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The Pareto Principle and How It Applies to Real Estate Marketing

January 14 2016

pareto

So I was watching a video made by one of my favorite video bloggers, Casey NeistatCasey Neistat, the other day. For those of you not familiar with him, Casey is an accomplished filmmaker and owner of a technology company called Beme.

The video of Casey's that caught my eye the other day was titled, "Losers and Closers." In Casey's pretty much exact words, the gist of it was this:

Someone that constantly starts something, but never finishes anything, is a loser. Someone that starts something and finishes it, is a closer. You want to ALWAYS BE CLOSING. You do not want to be a loser.

So what is it that makes someone end up a loser, and not a closer? Casey very succinctly described it:

You can never let your desire for perfection prevent you from finishing something that is good. To finish something imperfectly is to learn from it, move on, and get closer to perfection.

In order to improve, move forward or get ahead, you must force yourself to abandon the idea of perfection. Instead, focus on productivity. Focus on what you can and will do to finish the job to the best of your ability at that point and time in your life. Then, after you finish, look back and ask yourself what went well and what went wrong. Then, do it again, but...better.

That is winning. That is being a closer.

I'm assuming most of you reading this have seen the movie Glengarry Glen RossGlengarry Glen Ross and are familiar with the concept of always wanting to be a closer and always wanting to succeed. What I am not sure you are familiar with, and what Casey went on to explain, I think is very applicable to the real estate industry and agents' marketing of their practice, in general. What I am talking about is the Pareto Principle.

Simply put, in terms of real estate marketing, here is the Pareto Principle:

remarketing effort

So the common myth with agents that fall into the trap of being losers and not closers is not understanding which efforts are going to complete the task of a marketing campaign for you. For instance, in real estate farming, many think that 80% of the work is doing market research, picking a farm area and planning your marketing pieces. The reality is that is only 20% of the work for a successful real estate marketing campaign.

The 80% of the work that allows you to be a closer is the actual execution of the campaign itself, following up with the leads that come in, cultivating them, addressing their needs and converting them into clients. Many agents end up being losers in the real estate marketing game because they are unable to knuckle down and complete the 80% of the work necessary to turn their marketing dreams into a reality. Why is this? There are may common problems we see.

First of all is this idea Casey has shared of people letting perfection prevent you from finishing something that is good. "Analysis Paralysis" is something we see in Realtors┬« every day. We see it in agents that are on a 30-day free trial of our CRM system (along with 5-10 other CRM platforms, SIMULTANEOUSLY). We see it in agents that have spent an inordinate amount of time on their branding and messages, only to scrap them and want to start over. We've even seen this in agents that get locked up simply trying to find "the perfect geographic farm" to market to.

A true business person is a closer. They finish the project as best they can, and then look back at it, review, figure out what worked and what didn't, and then re-deploy, in the ongoing pursuit of perfection.

More often though, we see Realtors® simply not understanding that the 80% of the marketing process that brings you the results and allows you to finish is the actual deployment of the campaign itself. They may underestimate the number of hours it will take to do it and, in the end, not be able to handle it on their own. They may not have checks and balances in place to make sure the last 80% of the work is being consistently and proficiently done. They may simply get busy and devote their attention to other demands in their day-to-day business. All of these things are the death of the most important 80% of their campaign and, by virtue of that, a guarantee that they are going to end up in the loser column.

You didn't get into business for yourself to be a loser. You want a better life for yourself. You work hard and you deserve to be a winner. ALWAYS BE A WINNER. Planning a successful real estate marketing campaign can be difficult, but if you take these factors into consideration, you are guaranteed to have a leg up on your competition when it comes to successfully growing your real estate practice.

By the way, if you want to watch Casey's video, here it is:

To view the original article, visit the Leading Agent blogLeading Agent blog.