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Does Outbound Calling Work in Real Estate?

Real estate agents often ask, “does outbound calling work,” or, “does cold calling work?” The answer is at the end of this post, but first it’s important you know why. Real estate agency is competitive and has a long ramp-up period. New agents are super motivated and are eager to be proactive in order to drum up business. This means holding open houses for other agents, sending direct mail, and even picking up that ice cold sales phone to dial for dollars.  While outbound calling is  better use of time than additional training for agents, it’s not a good use of time.

Several years ago and before, let’s just say 2007 and earlier, outbound calling was still a fairly effective way of generating business. However, a lot has changed since then. The internet has become a huge factor in consumer thinking. If a consumer is considering a service or even using a particular agent they will go online and do some investigatory tail sniffing to see if they check out as a professional. This has created a major shift in how professionals and consumers meet. We’ve moved from sales-system oriented marketing to relationship-based sales. Social media and internet presence meet consumer research. Connections are made and quality informative content is delivered to consumers which often results in a sale. This is unequivocally a higher quality way for consumers and professionals to choose to work together. Consequently, it makes outbound calling look more desperate and less credible. The relationship model has has been naturally selected over outbound calling as the winning marketing strategy.

It’s not enough to just say that outbound calling is less credible as the reason why it’s not as good. It’s also important to mention that because it is an outdated method facing extinction, the conversion rate is worse now too. This makes it harder for the remaining die-hards still out there in the boiler room trenches. Will these outbound callers drum up any business through cold calls? Some might, but at painfully thin conversion rates which beg a bigger question – is cold calling a reasonable and sustainable longer term business model? The answer is simply NO.

Cloud Storage for Real Estate

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 What is cloud storage and how it applies to Real Estate

By now most agents know what cloud storage is and how beneficial it can be for real estate agents.

Balboa Real Estate Turbo Transaction

To put it simply, cloud storage is a way for all your real estate documents and forms to be loaded onto a server that allows an agent to access them from any computer at any giventime. This server where all your files are stored on is called the “cloud.”

If you have gmail, hotmail, or any web-based e-mail then you are essentially already usually cloud storage. This is because all your e-mail and pictures that people send is stored somewhere else. An e-mail cloud is remote storage so you can access your e-mail from any computer with internet access.

If a real estate agent applies the same concept of accessing an e-mail cloud and applies it to accessing real estate transactions online, then they are using a real estate cloud.

Balboa Real Estate has developed a proprietary cloud exclusively for real estate transaction management.  It is entirely free for agents to use and the fastest and easiest way to submit completed files.

Once a listing is taken an agent can log on and in a matter of seconds upload the listing agreement. Same idea working with buyers. Any document uploaded can be accessed online and sent to any e-mail address at any time. Lost documents become a problem of the past.

When an offer is received on a listing an agent can open escrow, request a preliminary title report, and order and NHD all with a click of the button. This gives the agent a running start on expediting the transaction.

When an agent or the transaction coordinator uploads transaction documents throughout the escrow the the file will be complete so that there won’t be any last minute paper shuffling.

Turbo Transaction is another member service available for Balboa Real Estate agents. We offer agents 100% commission and residual income.

 

 

 

How and Why Realtors Should Promote Community Pages

I came across a phenomenal article that gives several great examples as to why real estate agents should have community pages for marketing.

 

Before I post the link to this wonderful in-depth article I must offer offer my own marketing insight along with it:

Your website should be as targeted as can be. Such as a Neighborhood, tract of homes, an enclave, even one complex.

If you are targeting more than one area then you need more than one website.

Your website should be loaded with valuable content on your niche area.

You should utilize a blog to add updated niche information.

Your website should be associated with these social media tools:

  1. Facebook
  2. Pinterest
  3. Google Plus
  4. Twitter
  5. LinkedIn

 

I’ve said enough for now. Please enjoy the marketing information you’ll learn from this article:

CLICK HERE FOR ARTICLE LINK

 

 

100% Commission Real Estate in Southern California

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Balboa Real Estate is Bringing 100% Commission Real Estate to the Inland Empire.

Balboa Real Estate is headquartered in Orange County, but quickly expanded south to San Diego and north to the San Fernando Valley.

Naturally, as we expand we join the local associations or realtors.  Below is a list of associations of realtors of which Balboa Real Estate is a member.

100% commission real estate in Orange County | Orange County Association of Realtors (OCAR)

100% commission real estate in the San Fernando Valley | Southland Regional Association of Realtors (SRAR)

100% commission real estate in Ventura County | Ventura County Coastal Association of Realtors (VCCAR)

100% commission real estate in San Diego County | San Diego Association of Realtors (SDAR)

100% Commission real estate in the East Valley Riverside County | East Valley Association of Realtors (EVAOR)

100% Commission real estate in the Inland Valley Riverside County | Inland Valley Association of Realtors (IVAR)

We offer the two best 100% commission plans in the industry:

Option #1: Agents pay $900 a year and keep every penny of commission.

