TNS Podcast Episode #47 with Elise Montgomery
Why Checking in on Your Real Estate Business Plan Will Help to Increase Your Focus and Your Number of Deals
All right. We are live, and we are back. This is episode number 47. I took a little bit of time off from the podcast, so if you guys have been missing us we got some really good guests lined up, and coming to you very, very soon. Today, we've got a very special guest, Elise Montgomery, top Tom Ferry business coach is joining us, but first let's introduce the podcast. I'm a little bit rusty, so bear with me.
Kelley: This is episode number 47. Welcome to the Thrive Not Survive Podcast. This is a show we put together to help you the real estate agent put actionable strategies into practice to help you grow and take your real estate business to new heights. Now, I'm going to read off Elise's bio, so we have a good idea as to who it is that we're talking to, and then we're going to dive into the topic today, which is checking in on your business on a quarterly basis.
Kelley: This is going to be good, you guys. I think you guys are going to really like this one, if you're not, if you don't have a business plan go back and watch episode number 25, listen to episode number 25 go and download the two page business plan that Jeff and I put together. If this is something that you guys are really interested in, and doing, and we've got some stats and figures that, let me read Elise's bio, let's get into this.
Kelley: Elise Montgomery is a business coach with Tom Ferry International, a leading real estate coaching company worldwide, and works with clients across North America. She has had the privileged to coach clients to multiple six, and seven figure incomes, and many have doubled their income within the first year of coaching with her. One client recently discovered that her new monthly income was her previous yearly income. That is massive.
Kelley: Whether it's getting lead generation sources consistent, having powerful systems to reduce time and increase income, or overcoming limited mindset and beliefs, Elise, works with her clients to take their business to the next level. She places a heavy emphasis on systems and structure in your business, so you get to create a business that serves your life, not the other way around. Elise was previously a top producing realtor in Calvary, and built her business to give her a powerful lifestyle, while raising her son, and traveling. Here's a fun fact, she has run five half marathons. That is freaking awesome. Including the Canadian Death Race. I didn't know that you did CDR.
Elise Montgomery: Yes, sir. Yeah.
Kelley: Did you do thee whole thing by yourself?-
Elise Montgomer: Leg five in the middle of the night.
Kelley: Wow. Okay. I did leg two back in, I got my coin around here somewhere.
Elise Montgomery: Oh, no way.
Elise Montgomery: Yeah. That was a wild ride.
Kelley: I think it was 2014, or something like that. Anyways-
Elise Montgomery: Cool.
Kelley: CDR, Canadian Death Race, which is in the mountains in the middle of the night. She loves to travel, take on fun adventures like cave diving, swimming, while with great white sharks in a cage, she's not quite that crazy, and hiking throughout the Canadian Rockies. Welcome to the show, my friend.
Elise Montgomery: I am so, so grateful to be here. Thanks for having me Kelley.
Kelley: Yeah. Absolutely. You know, Elise and I actually used to work with the same brokerage back when she was in real estate. One of the questions that I had for you, specifically, was why did you get out of real estate? You had a very successful career, and you were making lots of money, you had a great life, a great business, why did you go from selling real estate to actually coaching real estate agents? I've always wanted to ask you that question ever since I found out that you were a part of the Tom Ferry Organization.
Elise Montgomery: Right. Yeah. That's a good question, and for me it really came down to fulfillment. I knew I had a lot to give back, and I could contribute to this amazing industry that gave me so much. I just felt the timing was right to jump into giving back and get that fulfillment. I've got to say, you know, to go through these coaching experiences with my clients, it's good stuff. Selfishly, I love seeing their transformations, so getting that component, adding that into my business, it's powerful stuff for me, so that's what really caused that shift was just adding to fulfillment.
Kelley: Now, be honest, here-
Elise Montgomery: Yeah.
Kelley: Who's crazier, clients or agents? You don't have to answer that question, I'm just kidding.
Elise Montgomery: We're all crazy.
Kelley: We're all crazy. Yeah. My wife, the psychologist, she said this to me one I first got in the business, and like long before she was a registered psychologist, she said, “The sooner you realize that most people, and we're not just talking about clients, like everybody-
Elise Montgomery: Yes.
Kelley: Is 99.9% like they got screws loose in their brain,” and she didn't actually say that she said something much worse. You know, better of you're going to be, so I really took that one to heart, and just, you know, everybody else around me is crazy, I'm the only sane one. Right?
Elise Montgomery: Oh, of course, always.
