Dominating a Geographic Farm
Geographic Farming is the most powerful way to grow and maintain a successful real estate business. It allows you to establish your brand and centralize your listings and sales in one geographic area. To be a successful farmer you must commit to an area and understand that it’s a marathon, not a sprint. Setting up these expectations and being in the right mindset right out of the gate is the key to success.
Here Are The 5 Most Important Tips For Being Successful at Geographic Farming:
1. Choosing a farm location:
- Work areas where you live, that you are familiar with and that you like, or a price range you would like to be in. Before choosing one of these areas make sure there’s not a dominate agent already in the area.
- Pick areas that have a turn over rate of at least 6%
- Choose between 500-2,500 homes and consider your budget simultaneously. Tom Ferry suggests you begin with 250-500 homes to begin and then expand as saturation and desired ROI is accomplished.
2. Creating a farming budget:
- What is the total amount you can allocate to farming? Figure out how much it will cost to hit every house at least 2X/month at a minimum
How to calculate ROI of farming:
First look at your marketing activities and the associated costs.
Some cost $$ like direct mail, holiday door knock gifts, sponsoring a community event.
Use ROI as your deciding factor as you plan out your activities for the year. Planning activities a year in advance gives you the confidence of knowing what you’re doing, when and how much of your budget is going to marketing. Tom Ferry’s Marketing Plan template
3. Committing to a successful farm:
- Remember farming is a long-term commitment…and CONSISTENCY of connecting with the people in your farm is key. Homeowner’s need to hear from you, see you and receive information from you on a regular basis.
- Deliver value – be the farm expert. Your role as the go-to agent in an area is to be the most knowledgeable person about the area…you are the FARM EXPERT. Specifically, what is happening with the values in the neighborhood, how many are currently on the market for sale, what new initiatives can possibly be affecting their home values. What are the specific issues these homeowners want to know about and how can you bring them the answers and give them the inside scoop about their community.
4. Staying connected with your farm:
As we mentioned before, consistency is critical so each month your marketing plan should include varied communications from you.
- Sold cards
- Proof of Success piece
- Market updates
- Free home equity updates
- The inside scoop about the neighborhood trends and news.
- Discount coupons for various vendors you work with.
Give them something of value and they will look forward to you stopping by. If you live in the farm consider hosting a neighborhood party, sponsor community events.
Pro Tip: Tom loves GeographicFarm.com to take the guess work out of direct mail. They do the testing, creative and mailing based on proven results.
Examples of community events:
- Neighborhood garage, yard sales
- Home improvement seminars
- Sponsoring an athletic team
- Spring cleaning event
- Community charity drive for gently used clothing
- Easter Egg Hunt
- Free pictures with Santa
Pro Tip: Make sure you have a big banner with your name and face on it at all events.
5. Quickest ways to dominate a farm:
- Know your inventory – every time a home comes on the market you should be previewing it. Homeowners come and go but that home is there for years to come. You need to know as much about the inside as the outside. Make notes after previewing to put in your farm folder.
- As soon as a new home owner moves in, you should be the first there with a ‘Welcome to the Neighborhood” basket of goodies (things from local shop owners is always good and they will often donate to get their names in front of new people). New homeowners have no pre-conceived ideas of what the neighborhood is like so it would perfectly natural for you to knock on the door and introduce yourself as their Neighborhood Professional Realtor. To let them know you are there to be of service to them and their family. That you will be walking the neighborhood from time to time to share valuable information. This will put them as ease with you immediately. Think how much faster you will know everyone in your farm by these simple tips!
- Quick domination comes from having a plan and following it religiously. You must out-work and out-service competition to succeed. Like all areas of lead sources, plan ahead –plan your budget, plan your marketing, plan your schedule so your system is predictable and profitable.
To speak with a Tom Ferry consultant request a complimentary coaching consultation.