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G O I N G        G L O B A L    K E L L E R   W I L L I A M S          R E A LT Y    L A U N C H E S         I N   V I E T N A M !




A PUBL IC ATION O F K E LLE R W I LLI A MS R E A LT Y, INC .                                    FIR S T QUARTER 2012, VOL .9 NO.1


Candice Frigault               Jen Lysak                Chris Suarez                     Michael Burke                   Rachel Kendall
 (Toronto, Canada)           (Lakeland, Fla.)           (Portland, Ore.)                (Bonita Springs, Fla.)            (Raleigh, N.C.)




          DOUBLE
   SEEING




                          2x                    deals                      2x               income
                                        the




                                                                                    the




HOW FIVE KELLER WILLIAMS AGENTS ARE BUCKING THE TRENDS AND COMING OUT ON TOP. - PG. 9
2   outfront   First Quar ter 2012 • vol. 9 no. 1   Keller Williams Realty
vol. 9, no. 1 - First Quarter 2012


                                                                             table of contents
First Quarter 2012, vol. 9 no. 1



                                                 06                                           09
OutFront is a publication of
Keller Williams Realty, Inc.                                  LIVIN’ ON                                       COVER STORY:
                                                              THE eEDGE                                       SEEING DOUBLE
1221 South Mopac Expressway,
Suite 400                                        Brian Bendily’s four                         2 times the deals. 2 times
Austin, Texas 78746
(512) 327-3070 phone                             strategies for getting                       the income. Five top KW
(512) 328-1433 fax
                                                 a big edge in business.                      agents talk strategy and
Executive Director of Marketing and                                                           success.
Communications: Ellen Marks
Editor: Laura Price
Copy Editor: Jeff Ryder
Associate Art Director: Michael Balistreri
Designer: Caitlin McIntosh



                                                 20                                            24
Contributors: Celesta Brown | Jennifer
LeClaire | Shelley Seale
                                                               THE 11 th                                      LOOKING
Advertising:                                                   HOUR                                           AHEAD
Tom Freireich (advertising@kw.com)
Job Inquiries: (jobs@kw.com)                     New research from                            New opportunities in
                                                 The Keller Center at                         the luxury market heat
                                                 Baylor University proves                     up.
                                                 cold calling works.
OutFront is published by Keller Williams
Realty, Inc. The entire document of OutFront
is copyright© 2012 by Keller Williams Realty,
Inc. No portion may be reproduced in whole
or in part by any means, including electronic



                                                 26           VIRTUAL 		
                                                                                              28             GOING
retrieval systems, without the express written
permission of the publisher. Editorial or
advertising does not constitute advice but is    	            ASSISTANCE                                     GLOBAL
considered informative.

Copyright© 2012 Keller Williams Realty, Inc.
                                                 Should you hire a                            KW launches in
All rights reserved.
                                                 virtual assistant?                           Vietnam. Plus full
                                                 Mike Incorvaia Jr.                           Family Reunion 2012
                                                 answers the question.                        coverage.


                                                                                                 Y      REUNION TWEET
                                                                                            FAMIL                                      S


                                                                                            What YOU said!
                                                                                            See page 27 for full Family Reunion coverage.




              Keller Williams Realty                 First Quar ter 2012 • vol. 9 no. 1                                outfront             3
4   outfront   First Quar ter 2012 • vol. 9 no. 1   Keller Williams Realty
kw



                                        PURSUING A HIGHER PURPOSE
                                        IN LIFE AND BUSINESS
                                        My Dear Family,
                                        Inspirational stories flood my desk and email inbox daily.
                                        And each one thrills me beyond words. Your stories are
                                        constant reminders that the Keller Williams culture guides
                                        our personal and business lives, impacts the lessons we
                                        teach and leads us to reach out to others with compassion.

 	Take Shaun Rawls, regional director of New York-Tri State.             Joplin, Mo. Upon hearing of the tragedy, Dottie Bowe,
 Shaun shares his leadership gifts with our Keller Williams              operating principal sent out a call to action that resulted in a
 family in numerous ways, one of which is imparting invaluable           team meeting. They didn’t just determine “if ” they could help,
 life lessons through his expressive blog at (rawlsgroup.org). In        but rather “what” assistance they would be able to provide to
 a recent post, he recounted a less-than-illustrious 7th grade           their Joplin family members. After an energetic discussion, the
 third-string quarterback experience. Having slacked off for             project theme and goal had been set and put into motion –
 the better part of the season, Shaun’s coach made a lesson out          $10,000 in 10 days! With enthusiastic leadership from Mark
 of his lack of effort with a muddy scrimmage that left him              and Tammy Richard, an exciting momentum immediately
 face-to-face with the biggest and best players on the team, and         permeated the Portland environment. By the 10th day, more
 shortly after, face down in the mud.                                    than $12,000 had been raised and was sent to KW Cares. “Our
 	 He drew the story to a close with a poignant lesson on                team never veers from following and living the blueprint of
 failing forward: “Even though it seems like they last forever,          this company,” shares Mark. You inspire us all Portland!
 I’ve come to realize that the worst times in life don’t last very       	 While each of these stories carries its own significant cultural
 long and we can even laugh at them in the rearview mirror.              message, I want to leave you with an abiding truth that is
 Besides, the person we become would be a lesser person                  exemplified every single day within our Keller Williams family
 without such difficult and trying times in our lives.” Thank            – commitment to a service-centered life, not a self-centered
 you, Shaun, for giving us perspective on what truly matters.            one, is what we are truly called to do each and every day!
 	 Another story that touched my heart came from Katy, Texas.
                                                                         Yours in world-changing culture!
 Jacob Howard, a former RE/MAX agent, was not only fighting
 to keep his real estate career alive, he was in the uncomfortable
 midst of questioning whether he should head back to the
 corporate world. That was until Joe Rothchild, operating                Mo Anderson,Vice Chairman,
 principal of the Keller Williams Signature Market Center and            Keller Williams Realty
 Lucas Sherraden, team leader at Overland Park, reached out.
 Their caring persistence and concentration on Jacob's growth,
 not just the growth of the company, gave him the confidence
 to decide to build a career worth having, a business worth                   My heart continues to
 owning and a life worth living.                                             overflow with the sheer
 	 Jacob did indeed join our family and finds it difficult to                 joy of our 2012 Family
 adequately express his gratitude. “Joe saw something in me that            Reunion! This year’s theme
 I didn’t see in myself. And Lucas puts his heart into the job               – “Where You Belong” –
 and truly wants [my] career to thrive.” Helping others achieve               was absolutely perfect.
 their highest professional potential and greatest personal                 FAMILIES BELONG TOGETHER. To laugh, to cry, to support,
 fulfillment is our culture in action, and we give great thanks             to celebrate, to learn, to grow, to worship and, perhaps most
                                                                            importantly, to LOVE and HUG one another! And that is exactly
 for family members such as Joe, Lucas and Jacob!
                                                                            why we do not gather for an annual “convention.” We come
 	 This last story from the Greater Portland (Maine) market                 together for a true Family Reunion! Gary, Mark, Mary and the entire
 center solidifies what I know to be absolute: we are a company             Keller Williams International Support Center want you to always
 that firmly believes in “walking the walk” and we are deeply               remember what an honor it is being partners with each of YOU!
 committed to “coming from contribution.” Those values were
 put into action when the horrific tornado ripped through                                   See page 27 for full Family Reunion coverage.


         Keller Williams Realty                        First Quar ter 2012 • vol. 9 no. 1                                               outfront   5
kw     kw technology               B R I A N B E N D I LY | M O N R O E , L A .                            By Shelley Seale




                                        Getting a big edge
                                         on business with

                       When Keller Williams Realty launched eEdge, the real estate
                       industr y’s first and only total lead-to-close business solution,
                 Brian Bendily, who joined the Keller Williams Realty Monroe (La.)
                  market center in October 2009, was among the first to sign up.


                                                              “I had no idea the impact the new business
                                                              management tool would have on my business.
                                                              After activating, I was able to generate more
                                                              leads with my eEdge Website than with the two
                                                              Websites I had been using for years.”
                                                              	 In fact, now everything runs through eEdge.
                                                              “The system has reduced my expenses and
                                                              helped me grow my business by 27 percent
                                                              over the prior year."
                                                              	 As for the transition from multiple tools to
                                                              one solution, he says “the system is extremely
                   Brian Bendily




                                                              user-friendly for non techies.” So how
                                                              exactly did he do it? Follow his strategies for
                                                              implementing eEdge now!




6    outfront                                             First Quar ter 2012 • vol. 9 no. 1              Keller Williams Realty
Here are Bendily’s four eEdge strategies:

                          1                                                                        2
           DON’T TRY TO DO                                                    FOLLOW UP WITH LEADS
           IT ALL AT ONCE                                                   IMMEDIATELY AND CONSISTENTLY
  Bendily recommends following the step-by-step                             As agents ramp up their online lead generation
  tutorials that Keller Williams Realty provides,                           activities, they will begin to see the effects – lots of
  as well as concentrating on and mastering one                             leads, but fewer good ones. At that point, Bendily
  thing at a time. “People tend to overcomplicate                           recommends agents “focus on lead conversion tactics.
  technology. Keller Williams Realty took a very                            Doing that will yield tremendous results.”
  simple approach with eEdge. When you follow                               	 While Bendily’s unique visitors to his eEdge
  the guides and take it one step at a time, getting                        Website varies throughout the year, on average his site
  started is so easy."                                                      sees four to five thousand new visitors per month that
                                                                            typically result in between 100 and 200 actual leads.
                                                                            And he converts around 5 percent of those leads into
           Visit mykw.                                                      contracts by immediately following-up with a phone
   kw.com/eEdge for                                                         call and consistent email communication. “I’m always
    live trainings, 101                                                     striving to grow that number,” he adds. “My goal is
tutorials and archived                                                      to get that to 10 percent, and we’re working really
              webinars.
                                                                            hard this year to make that happen.”




      BUILD IT, WORK IT AND                                                                 USE THE ENTIRE
       THEN THEY WILL COME                                                                  eEDGE SYSTEM
  eEdge is not a magic pill, Bendily cautions; you can’t                    Bendily’s team doesn’t stop with the eEdge Website.
  just put it out there and expect it to get results. “When                 They seamlessly integrate both the myMarketing and
  I teach classes at our market center, agents will tell me                 myTransaction solutions as part of their high-level
  that they’ve got their site up and running, but they’re                   business strategy. “I believe the paperless transaction is
  not generating any leads. My response is always the                       where the industry is going,” says Bendily, who plans
  same: ‘Your eEdge is a phenomenal tool but without                        to have 80 percent of his business paperless by the end
  anything else it’s like having a really nice billboard in                 of the year. “I’ve stopped waiting by the fax machine.
  the middle of a desert.’”                                                 Instead, I write up and send a contract right from my
  	 In other words, eEdge is the lead generation and                        iPad. Going paperless truly saves time and money.” 	
  business management tool for the marketing agents                         	 Using eEdge features such as the 33 Touch campaigns,
  are already doing or plan to do, not a stand-alone tool.                  postcards and the This Month in Real Estate e-newsletters
  “Most of my business comes from my online lead                            have automated his touch programs and allowed him
  generation strategy which includes other marketing and                    to focus his efforts on converting leads. And as eEdge
  prospecting activities,” Bendily says.                                    continues to evolve, Bendily is looking
  	 He funnels every marketing action he takes through                      forward to the unveiling of new changes
  eEdge including social media, Craigslist and his phone                    and services to myMarketing.
  calls from yard signs. “I drive it all back through my                    “Keller Williams has something
  eEdge site. That’s my stopgap.”                                           phenomenal coming down the
                                                                            pipeline that I can’t wait to see
                                                                            hit,” he says.

