First . . . you pick a farm area. Find an area of 200 homes that have had around a 10% turnover in the last year. That is a potential of 20 listings in the coming year. Find out from your MLS if any one Realtor has listed more than a third of the homes. If that is the case, find a new area. In most instances you will see one or two homes being sold by any one agent. That means you can work this area and take over as the agent that most people will turn to to list their home.
Or . . . you could just mail to your SOI (Sphere of Influence) if it is 200 or more!
You order 200 postcards per month to be sent to the farm area. That will cost you $ .83 each. A $166 investment per month. $1,992 per year. You should see a 30X return on that investment. It does however take about 3 years to get there. The first year you should see one or two listings. The second year that number will jump to around four or six. and the third year is when you will see it start to really happen. You should see 8 to 12 listings just from the Postcards.
Your gross commission on a $300,000 house @ 3% Commission will be $9,000. So if you only sold one house in the first year, the commission will pay for the program for the first four years. If you List 8 homes at an average of $300,000 and are paid a 3% Commission you would earn $72,000 per year. If you receive 30X your your investment back, 30 times $1,992 is $59,760.
You will be doing quite well and want to increase your farm to 1000 very soon. We work with around a 1000 agents that do just that and our average agent has been with us now for 15 years! New Method has been doing these Postcards for the last 32 years. Our Realtor Clients stay with us because it works!
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