Kelley: All right. Like I said in the intro, episode 25, if you guys haven't actually done a business plan, I've been in about a half a dozen meetings here over the last couple of days, I know my business partner, Darin, same thing, I know he had like seven meetings yesterday, I'm pretty sure at least half of them were business planning meetings with agents. We're half way through the year, now, you know, it's middle of July 2018, if you're listening to this in the future, in 2019, if anything you should be doing at least a half a year check in with your business.
Kelley: If you're writing a business plan at the beginning of the year you should at least be doing a half year check in, and we're going to get into exactly what the metrics are and what you should actually be tracking and measuring, but I want Elise to kind of introduce this. Elise was at our Thrive Not Survive Insiders Edition, so for those that don't know, we put on four events per year, Thrive Not Survive is kind of our flagship, and it goes out to all the agents within our marketplace, even outside of our marketplace. We had our first Thrive Not Survive event in Brantford, Ontario this year.
Kelley: We put on this free event, we bring in speakers from across North America, Elise is going to be one of our speakers for TNS six, I think it is, but we also do an insider's edition just for our Redliners, specifically, and Elise was kind enough to come in, and share some insight, and what we talked about, or what she spoke about was these 90 day check ins in tracking and measuring, and some of the metrics. I want you to maybe start of with the statistic that you gave us around the people that actually track and measure, and what their income is in relation to people that don't.
Elise Montgomery: Yeah. It was really surprising for me to hear. I knew that there's a ton a value in tracking, and measuring, but I didn't know to what extent. The stat is those people that track and measure their numbers daily, so when I say numbers, you know, conversations, appointments, and then income, deals. Those that track and measure daily on average are making $140,000.00 more a year than those that don't. Isn't that outrageous?
Kelley: It's absolutely mind blowing. I just couldn't believe that-
Elise Montgomery: Yeah.
Kelley: When you said that.
Elise Montgomery: And it's not the act of tracking. It's not the act of putting a track box beside conversations each day. It's what that brings awareness to, and how you can change your habits, and increase those money making activities, because you have such a heightened focus on those numbers.
Kelley: Right. Okay. Let's get into it right there.
Elise Montgomery: Yeah.
Kelley: We're talking about tracking and measuring. I think that we brought up actual tracking sheets, and that sort of thing when we had you in. What are some of the things that agents, you know, let's just go back to real estate 101, business planning 101, like what are some of the metrics that those successful agents that are making 140K per year, more than the ones that aren't tracking and measuring? What are the metrics that they're actually tracking on a daily basis?
Elise Montgomery: Yeah. With Tom Ferry, he has the hub, which it has everything in there, which it has everything in there, video conference calls, also a tracking program in there. With that, we're tracking conversations, and appointments, and then just your general numbers, so listings, buyers, pending deals, closed deals, things like that. Just so we have, you know, it's nothing overly complicated. Right? I think that's always the shocker.
Elise Montgomer: When you drawback the curtain it's nothing overly complicated, but the power that, that has is outrageous. It's just those simple things, daily. Conversations, appointments, and our deals.
Kelley: Why are conversations so important to track?
Elise Montgomery: Good question. This is, you know, a business based on relationships. Right? The more connections, and relationships that we have, the better. Right? We know on average for every 40 conversations in the real estate topic we get one deal.
Elise Montgomery: Yeah.
Kelley: 40 conversations-
Elise Montgomery: Equals one deal.
Kelley: Equals one deal.
Elise Montgomer: But here's the cool thing, the more that you're tracking, the more you're going to know your numbers, specific to your conversions. Right? Maybe you have a conversion rate of 30 conversations to one, we don't know unless we track it.
Kelley: Right. If we just base, let's say I'm just an agent that's been in the business, and I want to take my business to the next level, I want to make that extra 140K, and I have no idea how many conversations that I even have in a week, because I'm not tracking any of that data. Right?
Elise Montgomery: Yeah.
Kelley: If I were to sit down and build out a business plan, could I use this metric, this 40 conversations before I even know?
Elise Montgomery: Yeah.
Kelley: Is that how you would kind of lay it out for someone that's just started coaching?
Elise Montgomer: Yeah. That's the perfect baseline to get started. Then when we get into specifics with your business, we'll know your specific numbers, but yes, absolutely start with that baseline of 40 conversations equals one transaction.
Kelley: Right. If we break that down into a five day work week, like that's eight conversations a day.
Elise Montgomer: So simple. Right?
Kelley: Right. Would you be tracking dials as well, so the number of actual calls that you're making that kind of translate back, because I mean, I'm not going to sit down and make eight phone calls and get eight people on the phone. Right?