         Keller Williams Realty                        First Quar ter 2012 • vol. 9 no. 1                                      outfront   7
8   outfront   First Quar ter 2012 • vol. 9 no. 1   Keller Williams Realty
kw            cover story                                                         By Laura Price, Jennifer LeClaire, Shelley Seale and Celesta Brown




           DOUBLE
  SEEING




 Michael Burke                           Jen Lysak              Candice Frigault                      Chris Suarez                     Rachel Kendall
(Bonita Springs, Fla.)                 (Lakeland, Fla.)          (Toronto, Canada)                    (Portland, Ore.)                  (Raleigh, N.C.)




             In 2011, Keller Williams                                And though slumping home prices, slow economic recovery and fear
                                                                     from the media crippled some real estate careers, a wave of success
       associates continued on their                                 stories from Keller Williams agents around North America continues
     success trajectory. Average per                                 to flood in, showing signs of life in nearly every market.
      agent GCI was up 16 percent.                                   	Take Chris Suarez, for example. He moved his business from New
                                                                     York to Oregon and gained twice as much business. Also reaping the
          Average units per agent in                                 rewards in 2011 were Michael Burke, Candice Frigault, Jen Lysak
         Canada was up 0.5 percent                                   and Rachel Kendall, whose proactive business decisions doubled and
     and an incredible 19.5 percent                                  tripled their business in less than five years. As you read through each
                                                                     of their stories and learn about their businesses, you’ll realize – it truly
                in the United States.
                                                                     isn’t about the market, it’s about what you do to thrive.




                                                                                                       continued on next page

              Keller Williams Realty                      First Quar ter 2012 • vol. 9 no. 1                                           outfront           9
kw    cover story   TA K E T H E L E A P                                                               By Jennifer LeClaire




                 Chrisportland, ore.
                       Suarez

                                                                   STARTING OVER
                                                                  SOMETIMES THE BEST WAY TO IMPROVE IS
                                                                   TO START AT THE BEGINNING … AGAIN.


                                                                  Chris Suarez was an overachieving Manhattan real estate agent
                                                                  when he decided to move across country to a small Oregon
                                                                  college town – a drastic geographic shift that seemed counter-
                                                                  intuitive to many.
                                                                  	 Suarez’s goal: to start from scratch and build a real estate
                                                                  business on sustainable models that would ultimately build
                                                                  wealth. Even before recovering from the culture shock of
                                                                  the transition, Suarez, who was not yet affiliated with Keller
                                                                  Williams Realty, started putting The Millionaire Real Estate
                                                                  Agent (MREA) principles in place.

                                                                  THE BIG IDEA
                                                                   “My mindset was to start over and build correctly. I was very
                                                                  committed to the MREA. I knew I had to get in front of people
                                                                  and add them to my database immediately,” Suarez recalls. “The
                                                                  quickest way to do that was to hold open houses.”
                                                                  	 Of course, without any listings Suarez couldn’t exactly hold
                                                                  open houses. So he kept mingling with the Eugene, Ore., real
                                                                  estate community until he met an agent that represented a
                                                                  local builder. That connection opened the door for Suarez to
                                                                  essentially hold an ongoing open house.
                                                                  	 Suarez spent the next six months in a condo office for eight
                                                                  hours a day, six days a week, waiting for potential buyers in
                                                                  Eugene’s urban core. For some, it may have seemed like a big
                                                                  risk with little upside. But for a forward-thinking Suarez, it
                                                                  was an opportunistic alternative to getting a full-time job while
                                                                  rebuilding his real estate practice.
                                                                  	 “I was able to build my database every single day in a market
                                                                  I wanted to break into – condos,” Suarez says. “In that time, I
                                                                  stayed focused on future buyers and sellers.” After six months,
                                                                  another building owner toured the condo and decided he
                                                                  needed Suarez to represent his project, which was still in the
                                                                  construction phase.
                                                                  	 Instantly, Suarez had a tower full of condo listings to call his



10    outfront                              First Quar ter 2012 • vol. 9 no. 1                         Keller Williams Realty
own and his database exploded. Eventually, he had 150 buyers                       “My mindset was to start over and build correctly.
under contract. Although the building was sold and the closings
never happened, he found himself suddenly representing 150
clients actively looking for a new condo. Suarez admits there
                                                                                   I was very committed to the MREA. I knew I
are good days and bad days with his open house strategy, but he
continues to bet on it even today.                                                 had to get in front of people and add them to my
	 “Because I was new to the city, I had to be 100 percent
committed to understanding the market. When I wasn’t with                          database immediately ... ” –               CHRIS SUAREZ
clients, I was out in neighborhoods opening doors and walking
through houses,” Suarez says. “I also spent a lot of time on the
numbers of real estate. It doesn’t matter if someone has been in
the market longer than I have. I know the market. I’ve got the                     Suarez says. “I’ve been through BOLD four times. I never miss a
numbers, graphs, charts and I build touch campaigns around                         Family Reunion. I never miss Mega Camp or Masterminds. I’m a
statistics.”                                                                       member of KW Luxury Homes International. And I consistently
                                                                                   reach out to top agents who are producing at higher levels than I
THE BIG PAYOFF                                                                     ever have.”
After nearly four years in Eugene, Suarez started over yet again.                  	 Achievement is the keyword. During his first year in Portland,
This time, 110 miles away in Portland. Leaving RE/MAX, he                          despite not knowing anyone, he sold $22 million. He continued
joined Keller Williams Realty Portland West.                                       building up his knowledge base through KW MAPS Coaching
	 Today, Suarez is one of Portland’s top producing real estate                     and has learned, perhaps above all, that accountability is critical.
consultants, combining his Manhattan-style marketing and                           	 “My drive brings with it incredible personal accountability,”
negotiation skills with the Keller Williams model. He does                         Suarez says. “But my biggest accountability comes from the
business under the banner PDX Property Group with a focus on                       fact that I have 180 agents that watch me. I won’t stop reaching
luxury customer service, high-class marketing, intense market                      out to teach and coach because it makes me better. I have to do
knowledge and interpretation, and a high-energy focus on results.                  things the right way. And the right way is to follow the model.
“I’m really committed to the education Keller Williams offers.                     Every city has its own personality, but no matter where you go
I bought into it and it has been a huge part of my success,”                       you can succeed if you follow the model.” kw




                                              Chris’ Five Steps for Holding an Effective Open House



            1 3
   Choose a home that gives
   you the greatest potential
                                   SC
                                        RIP
                                              T




                                                  Know the right script during the open                             T
                                                                                                                                5
                                                                                                                        Always follow - up. Call, email




             2 4
   to have buyers and sellers                     house. “Thanks for stopping in to tour my                 SCRIP       or hand write a note. Use this
   find you.                                                                                                            script: “Thanks for stopping into
                                                  open house. Are you one of the neighbors or
                                                  are you out shopping for a home today?”                               my open house this morning. It
                                                                                                                        was great to meet you. I did a little
                                                                                                                        bit of digging in the office after
                                                                                                                        we met and after the open house
                                                                                Prepare yourself with                   and found three other properties I
       Advertise and market the event a week                                    comparable properties,                  think really fit your search criteria.
       before the open house. Post Internet                                     market research and                     I know the home that we saw
       ads, put a sign in the yard, make 50 calls                               come up with at least two               this morning wasn’t quite perfect
       and door knock to neighbors in a 2-3                                     or three other homes you                but these three have some real
       block radius.                                                            could show should the                   potential.We could get into them
                                                                                opportunity arise.                      tomorrow at four or at six.Which
                                                                                                                        would work better for you?”



         Keller Williams Realty                                 First Quar ter 2012 • vol. 9 no. 1                                             outfront          11
kw           cover story          MASTER PLAN                                                   By Shelley Seale




               Michaelsprings, fla.
                  bonita
                         Burke

        MASTER PLAN
           MEET THE NEW MICHAEL BURKE

     Watching his business stall out from the sidelines wasn’t sitting
     right for Michael Burke, associate with the Bonita Springs
     market center. “I did not have a plan,” he says bluntly. In 2010,
     his business lacked goals, structure and direction. He had no
     vision or mission. “I would just show up and hope the phone
     would ring,” he says. The business success he had, he attributes
     to the unique marketing campaigns he created for the gated
     communities that he farmed. But that wasn’t enough. After
     attending Mega Camp in December 2010, he left John R. Wood
     Realtors to join the Bonita Springs market center, and in one year
     took his business from $9 million to $20 million in production.

     BEFORE … AND AFTER
     Though attending Mega Camp and joining Keller Williams
     Realty was “the best thing that ever happened to [me],” Burke’s
     business still wasn’t exactly booming. In an effort to move
     forward, he turned to The Millionaire Real Estate Agent. “It was
     an outstanding tool. As I kept reading the book over and over, I
     found myself using different aspects of it in my business. When
     Keller Williams approached me to join, I knew it was the right
     move.”
     	 Burke gives the most credit for his skyrocketing production
     numbers to the Keller Williams models, training and continuing
     education. He joined KW MAPS Coaching and set a goal to read
     at least one self-help book per month. He took Keller Williams
     University’s MREA Business Planning Clinic three times within
     a two-month period – and in fact, his entire team went through
     the class together.
     	 If this perhaps seems a bit excessive, Burke doesn’t think so. He
     cites Gary Keller’s rule that a person needs to take a class at least
     10 times before he or she masters it. “I want to master it; I need
     to master it,” Burke emphasizes.

     MREA MODEL CENTRIC
     While The Four Fundamental Models of Real Estate Success
     outlined in MREA keep Burke’s business running on all
     cylinders, he spends most of his time on the Economic Model


12       outfront                                          First Quar ter 2012 • vol. 9 no. 1   Keller Williams Realty
"To me, success is knowing that I have done the very
best every day for my clients and my team ... The money
will follow, provided that I follow the values I have
incorporated into my business plan.”              – MICHAEL BURKE


and the Lead Generation Model. The two models give him an accurate view
of his business on a daily, weekly, monthly and yearly basis.
	 “Numbers do not lie. If I fall behind my goals, I know where my
inefficiencies are and make adjustments immediately,” says Burke. In
most cases, it’s fine-tuning his lead generation. “I know how many calls,
contacts and appointments I need each day, week and month to reach my
goals.” Burke doesn’t claim it’s easy, but recalls a lesson learned from Gary
Ubaldini, a long time Keller Williams associate and regional investor. “He
said, ‘We have to be flexible in our plan.’ Sometimes, we get too robotic in
our thinking and planning. When making a plan, keep an open mind. It
should be a living, breathing document that can be open to daily attention
and adjustments based on the market.”