Option #2: Agents pay $495 per transaction or 10%, whichever is less.

 

Methods of Compensating Real Estate Agents – Commissions and Splits

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This article gives a great  overview of real estate commission plans. More evidence that our commission plan is undoubtedly the best in the industry.

You can read the article below or click here for the original, enjoy:

The Broker/Agent Traditional Commission Split Model:

The vast majority of real estate agents are compensated by a broker via sharing the gross commission amount that the broker collects. Here’s an example:
1. Gross commission amount of a transaction = $12,000.
2. Broker/Agent split of 50% broker/50% agent = $6000 to the agent.
3. The percentage split is an amount agreed to by the broker and the agent and usually reflects the amount of services and support the broker provides. It can also reflect the volume of business the agent brings in.

The 100% Commission Model:

In this compensation model, the agent gets the entire commission. This model can pay 100% to the agent because the agent is paying a “desk fee” or monthly office fee. This can be a significant amount/month, but experienced producers prefer it because their costs are capped while their income is not.
Example from above would be $12,000 to agent, but office fee could be $1000/month or more.
New agents generally are not interested in this model because of the fixed cost they must pay monthly.As of 2013, this model has almost disappeared, with even REMAX taking on new agents with less than a 100% commission.

Referral Fees from One Brokerage to Another and Agent Split:

Referrals come “off the top” before commission is split. The referral is a negotiated percentage paid to another company for sending a client, either as a seller or a buyer. Here’s an example of a typical buyer referral:
1. Brokerage A refers a buyer to Brokerage B in another state.
2. Using the $12,000 gross commission from above, and an agreed referral fee of 25% would give Co. A $3000, and Co. B agent and broker would split the remaining $9000.

Percentage Paid to Franchise for Business:

Some of the major franchises charge a percentage fee “off the top” of each commission to their franchisees. This fee would come off the top of whatever amount the Broker receives before splitting with the agent. Using a 7% franchise fee as an example:
1. $12,000 gross commission from deal would pay franchise $840, while broker and agent would split the remaining $11,160.
2. On the referral deal from above, the franchise percentage would come off of the $9000. Agent and broker split $8370.

Other Compensation Models:

With differing models appearing regularly for how brokerages charge their listing and buyer clients, there are many other ways an agent might be compensated….even by a salary.
For a new agent, the split negotiated with the broker should be carefully considered based on the services and anticipated prospect leads that will be received. Sometimes a 45% agent share can be better than a 60% share with little business coming from the broker.

100% Commission Real Estate in the 1980’s?

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This is quite hilarious, apparently 100 percent commission real estate is a relatively old concept.

This article, dated September 16, 1985, talk about the 100% commission trend in Florida

It’s surprising to see he charged $400 a month plus a transaction fee. Even in 2013 dollars that is way pricier than what current going rates are. 

You can find the original here or just read below:

Brokerage Trend: 100% Commissions Wall Street Company Switches To New Concept

September 16, 1985|By Jack Snyder of The Sentinel Staff

If real estate broker Jim Weinberg is right, the 100 percent real estate commission concept is going to be the coming thing in the residential real estate sales industry.

Weinberg has just converted his Wall Street Company residential brokerage from the conventional commission split structure to the 100 percent commission approach.

That means sales associates working out of Weinberg’s offices will get all of the commission they make on a sale. Previously, the associate got anywhere from 50 percent to 75 percent of the commission,depending on how much business the sales agent was producing.

In return for getting the entire commission, sales associates will now pay a $400 per month desk rental fee plus a small transaction fee on each sale. The associate also pays personal expenses such as long distance telephone calls, car expense and advertising. Associates in conventional brokerages pay a certain amount of their personal expenses now — car expense, for example.

Weinberg provides receptionist-secretarial help, access to the Realtor board computer, plat books, a full-time noncompetitive sales manager, training and a relocation system.

”It’s a win-win situation for both the broker and the agent,” Weinberg said.

The 100 percent commission concept surfaced several years ago, but has grown slowly in this market. A couple of years ago there was just one office — 100 Percent Realty — in the Orlando area utilizing the concept.

But the REMAX 100 percent franchise system moved into the area about a year ago and ”has done quite well,” Weinberg said.

Under the old commission system, for every 20 sales agents a broker had, four might be top producers, four might be so-so and the rest might be coming and going, he said.

Weinberg said all four Wall Street Company offices — Lake Mary, Maitland, Altamonte Springs and Winter Park — will be converted to the new system.