Elise Montgomery: Sure. Yeah. That's right. Tom has a really good blog post on this. If you just Google Tom Ferry 554, he breaks down what the calling should look like, so you're reaching out to the right people. But with that, you're right, you're not going to get 10 out of 10 when you make those calls. You can track dials to get a bit more efficient, but really just to get started just make it simple, just track conversations.
Kelley: Is it just phone calls? I mean, I've heard, we're going to be doing some Richard Robbins training in the brokerage here-
Elise Montgomery: Great.
Kelley: It's a 10 week training program, masters formula that they put together.
Elise Montgomer: Yeah.
Kelley: Rich says, something fairly similar to 554, but it's 555, and they call it the triple threat, so it's five phone calls, five text messages, five emails, or four video emails per day.
Elise Montgomery: Right.
Kelley: Is that kind of the same premise then?
Elise Montgomery: Yeah. For me, with my coaching clients as long as it's a real estate conversation, so the topic of real estate comes up, because some people try to say, “Well, I talked to my friend today.” Right? We have to get that real estate conversation in there, and there's a back and forth dialogue, then it counts. Right? If we send back a text message, and we're getting that response, and have that back and forth, then absolutely that counts.
Elise Montgomery: Yeah.
Kelley: We've got the 554, or the 555, and I think that's, you know, I was listening to, I had to go through some training on my own for, you know, because I'm going to be facilitating this training here at the brokerage, and something that really stood out to me was Richard had said, “If your,” it's basically about accountability, and the idea that if you're not willing to keep an appointment with yourself, what makes you qualified to keep an appointment with a client to show them property or whatever. Right? What he was talking about was waking up every day with intention. You're focusing on your health first, and then you move into the business cycle. Right?
Elise Montgomery: Yes.
Kelley: That's exactly what I do every single Sunday, I sit down, I plan out my calendar, I plan out my week. I start out with my health, and I go in, and I book all of my workouts through an online system with my gym, and I know exactly when I'm working out every single day.
Elise Montgomery: Yeah. I'm in the exact same boat.
Kelley: Right. You start there, and then you start working your way into the business, and so maybe it's you don't have to book the shower, because you know that you're going to have a shower after you go to the gym. Right?
Elise Montgomery: Yeah.
Kelley: But then it's stuff like, I'm going to sit down, and I'm going to make that, I'm going to do that triple threat. Right? And I'm going to time block, I'm going to make an appointment with myself to time block an hour and a half, and that's all I'm going to be focused on. What's the biggest mental block that you're seeing right now with agents and keeping that appointment with themselves?
Kelley: You know, we have a set meeting every Tuesday at 1:30 to 2:30, and I know realtors will book through that appointment. Right? I've a got a set meeting with our leadership group every Monday from 1:00 to 2:00 and I don't ever book through that appointment. I always book around it. Right? What's the biggest mental block? Why do agents not take this appointment with themselves seriously?
Elise Montgomery: Yeah. Good question, because that's where all the wealth is, that's where all the abundance is, that's where we see that massive growth. We just commit to that hour in the morning, that's where you double your business. Right? One of my colleagues always says, “All the money in real estate is made before 10:30 in the morning.” Meaning, keep that hour sacred. Maybe it's just a mindset of this hasn't been brought up to them how critical, and important it is. Right?
Elise Montgomery: Maybe they just need to be asking better questions. Where is the best use of my time? Right? All the other stuff, you know, we can outsource, some of it's just noise. Right? We get distracted, the next thing you know we spent an hour on the computer, and we're looking at our cousins dogs Instagram account. Right? Having that singularity of focus on what's really important, what's going to move the needle forward, and I think that these 90 day plans, they bring back that focus. Right? They bring you back to the bullseye.
Elise Montgomery: Bring you back to those things that move the needle forward. Whereas if we just go on with our days, we have the best of intent-
Elise Montgomery: Whereas if we just go on with our days, we have the best of intentions but we get distracted. We have busy lives and we just get distracted. So it's just having that refocus every so often to say, "Hey this is critical, this is moving my business forward."
Kelley: Right. Okay so let's get into that. Let's get into the 90 day check in. So I've written a business plan, and I'm executing, and I seem to be doing a decent level of business but it's not to the point of which, where I want to be, right? I go back to Richard Robbins again and he says, "It's not, if your business is down, it isn't because of the market. It isn't because the market's down, it's because you're allowing the down market to effect your mindset." Right? Because there are agents out there that are absolutely crushing it in a down market here in Alberto, they're doing 60, 70, 100 transactions a year. Right? So if I've got the business plan and I'm not where I want to be, like where do I start with this 90 day check in?