ON TARGET
The MREA Business Planning Clinic also taught Burke to think long term
by writing down clear, concrete goals. He cites the book What They Don't
Teach You in the Harvard Business School, in which author Mark McCormack
describes a study conducted on students in the 1979 Harvard MBA
program.
	 Only 3 percent of those students had set clear, written goals for their
future; a whopping 84 percent had no specific goals at all. Ten years later,
those 3 percent with written goals were earning, on average, 10 times as
much money as the other 97 percent put together.
	 “This scared the heck out of me,” Burke admits. “I wanted to be one of
that 3 percent.” He now has one-year, two-year, three-year and four-year
written plans, which he shares with his team on a regular basis.
“They clearly understand what we are doing now, where we are headed and
how we are going to get there,” says Burke, who is passionate about hiring
the right people.
	 “I hire to my weaknesses,” he says. “I know what I am good at, and I hire
people who are detail and task oriented.” His team consists of wife Shelly
Burke, who is the listing coordinator and handles the books; Justin Jordan,
executive assistant: Sharon Rowland, transaction and closing coordinator
and Justin Helmus, buyer agent.

IT’S NOT ABOUT THE MONEY
Even with the success, he does not think of it in terms of money.
	 “To me, success is knowing that I have done the very best every day for
my clients and my team,” he says. “The money will follow, provided that I
follow the values I have incorporated into my business plan.”
	 For Burke those values include integrity, commitment and trust. “I believe
I am very blessed to be where I am at, and very thankful for those blessings,”
says Burke. “I do not take it for granted. As I follow the model, I find myself
a better person AND a better businessperson, mainly because of the Keller
Williams values which mirrored mine: God, Family, then Business.” kw


        Keller Williams Realty                        First Quar ter 2012 • vol. 9 no. 1   outfront   13
kw          cover story          PRODUCTIVE PROGRESS                                                                 By Celesta Brown




              Candice Frigault
                  toronto, canada




               FROM
             PASSIVE TO
             PROACTIVE
         TORONTO TEAM BETS ON
      DOUBLING DOWN AGAIN THIS YEAR




     Four years ago, Candice Frigault, associate with the Keller              COUTING FOR SYSTEMS
     Williams Advantage Realty Market Center in Toronto, Canada,              Frigault feels her career trajectory is a result of her decision to
     was approached with an offer she couldn’t resist. A mega team            purchase the business and her dedication to learning from the best.
     on a mission to take a year long sabbatical was interviewing local       	 In fact, it was only a few years ago she was passively running
     agents to find one who would manage, grow and mindfully tend             her business – relying heavily on referrals from friends and
     to their business with their same passion. Frigault’s fire for the       family as a primary source of leads. She knew she would have to
     business caught their eye and they asked her to sign on.                 do more to take it to the next level. “I was originally attracted to
     	 Over the next year, she worked closely with their team,                this industry because of its unlimited income potential, and yet
     soaking up their business and learning their systems and                 there I was, not taking advantage of it.” Knowing she could rely
     methods that powered it. By the time the team took their break           on her Keller Williams family for knowledge, she started seeking
     toward the end of 2010, Frigault had embraced their business             out the most successful agents to emulate. “I asked them what
     while customizing it to make it her own. When they officially            systems they used, how they lead generate, and what strategies
     decided to retire one year later, she purchased their business           they employ to sell so many houses.”
     outright; a move that would double her sales in one year.                	 Two of those agents were Jason Pilon and Leam Hamilton of
     	 “I ended 2011 with 37 contracts and $17.5 million in                   the Keller Williams Ottawa-based PilonHamilton team. Having
     production which was twice what I was making the year before.”           never met them, she was excited when they were willing and
     Currently she’s on pace to reach $20 million and beyond in 2012.         eager to let The Frigault Team shadow them for a day.



14       outfront                                        First Quar ter 2012 • vol. 9 no. 1                          Keller Williams Realty
The Frigault Team’s
 	 “There’s so much to learn from a team that sold 330
                                                                           favorite over-the-
 homes last year,” says Frigault. “They took us under their                  phone script
 wing and answered our most curious questions, including
 how they were selling so many houses and what methods                       “We qualify a lot of our online-generated leads over the
 they were using to get their GCI up year after year. We                     phone. Here’s our best script.”
 were so challenged and inspired by our day with them and
                                                                             This is Candice Frigault from The Frigault Team with Keller
 took away many ideas that we are already implementing.”                     Williams Realty.Thank you for your request online for further
                                                                  T
 	 Frigault continues to thrive in the Keller Williams      SCRIP
                                                                             information about [XYZ].We have just emailed/mailed that
 culture of sharing and maintains her focus on learning                      information out to you. Is that OK? I just have a few quick
 from high-performing agents. She gets involved in every                     questions for you.



                                                                        1
 possible educational opportunity, obsessively attending
 any course that features a mega agent.

 READY TO RAMP UP
 Frigault, who aspires to be in the top 1 percent of agents
                                                                                  Are you planning on
                                                                                  moving in the next 3-6
                                                                                  months? (Shows urgency/
                                                                                  motivation level.)
                                                                                                                5     Do you have a real estate
                                                                                                                      agent to help you when
                                                                                                                      the timing is right?

 in Toronto, has some lofty goals for 2012. Among them


                                                                        2                                       6
                                                                                                                      Would you like us to send
 is her desire to double her business again and close at                          Do you currently own                you a list of homes that
 least 70 transactions. Realizing that goal means having a                        or rent? (Find out if we            are currently available and
 solid team in place who share her vision. Jason Schott,                          have the ability to sell            would match your desired
                                                                                  their house as well).
 the team’s buyer agent, firmly believes in Frigault’s                                                                criteria from all real estate


                                                                        3
 determination to use methods, scripts and systems that are                                                           companies? (Assuming the
 proven to work and increase productivity.                                        Are you planning on                 answer is yes …)
 	 In fact, Frigault, Schott and their team’s administrative                      staying in the area?                Great! When can we get
 assistant spent all of January getting in position to achieve


                                                                        4
                                                                                                                      together and chat for
 that goal by working on their lead conversion and follow-                        If you were to move, when           about 20 minutes so that
 up tactics with solid scripts that the entire team can use.                      do you think that would be?         we can take down exactly
                                                                                  (Similar to question No. 1.
 	 Following a familiar sales system for their methods on                                                             what you are looking for?
                                                                                  Ask again to find out more
 leveraging people, technology and marketing, the team                            information.)
 is also implementing 33 Touch and 12 Direct campaigns
 through eEdge. “We’re putting it to work for us and I
 aim to perfect it.” She recommends the same for up-and-
 coming agents. “Find a system or program that you are
 passionate about and nail it.” kw
                                                                                                       Follow up with leads
                                                                                                       immediately. “Like the Pilon/
                                                                                                       Hamilton Team, our business is
So what did The Frigault Team                          Tailor your follow-up                           largely based on Internet leads.
take away from their meeting                           systems. “Their team has                        While shadowing them, we realized
                                                       a follow-up system in place for                 we weren’t following up with those
with The Pilon/Hamilton Team?                          every lead scenario. The goal is                leads while they were HOT! The
                                                       to make sure the lead is receiving              best time to catch Internet leads
                                                       the best communication and call-                is while they are still online and
                                                       to-action to get the appointment.               contacting you. The Pilon/Hamilton
      Brand yourself                                   One staff member handles the                    team has an inside sales agent (ISA)
      consistently across the                          immediate follow-up. If that lead               on staff who assigns the lead to a
      board. “Whether you market                       isn’t ready to buy or sell in the               sales agent who then converts the
      yourself in print, social media or               immediate future, it gets passed                leads into clients. Our next hire is
      online your brand needs to be                    along to another member of our                  going to be an ISA, but for now, our
      well recognized and professional.                team who nurtures them over                     strategy is to follow up with our
      By tweaking and improving our                    several weeks. In other words,                  Internet leads within five minutes of
      image across all marketing mediums               each lead is assigned a plan and                them sending us an inquiry. Out of
      and communication channels we                    each team member is responsible                 10 leads we get online, we currently
      established a consistent brand in the            for executing their activity on                 convert four into an appointment
      minds of our audience.”                          that plan for every lead.”                      using our over-the-phone script.”


         Keller Williams Realty                          First Quar ter 2012 • vol. 9 no. 1                                          outfront         15
kw       cover story   SOCIAL PRO                                                              By Jennifer LeClaire




                 Jenlakeland, fla.
                     Lysak

                                                                JEN WANTS
                                                                TO BE YOUR
                                                                  "FRIEND"
                                                        LEAD GENERATION THROUGH SOCIAL
                                                        MEDIA HAS BEEN TRIED BY MANY AND
                                                       PERFECTED BY A SELECT FEW. SO WHAT’S
                                                             THE RECIPE FOR SUCCESS?

                                                    Jen Lysak, associate with the Lakeland (Fla.) market center,
                                                    wasn’t always on the social media bandwagon. But when her lead
                                                    generation Websites weren’t drawing as many leads as she’d hoped,
                                                    she turned to her operating principal, Chris McLaughlin, for
                                                    advice. “He suggested I dive into Facebook marketing,” she says.
                                                    	 At first, Lysak’s skepticism got the best of her. “It seemed like
                                                    a waste of time.” Nevertheless, she decided to follow the wisdom
                                                    of her leader – and she’s glad she did. Last year, the consistent
                                                    $1 million to $2 million producer singlehandedly doubled her
                                                    business, selling $5 million worth of homes. She largely credits that
                                                    success to her Facebook strategy.

