Mike Pallin Blog

The Daring Young Man On The Flying Trapeze

A wonderful song from another era, another time. But I think of the trapeze artist whenever there is change in the wind, like now when so many businesses have been forced to rethink assumptions, reengineer systems and reimagine their place in the world. How do you let go of the past and grab hold of an uncertain or untested future?

Think of the trapeze. Merrily swinging along. I really like it up here. I'm swinging!

Then I see another swing coming toward me from the other side. The other side where I want to be. I'm guessing if I time it just right, I can move seamlessly from this swing to the next one. I take into account depth perception, the laws of physics, all of the known variables.

Uh oh. I can't reach the swing I want, without letting go of the swing I'm on. If I actually could grab the next swing while holding on to this one, it would tear me apart.

So there comes a mid-air moment, between letting go and grabbing hold. That 'leap of faith' moment, where you need to trust and believe in yourself without hesitation and without a net. Especially when you are attempting to do what a normal person would consider impossible.

The noise from circus crowd disappears. Time slows to nanoseconds. You have to go down to the zero, the little red dot, the core, the center. We could be making a graceful, balletic leap - or a hideous-to-behold, frantic, flailing spasm. There is no sense of how, there is only focus on the bar. Let go. Fly. Grab hold. 

Now take a deep breath and keep swinging.

LET'S CLEAN THIS MESS UP

If a Platinum (multiple referral source) member of your Book of Business called you and said, "Over the years, every time you called me and said 'I need your help,' I referred people to you, and I was glad to do it. Now I need your help. My Aunt Edna has to sell her house, but she can't afford to, because she owes more than it's worth, and she doesn't know what to do. Can you help my dear old Aunt Edna?" What would you do?

Or if they said, "My Aunt Edna is behind on her mortgage payments and she's afraid she's going to lose her home. She doesn't know what to do. Can you help my dear old Aunt Edna?" What do you do?

If you've been WIckmanized, you help Aunt Edna, and you can because you've built expertise, and a team of trusted specialists, to handle distressed properties. They are a fact of life and will be until this mess is cleaned up and the market returns to normal.

And when will that be? And who's going to clean up the mess?

Is the government going to clean up the mess? Some members of our government are well meaning, but really, do you expect them to do much more than work on getting reelected or justifying their budget? The government just isn't equipped to solve this problem. They need our help.

Do you expect the lenders to clean up the mess? Well, don't. It's not their job. They make money, they're not philanthropists. And Goldman Sachs won't clean it up. Nor will the Appraisers, or the Title companies, or Microsoft or Warren Buffett or anyone else who makes money off real estate.

Seems like everyone is waiting for someone else to clean up the mess. How's that working out so far?

Let me paraphrase a famous saying. if it is to be, it is up to us. We have to clean up the mess. But, how?

First, we (all of us in real estate) have to begin cooperating again, like we used to, in the best interests of our clients and the industry. Floyd's blogs about reducing the drama after the deal spell out exactly how to restore the cooperative nature of "co-op" brokerage. (blog.floydwickman.com)

But let me take you back to Aunt Edna and your referral-based Book of Business. Because here is the absolute truth, the 500 lb. gorilla in the room, the acres of diamonds... Aunt Edna has to sell but is upside down, and she doesn't know what to do. Or Aunt Edna is behind on her payments and doesn't know what to do to prevent foreclosure. Aunt Edna is embarrassed about her situation, maybe even desperate.

Every single person in your Book of Business knows someone in one of those two boats. Let's start there. And let's start today. Call everyone in your Book of Business, these people who make our business possible, these people we care about and who care about us, and ask:

"Who do you know who wants to sell, but can't because they owe more than they can sell it for, and they don't know what to do?"

"Who do you know who is behind on their mortgage payments, and they're afraid of losing their home, but they don't know what to do?"

That's how we get out in front of this problem and solve it. One client at a time. One transaction at a time. Starting today. Pro-actively.

There are a couple hundred thousand of us who've been Wickmanized. We believe in the 'Get By Giving' philosophy. If we all started in on solving this today, imagine how much quicker the clean up would go than waiting for someone else to step in.

