The Most Important Success Factor for the Real Estate Seller

Article inspired by Myers Barnes conference

Discovering a model that simplifies professional success has been the task of great minds at an international level. One of the most famous theories was written in the 60’s, where IQ (Intelligence Quotient) was made popular. The belief was simple: the greater one’s intelligence, the greater one’s possibility of success. To this day, the IQ concept is still recognized, although it was not long before it had been discredited as a predictor of success. In its place, arrived theories of emotional intelligence, or EQ. Under this new approach, many factors related to the social capacity of an individual could possibly explain a person’s success. However, today neither the IQ nor the EQ is enough to explain success, especially in sales.

Myers Barnes, a real estate industry theorist in the United States – as well as a close friend – became obsessed with finding a formula specially to help our industry sellers. For months, he approached to the most successful sellers of multiple companies and sought conclusions in all areas, including intelligence, emotional intelligence, preparation, and focus. He always looked for practical findings that could offer the seller a starting point for success.

The first major conclusion that appeared in the course of the study was the increase in closure probability based on the number of times a seller appeared to the customer. If a salesperson can contact a customer 2 times (ideally face to face), his sales probability would be 1.4%, 3 times 9% and 6 times 41%. It was evident that most of the salesmen were intelligent and emotionally skillful, but were not able to get enough contact with the customer. Without the necessary contact with the client, they didn’t get the chance to narrow the relationship and transmit the emotional and trust elements required for a sale of such magnitude.

On the other hand, the investigation also concluded the difficulty that a salesman experiences when he tries to contact his clients. While 2 to 3 attempts had to be taken before, today, on average, 7 contact attempts are taken to achieve a 94% chance of contact. More contacts do not substantially increase the likelihood of locating the prospect.
I’m shocked by the number of contact attempts a seller has to make in order to get in contact with a client. But are you sure this number of attempts represents the attempts a seller should make EVERY time he contacts his client, or just the FIRST time?

Integrating both conclusions, each sales process actually requires a commercial effort of 42 attempts (6 effective contacts to achieve the highest sales probability x 7 attempts to achieve each contact). Thus Myers realized the emergence of a new model in the understanding of success in real estate sales: the coefficient of persistence (PQ).

The persistence quotient is a new model that seeks to explain the commercial success by the resilience that the sellers require facing a new market concept. In this model, sellers who are more tolerant, patient and orderly have an advantage over the previous model of “shark” sales. In the same sense, the seller becomes a trusted information curator who is always close to his client.

Myers warns that persistence should not be synonymous to aggressiveness. We want a perception of closeness, professionalism and immediate response. We do not want to invade the client or suffocate him.

Undoubtedly this approach is a new vision that comes to adjust previous models. It is clear that the ideal combination for success comes from IQ, EQ and PQ. Especially in sales and at the time we live in now, persistence and resilience may become the most important qualities.

* Carlos Muñoz 4S has had the persistence of helping real estate throughout his career. You may have more PQ than your outstanding IQ of 130. Find out at: carlos@grupo4s.com

Advertisements
Categories: Tags: , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s