In commercial real estate you should be telephoning lots of people every day. The cold calling process is the way to do that. In a way, your success in cold calling is a numbers game. You track your numbers and in that way you will know what is working for you and what is not. So what numbers should you track?
You track the numbers that can tell you how you are progressing. One secret in the whole process is to make calls at the same time every day. Over time you will know if that is the best time to find the people that you need to talk to. If it is not the right time frame, then you shift your call time slot to make things work. Systems are really important when it comes to getting your prospecting model to work for you.
Here are some of the main numbers that are really important to getting momentum in the commercial real estate prospecting process.
- The numbers of outbound calls to new people are the base to work with and from. At least 50% of your outbound calls should be to new people that you have not spoken with before. In that way you will build some momentum of new business growth.
- After some time you will have a list of people that you must call back because in the last conversation they indicated that they had a future interest in what you wanted to talk about. So the balance of your call time each day (the other 50%) should be devoted to follow-up calls with previous contacts.
- In 2 hours of call contact you should be making 50 outbound calls. In that time you will not get through to all those people, but you should get through to at least 15 to 20.
- Call results should be recorded in a database when you find people of relevance. Do not waste time in capturing unnecessary information. Only enter the information that can be something for you.
- Of the people that you talk to some will move to meetings with you. As you gain skill and momentum in cold calling, you should be getting 2 meetings per day from your call contacts.
- From the meetings that you have every week with these people, at least one transaction or listing should occur.
- When you have established a relationship and a listing from the call contact process, it is a matter of tracking the time on market for the listings and the conversions to sales or leases as the case may be.
So I go back to my point, when you track the numbers you will know how you are improving, and that is what commercial real estate prospecting is all about. Good hunting!
In commercial real estate, the cold calling process is very difficult for many salespeople. They may attempt to get a cold calling system up and running, but they will soon find something else to do. It’s not a new problem and it is all so common in most agencies; that does not however mean that salespeople should not call prospects. It simply says that many salespeople have an issue to get under control and improve on. Top agents do that, and over time will build their market share with well qualified prospects.
Many ‘average’ salespeople in commercial and retail real estate know the ‘ups and downs’ of the market. Over a period of 12 months they will have times of listing difficulty and slow commissions. The best way to change all of that is through a dedicated call contact program where you constantly find new prospects that may want to get involved in selling, leasing, or transacting commercial real estate.
It doesn’t matter when a person or company needs your help; it does matter that you open the door of contact and build the communication links for the time that they do need you. Remember, you are the property expert!
Do you know this person?
Have you seen or heard of a salesperson that likes to sit in the office and wait for the telephone to ring or for the prospects to walk in the door? Believe it or not, there are some salespeople in the industry that do just that even in this difficult property market. Unless they have another source of income to help them along, they will be consistently ‘poor’ when it comes to commissions.
It is too costly to work in the industry to ‘survive’ on a low income for too long. Directed effort and prospecting can change all of that very quickly.
So let’s say that you want to fix the prospect pipeline in your business and build more income opportunity. The best way to do that is in making the calls. Here is a checklist for you to get started:
- Determine the area that your business will come from.
- Understand the types of properties and businesses that you serve.
- Why should people do business with you? What are your points of relevance to the market? Are you better than the competition agents in the local area?
- Devote 3 hours a day to making the calls. In that time you can use the business telephone book to speak to business leaders and managers to identify what their property needs may be in the future.
- Use a database system of some type that will allow you to capture information for ongoing contact.
Are you ready to turn your commercial real estate career around? Set up a contact call process of prospecting; over time you will see the benefits of better listings and greater commissions. Start the process and practice your dialogue.
If you would like more tips on commercial real estate, you can ‘register’ on this site to be a member and have full access to our ‘member resources’ 24/7.