Elise Montgomery: Yeah perfect. So two steps, 90 day review and then 90 day plan. And it's so important to plug it into your schedule so that you remember. I think it's such a critical step to get everything out of your head and into a program, right? Because if we just keep everything up here, that's where the crazy comes in, right? That's insane to think that we can manage and we'll remember to do a 90 day check in. Just because.. So if it's not on the schedule, it doesn't exist. So plug it into your schedules so we get that reminder every 90 days. And also, haven't you found with yourself and with your agents that we do these awesome powerful business plans, and we're so jacked up, October, November, December. And then they just kind of get pushed away, we forget about them? We get going with our days, and we don't have that clarity on what we're really getting after. Have you found that?
Kelley: Yeah absolutely. I found it in my own business. Right? Like I'll come across my business plan in a drawer. It's under a stack of papers on my desk and I'm like, "Oh, that's where that went to." Right?
Elise Montgomery: Mm-hmm (affirmative). Yep, amen. That's super common. So that's why I love the 90 day plans. The other thing cool about it is it gives you a chance to pivot in a changing market. So you know, especially in Calgary, we know that, we can feel that changing market, right? So we have these business plans and they're really great based on the current market conditions. But as we go through, maybe we have to make small pivots. If the market is declining, maybe we have to increase our appointments to get the same numbers.
Kelley: Right. So within the business plan that we, that Jeff and I put together, basically we have people analyze their business, they look at their business sources, how much money they made in the year previous. How much money they want to make in the year that they're planning for. And then they're looking at each business source from an objective point of view and analyzing things, figuring out what works, figuring out what doesn't work. Getting rid of the things that don't work and focusing 100% on the 80% of the things that actually do work. Right? And then from there they should actually be taking that information and starting to put it into place like putting calendar, put into into their calendar. I think that isn't actually part of the business plan. It's just like, okay, guys, here you go. You know, come up with the ideas, come up with the innovations, come up with the analyzing your own business. And then from there, what do we do, right? We've got these four or five pieces of paper that look great. And lots of great ideas, but now what?
Elise Montgomery: Now what?
Kelley: Yeah, so then it's time to execute on some of that stuff. And this is I think where the 90 day check in, like the review, becomes super, super important. Because you need to be taking that information that you put within those pages and actually be putting it in to your calendar.
Elise Montgomery: Oh, I so agree. I love this. I wish I could shout this from the rooftops. You know, convert these plans into actionable steps. Always, always, so critical.
Kelley: So let's talk about that. How do you do that?
Elise Montgomery: Yeah. So just going back one step. So the two step process. First we have the quarterly review, then we have the plan. Total, this should take like 20 minutes. It's not this huge mammoth task. It's not like you're doing your taxes, you know? So for the quarterly review, just reviewing your numbers, where you're at. So and again, that goes back to how many conversations did you have? What was your goal that you had for conversations? How many appointments did you go on? What was the goal? And then getting into income, right? So, your GCI and your expenses. Get your net. And then going through that, right? Looking at what were your biggest successes in the quarter. Because I think that's so critical. We get so down on ourselves so quickly, right? So really looking at where did I improve? What were some really great things that I implemented in my business that are going to serve me going forward? What challenges are you facing that need to be addressed and solved in the upcoming quarter?
Elise Montgomery: And then, just rating your success with your lead sources. So if you identify your lead sources from the plan that you and Jeff have created, you know that you know, those core sources that are going to give you the great results? Just start ranking them one through ten, how have you been showing up for those lead sources and what sort of results are you getting?
Kelley: Right. Okay.
Elise Montgomery: So quick, simple review. Our reviews are a lot more detailed. But that's kind of like a snapshot of what you get after. And then we step into the plan. So we're going to set the goal. Transactions, GCI, volume. Also an expense goal. Because how easy it is in real estate to get caught up with the shiny penny syndrome, right? Oh my goodness, look at this thing. I need this lead source. I need that leads source. Oh, if I just do this new program, whatever it is, right? So it's so easy to spend. So we really have to make sure that we're running our business like a business. So these 90 days plans give us the opportunity to step into that mindset of, I'm the CEO. Everything I do is going to go through that lens of running my business like a business, operating at that CEO level for myself.
