In commercial real estate today, you need lots of opportunities to generate meetings and potential listings with new people and property owners. You need a system to the contact process so the opportunities are self-perpetuating and they can help you grow your market share over time. On that basis I love using prospecting letters as a basis of activity for the new business pipeline.
Prospecting letters are now reaching a new level of effectiveness given that most agents will typically use e-mail contact with prospects and property owners. Here are some critical facts to help you establish your prospecting letters process:
- The creation and dispatch of a prospecting letter to a specific property owner will usually be read. The letter should be personalised and no more than three paragraphs in length. The letter should be designed to introduce your telephone call that you will be making to that person within the next few days.
- You can send success letters to property owners and business proprietors in the general area of your recent completed and closed transaction. The success letter will also be a reason for personal contact and telephone calls.
- If you send a prospecting letter or a success letter, always enclose your business card. Refrain from enclosing any other printed material as this will generally be seen as a marketing strategy and not a personal approach. Your letter that needs to be seen as a simple personal approach with the business card. Your letter is introducing your subsequent telephone call with the chosen person.
- You should only send out approximately five letters per day. On that basis you will be making five telephone calls in approximately four or five working days. The system is self perpetuating and will build your database significantly over time. Do not send out any more than 5 letters per day, because the follow-up process will always need to be done on a daily basis and that is a personal process.
- Keep an eye out for other agents boards being placed on properties in your local area. These signboards are of a trigger for you to direct mail the property owners and the business proprietors in the immediate vicinity of that competitors listed property. You can use the other agents listing as a trigger for personal approach to these other people.
If you are struggling with your market share and need more new business opportunity, the prospecting and lead a process is highly effective over time. You should be sending letters to the same people every 90 days and making the necessary follow-up calls as appropriate. This regular cycle of contact will help you build your market share.