Finding new stones to turn over to source more leads is one thing real estate and lending both have in common.  Since we’re in the same boat, I want to share a short story and a couple tips that I find valuable that I incorporate into my business, and you can start doing TODAY to grow yours!

A few years ago, I was watching an OPB show about the Gold Rush and the story they told has stuck with me.  The Chinese were forbidden to mine for gold, so they moved into the city and set up hotels, restaurants, and supply stores who catered to the miners.  Where was the money made in the Gold Rush?  The money was in “mining the miners.” 

We’re always being sold the latest and greatest lead generating platforms and paid subscriptions. While you may increase your “at-bats” with paid platforms, those leads may be harder to convert than a warm referral from a past client or friend who already has a relationship with you!

There are many companies that are more than happy to take your money but don’t let them “mine the miners.” Your database is a gold mine and there is a better way!

#1) The 3% rule:

A general rule of thumb is that 3% of your database will make a move each year.

This may not sound like much at first, however this is compounded by the fact that 3% of each of your contact relationships will also make a move each year.

The math: 100 clients in your database means 3 of your past clients will make a move this year. Not very impressive so far…but wait!  

However, if your 100 clients know 100 people each.  That’s 10,000 potential contacts. If 3% of their circle make a move, that’s a potential of 300 new clients!

It’s the “compounding” factor that’s amazing!

#2) Proactive lead generation:

• Add everyone you know to your database: clients, friends, business partners etc.
• Hold yourself accountable to call 5 contacts a day.
• Connect with at least 2 people a day who are likely going to convert: FSBO, expired listings.
• Follow up with past “cold” leads.
• Hold open houses yourself until you have at least 3 active buyers.
• Follow up, follow up, follow up!

Name recognition is key!  It’s human nature to think of the last person you spoke with. This is why staying in front of your database is so important…. when they think of someone, they think of YOU.

It’s a lot harder to build a client base than it is to keep it.  And remember that your database is a gold mine!  Either you’re mining it, or another agent is!