Elise Montgomery: The other thing I think is so critical with the 90 day plans is looking at why. Why are you doing any of this? Why does this matter? Right? So the moment that we can connect it to emotion, that's where we can see some big changes, 'cause it means more. Right? If we're just doing more business just for the sake of new business, you know, when time's get tough, it's easier to pull back. But if there's a big reason why we're getting after this, it's so much powerful to drive you forward. So I think a lot of people miss that component, right? Really looking at why. So spending some time with that.
Kelley: Yeah. You know, and I think that that's, I think it's super important. What we're, I remember going through this exercise, this is back probably four or five years ago and getting, trying to get some clarity in my own business, my own head. You know, as to why I was in this business in the first place. And I kept coming back to this, well, you know this airy fairy, really fluffy, you know I wanted, I just want my kids to have a better life. And I just want to have more time with my wife and my family. And you know, all of these things that are great. But ultimately that time and you know, providing a better life for my kids, is directly tied to money. Right? And I don't think that people should be afraid of putting into their why how much money they want to make. Because it does actually buy you a lot of freedom and piece of mind. Right? And you know, I hammer this home to our agents all the time. And that is, if you've got a big why that doesn't include a dollar amount-
Elise Montgomery: Mm-hmm (affirmative).
Kelley: Like, what are you doing?
Elise Montgomer: It's so true! And don't fear that. Right? Money changes things and opens up so many doors and opportunities. We need money to serve our clients better. We need money to show up for our family better. It's critical. It's important, and that's okay. Don't push away from that. Don't think that that's bad. Another thing to look at is what changes. So if I hit this goal in this quarter, what changes? If I get an extra hundred grand this quarter, what changes, what's the benefit to you and your loved ones and everyone around you? Right? So I agree. Looking at it with tying it to money, of course. But also what does that really mean for you?
Kelley: Yeah, you know, we're talking a lot about lead generation, right? And I think you've touched on something really, really important. It was kind of, just kind of glossed over, but some of the stuff that you want to review in what you're talking ... Well, you know, we're talking about conversations and appointments and how many conversations actually lead to a deal. And your expenses, your PNL, your GCI. And that's where I think a lot of agents really fall down. You know, a lot of agents are kind of at the end of their credit card statement at the end of every month, like they're just, they're trying to make the minimum payment so that they can, you know, their next brokerage fee isn't gonna bounce, right? And I think that ... And I fell into this trap, like 2013. I mean, 2014, I had so much money going out the door.
Kelley: Like my wife just stopped paying the bills because I'd have like a $9000 credit card bill in a month. And she would lose her mind, right? And she's like, "Well, why is it $9000?" And I'm like, "That's the cost of running the business." You know, we're making x but it's going to cost like nine ... So I think getting really clear on actually how to keep a profit log statement. How to read one, first of all. And then, number two, how to actually ... You know, you're going back to the whole idea of being the CEO of the business. Now the CEO of the business, like doesn't necessarily dive into the accounting part. They have somebody to take care of that for them. But most agents are just a singular agent, right? And so you are the CEO. You are the accountant. You are the marketing expert. You are the advertising ... Like you are wearing all of these hats, so you need to understand how much money is going out the door and how much money is coming in, and how much money you need to live off of every single month.
Elise Montgomery: Absolutely.
Kelley: Why is this so glossed over? Like why aren't there more conversations around this?
Elise Montgomery: Yeah, that's a really good point. For me, you know, I was so into the financial part of it. Because we're commission based sales, right? If we are not managing that properly, holy hell. That's dangerous.
Elise Montgomery: Right? And even looking at the return that you get on your investments. So we talk about how anything that you invest into for lead sources, for example, should be returning a minimum of four times your spend. So if it's not, then we evaluate, has it just not been enough time to get that lead source really pumping? Are we not dedicating enough time to the follow up for whatever it is, right? Maybe we need to ax some of these lead sources that we romanticize, that are so expensive. But yeah, I agree. We have to be talking more about the money component, right? It's so critical. So from there, moving forward after our wide, then we go into listings. And then buyers. So with the listings we look at listings taken for the quarter that we're shooting for. And also listings sold. So you know, when we started off talking about the tracking, the daily tracking. This is where we're going to get cool numbers around what's our ratio of listing appointments to listings taken. And what's our ratio around listings taken to listings sold?
Elise Montgomery: So the numbers never lie, right? This is such cool data to have, because if we are going on ten listing appointments. And we're only getting five listings, what do we need to focus on improving for this quarter?
Kelley: Our presentation skills.