Love,
Mike

P.S. If you don't have a short sale system in place, and don't know what to do, Floyd put together a complete how-to package with two experts, Bob Daniel and Sham Reddy, who have closed over 800 short sales between them. (www.floydwickman.com)

Three Unmistakable Benchmarks of Success
Benchmark: a standard by which something is measured or judged.
Benchmark: to measure a rival's product according to specified standards in order to compare it with and improve one's own product.

Unsolicited testimonials, repeat business and spontaneous referrals are three unmistakable benchmarks of a successful business.

Unsolicited Testimonials
Floyd says, "Unsolicited wow's are the only sure sign that you've got something," and I agree. When you receive a wow testimonial from a client or colleague - something that says you really exceeded expectations; you delivered exceptional service and results; you created a truly memorable experience - without even asking for it, that means someone you work with has gone out of their way to thank you, to put it on the record, to make it official. They thought of you and expressed gratitude. It's a rare and unusual occurrence in this day and age, and worth its' weight in gold.

We have been taught to obtain testimonials from everyone we work with, since they are a powerful credential and persuasion tool, and they also make us feel good. If you are required to obtain testimonials, you are forced to actually communicate with your clients after the fact, and get their opinion of your product or service. That's certainly a step in the right direction.

Here's a real estate example. You contact a homeowner whose listing has expired - they tried to sell and failed, yet they still want to sell. You win the listing, and it sells. They're happy, and would be happy to tell the world how you helped them when others tried and failed. It's a fairly typical situation these days.

But did you get them to say it in writing, so that the next time you’re faced with a similar prospect, you have compelling personal validation of your superior service? It might not mean that much to a logical decision maker, but only half of your prospects are logical thinkers. The other half are emotional decision makers, and personal stories in the form of written testimonials are powerful persuaders for emotional decision makers.

How do you get such testimonials? Ask, ask and ask again. Then interview your clients and ask permission to quote them. Write it out yourself and take it over there and have them sign it. Send them a template to "fill in the blanks" and ask for a personal favor with a deadline. "I have a very important presentation this coming Monday, and if you could get this back to me by then, it would mean the world to me." If your client is a busy VIP they probably have an administrative assistant who could be enlisted to write the letter, get the boss to sign it, and send it back to you.

Here's how to interview a client for a testimonial. Call and ask permission. We call it Client Care. Basically, it is a Customer Satisfaction Interview. May I ask you a few questions and take notes from your answers? (It also makes a powerful statement when your superior/broker/direct report/President makes the call for you.)

What was your situation when we first got together?

What were the best things that happened for you as a result of us joining forces? (Ask for specifics: numbers, dates, etc.)

What problems did you avoid or get solved? (Ask for specifics: amounts saved, etc.)

Why would you recommend me to others in the same situation?

Would you be willing to take a phone call from someone in a similar situation who needs reassuring?

May I quote you? And then you write up a To Whom It May Concern letter, including their situation; the results; what they solved or saved; what they liked about working with you; and inviting anyone with questions to call.

Now take it a step further into the video age, and get a video testimonial following the same script. It is easier than ever today to store, retrieve and show your testimonials to prospects. Seeing is believing, and seeing video is really believing.

And that's how to get solicited testimonials. Extra effort, but worth it. Different from an unsolicited testimonial, but is there really any such thing as an unsolicited testimonial?

Let me explain. We have a new Associate Trainer, Jennifer, and she just taught and graduated her first Floyd Wickman Program. She received a glowing, unsolicited email wow testimonial from one of her students. In the strictest sense of the word, it was unsolicited, but it wasn't unprompted. Because Jennifer created the kind of relationship with her students that prompted it - by emailing them congratulations and encouragement.

It is the 'Get By Giving' principle in action. If you want respect from the people in your life, give them respect. If you want love from the people in your life, give love to them. And if you want people express their gratitude to you, express your gratitude to them first.

