The secret to prospecting for listings is turnover. If your prospecting database turns over at a rate of 10% a year compared to 5% a year you have doubled your chances for more listings. Imagine if your turnover was 20% or 50% or 80%? Now you can. Rainmakers call it “niche marketing” or “target farming.” It’s one of the hottest techniques to generate listings in the new market.
Here’s how it works. Rather than farming a geographic area, Rainmakers build a mailing list of homeowners who are “most likely to move.” Yes, mailing list. Good old reliable direct mail. Why direct mail? Direct mail is the ideal way to reach a niche market because e-mails are not available and the Do Not Call List restricts phone. That’s why niche marketing is built around postal addresses – the natural identifier of a potential property listing.
On a regular basis – often weekly – Rainmakers add names to their list. The total is only limited by budget — and the Rainmaker’s ability to manage multiple listings. The names are collected from many sources (often title companies are very useful; others use virtual assistants to do the niche research). Prospective sellers are typically NOT neighbors, but are scattered around your target market area. Lists can be small or large, and the list is constantly shifting. Regardless where the prospects live, as the Rainmaker, you know they are most likely to move soon and you want to be the real estate specialist they contact first (NAR research shows 69% of sellers in 2008 listed with the first agent they contacted).
Every prospect is mailed a monthly newsletter , typically for 12-18 months, which is the ideal horizon for the motivated prospect to move. At the end of the initial campaign, Rainmakers drop the old name and move the mailing piece to a “fresh” prospect. In addition successful Rainmakers often supplement their monthly newsletter campaign with Just Listed and Just Sold mailings and market statistics . Ideally some or all of these mailings are sent first class with a postal endorsement (“Return Service Requested”) to clean the list and weed out prospects who move without contacting you.
10 Target Listing Niches To Scratch
What are some of the most productive “most likely to move” niches? Here are 10 of the best niches. Every market has it’s own most likely to move homeowners that you can identify.
- Newly divorced,
- Notice-of-default owners,
- New parents (by birth and adoption),
- Newly weds,
- Equity owners who bought 3-5 years ago,
- Move-up prospects whose home is below market average,
- Newly inherited or deceased
Find your niche and scratch it!
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