                                                    LEAD WITH A PLAN, LOVE THROUGH
                                                    CONVERSATION
                                                    Lysak engages people in what you might call a traditional way. No
                                                    advertisements, no gimmicks – just good conversation and expert
                                                    relationship building. And it’s paying off – currently 90 percent of
                                                    her leads come from the social media site.
                                                    	 “I get an average of 10 Facebook leads every week,” says
                                                    Lysak. “People do business with people they know and like.
                                                    So I make friends and share things about my personal life so
                                                    they can get to know me.”
                                                    	 It’s that easy going philosophy that makes up the foundation
                                                    of Lysak’s strategy. Her first move was to “friend” every client
                                                    she had ever served, and then subscribe to their SMS (short
                                                    message service or text message) feed through Facebooks
                                                    mobile settings. In other words, every time a friend posts a


16    outfront                       First Quar ter 2012 • vol. 9 no. 1                        Keller Williams Realty
status update, she gets a text message. When appropriate, Lysak             appointment. In fact, of the 10 leads she generates from
responds.                                                                   Facebook each week, Lysak reports that about 75 percent turn
	 “People are so touched when they post about having a                      into appointments.
cold and I ask them if they are feeling better or if they need              	 “When I sell the house, I post a picture of the buyers with
anything,” Lysak says. Real estate, after all, is still a relationship      house keys in their hand and write a comment about how happy
business, and maintaining relationships with hundreds of people             I am for them. Then I tag them in the photo so all their friends
doesn’t take her more than 15 minutes a day via Facebook.                   see it,” Lysak says. “Usually, they write me back and thank me
	 With relationships in mind, Lysak is careful not to turn                  for all my help, which turns into a testimonial. You can’t pay for
her Facebook profile into a social media billboard that blasts              that kind of testimonial.”
constant messages to her 2,500-plus friends – which she hopes
will be 3,500 by the end of the year.                                       CREATIVITY BEFORE RESULTS
	 “I don’t post too much about business,” she says, “that’s a good          Lysak still pursues other lead generation activities. She spends
way to get un-friended.” She keeps her eye out for people who               the first hour and a half of her day writing back to leads, setting
may be in the market for a home soon. For instance, if someone              them up on searches and referring them to her Websites. She
changes their relationship status to “engaged,” someone just                also takes the direct approach on Facebook and simply asks for
graduated from college or just had a baby; they may be looking              the business.
for a new home. “People post their lives on Facebook. I like to             	 “If someone is getting divorced, I message them and tell them
congratulate friends for buying their first home at a really great          how sorry I am. Then I offer to help them with any questions
price and offering details of the transaction,” says Lysak.                 they have about their home,” Lysak says. “If they just got
                                                                            married, I congratulate them and offer to help them find a new
TYING IT ALL TOGETHER                                                       home. If the relationship is there, asking for the business is easy.”
Lysak’s Facebook marketing strategy flows right into her online             	 Like all lead generation activities, just because Lysak asks for
lead capture approach. “Any time I post about my business on                the business doesn’t mean it’s an automatic win. Some married
Facebook, I send people to my eEdge Website to sign up for                  couples are in an apartment lease for the next 12 months. Some
my IDX search.” In fact, her eEdge Website URL is on every                  new parents don’t have the budget to move into a larger house
marketing piece including her voicemail. “eEdge is the No.1                 yet. But Lysak is planting a seed, and because she is connected
advantage Keller Williams offers. Tying it to my Facebook                   with future buyers and sellers on Facebook, she’s just an instant
strategy allows me to further promote my brand AND capture                  message away.
all the leads that come in.”                                                	 “Just be real. Ask questions and don’t forget this is a
	 Although the connections begin in the virtual world, Lysak                relationship business,” Lysak says. “Get on Facebook and reach
is quick to invite serious leads to her office for a face-to-face           out to people so they feel like you care. It pays dividends.” kw



                                    Engage online without spending a dime
                       Use Jen Lysak’s top tips to earn business from Facebook



            1       “Friend” every client and then
                    subscribe to their SMS feed.
                    Visit your Mobile Settings
                    to turn the notifications on.
                                                     3       Lysak uses the Facebook
                                                             "Check-In" feature to
                                                             let friends know she
                                                             was at a new listing. In
                                                             the comment area, she
                                                                                              4         Reach out to people who are in
                                                                                                        a transitional place in their life,
                                                                                                        offer appropriate condolences or
                                                                                                        congratulations, and ask if they need
                                                                                                        your help moving to the next stage of
                    Every time a client posts a



                                                                                              5
                     status update, you’ll receive           writes, “Coming soon                       their life.
                          a text message. When               …” and offers a few
                           appropriate, respond.             details about the house.                   Congratulate friends for buying their




     2
                                                             She also adds a photo                      first home at a really great price and
                                                             of the home. Lysak calls                   offer details of the transaction.
                             When responding,                the strategy a low-key
                                                             way to remind people of



                                                                                              6
                             “talk” to people as
                             if they were a close            what she does and alert                    Route everything to your eEdge
                             friend you care                 other real estate agents                   Website where consumers can sign
                             about. Be yourself              that she has a new listing                 up for specific search results and your
                             and be genuine.                 their clients may want                     myMarketing campaigns.
                                                             to tour.



        Keller Williams Realty                           First Quar ter 2012 • vol. 9 no. 1                                         outfront        17
kw           cover story             FAST LEARNER                                                                       By Celesta Brown




              Rachel Kendall
                  raleigh, n.c.



      HEART                     +     PASSION                         X      EXPERTISE                           =     RESULTS
                           FROM MATH TEACHER TO KELLER WILLIAMS REALTY’S
                      ROOKIE OF THE YEAR, RACHEL KENDALL’S SUCCESS IS ADDING UP.



     In 2008, faced with a market downfall and a brand new city,                 How do you and your team
     Rachel Kendall, a former middle school math teacher, jumped                 stay on track to meet your goals?
     into real estate. One year later, the Raleigh (N.C.) market                 Each of our team members has a whiteboard with our No. 1
     center associate earned the Rookie of the Year Award for all of             goal on it. There are at least four blank lines in each month for
     Keller Williams Realty. In 2010, on a success streak, she sold              each team member to fill in with that month’s closings. If we are
     41 homes, ending the year with $11.7 million in production.                 not achieving the goals we set, then we adjust. Each week we
     By 2011 she had doubled her business, closing the year with 84              meet to discuss our individual problems or obstacles – things
     contracts and $22.5 million in production.                                  that are preventing us from reaching our monthly and yearly
     	 But if early success and industry clout weren’t enough to                 goals – and we brainstorm to solve problems together.
     convince you of Kendall’s superstardom, last month, she was
     asked by the Obama administration to participate in a small-                What is the single biggest hurdle agents
     business mastermind at the White House. We also called upon
                                                                                 need to overcome to accelerate their business?
     Kendall to get her wisdom on winning in this market.
                                                                                 Picking up the phone and asking people for business. Don’t be
                                                                                 afraid to remind clients that you’d like to help their friends and
     What’s your No. 1 source of business?                                       family, too. Of course, to call on a relationship, you must first
     Right now our business is 98 percent referrals. Those include               have a good one.
     client referrals, corporate relocation referrals, and referrals from
     Keller Williams associates.
                                                                                 It seems like you have great relationships
     Describe your team                                                          with your clients, how do you foster those?
                                                                                 Our team is dedicated to heart, compassion and results. It’s often
     The Rachel Kendall team is made up of Dan Kendall and Gene
                                                                                 lonely waiting on a house to sell. We’re empathetic. Our goal is
     Pitzer, brokers, Angie Cole, broker and buyer specialist, Karen
                                                                                 to deliver the highest level of service possible during the entire
     Huckabay, broker and buyer specialist, Amy Anderson, team
                                                                                 home buying or selling process. For some families that means
     administrator, Lisa Luke, client care coordinator, Candace
                                                                                 dropping off warm meals or perhaps delivering a baby gift in
     McGhee, our team’s stager and decorator, and Tina Frost,
                                                                                 person. We stay in constant communication with our clients.
     broker and marketing manager.

     Which team member do you recommend hiring first?                            How can agents improve
     You need to hire administrative support. An agent needs to be               and solidify their pricing techniques?
     in front of people, not behind paperwork. If you can’t afford it,           The Rachel Kendall Team supports our clients’ decisions. When
     share an assistant with another agent on a part-time basis.                 we run into a seller who isn’t ready to come down on price, we
                                                                                 will occasionally agree to a three-week trial at their price to see
                                                                                 if the market responds. If it doesn’t move in three weeks, we do

18       outfront                                           First Quar ter 2012 • vol. 9 no. 1                          Keller Williams Realty
"We solidify our credibility through facts ... we let our clients know that we are not emotionally

listing the property – this is about getting the most money for their home given current market

conditions. "        – RACHEL KENDALL




a correction instead of a reduction, and then treat it like a brand-new
listing.

How do you establish
credibility and counsel sellers on price?
We solidify our credibility through facts. For instance, last week we
sold a house at 100 percent of the list price in three days and we
average 59 days on the market. Those are compelling examples of our
expertise and market knowledge. We let our clients know that we are
not emotionally listing the property – this is about getting the most
money for their home given current market conditions.

How do you stand out from the competition?
We have a reputation of excellence and fun in our community. We
pay to have a seller’s home staged within 24 hours of receiving a
signed contract. Each week we post a “Where in the World Is the
Rachel Kendall Team?” on YouTube. One week it’s Angie Cole*, our
exceptional buyer specialist out on the town or it’s me at a listing
appointment. The videos catch us at work or in our personal life and
add a personal touch. Our clients look forward to the video each week
because it’s unique.
*Watch for Angie in an upcoming episode of HGTV’s "House Hunters."

What advice can you offer
someone who may be struggling?
I strongly encourage everyone to take Keller Williams University’s
Ignite. Do what they tell you to do. I did it verbatim.

You were diligent in researching companies.
Why did you choose Keller Williams Realty?
No other real estate company comes close to offering the resources
that Keller Williams does. Not one other company compares. I visited
several agencies in the Raleigh-Durham area before going to Keller
Williams. I would have saved myself a lot of time if I had just gone to
Keller Williams first!

What do you like best about Keller Williams?
I like that I have complete autonomy. And at the same time, doing
exactly what they tell me to do - following the models – I am
successful.

Any last words of advice?
If you put people first and follow the models, you will make money                              Watch Kendall’s videos on YouTube: (http://
and reach your success goals. kw                                                                www.youtube.com/TheRachelKendallTeam)



         Keller Williams Realty                            First Quar ter 2012 • vol. 9 no. 1                               outfront      19
kw        From the Chairman




                                              THE 11TH H                                                       UR
                                              New research from the Keller Center at Baylor University finds cold
                                              calling still works, but agents stop too soon!
                                              I’ve never lost my confidence in cold calling as a fundamental and
                                              successful lead generation activity. It is, in fact, how Keller Williams
                                              Realty was built – literally one call at a time. No ads, no Internet.
                                              Just a man and a phone.

                                                By Gary Keller, co-founder and chairman,
                                                Keller Williams Realty


     But over the past few years, it seems cold calling has been set          we’ve always used anecdotal evidence from interviews with
     aside in favor of other sources such as Internet lead generation         successful agents. This research has always said cold calling
     activities and online sharing tools – both of which are known            works, but I’m not sure how many people actually believed it.
     for producing measurable results. Frankly, I think it’s imperative       So we asked the Keller Center at Baylor University to research
     that you adopt these new opportunities for generating leads.             this to see if we could get a true researched finding.
     	 As a company, we strongly advocate innovation that can                 They proved cold calling works.
     produce results for your business. At the same time, we also             	 In the study, with the support of our Keller Williams
     don’t want to see you drop those things that work. That was              research and development department, the Keller Center set
     the philosophy we used when we set out to establish models               out to determine if cold calling as a baseline lead generation
     and systems outlined in The Millionaire Real Estate Agent and it         activity – meaning no experience, no contacts, no database,
     continues to drive our curiosity today.                                  no marketing, no listings and no “just-solds” – would generate
     	 Up until now, we’ve never actually had hard proof that cold            appointments taken for agents. Their findings brought to light
     calling was a fundamentally effective lead generation tool               compelling facts behind cold calling’s effectiveness, and some
     for you to use to build and sustain your business. In the past           interesting behavior patterns.