MORE TO COME…

An Industry Trend We Will Regret
I was asked to keynote a client's annual company meeting and awards breakfast recently. A beautiful spread was laid out at an elegant, first class banquet-meeting facility. Prizes, awards, very important information about the future of the industry and the company were presented. The only thing missing was a red carpet and klieg lights.
And yet, only 108 out of 262 agents showed up.
They asked me to sit at the table with their top 8 award winners. All of them long time, loyal agents. The young man sitting next to me looked around the room and said, "I don't know anybody in this room." When I asked what he meant, he said, "We never get together as a company. We never have sales meetings. I've never even met almost all of the people in this room."
The other award winners confirmed what he said, and I thought, "I wonder if they even know what they're missing."
One of the casualties of having to reduce overhead and eliminate brick and mortar has been company sales meetings. They are disappearing, and it's a trend that will hurt our industry.
If my income were dependent on how productive my independent contractors were (and by the way, it is), I would insist on regular, mandatory face-to-face meetings (and I do). Why?
Because while there are things you can accomplish via email, or eyejot, or webinar, or conference call - there are certain critical things you lose without live, face-to-face gatherings. Things like attention level. It's too easy to attend a webinar and multi-task at the same time.
Meetings reward and motivate producers. Meetings eliminate the hiding places of non-producers. Meetings give everyone a sense of belonging to something, and a sense of community, basic human needs. Meetings create synergy, energy, enthusiasm and clarity. Meetings create business. Meetings foster teamwork.
Meetings give leaders the opportunity to communicate their vision, and gauge the buy-in. Meetings give leaders a true picture of what their salespeople look like - the people who are going out into the marketplace representing them.
My biggest concern with this trend is that once meetings become a thing of the past, it's nearly impossible to bring them back. So convert all that unused desk and office space into first class meeting space and let's get everyone together again!

The Ideal Assistant: 50/50 admin - lead generation

Face it, you need help with admin/paperwork/transaction follow up, especially in this era when "short" sales take such a "long" time.

But, Mike, how do I pay for an assistant?

Well, you also need help lead generating, don't you? OK, combine the two. Start small. Four hours a week of each. One work day.

Are you paying for just listed/just sold mailings and not following up with a phone call? Might as well burn the money. Infinitessimal ROI. Imagine how much more effective jl/js mailings would be with personal follow up!

VOICE MAIL message "We've just sold an apartment (home) in your building (neighborhood) and if you're interested in the details, please give us a call at ###, or email me at leadgenerator@yourwebsite.com."

Voice to VOICE: "Would you be interested in having Mike call you with the details? What's the best time for him to reach you?"

The extra commissions you earn from having more leads to work will pay for the admin hours.

Here's a tip, NOBODY is canvassing ANY of the new listings and sales in your market. That includes your colleagues in the office and ALL of your competition. It is one of the great untapped, pro-active lead sources today.

BONUS: The time you save not doing admin can be spent connecting with the leads your admin generates.

THE 30% FACTOR

How many closings do you want/need this year? That's easy enough to figure out: divide your income goal by your average commission. That's how many closings you need. (BTW, if you're already confused, the rest of this won't help.) So, now what?

Start with the % of your listings that sell and close, and add The 30% Factor to it. Example: If half of your listings sell and close, that's 50% + 30% for a total of 80%.

Now divide the number of closings by 80% and that will tell you how many listings you need to bring in.

Example: I need 40 closings. Half of my listings sell and close. I add 50% and The 30% Factor for a total of 80%, and then divide 40 closings by 80% and the answer is 50. I need to bring in 50 listings to have 40 closings.

Here's another example. I need 28 closings. 40% of my listings sell and close. I add The 30% Factor to 40% for a total of 70%. I then divide 30 closings by 70% and I need 40 listings.

What's the 30% Factor? That's the magic part of being an effective lister. Listing inventory creates inquiries; creates buyers; creates offers and sales.

If I bring in 40 listings, I WILL put 12 sales together from that listing activity. The 30% Factor.

Now, let's apply that to our 28 closings example. Remember, 40% of my listings sell and close, and we add The 30% Factor for a total of 70%. Divide 28 closings by 70% and I need 40 listings. 40% of 40 listings is 16 sold and closed. And 30% of 40 listings is 12 buyer sales created. 16 sold listings and 12 buyer sales and I have 28 closings.

What's the point? Don't worry about where the buyers will come from. We can only control that to the extent that we bring in inventory. Real estate is an inventory business, and when a business is out of inventory, there is no business.

Control your business by controlling your inventory level. And control your inventory level by controlling your listing activity. As Floyd says, "You can't do dollar volume, but you can do a listing appointment." Put The 30% Factor to work for you.

