The Cultivation and Conversion Curve
The lows of your business patterns can be just as scary as how great the highs feel. How can you develop your business and stay in the green-zone longer? It's all about looking ahead.
As a real estate professional, there is nothing as fulfilling as being on the crest of the Cultivation and Conversion Curve - and nothing is as debilitating and defeating as being in the trough.
Let's take a closer look at what the Cultivation and Conversion Curve looks like! Below is the typical cycle I see with real estate agents who are challenged by the ups and downs of the Cultivation and Conversion Curve:
- They have no business and realize they need to get busy.
- They spend a lot of time focused on client care with their database and potential clients.
- They get busy serving those current clients and no longer spend time on client care with clients who aren't right in front of them.
- Those transactions close and they are happy.
- They spend the money and get some rest.
- They panic because they have nothing in the pipeline and the cycle starts again.
The Cultivation and Conversion Curve
Most of my client calls come at either point #3 or #6.
- When they call point three, at the top crest of the curve, their calls are more of a problem-solving nature: "Help me get this transaction to close."
- When they call at the bottom trough of the curve trough, at point six, their calls are usually emotional: "I am never going to sell another property again!"
What Went Wrong?
Yikes! When the market is more inventory balanced, agents face challenges like working with current clients, getting the listing ready for seller clients, helping buyers search for property. The agent is productive and taking action with their current clients. However, this doesn't leave much time for the agent to work their potential clients who are further away from doing a transaction. It doesn't leave much time for keeping in touch with past clients either. The next thing agents know, the transaction is over and the agent doesn't have any ready potential clients to work with!
When market inventory is scarce and challenged, time spent in the bottom of the Cultivation Curve trough is even scarier.
What Could Have Been Done?
In a perfect world, the Cultivation and Conversion Curve would be much less pronounced. You wouldn't ever get to the red section! That is why it is crucial to carve out that time to work with potential clients. When I was working as a full-time agent, I needed about one focused hour a week to keep potential clients moving forward in my pipeline.
It is also crucial to stay top-of-mind with past clients too. Their referrals and return business help sustain you and give back to you the effort that you put into developing that business relationship. To cover your bases there, all that really takes is a monthly newsletter. That can be easy if you have a template for it, but it can be even easier if we are handling that campaign effort for you. Check out our LeadMagnet services to learn more about how we can help.
Where in the Cycle Are You?
Think about your business right now. If you are sitting in the red zone wiped out from closings or have just been sitting here for a while, consider this:
Where you are today is a direct result of action you took or did not take six to eight weeks ago.
What were you doing six to eight weeks ago? Were you on vacation? In the middle of transactions? Maybe you are on a different part of the curve now because you actually were spending a lot of time with your potential clients then. Maybe then you were working the heck out of open houses and were working with a lot of buyers. Maybe you had a listing and were sending out letters to the neighbors, letting them know about the property you had listed.
If you were taking effective action six to eight weeks ago, I would be surprised if you weren't in the greener part of the curve today.
Ask yourself, what part of the curve do you want to be in six to eight weeks from now? What action are you going to take today to get yourself into a different part of the curve? Even if you see yourself coming up to the top of the curve and you have been working hard, take an hour or two every week to take care of those potential clients or get more potential clients by doing some lead generation. You have to take action to stay out of the red area.
Be kind to your future self and take action today!
By Denise Lones CSP, CMP, M.I.R.M. - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.