E-64 Lead Quality Question

[KRobby]

I have PROVEN the 3 questions to be pointless. John Galt saw me go 5 for 5 without ever mentioning the "3 questions" or getting their "WHY". Sold 4 DM leads and 1 Avatar lead using the same strategy each time.


I took out the "3 questions" approx 4 months ago as a test. I mentioned on a training call that I was experimenting with tweaking my presentation to eliminate it all together. My results are embedded in my AP and efficiency in the home. Avg time per sale even after phone interview is about 35 min.

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I don't need to find out their why. I need to find out how much they can afford and when the best time for withdrawal will be

Great post and now that a few years have passed it's the appropriate time to ask. Since you have several big time producers, many of which were taught by you, do they also assume the "why" and pivot when/if needed or do they use the 3 reasons (or some other method) to first find a "why"?

 

[DayTimer]

Since you have several big time producers, many of which were taught by you, do they also assume the "why" and pivot when/if needed or do they use the 3 reasons or some other method to first find a "why"?

What happens on The squad, stays with The Squad.

 

[KRobby]

What happens on The squad, stays with The Squad.

Ayy you're back..

 

[DayTimer]

Ayy you're back..

Matt's giving me the night off, but back on the doors tomorrow at 6 AM

 

[goillini52]

Seems like Spur is assuming the sale from the start which is a nice time saver and is always worth a try at the outset. I'm sure if he's met with resistance, he will then pivot to the why.

Yep. Always Be Closing!!! When they're ready to buy...shut up and start writing. You don't have to do the entire presentation with everyone. ABC.

 

[tikibarrister]

The economics of FE have always somewhat mystified me.

Let's say you buy 20 leads at $30 a pop. Outlay: $600.

Typical FE commission is $600ish first year, right?

So if you close 1, you've broken even.

Close 2, and you've paid for gas and wear/tear on your car.

Close 3 and you've covered the one you'll lose to chargeback.

Close 4 and you're making minimum wage. $600 per week is $30K/year (I'm giving you two weeks vacation a year), or $15/hour minimum wage.

Close 5 and now you're into actual money. With 2 weeks off a year, that's $60K/year.

Close 6 and you've climbed into the middle class at $90K/year.

Of course, these numbers assume you are very consistently closing that same number every single week, or averaging out to it.

Are most people closing 30% (6 out of 20) of their leads? Are most closing 20%? If you are only closing 20%, then you're paying a ton of money and taking on a ton of uncertainty and risk to replace a McDonald's-level job.

I realize there are (tiny) residuals, but of course there are also deaths and dropoffs.

 

[KRobby]

The economics of FE have always somewhat mystified me.

Let's say you buy 20 leads at $30 a pop. Outlay: $600.

Typical FE commission is $600ish first year, right?

So if you close 1, you've broken even.

Close 2, and you've paid for gas and wear/tear on your car.

Close 3 and you've covered the one you'll lose to chargeback.

Close 4 and you're making minimum wage. $600 per week is $30K/year (I'm giving you two weeks vacation a year), or $15/hour minimum wage.

If you're paying 90 grand a year in leads, gas and chargebacks from only 20 leads a week, don't forget the 500k tax bill.

 

[KRobby]

Yep. Always Be Closing!!! When they're ready to buy...shut up and start writing. You don't have to do the entire presentation with everyone. ABC.

Yep but this is from the start of the conversation, not when they're ready to buy. There's a very large percentage of agents that consider it necessary and an absolute to uncover a why early on. Even those that consistently preach "assume everything". So it'd be interesting to see if other agents followed suit to Matt's successful 2015 elimination of the 3 reasons (and used on an as needed basis), or if he's an aberration. #neverstoplearning

 

[UKTX]

The economics of FE have always somewhat mystified me.

In some ways the biz of FE can be like the dog chasing his own tail. Especially in the early days.

That's one of the reasons for high failure in this business. Agents have to be as good at, if not better, at managing their money than they do actually selling the stuff.

 

[HoosierLife]

In some ways the biz of FE can be like the dog chasing his own tail. Especially in the early days.

That's one of the reasons for high failure in this business. Agents have to be as good at, if not better, at managing their money than they do actually selling the stuff.

You're right about that. Money management is a Pre-requisite in this business. I didn't know my left hand from my right hand, but I knew chargebacks were going to come, taxes had to come from somewhere.

Just seemed logical to hold back 20% of all my commissions into a separate checking account. And keep my business and personal accounts separate.

What seemed like common sense to me, we teach our agents literally in Step 1 in our training platform.