There's an old joke that goes, "What's the difference between a speaker and a trainer?"

The answer is, "About $100,000 a year!" And everyone laughs, especially anyone who ever had to sit through a deadly CE class.

The truth is most trainers don't understand what training is, and that's why most people don't enjoy, learn from and remember most training. An effective training class, whether it's 90 minutes or 42 days, is experiential and interactive, the exact opposite of most "sit-and-listen" training experiences. There is some sit-and-listen, but there also has to be go-out-and-do for learning to take place. Hence, Floyd's philosophy of "Education without application is worse than worthless."

Back to the original joke, er point. What's the real difference between a speaker and a trainer? Speakers teach, speakers entertain and speakers motivate. Most trainers don't teach effectively, don't motivate sufficiently or entertain well enough to hold attention and interest.

Speakers who can teach, entertain and motivate are the real trainers in this world. They bring their audiences back from breaks, whether the break is 10 minutes or 6 days. And they get invited back by their clients.
Why? Because speakers who teach, entertain and motivate give people what they want and need today. They provide a learning experience that is also fun and energizing. They open minds. They inspire. And most of all, they give people the courage to change.

That's what Floyd means when he says, "We don't develop trainers, we develop speakers who teach."

LFT's

I lost one of the mirrors on my car over the weekend, and it's slightly disturbing to drive without it. Amazing how many times we check the rear view when going forward. The relative size of the rear view mirror to the windshield holds a lesson about perspective. If the rear view mirror took up the whole view, we'd never go anywhere.

My friend Cathy Shepherd introduced me to the term LFT a few years ago, and it made a big difference in the attitude department. LFT stands for Look Forward To. Floyd says, "Schedule vacations in advance," and a vacation is a form of LFT. But it could also be a half day at the spa, or playing the back nine at twilight.

Whenever I have something difficult or unpleasant to do, I try to sandwich it between some LFT's. A little reward if you will for getting it done. Or to paraphrase, the three keys to happiness are: something to do, someone to love, and something to look forward to.

Two sentences

Triiibes asked me this morning, "If you had only two sentences to share your most valuable business advice, what would they be?"

Mine are both from Floyd (of course) and they are:

1. Hire people based on character first, and then ability.

2. You can't fine tune anything until it's first consistent.

Push - Pull

As we all work to get the economy going again, a few thoughts inspired by Floyd"s philosophy . . . "Trying to make someone love you only pushes them further away."

What does love have to do with the economy?

Love is the strongest emotion, and our economy seems to rise and fall on a tide of emotion. How we "feel" about things, consumer confidence for instance, affects everything from saving to spending to investing.

If it's true that emotions control our economy, it seems to me we still have a very immature economic system. Maybe the more we try to fix the economy, the further away we push a real recovery.

Maybe the way we fix the economy is to begin by fixing ourselves individually, and stop looking to Mom and Dad (the government) to solve all our problems for us and bail us out of this jam.

Floyd also says, "You can't control THE economy, but you can control YOUR economy." Our company and his program has been proving that over and over since 1979.

Trying harder isn't the answer. That only pushes the real solution further away. Just for today, I'm going to try "pulling" my own weight, and not worry about someone else coming to the rescue.

On the radio

The host of a nationally syndicated radio talk show I was listening to recently said he couldn't understand how so many banks have gotten into such deep trouble; that every time he hears an economist trying to explain what's happened to the economy, he gets more confused; and that he wanted "smart people" who were listening to send him an explanation he could understand. 

For some reason, I knew I had to speak up, not because I think I'm so smart, but only because I'm so opinionated. And I had this hunch that he would read my email.

Well, the host comes back from commercial break and says he's received over a hundred emails in just the last few minutes, but this one made the most sense to him, and "It's from Mike in Ann Arbor, where there are lots of smart people," and proceeded to read my email over the air to millions of people! Part of my fifteen minutes!

Here it is:

It's so simple it's ridiculous. Everyone got caught up in speculation, including those formerly conservative investment bankers. The solution is simple, too. We must return to an entrepreneurial economy, and regulate speculation (like commodities, hedge funds and indexing). Entrepreneurs create jobs. Speculators feed off an economy without contributing anything of value.

There you have it. A blog about an email being read on the radio and simulcast on web TV.