Elise Montgomery: Damn straight. And it becomes so easy when we have these numbers in front of us. Same thing for listings taken to listings sold. So if we're taking ten listings but only three are selling, what are we focusing on?
Kelley: Gotta focus on the market and get better with our numbers.
Elise Montgomery: Exactly! So it becomes so easy. Right? We don't have to overcomplicate anything. We just rely on the numbers, and look at what they're telling us. So from there, once we have those listing taken, listing sold goals, then we look at the sources that they're gonna come from. So you know, what ever your key lead sources are. And this is where I love what you guys were talking about with plugging these in to actionable steps. Right? So let's say our sources are open house, database, web leads. Can I look at your schedule and see that you have those set up to happen? Do you have time for the follow up on each of those sources? Are you taking the actions to make sure that you're going to get, let's say, three listings from an open house? Are you taking the actions, are you plugging those into a schedule to make sure that you're guaranteeing your own success?
Kelley: Right. All right. So what's next?
Elise Montgomery: So then we go into buyers. And same thing, right? So we're gonna have a clear buyer sales goal. We're also gonna look at our ratio of buyer appointments to buyers sold. So again, if those numbers are low, let's say we have, you know we're going on ten buyer appointments, but we're only ending up with three or four buyers, what are we focusing on?
Kelley: Yeah, getting better with our presentation.
Elise Montgomery: Yeah, definitely! Definitely! And then again we go through our sources. So where are our buyers going to come from and how many sales are we going to have from those sources? So our total number of sales that we're going to have from each source should just total up to the total that we're expecting for the quarter.
Elise Montgomery: Then we look at what skills do we need to be working on this quarter. What systems do we need to be working on? And then the last part is my favorite, so if you are in coaching, what do you need your coach to hold you highly accountable for?
Kelley: That's awesome. That is self reflection. That is being self aware.
Elise Montgomery: Mm-hmm (affirmative).
Kelley: Okay, I think a lot of people lack, but you know, if this is part of the coaching-
Kelley: ... which I think a lot of people lack but if this is part of the coaching program, it's like okay. Like you need to ... I think part of the business planning process is becoming self-aware, right? That's the reason why Jeff and I put the plan together the way that we did is for you to allow the agent to actually be self-aware and be very analytical and downright ruthless on themselves and really discover and dig in where their business is actually coming from. And I think if you don't have that self-awareness like, "I know what my strengths are. I know what my weaknesses are. I know that if I go into a gas station, I shouldn't be going to the cooler and grabbing a Gatorade. I shouldn't be grabbing Kit Kat bar on my way out the door because I'm busy in ... Like I should be packing a lunch." Like, that's ... But I'm self-aware enough to realize that if I walk into that store, I've got to have the willpower to say, "Stop. You're not going to the cooler. You're not going to get [inaudible 00:28:58]."
Elise Montgomery: No Doritos for you.
Kelley: Yeah. Exactly.
Elise Montgomery: Right.
Kelley: I love that question, what do you need from your coach in order for that coach to hold you accountable or your broker or your manager or whoever your accountability partner at the brokerage right?
Elise Montgomery: Yeah. And accountability is such a huge thing that we overlook or don't give enough importance to, right? Even Tim Ferriss. I know you're a Tim Ferriss fan. He talks a lot about accountability. Someone was asking on his blog, how do I get big changes in my life? How do I get to these goals? And his only response was accountability. So there's a ton of power in that. So even if you're outside of coaching, who can you create that accountability with to move your forward.
Kelley: Yeah. I mean it's real easy for someone to say, "Well, you got to be accountable to yourself and you have to you know if you want to go to the gym in the morning, you have to get up in the morning." I mean for me, it's taken me a year and a half to get to a point where I'm like a robot now. The alarm goes off at 4:40 a.m. on Monday, Wednesday and Friday and I'm up. I'm downstairs and I got my routine and I got my coffee in my hand, I got my feet up on the desk and I'm going through Flipboard and looking at the news and checking things out. I got my whole routine down. And then I'm off to the gym and I'm doing my workout and I'm back home.
Kelley: Tuesdays and Thursdays are a little bit different because I don't start until like 6:20, but same thing alarm goes off at 5:00 or 5:30 and I'm ... But it's taken time to get there and I think it's in the human condition where we expect things, if we're trying to make changes, we expect those changes to happen overnight. And people don't realize it. And even within your business.