                       WN
                 EA KDO
          LL   BR
       CA

               14
  LD
CO                                                                                                            3,450 no answers
                         DAYS
                                                                                                              1,774 calls answered


       134                                                                                                    1,037 numbers not working

     PARTICIPANTS                                                                                             19 appointments set
                                                                                                              929 were not interested


         6,264                                                                                                11 referrals received
       CALLS MADE                                                                                             132 said to call back later




20       outfront                                        First Quar ter 2012 • vol. 9 no. 1                      Keller Williams Realty
How we did it                                                                          calling by the 11th hour – one hour short of reaching the goal.
In the study, 134 agents from 10 different geographic areas were                       One hour short of winning a listing.
divided into two groups. Each group was asked to set aside a
different hour each day for seven days to make cold calls. They                     This phenomenon has several implications. Assuming the average
used the same script and were asked to record the results of their                  commission rate of a listing agent is 3 percent and the median
calls in an online form so that the data could be collected in real                 house price in January 2012 was $154,700 , then the commission
time. For this study, cold calling was defined as dialing random                    from the sale of this home would have been $4,641. If 12 hours
numbers from a certain farm area not previously marketed to by                      of lead generation yields one listing, then the listing agent would
the agent. The result was 14 hours of lead generation over 14 days                  have made $386.75 an hour. Think about this: spending 3 hours a
                                                                                    day, cold calling, Monday through Friday can – are you ready for
What we learned                                                                     this – potentially yield $290,063 a year in total commissions.
1. The conversion ratio of calls to appointment was 330 to 1,
   or 330 calls for every appointment set. The conversion ratio                     What does this mean for you?
   of calls answered to appointments was 93 to 1, or 93 calls                       When I was just starting out in real estate, I set a goal to sell three
   answered for every appointment set.                                              homes in my first month of business. I went above the baseline
2. The conversion ratio of calls to appointment or referral was 208                 and improved my odds by calling expireds and for sale by owners.
   to 1, or 208 calls to get either one appointment or one referral.                I got on the phone daily, hosted open houses, took calls when
   And 59 to 1 calls answered to appointment or referral.                           nobody else would and ended up selling five homes that first
                                                                                    month. Doing more than cold calling made it possible for me to
Let’s stop for a moment and think about this: If an agent can                       quickly reach Runner-Up to Rookie of the Year status in my office
make 50 calls per hour, it will take them approximately six hours                   Had I not taken my 12th month off after hitting my goals in 11
to achieve one appointment. Anecdotal evidence suggests a 2-to-1                    months, I would have earned the award.
appointment-listing conversion ratio, which means for every 12                      	 The 11th hour is defined as a time in which it is almost too late.
hours of calls, an agent can expect to achieve one listing.*                        In the case of cold calling, the 11th hour is too early to give up.
                                                                                    When you look at this data as it relates to the activities that will
3. The study uncovered some interesting behavior by participants                    honestly produce business, you’ll know with confidence that when
   … On day one, agents began strong, making nearly 1,200                           you make cold calls through the 12th hour, you can expect to
   calls. By the fifth day, though, the call volume had dropped by                  generate one listing.
   nearly 50 percent to just over 600 calls. And by the 11th day
   of the study – or the “11th hour” collectively – they stopped                    Here’s my point. Our goal as salespeople remains the same: lead
   calling completely. If we know it takes 12 hours of calling to                   generate and never let up. No matter what market you are in, the
   accomplish one sale, then collectively, everyone had stopped                     active and persistent lead generator always wins. kw

                                                                                    *Based on research from The Millionaire Real Estate Agent.


                                    Look         at it this way:


             50 Calls every hour over 6 hours ... leads to 1 appointment
                                  For every 2 appointments, an associate can expect to earn 1 listing
                                  12 hours of calls (6 hours + 6 hours) = 2 appointments = 1 listing.




                                                                                                                                                  16x
                                                                                                                                  More than




                                  $4,641*
                                   Average agent
                                     commission                           12 hours of calls =                                                  the average hourly
                                                                         $386.75 per hour                                                     earnings in the United
                                                                                                                                                 States ($23.29).
                                                                      return on investment (ROI).
                                  *Based on median home price in Jan. 2012 ($154,700) according to NAR and assuming a commission rate of 3 percent.

         Keller Williams Realty                                First Quar ter 2012 • vol. 9 no. 1                                                         outfront     21
kw         state of luxury           THE MARKET




                                                              A LUXURY




             Momentum and movement                                    point to new opportunities.



          The last 12 months included a series of high and lows for the luxury market. While home prices and inventory
          were down in many areas of the country, the ability to secure a jumbo loan strengthened.
          	 And the credit market wasn’t the only portion of the population loosening up. An enormous amount of
          money began to venture back into the market. According to Merrill Lynch Global Wealth Management, the top
          5 percent wealthiest individuals made up 37 percent of all consumer spending in the United States in 2011.
          Dive deeper into the numbers and you’ll find the same group of affluent consumers allocated 19 percent of
          their investment portfolios to real estate. This is good news for agents interested in diversifying their core
          business and branching into the luxury market.
          	 Outfront spoke with four members of the KW Luxury Homes International division for a look at the local
          trends affecting the high-end market.



            Lee Ziff | Beverly Hills (Calif.) market center


     What do you expect to                          on the home, but it’s a clear indication    institutions. Wealthy individuals from
     see for the luxury market                      of the buyer’s mindset. In 2012, I don’t    around the world will continue to view
            in 2012?                                anticipate much change – agents will        us as a great place to buy.
                    The Los Angeles luxury          have to know their market and continue
                      market will continue to       to be the local economist of choice.        What makes your city a
                      see big sales over the                                                    “market to watch”?
                      next year. While we’re        What do you expect to                       More than 12 million residents call
                      not completely out of         see in terms of interest                    the Los Angeles area home. We may
                    the housing slump that          from international buyers?                  be known for our celebrities, directors,
                hit in 2008, buyers will keep       Individual foreign buyers are taking        producers and athletes, but we have a
      buying and sellers will keep selling.         advantage of the low luxury home            growing population of affluent clients
      The challenge we’re facing right now          prices to snap up good bargains. While      who avoid the limelight and are simply
      is urgency. Buyers have the perception        our economy may not be in the best          searching for properties to match their
      that prices will continue to go down and      condition right now, our government         high-end lifestyle. The year-round
      aren’t quick to act on properties new to      and history of recovery make the            Mediterranean climate, beautiful beaches
      the market – you could say they “feel the     United States a safer place to invest       and educational opportunities are just a
      luxury” to negotiate on every little thing.   money. Los Angeles is supported by          few of the amenities that have put Los
      Last month, for instance, I maxed out at      the entertainment industry, as well as      Angeles on the map as a market to watch.
      16 offers and counteroffers. We closed        healthy financial, industrial and tourism



22        outfront                                       First Quar ter 2012 • vol. 9 no. 1                  Keller Williams Realty
Terry Belt | McLean (Va.) market center


What do you expect to                          woodwork to purchase a luxury property        What makes your city a
see for the luxury market                      at a great price. On the other side of        “market to watch”?
       in 2012?                                the transaction, sellers are more realistic   McLean, Va., and the surrounding areas
              Northern Virginia will           about price adjustments.                      have some of the highest-paying jobs
               maintain a very healthy                                                       in the country. Fairfax County, just 12
                housing market. Its            What do you expect to                         miles to the southeast, is the second-
                proximity to Washington,       see in terms of interest                      richest county in the United States.
               D.C., – we’re just 10           from international buyers?                    In addition to government-related
              miles away – will keep           Washington, D.C., is home to many             jobs, our local market is fueled by a
          unemployment low and                 foreign embassies and political diplomats,    very strong technology and health care
create new jobs to fuel the employment         which creates an active international         market – another factor that keeps our
demands from businesses who work               market in McLean. As jumbo loans              unemployment low and income more
directly or indirectly with the federal        become more available and rates remain        stable. As people move out from the city
government.                                    low, we expect to service more and more       in search of more value, McLean will be
	 Currently, we’re seeing the upper-end        international clients. In fact, some of our   seen an attractive market to purchase a
market tick up as the stock market levels      most recent clients have secured 4 and        home.
out. Because of the perceived stability, we    5 percent interest rates on large jumbo
anticipate more buyers coming out of the       loans.


      Irene Kaushansky and Philip Brown | Keller Williams Advantage Realty, Brokerage (Tortonto,Canada)


What do you expect to                          What do you expect to                         What makes your city a
see for the luxury market                      see in terms of interest                      “market to watch”?
in 2012?                                       from international buyers?                    Toronto is an important market to watch
With the exception of Vancouver and            Toronto has one of the most diverse           for a number of reasons, not the least of
             British Columbia, which           economies and resident demographics           which is short- and long-term growth.
                 are on the west coast,        in North America. In fact, the city           We are the economic engine of Canada,
                   economists and market       makes its residents' and visitors'            with many national and multinational
                    analysts are predicting    information available in more than 20         corporations running their head offices
                    another strong year        different languages. We have very strong      out of our city. We have an amazing
                    in both sales volumes      trade, education and business ties to         array of urban lifestyle amenities, but are
                  and price growth across      India, China, Japan, The United Arab          surrounded by easy-to-access parklands,
                Canada’s major cities.         Emirates, Africa, Israel, South America,      waterfronts and rustic cottage getaways.
             As that market begins to          and throughout the European Union.            Our airports make business or personal
resemble a “bubble,” investors are moving      Our city is home to three expanding           travel incredibly easy, and bring the world
into other markets across the country.         universities with international MBA           to our doorstep. Our city is famous for
	 Toronto’s luxury market is expected          programs, as well as world-renowned           its safety, its schools, its arts, and music
to continue to benefit from record-low         design and arts and fashion. We are           and film festivals. All of these amenities
borrowing rates and a strong mixed             also home to a huge film and television       benefit the luxury homeowner, and create
economy. With a variety of luxury              industry. Our attractiveness to business,     opportunities for luxury home developers
neighborhoods available, buyers have           academic and creative industry leaders        from around the globe to find a new
their choice of lifestyles and price points.   grows every year. When that demand            and growing client base just north of the
Sellers are enjoying quick sales cycles, an    is teamed with the incredible upside          border.
average of 33 days on market, and great        potential for luxury home investment
net prices (96 percent of list price).         here, given our relatively low prices and
                                               long-term economic stability, we expect
                                               to see continued growth in international
                                               investment in the years to come.                                     more luxury

         Keller Williams Realty                        First Quar ter 2012 • vol. 9 no. 1                                  outfront         23
kw         state of luxury          THE MOVEMENT




                THE
             LUXURY
      Jason Glast, Debra Janes, Kevin Crawford, Martha Small, Charlotte Lipscomb, and more than 60 other top-producing luxury
      specialists located in San Antonio and Austin, Texas, were in “business as usual mode” when the opportunity to align with the KW
      Luxury Homes International division came knocking.
      	 Now the former Sotheby’s International and Phyllis Browning Company in San Antonio and AvenueOne Properties in Austin
      agents are earning more money while solidifying their brand and enjoying the synergy that comes when the top echelon of agents
      all call one company – Keller Williams Realty – home.

