By cultivating your farm, you’ll earn much more annually.
In a previous guide, I discussed how you could add $100,000 to your annual income by using your sphere of influence. However, this isn’t the only way that you can boost your earnings. Today we’ll be talking about another strategy that could tack on an additional $100,000 to your bank account each year. It all revolves around cultivating your “farm.”
Here’s how the farm metaphor works: When a farmer wants to grow a crop, they follow a formula. They clear the land, till the soil, plant the seeds, fertilize the soil, water it, keep weeds out, harvest the crops, and finally get paid. In real estate, we do the same thing when we want to make something grow: We follow a formula.
First, we choose a neighborhood of 250 to 500 homes. We call the title company to get a list of all the homeowners in the neighborhood and their addresses. We search through the neighborhood to see which properties are for sale, which ones recently sold, and everything else related to real estate sales. We use this information when we speak to the homeowners, whether it’s by phone or by knocking on their doors.
“If you want your business to grow, you need to cultivate your relationships.”
We gather more information through our conversations so we can follow up with them in the future. Essentially, we’re creating relationships inside the farm to generate business from within it. We invite people to work with us by asking them when they plan to move, or if they know others who plan on moving soon. We also tell them to share our information when they speak with potential buyers and sellers. As you do this, you’ll build up a rapport with many people in the neighborhood. They’ll reach out to you when they’re ready to sell, you’ll close the deal, and you’ll get paid.
You also need to add to your database in order to create a larger farm. Let’s say you already have 250 to 500 people in your farm and add another 200—if one in 10 reaches out to you, you’re adding at least another 20 sales to your yearly income. This will easily get you over $100,000 per year.
To summarize, if you want your business to grow, you need to cultivate your relationships. If you have any questions or would like more information about growing your real estate business, feel free to reach out to me. I look forward to hearing from you soon.