Kelley: I made a big change in 2010. I know I'm going off on another tangent here, but I went from being like doing open houses and door-knocking and doing all of these things, I focused a lot of time in open houses. I had a lot of success from open houses and then at the end of 2010 going into 2011 I was like, "You know what? Forget it. I'm not doing any more open houses." Like I just completely got rid of that lead Source and I was really good at open houses and for some reason looking back on it now, I probably wouldn't have changed anything. But just coming to that realization that I got of a lead source and I was putting, focusing a 110% of my effort into online and knowing fully well that it was going to take time to pay off and it did. It took me two years to get to a point where like I was seeing absolutely zero leads coming in for my website to where I was seeing 50 leads per month coming into my website. Because of everything that I've done for two years previous.
Kelley: And so my point is that change doesn't overnight. You can make the decision to change overnight, but actually being accountable to yourself and enacting that change is going to take time. You have to have patience.
Elise Montgomery: Yeah. And don't give up too soon too. That's what I see happen a lot as well. They'll start a new lead source that you're super excited about, super passionate about but the results aren't instant and they'll toss it aside. Right?
Elise Montgomery: So honing in on that.
Kelley: So going back to the 90-day review and the 90-day plan. So we do the review and then we look at the things that are working, we look at the things that aren't working and get rid of some of that stuff or do we just double down on our efforts that on the things that actually are working? What what would be the way forward going into the next phase?
Elise Montgomery: Yeah. For sure. I think we can always simplify and get as lean as possible. So there is a question in there, so what challenges am I facing that need to be addressed and solved? So maybe that's cutting something out. Maybe that's improving skills, whatever it is. It's so critical to see what's not working. And the thing is, it comes up naturally through the numbers when you're reviewing your numbers and seeing did I reach my goals, that's a pretty big smack in the face on what's not working, if you're just not pulling your weight with your number. Something that you've submitted you. If you're completely falling short on that, that's a huge awareness around what's not working. And yeah, having that self-awareness like you talked about, "Well, what do I need to change going forward to make this work for me?"
Elise Montgomery: The thing I love about real estate is we get the opportunity to design whatever kind of business we want. And I know you've seen a huge spectrum of models within the real estate industry. Like we can really create whatever we want. So we get that chance to do that through our planning and through what we want to take on or get rid of. So it's just that cool opportunity to reflect and get into building that business that's so great for you.
Kelley: One of my last questions here, I'm curios what your answer to this will be.
Elise Montgomery: Oh no.
Kelley: So you know it has to do with like new lead sources right? So we were planning out October, November and we decide that we're going to try this new website that's going to generate leads for us and I'm going to spend $350 - $400 a month. And we've come to that end of that first 90 days and I've got lots of leads and I've had some conversations, but I don't have any conversions yet. Is that new lead source, is there a problem with the lead source? Are the leads garbage? It's like how long do you need to test something before it really starts to payoff?
Elise Montgomery: Yeah. Good question. And I love how you say, "Oh, is there something wrong with the lead source?" I'm sure you get this a lot. Web leads are garbage. Well, how are you working them?
Elise Montgomery: Right? So we know that web leads typically, you know Facebook leads are a bit longer, but online web leads typically take 12 to 18 months to convert, on average. That's a long time so we have to be in this for the long haul. So when you're deciding on these lead sources and you're committing your money, your hard earned money make sure that you have a plan in place that will take you into that long haul. That you're committed to making it work. And then evaluating at that point. If we know that it's going to be a 12-month conversion and after a year we're just not getting any traction, okay then we can reevaluate, reduce, cut it completely, whatever. But giving it the time that it needs and also your skill sets, the time that they need to perfect.
Elise Montgomery: If we look at your follow-up plan, what does that look like? If we look at your opening dialogue, what does that look like? What's your response time like? So really analyzing that and kind of putting the onus on yourself to see what you're doing to make it work before it's you know, "All these web leads are garbage. I'm on to the next lead source."
Kelley: Right. I did a video here about a month or so ago. I guess it was just on how to effectively do an open house, and that you know I haven't done an open houses since like 2010 and I do them sporadically whenever a client is wanting to have an open house. And I have this one client, we had the property down in the South and they're like, "Well, you know ..." I'm like, "Well, we've had an open house." They're like, they said, "Well, we hired you to sell the property. We want you to do the open house." And I'm like, "Ugh. My god." I can't even remember how to do an open house. I had to like go back into the toolbox and figure out what made me so successful back in the day. That's why I put together this video and it was just a four point plan. I'll send you the video later. I'll shoot you a text. I keep it unlisted because I send it off to realtors that I meet with or they're wanting to do open houses or just our agents here.