     Domino effect at the Dominion                                            opportunity, Harrelson jumped at the chance to purchase a
     The San Antonio IH-10 market center has earned a reputation              competing company’s vacant office in the high-end Pavillion at
     for consistently appearing at the top of the Keller Williams             the Dominion San Antonio community. It was certainly a risk
     system for high production and profitability. 2011 was no                for Harrelson who didn’t have any agents to fill it.
     different. Wendi Harrelson, team leader and area director of             	 That was until she rekindled a long time relationship with
     South Texas, has been attracting successful agents to the market         Debra Janes, a top-producing luxury agent in San Antonio. “We
     center ever since the KW Luxury Homes International division             ran into each other during an open house and Wendi mentioned
                      launched in 2009. But she’d been looking for            that she was thinking about buying our city’s old Sotheby’s office.
                           a way to provide a unique opportunity              I said ‘If you get that building, you get me,’” says Janes. When
                              to a group of agents who hadn’t yet             Harrelson jingled the keys over the phone a few days later, she
                                experienced the power of the division.        knew it was time to make the move.
                                      “The way it all happened is quite       	 “Things snowballed from there,” says Harrelson on the
                                   a story,” says Harrelson. Never            momentum surrounding the new office and the caliber of agents
                                   one to back down from a good               who were deciding to join. Within a couple of months, 48
                                                                              luxury agents had migrated to Keller Williams Realty and joined

     WENDI HARRELSON
     Team Leader
     San Antonio IH-10




      SAN ANTONIO IH-10 LUXURY MEMBERS AT THE DOMINION



24        outfront                                         First Quar ter 2012 • vol. 9 no. 1                         Keller Williams Realty
the KW Luxury Homes International division. The high-minded,                    	 Leads aren’t the only thing rolling in for agents in the
high-end synergy that agents are experiencing in one office is                  Dominion office. Janes is happy to report that less money to
paying off – currently they are closing 300 percent more sales than             the company means more income in her pocket. “My GCI has
competing offices. Among those having success are Jason Glast                   increased by 26 percent. I look back now and realize that I was
and Kevin Crawford.                                                             giving more than $1 million to Sotheby’s – now that’s all mine.”

How do you go up from No. 1?                                                    What’s in a name?
Before joining Keller Williams Realty, Glast, San Antonio’s No. 1               Crawford is a marketing guy through and through. A Platinum
agent, had achieved more than $31 million in sales. While Glast                 Top 50 agent with sales over $15 million in 2010, Crawford was
reflects on that success, he also knew more was possible. As he was             drawn to Keller Williams because of the control that he could
making his decision to switch affiliations, Glast attended Mega                 have over his own name. “Unfortunately, my previous company
Camp for one day. “I implemented what I learned in that one                     was more interested in their name, not mine. Now I have the
day and made money because of it,” he explained. In the three                   freedom to continue building my name and my brand. I have
months since he joined the San Antonio IH-10 market center,                     intentions of doubling my business this year. Now I have the tools
he’s continued to introduce new systems and processes and has                   and the liberty to do it,” he offered. Glast’s account is similar: “My
seen an immediate, positive upturn in his business. “I am getting               former company wouldn’t even allow my cell phone on my listing
more exposure from multiple platforms. My leads have increased                  signs,” he says.” Now I can hire my own photographers and use it
50-fold. Now I’m getting about five or six every day.”                          to enhance my own look and brand.”




                                                                                                                             PORTFOLIO PROPERTY MEMBERS
                                                           CHARLOTTE LIPSCOMB




    Better Together                                                                           MARTHA SMALL

EAGER FOR EXTENDED REACH, NINE
 AUSTIN AGENTS ALIGN WITH KW.

  There’s even more movement                     environment, Small knew that the                            recognized the advantage of the national
  among agents specializing in the               group wanted to stay together. “The                         and international reach as a luxury
  luxury market, and it’s happening in           thought of us all blowing to the winds                      brand. Keller Williams Realty was able
                                                 to other boutiques got us thinking about                    to provide both,” she says. “It’s no longer
  Austin, Texas. As the city grows in
                                                 alternatives.” All nine agents, which                       enough to merely market in the Austin
  popularity, successful start-ups and           also include Jeannette Spinelli, Mark                       area. We must sell Austin throughout the
  big businesses are being drawn to              Moore, Francie Little, Shari Chambers,                      world, and Keller Williams provides the
  its entrepreneurial spirit.                    Laurie Graham, Weston Lipscomb                              resources to support that effort.”
  	 Watching the trend and eager to take         and Elaine Trull, looked seriously into                     	 Dee Shultz, president of KW Luxury
  action were Charlotte Lipscomb, Martha         launching their own boutique company,                       Homes International and associate with
  Small and seven other luxury homes             but realized start-up costs were too high.                  the Austin Southwest market center, is
  specialists, formerly of the boutique          That’s when Diane Johnson and Melanie                       very excited and pleased to be in business
  luxury firm AvenueOne Properties. After        Kennemann, team leaders in the Austin                       with the group. “Having watched the
  careful thought and consideration the          Southwest market center, approached                         division grow from the ground up and
  agents came to the conclusion that their       them with the idea of creating their                        expand with such a high caliber of agents
  current company wasn’t going to support        own luxury team within Keller Williams                      who believe in an environment where
  their desire to spread their brand outside     Realty.                                                     sharing, networking and friendship are
                the Austin city limits.          “It just made sense,” says Small, citing                    widely accepted has been very rewarding
                     	 Having come               the international reach, technology and                     to watch.”
                       from a boutique           resources already established within                        	 Jump-starting their brand and getting
                                                 the KW Luxury Homes International                           the word out is first on the priority list
                                                 division as the key benefits for moving.                    for all 11 agents. There to give them some
                                                 	 Lipscomb, a top-producing luxury                          sound advice: the 40 additional KW
                                                 agent and member of the newly formed                        Luxury Homes International members
                                                 team, agrees. “We wanted to form                            currently with the Austin Southwest
 DIANE JOHNSON
 Team Leader                                     our own luxury boutique agency, but                         market center. kw

                  MELANIE KENNEMANN
                  Team Leader
        Keller Williams Realty                         First Quar ter 2012 • vol. 9 no. 1                                                                 outfront   25
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012
KW Outfront Magazine - Online Edition | 1st Quarter 2012

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KW Outfront Magazine - Online Edition | 1st Quarter 2012

