Notes: Personalize your follow-up communication by adding handwritten notes to postcards, letters, or thank-you cards.
4. Preview 10 Homes (Weekly): Stay informed about the current market inventory to provide valuable insights to your clients.

1.5 Enhancing Contact Profiles: The FORD Technique

Gathering comprehensive information about your contacts facilitates deeper relationship building. The “FORD” technique offers a framework for initiating meaningful conversations:

• F - Family: Inquire about their family members (names, ages, interests).
• O - Occupation: Understand their profession and career aspirations.
• R - Recreation: Discover their hobbies, interests, and leisure activities.
• D - Dreams: Explore their long-term goals and aspirations (related to real estate or otherwise).

This approach allows you to personalize your communication and provide relevant value to each contact. Examples of this include:

• Buyer and seller information
• Urgency to perform
• Spouse’s name, job, hobbies, birthday
• Personality profile to assist in sales style
• Children, hobbies, recreational sports, etc.

1.6 Nurturing Core Advocates: From Contacts to Champions

The ultimate goal is to cultivate “Core Advocates” – individuals who actively promote your services and generate a steady stream of referrals. This involves consistent communication, providing exceptional service, and fostering a strong relationship built on trust and mutual respect.

• The 80/20 Principle: Recognize that a small percentage of your database (approximately 20%) is likely to generate a significant portion of your business (approximately 80%). Focus your efforts on identifying and nurturing these potential advocates.

By implementing these strategies and consistently nurturing your database, you can transform a collection of contacts into a powerful network of advocates, driving sustainable growth and long-term success in your real estate career.