Kelley: But anyways, my point of the story is that in talking to the agents that I talk to on a daily basis, it's amazing to me how many people don't have a follow-up plan. And open houses are very very specific. Like you get five people come through and you're able to get five phone numbers and five email addresses. Like what are you doing to follow up? That's the question. And it's like okay so you got five people came through the open house. You got five phone numbers, five email addresses. What's your follow-up plan look like? And it's like a deer on the headlights. Maybe give some [inaudible 00:37:09] on what an effective follow up plan would be for you know pick the lead generation source that you want to talk about.
Elise Montgomery: Yeah sure. So open houses is a good example because we're getting a ton of leads coming in and also with that, I think it's really great to set a clear intention for your open house. So, "From this open house, my intention is to get two new qualified buyers or my intention is to get one listing appointments." Whatever. Just so we have that clarity of focus. So for follow you know having that thank you for coming to the open house. Maybe it's a video text, maybe it's a BombBomb video, something like that while you're still at the open house when you're packing up ready to go home, have an interaction with them and then continual follow-up is so important. So that first week, how many times are you trying to set that face to face appointment?
Elise Montgomery: It's so funny because people will say, I typically hear, "Oh, I don't want to bother them. I don't want to seem salesy. I don't want to seem pushy." They've taken their time, their precious time on the weekend to come into this open house, raise their hand say, "Yes, I'm looking for a property." Give you all their information and then you have this weird hesitation around saying, "Okay. I'd like to help you. I'll work with you." Right? So ridiculous. So squashing that belief that you're bothering them or you're too salesy. Be authentic, be yourself. But continue with that follow-up.
Elise Montgomery: Typically, it takes 9 to 12 times to get a response from someone. So don't give up after you haven't heard from them for a couple of days. But staying authentic, not being ... You don't have to be texting them four times a day. We can be reaching out to them daily for a couple of days and then weekly for a month and then from there maybe they're going on trip campaigns with a phone call every 90 days, if we haven't touch base with them.
Kelley: Yeah. That's interesting. 9 to 12 touches before they actually either respond or you're able to set the appointment. The funny thing is I know that Tim Ferriss says it's a lot from the stage. He talks a lot about how agents will only attempt four. They'll make four attempts to reach out and to try to get that appointment and you're only halfway there or a third of the way there. 30% of the way there. People just give up because they're not getting a response back and it's like, "Ah, this is shitty lead. I'm just going to forget about this person." But they're not because they came through the open house. They put up their hand and said, "I want to buy a house. Oh by the way, I don't have an agent."
Elise Montgomery: Yes.
Kelley: I'm thinking about listing my house.
Elise Montgomery: Right. If we can just change our perspective on when we're reaching out to them, what the intention is, if we're coming to them with high value. We're here to serve. We're here to help rather than these are crap leads. They're not going to answer. That's such a difference in mindset that can really change the outcome of your year.
Kelley: Well you know what, Elise, I'm going to have to have you back. We can go on down so many different routes.
Elise Montgomery: I know.
Kelley: And you know we try to keep these relatively short. We're on about 40 minutes right now. So we're going to cut it off here. We'll probably have you, definitely have you back and maybe just talk about mindset next time.
Elise Montgomery: Cool.
Kelley: It will be a lot of fun. So really want to thank you very much for your time today. I appreciate it. Why don't you let people know where they can contact you.
Elise Montgomery: Yeah. So if you're interested in coaching tomferry.com is the place to go. Also check out his YouTube channel. It's incredible for inspiration and good kick in the ass. Myself, I'm on Facebook @coachelisemontgomery. Same thing with Instagram, @coachelisemontgomery. I'm happy to answer any questions that anybody has. And Kelley, I have to say, I can't say this enough. I love what you guys at Redline are building in this industry. You're disruptors with the way that you're looking at adding massive value to the agents lives and really being there to support them. It's such a fresh, innovative model and I just love what you guys are doing. It's powerful stuff.
Kelley: Well, thank you so much. We really appreciate it. I'll speak on behalf of my business partners and thank you very much for that. That's-
Elise Montgomery: Of course.
Kelley: And I didn't pay her, by the way.
Elise Montgomery: It's true.
Kelley: All right. That's all we got for you today. Thank you so much for tuning in. As always if you're watching us on YouTube, please feel free to leave us a comment down below. If you want to email me email@example.com. If you're listening to this on iTunes, we'd really appreciate it, if you went and left us a review to add to the 13 five star reviews that we already have online. If you have any questions again, feel free to email me firstname.lastname@example.org and we'll see you on episode 48. Thanks again Elise.