  • 1. G O I N G G L O B A L K E L L E R W I L L I A M S R E A LT Y L A U N C H E S I N V I E T N A M ! A PUBL IC ATION O F K E LLE R W I LLI A MS R E A LT Y, INC . FIR S T QUARTER 2012, VOL .9 NO.1 Candice Frigault Jen Lysak Chris Suarez Michael Burke Rachel Kendall (Toronto, Canada) (Lakeland, Fla.) (Portland, Ore.) (Bonita Springs, Fla.) (Raleigh, N.C.) DOUBLE SEEING 2x deals 2x income the the HOW FIVE KELLER WILLIAMS AGENTS ARE BUCKING THE TRENDS AND COMING OUT ON TOP. - PG. 9
  • 2. 2 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 3. vol. 9, no. 1 - First Quarter 2012 table of contents First Quarter 2012, vol. 9 no. 1 06 09 OutFront is a publication of Keller Williams Realty, Inc. LIVIN’ ON COVER STORY: THE eEDGE SEEING DOUBLE 1221 South Mopac Expressway, Suite 400 Brian Bendily’s four 2 times the deals. 2 times Austin, Texas 78746 (512) 327-3070 phone strategies for getting the income. Five top KW (512) 328-1433 fax a big edge in business. agents talk strategy and Executive Director of Marketing and success. Communications: Ellen Marks Editor: Laura Price Copy Editor: Jeff Ryder Associate Art Director: Michael Balistreri Designer: Caitlin McIntosh 20 24 Contributors: Celesta Brown | Jennifer LeClaire | Shelley Seale THE 11 th LOOKING Advertising: HOUR AHEAD Tom Freireich (advertising@kw.com) Job Inquiries: (jobs@kw.com) New research from New opportunities in The Keller Center at the luxury market heat Baylor University proves up. cold calling works. OutFront is published by Keller Williams Realty, Inc. The entire document of OutFront is copyright© 2012 by Keller Williams Realty, Inc. No portion may be reproduced in whole or in part by any means, including electronic 26 VIRTUAL 28 GOING retrieval systems, without the express written permission of the publisher. Editorial or advertising does not constitute advice but is ASSISTANCE GLOBAL considered informative. Copyright© 2012 Keller Williams Realty, Inc. Should you hire a KW launches in All rights reserved. virtual assistant? Vietnam. Plus full Mike Incorvaia Jr. Family Reunion 2012 answers the question. coverage. Y REUNION TWEET FAMIL S What YOU said! See page 27 for full Family Reunion coverage. Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 3
  • 4. 4 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 5. kw PURSUING A HIGHER PURPOSE IN LIFE AND BUSINESS My Dear Family, Inspirational stories flood my desk and email inbox daily. And each one thrills me beyond words. Your stories are constant reminders that the Keller Williams culture guides our personal and business lives, impacts the lessons we teach and leads us to reach out to others with compassion. Take Shaun Rawls, regional director of New York-Tri State. Joplin, Mo. Upon hearing of the tragedy, Dottie Bowe, Shaun shares his leadership gifts with our Keller Williams operating principal sent out a call to action that resulted in a family in numerous ways, one of which is imparting invaluable team meeting. They didn’t just determine “if ” they could help, life lessons through his expressive blog at (rawlsgroup.org). In but rather “what” assistance they would be able to provide to a recent post, he recounted a less-than-illustrious 7th grade their Joplin family members. After an energetic discussion, the third-string quarterback experience. Having slacked off for project theme and goal had been set and put into motion – the better part of the season, Shaun’s coach made a lesson out $10,000 in 10 days! With enthusiastic leadership from Mark of his lack of effort with a muddy scrimmage that left him and Tammy Richard, an exciting momentum immediately face-to-face with the biggest and best players on the team, and permeated the Portland environment. By the 10th day, more shortly after, face down in the mud. than $12,000 had been raised and was sent to KW Cares. “Our He drew the story to a close with a poignant lesson on team never veers from following and living the blueprint of failing forward: “Even though it seems like they last forever, this company,” shares Mark. You inspire us all Portland! I’ve come to realize that the worst times in life don’t last very While each of these stories carries its own significant cultural long and we can even laugh at them in the rearview mirror. message, I want to leave you with an abiding truth that is Besides, the person we become would be a lesser person exemplified every single day within our Keller Williams family without such difficult and trying times in our lives.” Thank – commitment to a service-centered life, not a self-centered you, Shaun, for giving us perspective on what truly matters. one, is what we are truly called to do each and every day! Another story that touched my heart came from Katy, Texas. Yours in world-changing culture! Jacob Howard, a former RE/MAX agent, was not only fighting to keep his real estate career alive, he was in the uncomfortable midst of questioning whether he should head back to the corporate world. That was until Joe Rothchild, operating Mo Anderson,Vice Chairman, principal of the Keller Williams Signature Market Center and Keller Williams Realty Lucas Sherraden, team leader at Overland Park, reached out. Their caring persistence and concentration on Jacob's growth, not just the growth of the company, gave him the confidence to decide to build a career worth having, a business worth My heart continues to owning and a life worth living. overflow with the sheer Jacob did indeed join our family and finds it difficult to joy of our 2012 Family adequately express his gratitude. “Joe saw something in me that Reunion! This year’s theme I didn’t see in myself. And Lucas puts his heart into the job – “Where You Belong” – and truly wants [my] career to thrive.” Helping others achieve was absolutely perfect. their highest professional potential and greatest personal FAMILIES BELONG TOGETHER. To laugh, to cry, to support, fulfillment is our culture in action, and we give great thanks to celebrate, to learn, to grow, to worship and, perhaps most importantly, to LOVE and HUG one another! And that is exactly for family members such as Joe, Lucas and Jacob! why we do not gather for an annual “convention.” We come This last story from the Greater Portland (Maine) market together for a true Family Reunion! Gary, Mark, Mary and the entire center solidifies what I know to be absolute: we are a company Keller Williams International Support Center want you to always that firmly believes in “walking the walk” and we are deeply remember what an honor it is being partners with each of YOU! committed to “coming from contribution.” Those values were put into action when the horrific tornado ripped through See page 27 for full Family Reunion coverage. Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 5
  • 6. kw kw technology B R I A N B E N D I LY | M O N R O E , L A . By Shelley Seale Getting a big edge on business with When Keller Williams Realty launched eEdge, the real estate industr y’s first and only total lead-to-close business solution, Brian Bendily, who joined the Keller Williams Realty Monroe (La.) market center in October 2009, was among the first to sign up. “I had no idea the impact the new business management tool would have on my business. After activating, I was able to generate more leads with my eEdge Website than with the two Websites I had been using for years.” In fact, now everything runs through eEdge. “The system has reduced my expenses and helped me grow my business by 27 percent over the prior year." As for the transition from multiple tools to one solution, he says “the system is extremely Brian Bendily user-friendly for non techies.” So how exactly did he do it? Follow his strategies for implementing eEdge now! 6 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 7. Here are Bendily’s four eEdge strategies: 1 2 DON’T TRY TO DO FOLLOW UP WITH LEADS IT ALL AT ONCE IMMEDIATELY AND CONSISTENTLY Bendily recommends following the step-by-step As agents ramp up their online lead generation tutorials that Keller Williams Realty provides, activities, they will begin to see the effects – lots of as well as concentrating on and mastering one leads, but fewer good ones. At that point, Bendily thing at a time. “People tend to overcomplicate recommends agents “focus on lead conversion tactics. technology. Keller Williams Realty took a very Doing that will yield tremendous results.” simple approach with eEdge. When you follow While Bendily’s unique visitors to his eEdge the guides and take it one step at a time, getting Website varies throughout the year, on average his site started is so easy." sees four to five thousand new visitors per month that typically result in between 100 and 200 actual leads. And he converts around 5 percent of those leads into Visit mykw. contracts by immediately following-up with a phone kw.com/eEdge for call and consistent email communication. “I’m always live trainings, 101 striving to grow that number,” he adds. “My goal is tutorials and archived to get that to 10 percent, and we’re working really webinars. hard this year to make that happen.” BUILD IT, WORK IT AND USE THE ENTIRE THEN THEY WILL COME eEDGE SYSTEM eEdge is not a magic pill, Bendily cautions; you can’t Bendily’s team doesn’t stop with the eEdge Website. just put it out there and expect it to get results. “When They seamlessly integrate both the myMarketing and I teach classes at our market center, agents will tell me myTransaction solutions as part of their high-level that they’ve got their site up and running, but they’re business strategy. “I believe the paperless transaction is not generating any leads. My response is always the where the industry is going,” says Bendily, who plans same: ‘Your eEdge is a phenomenal tool but without to have 80 percent of his business paperless by the end anything else it’s like having a really nice billboard in of the year. “I’ve stopped waiting by the fax machine. the middle of a desert.’” Instead, I write up and send a contract right from my In other words, eEdge is the lead generation and iPad. Going paperless truly saves time and money.” business management tool for the marketing agents Using eEdge features such as the 33 Touch campaigns, are already doing or plan to do, not a stand-alone tool. postcards and the This Month in Real Estate e-newsletters “Most of my business comes from my online lead have automated his touch programs and allowed him generation strategy which includes other marketing and to focus his efforts on converting leads. And as eEdge prospecting activities,” Bendily says. continues to evolve, Bendily is looking He funnels every marketing action he takes through forward to the unveiling of new changes eEdge including social media, Craigslist and his phone and services to myMarketing. calls from yard signs. “I drive it all back through my “Keller Williams has something eEdge site. That’s my stopgap.” phenomenal coming down the pipeline that I can’t wait to see hit,” he says. Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 7
  • 8. 8 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 9. kw cover story By Laura Price, Jennifer LeClaire, Shelley Seale and Celesta Brown DOUBLE SEEING Michael Burke Jen Lysak Candice Frigault Chris Suarez Rachel Kendall (Bonita Springs, Fla.) (Lakeland, Fla.) (Toronto, Canada) (Portland, Ore.) (Raleigh, N.C.) In 2011, Keller Williams And though slumping home prices, slow economic recovery and fear from the media crippled some real estate careers, a wave of success associates continued on their stories from Keller Williams agents around North America continues success trajectory. Average per to flood in, showing signs of life in nearly every market. agent GCI was up 16 percent. Take Chris Suarez, for example. He moved his business from New York to Oregon and gained twice as much business. Also reaping the Average units per agent in rewards in 2011 were Michael Burke, Candice Frigault, Jen Lysak Canada was up 0.5 percent and Rachel Kendall, whose proactive business decisions doubled and and an incredible 19.5 percent tripled their business in less than five years. As you read through each of their stories and learn about their businesses, you’ll realize – it truly in the United States. isn’t about the market, it’s about what you do to thrive. continued on next page Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 9
  • 10. kw cover story TA K E T H E L E A P By Jennifer LeClaire Chrisportland, ore. Suarez STARTING OVER SOMETIMES THE BEST WAY TO IMPROVE IS TO START AT THE BEGINNING … AGAIN. Chris Suarez was an overachieving Manhattan real estate agent when he decided to move across country to a small Oregon college town – a drastic geographic shift that seemed counter- intuitive to many. Suarez’s goal: to start from scratch and build a real estate business on sustainable models that would ultimately build wealth. Even before recovering from the culture shock of the transition, Suarez, who was not yet affiliated with Keller Williams Realty, started putting The Millionaire Real Estate Agent (MREA) principles in place. THE BIG IDEA “My mindset was to start over and build correctly. I was very committed to the MREA. I knew I had to get in front of people and add them to my database immediately,” Suarez recalls. “The quickest way to do that was to hold open houses.” Of course, without any listings Suarez couldn’t exactly hold open houses. So he kept mingling with the Eugene, Ore., real estate community until he met an agent that represented a local builder. That connection opened the door for Suarez to essentially hold an ongoing open house. Suarez spent the next six months in a condo office for eight hours a day, six days a week, waiting for potential buyers in Eugene’s urban core. For some, it may have seemed like a big risk with little upside. But for a forward-thinking Suarez, it was an opportunistic alternative to getting a full-time job while rebuilding his real estate practice. “I was able to build my database every single day in a market I wanted to break into – condos,” Suarez says. “In that time, I stayed focused on future buyers and sellers.” After six months, another building owner toured the condo and decided he needed Suarez to represent his project, which was still in the construction phase. Instantly, Suarez had a tower full of condo listings to call his 10 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 11. own and his database exploded. Eventually, he had 150 buyers “My mindset was to start over and build correctly. under contract. Although the building was sold and the closings never happened, he found himself suddenly representing 150 clients actively looking for a new condo. Suarez admits there I was very committed to the MREA. I knew I are good days and bad days with his open house strategy, but he continues to bet on it even today. had to get in front of people and add them to my “Because I was new to the city, I had to be 100 percent committed to understanding the market. When I wasn’t with database immediately ... ” – CHRIS SUAREZ clients, I was out in neighborhoods opening doors and walking through houses,” Suarez says. “I also spent a lot of time on the numbers of real estate. It doesn’t matter if someone has been in the market longer than I have. I know the market. I’ve got the Suarez says. “I’ve been through BOLD four times. I never miss a numbers, graphs, charts and I build touch campaigns around Family Reunion. I never miss Mega Camp or Masterminds. I’m a statistics.” member of KW Luxury Homes International. And I consistently reach out to top agents who are producing at higher levels than I THE BIG PAYOFF ever have.” After nearly four years in Eugene, Suarez started over yet again. Achievement is the keyword. During his first year in Portland, This time, 110 miles away in Portland. Leaving RE/MAX, he despite not knowing anyone, he sold $22 million. He continued joined Keller Williams Realty Portland West. building up his knowledge base through KW MAPS Coaching Today, Suarez is one of Portland’s top producing real estate and has learned, perhaps above all, that accountability is critical. consultants, combining his Manhattan-style marketing and “My drive brings with it incredible personal accountability,” negotiation skills with the Keller Williams model. He does Suarez says. “But my biggest accountability comes from the business under the banner PDX Property Group with a focus on fact that I have 180 agents that watch me. I won’t stop reaching luxury customer service, high-class marketing, intense market out to teach and coach because it makes me better. I have to do knowledge and interpretation, and a high-energy focus on results. things the right way. And the right way is to follow the model. “I’m really committed to the education Keller Williams offers. Every city has its own personality, but no matter where you go I bought into it and it has been a huge part of my success,” you can succeed if you follow the model.” kw Chris’ Five Steps for Holding an Effective Open House 1 3 Choose a home that gives you the greatest potential SC RIP T Know the right script during the open T 5 Always follow - up. Call, email 2 4 to have buyers and sellers house. “Thanks for stopping in to tour my SCRIP or hand write a note. Use this find you. script: “Thanks for stopping into open house. Are you one of the neighbors or are you out shopping for a home today?” my open house this morning. It was great to meet you. I did a little bit of digging in the office after we met and after the open house Prepare yourself with and found three other properties I Advertise and market the event a week comparable properties, think really fit your search criteria. before the open house. Post Internet market research and I know the home that we saw ads, put a sign in the yard, make 50 calls come up with at least two this morning wasn’t quite perfect and door knock to neighbors in a 2-3 or three other homes you but these three have some real block radius. could show should the potential.We could get into them opportunity arise. tomorrow at four or at six.Which would work better for you?” Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 11
