We all know prospecting is one of the best ways to win new deals, build your market presence and strengthen relationships. But did you know consistent prospecting offers two massive, yet largely unexpected benefits?
In his book Commercial Real Estate Power Brokers, Jim Gillespie breaks down some of the most effective prospecting techniques brokers can use to strengthen their business. Along with the well known benefits, Gillespie sheds light on two little known reasons everyone from junior brokers to seasoned veterans should never stop prospecting.
From building a network of top clients to consistently earning stronger commissions, here are two reasons you should make prospecting part of your daily schedule.
1. Consistent prospecting elevates the quality of your clients
If you are consistently prospecting, a time will come where you collect more leads than you can pursue. Contrary to what some brokers believe, that is not the sign that it’s time to finally stop prospecting!
We know prospecting can be tough and often falls to the bottom of the to-do list, but as Gillespie points out, the more you prospect the more control you have over who you work with.
Once your workload fills up and the leads keep coming, you can hand pick which deals you will pursue and which you will not. And rather than letting the excess deals go to waste, seize the opportunity to hand them off to a trusted colleague. Doing so may earn you a referral fee, but even if it does not, both your contact and colleague will thank you for the connection. Do that enough times and you will earn a reputation as a dealmaker and a key person to know in your market.
Once you have more leads than you could possibly follow, make a point of only working with your best clients. Over time this will help you build stronger relationships and cement trust, and in an industry that’s all about relationships, that’s something your bottom line will thank you for.
2. It increases your average commissionAnother side effect of having more leads than you need is you can decide to only work on the deals offering the best commissions. Whether that means picking deals that will finish faster or deals with a higher dollar value, either way consistent prospecting will boost your average commission.
Too many brokers feel like they need to chase down every lead that comes their way. While this may make sense when you don’t have a full pipeline, it’s not the type of mindset you want to embrace.
Instead of putting down the phone every time a new lead comes through the door, consider this — there are good, average and bad deals in every market, and if you want to work on the best deals then first you need to identify those leads. If you stop prospecting when you feel like you have enough leads, you will never uncover the strongest leads still on the market.
But sooner or later your competitors will, and you’ll be stuck working on lower-commission opportunities that, if you had continued prospecting, you could have traded for higher-commission leads.
Don’t stop prospecting just because you have enough clients
No matter how busy you are, set aside time everyday to make new connections and uncover the latest leads in your market. You could discover a deal better than anything in your pipeline, and if nothing else, doing so will invigorate your network and help you build better relationships with market leaders.
Complacency is a one-way road to stagnation, and while there’s nothing wrong with following every available lead, don’t let doing so keep you from pushing your business forward. Whether it’s using the right technology to make sure nothing falls through the cracks or updating your email marketing campaigns, keep your pulse on the market everyday. While you may ultimately attract more business than you can handle, that simply gives you the power to decide who to work with.
If you want to build a stronger network and increase your commissions, start by prospecting everyday. It’s really that simple.