Why Create A Database for Your Real Estate Business
In real estate, as with many other businesses, your DATABASE is the foundation of your company. If you do not invest the necessary time to cultivate this critical part of your business, it can be a very costly mistake. Many agents either procrastinate or simply choose not to develop their database. Instead, they may try to buy their way into the market. When you constantly reinvent your source of business, the process is both inefficient and unstable.
Simply put, the people you know - your friends, family, and acquaintances - are going to be the source of your initial real estate business. A recent study done by the National Association of Realtors determined that 41% of sellers who used a real estate agent found their agents through a referral by friends or family. Nearly half of all listings on the market select their Realtors not through paid-for advertisement, but rather through a network of the people who they love and trust - their friends or family members.
NOW THAT YOU UNDERSTAND WHY WE CREATE A DATABASE. LET’S IDENTIFY SEVERAL IMPORTANT THINGS THAT YOU SHOULD KNOW.
Important Database Information
Now that you understand why we create a database, let’s identify several important things that you should know.
Developing a database requires focus and patience.
You need to set the proper expectation as you begin the process so that you don't get discouraged and give up. Recognize this activity as the single best requirement that you must do to sustain your business. As with most things in life, the more time and energy that you put into this effort, the better and more immediate your results will be.
How many people do you need to have a FANTASTIC database?
The target is around 100 to 150 people. That’s it! If you are pleasantly surprised by that number, you should be! You will be shocked when you observe how your relatively small, yet carefully-constructed database returns the fruits of your labor!
“But what if I am new to the area and I don’t know anyone yet?
"Don’t worry! You still have plenty of opportunities to create a fantastic database, filling it with qualified individuals. In fact, you actually have a better chance of getting your database and touch system up and going under these conditions. Someone with hundreds of contacts must first organize those contacts, whereas you can start fresh and work your way up! In fact, your very first task is to identify 20 people who could pick you out in a line up. Think out of the box - your kid’s school (PTA), sporting events, neighborhood parties, HOA meetings, poker nights, Canasta, Bunco. There are more opportunities than you may realize at first!
Your database is a living artifact within your business, but it is only as good as the time and energy you put into it.
If you try to rush through the process it will be a disappointing experience for you with few or no results. The good news is that as you begin to see how your database produces strong leads, you won’t have to keep your database updated; you will want to keep it updated! Any time that you make a new, positive connection you will instinctively want to add them to your database.
Studies show that it takes 8 to 10 times of telling a person what it is that you do before they commit that to memory.
That seems like a lot of reminding, right?! Keep in mind, though, that while you might be telling your neighbor, John, for the third time that you are an agent, you will also be telling Beth, the soccer team mom, for the eighth time. You will always be working within your network of connections, so take the time to organically reconnect with the people around you.
If at any time you start to feel overwhelmed, take a breath.
Count to 10. And remember, how do you eat an elephant? One bite at a time! Remind yourself that you don’t need to try to eat the entire elephant at once! Break down the tasks in front of you into manageable, bite-size chunks.
Speaking of “managing,” consider how you manage your time.
Identify the points in your day when you are operating most efficiently. Are you most alert during the mid-morning after your second cup of coffee? Maybe you feel the most energized after lunch and you are sitting back down at your desk. Whenever it is, schedule your time so that you are performing your more challenging tasks during the times when you are firing on all cylinders! You are your boss and you control your schedule, so be a good boss to yourself.
Set a goal and schedule the time to collect the necessary contact information for 25 contacts per week.
That breaks down to 5 contacts per day across 5 days. That’s EASY!