  • 12. kw cover story MASTER PLAN By Shelley Seale Michaelsprings, fla. bonita Burke MASTER PLAN MEET THE NEW MICHAEL BURKE Watching his business stall out from the sidelines wasn’t sitting right for Michael Burke, associate with the Bonita Springs market center. “I did not have a plan,” he says bluntly. In 2010, his business lacked goals, structure and direction. He had no vision or mission. “I would just show up and hope the phone would ring,” he says. The business success he had, he attributes to the unique marketing campaigns he created for the gated communities that he farmed. But that wasn’t enough. After attending Mega Camp in December 2010, he left John R. Wood Realtors to join the Bonita Springs market center, and in one year took his business from $9 million to $20 million in production. BEFORE … AND AFTER Though attending Mega Camp and joining Keller Williams Realty was “the best thing that ever happened to [me],” Burke’s business still wasn’t exactly booming. In an effort to move forward, he turned to The Millionaire Real Estate Agent. “It was an outstanding tool. As I kept reading the book over and over, I found myself using different aspects of it in my business. When Keller Williams approached me to join, I knew it was the right move.” Burke gives the most credit for his skyrocketing production numbers to the Keller Williams models, training and continuing education. He joined KW MAPS Coaching and set a goal to read at least one self-help book per month. He took Keller Williams University’s MREA Business Planning Clinic three times within a two-month period – and in fact, his entire team went through the class together. If this perhaps seems a bit excessive, Burke doesn’t think so. He cites Gary Keller’s rule that a person needs to take a class at least 10 times before he or she masters it. “I want to master it; I need to master it,” Burke emphasizes. MREA MODEL CENTRIC While The Four Fundamental Models of Real Estate Success outlined in MREA keep Burke’s business running on all cylinders, he spends most of his time on the Economic Model 12 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 13. "To me, success is knowing that I have done the very best every day for my clients and my team ... The money will follow, provided that I follow the values I have incorporated into my business plan.” – MICHAEL BURKE and the Lead Generation Model. The two models give him an accurate view of his business on a daily, weekly, monthly and yearly basis. “Numbers do not lie. If I fall behind my goals, I know where my inefficiencies are and make adjustments immediately,” says Burke. In most cases, it’s fine-tuning his lead generation. “I know how many calls, contacts and appointments I need each day, week and month to reach my goals.” Burke doesn’t claim it’s easy, but recalls a lesson learned from Gary Ubaldini, a long time Keller Williams associate and regional investor. “He said, ‘We have to be flexible in our plan.’ Sometimes, we get too robotic in our thinking and planning. When making a plan, keep an open mind. It should be a living, breathing document that can be open to daily attention and adjustments based on the market.” ON TARGET The MREA Business Planning Clinic also taught Burke to think long term by writing down clear, concrete goals. He cites the book What They Don't Teach You in the Harvard Business School, in which author Mark McCormack describes a study conducted on students in the 1979 Harvard MBA program. Only 3 percent of those students had set clear, written goals for their future; a whopping 84 percent had no specific goals at all. Ten years later, those 3 percent with written goals were earning, on average, 10 times as much money as the other 97 percent put together. “This scared the heck out of me,” Burke admits. “I wanted to be one of that 3 percent.” He now has one-year, two-year, three-year and four-year written plans, which he shares with his team on a regular basis. “They clearly understand what we are doing now, where we are headed and how we are going to get there,” says Burke, who is passionate about hiring the right people. “I hire to my weaknesses,” he says. “I know what I am good at, and I hire people who are detail and task oriented.” His team consists of wife Shelly Burke, who is the listing coordinator and handles the books; Justin Jordan, executive assistant: Sharon Rowland, transaction and closing coordinator and Justin Helmus, buyer agent. IT’S NOT ABOUT THE MONEY Even with the success, he does not think of it in terms of money. “To me, success is knowing that I have done the very best every day for my clients and my team,” he says. “The money will follow, provided that I follow the values I have incorporated into my business plan.” For Burke those values include integrity, commitment and trust. “I believe I am very blessed to be where I am at, and very thankful for those blessings,” says Burke. “I do not take it for granted. As I follow the model, I find myself a better person AND a better businessperson, mainly because of the Keller Williams values which mirrored mine: God, Family, then Business.” kw Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 13
  • 14. kw cover story PRODUCTIVE PROGRESS By Celesta Brown Candice Frigault toronto, canada FROM PASSIVE TO PROACTIVE TORONTO TEAM BETS ON DOUBLING DOWN AGAIN THIS YEAR Four years ago, Candice Frigault, associate with the Keller COUTING FOR SYSTEMS Williams Advantage Realty Market Center in Toronto, Canada, Frigault feels her career trajectory is a result of her decision to was approached with an offer she couldn’t resist. A mega team purchase the business and her dedication to learning from the best. on a mission to take a year long sabbatical was interviewing local In fact, it was only a few years ago she was passively running agents to find one who would manage, grow and mindfully tend her business – relying heavily on referrals from friends and to their business with their same passion. Frigault’s fire for the family as a primary source of leads. She knew she would have to business caught their eye and they asked her to sign on. do more to take it to the next level. “I was originally attracted to Over the next year, she worked closely with their team, this industry because of its unlimited income potential, and yet soaking up their business and learning their systems and there I was, not taking advantage of it.” Knowing she could rely methods that powered it. By the time the team took their break on her Keller Williams family for knowledge, she started seeking toward the end of 2010, Frigault had embraced their business out the most successful agents to emulate. “I asked them what while customizing it to make it her own. When they officially systems they used, how they lead generate, and what strategies decided to retire one year later, she purchased their business they employ to sell so many houses.” outright; a move that would double her sales in one year. Two of those agents were Jason Pilon and Leam Hamilton of “I ended 2011 with 37 contracts and $17.5 million in the Keller Williams Ottawa-based PilonHamilton team. Having production which was twice what I was making the year before.” never met them, she was excited when they were willing and Currently she’s on pace to reach $20 million and beyond in 2012. eager to let The Frigault Team shadow them for a day. 14 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 15. The Frigault Team’s “There’s so much to learn from a team that sold 330 favorite over-the- homes last year,” says Frigault. “They took us under their phone script wing and answered our most curious questions, including how they were selling so many houses and what methods “We qualify a lot of our online-generated leads over the they were using to get their GCI up year after year. We phone. Here’s our best script.” were so challenged and inspired by our day with them and This is Candice Frigault from The Frigault Team with Keller took away many ideas that we are already implementing.” Williams Realty.Thank you for your request online for further T Frigault continues to thrive in the Keller Williams SCRIP information about [XYZ].We have just emailed/mailed that culture of sharing and maintains her focus on learning information out to you. Is that OK? I just have a few quick from high-performing agents. She gets involved in every questions for you. 1 possible educational opportunity, obsessively attending any course that features a mega agent. READY TO RAMP UP Frigault, who aspires to be in the top 1 percent of agents Are you planning on moving in the next 3-6 months? (Shows urgency/ motivation level.) 5 Do you have a real estate agent to help you when the timing is right? in Toronto, has some lofty goals for 2012. Among them 2 6 Would you like us to send is her desire to double her business again and close at Do you currently own you a list of homes that least 70 transactions. Realizing that goal means having a or rent? (Find out if we are currently available and solid team in place who share her vision. Jason Schott, have the ability to sell would match your desired their house as well). the team’s buyer agent, firmly believes in Frigault’s criteria from all real estate 3 determination to use methods, scripts and systems that are companies? (Assuming the proven to work and increase productivity. Are you planning on answer is yes …) In fact, Frigault, Schott and their team’s administrative staying in the area? Great! When can we get assistant spent all of January getting in position to achieve 4 together and chat for that goal by working on their lead conversion and follow- If you were to move, when about 20 minutes so that up tactics with solid scripts that the entire team can use. do you think that would be? we can take down exactly (Similar to question No. 1. Following a familiar sales system for their methods on what you are looking for? Ask again to find out more leveraging people, technology and marketing, the team information.) is also implementing 33 Touch and 12 Direct campaigns through eEdge. “We’re putting it to work for us and I aim to perfect it.” She recommends the same for up-and- coming agents. “Find a system or program that you are passionate about and nail it.” kw Follow up with leads immediately. “Like the Pilon/ Hamilton Team, our business is So what did The Frigault Team Tailor your follow-up largely based on Internet leads. take away from their meeting systems. “Their team has While shadowing them, we realized a follow-up system in place for we weren’t following up with those with The Pilon/Hamilton Team? every lead scenario. The goal is leads while they were HOT! The to make sure the lead is receiving best time to catch Internet leads the best communication and call- is while they are still online and to-action to get the appointment. contacting you. The Pilon/Hamilton Brand yourself One staff member handles the team has an inside sales agent (ISA) consistently across the immediate follow-up. If that lead on staff who assigns the lead to a board. “Whether you market isn’t ready to buy or sell in the sales agent who then converts the yourself in print, social media or immediate future, it gets passed leads into clients. Our next hire is online your brand needs to be along to another member of our going to be an ISA, but for now, our well recognized and professional. team who nurtures them over strategy is to follow up with our By tweaking and improving our several weeks. In other words, Internet leads within five minutes of image across all marketing mediums each lead is assigned a plan and them sending us an inquiry. Out of and communication channels we each team member is responsible 10 leads we get online, we currently established a consistent brand in the for executing their activity on convert four into an appointment minds of our audience.” that plan for every lead.” using our over-the-phone script.” Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 15
  • 16. kw cover story SOCIAL PRO By Jennifer LeClaire Jenlakeland, fla. Lysak JEN WANTS TO BE YOUR "FRIEND" LEAD GENERATION THROUGH SOCIAL MEDIA HAS BEEN TRIED BY MANY AND PERFECTED BY A SELECT FEW. SO WHAT’S THE RECIPE FOR SUCCESS? Jen Lysak, associate with the Lakeland (Fla.) market center, wasn’t always on the social media bandwagon. But when her lead generation Websites weren’t drawing as many leads as she’d hoped, she turned to her operating principal, Chris McLaughlin, for advice. “He suggested I dive into Facebook marketing,” she says. At first, Lysak’s skepticism got the best of her. “It seemed like a waste of time.” Nevertheless, she decided to follow the wisdom of her leader – and she’s glad she did. Last year, the consistent $1 million to $2 million producer singlehandedly doubled her business, selling $5 million worth of homes. She largely credits that success to her Facebook strategy. LEAD WITH A PLAN, LOVE THROUGH CONVERSATION Lysak engages people in what you might call a traditional way. No advertisements, no gimmicks – just good conversation and expert relationship building. And it’s paying off – currently 90 percent of her leads come from the social media site. “I get an average of 10 Facebook leads every week,” says Lysak. “People do business with people they know and like. So I make friends and share things about my personal life so they can get to know me.” It’s that easy going philosophy that makes up the foundation of Lysak’s strategy. Her first move was to “friend” every client she had ever served, and then subscribe to their SMS (short message service or text message) feed through Facebooks mobile settings. In other words, every time a friend posts a 16 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 17. status update, she gets a text message. When appropriate, Lysak appointment. In fact, of the 10 leads she generates from responds. Facebook each week, Lysak reports that about 75 percent turn “People are so touched when they post about having a into appointments. cold and I ask them if they are feeling better or if they need “When I sell the house, I post a picture of the buyers with anything,” Lysak says. Real estate, after all, is still a relationship house keys in their hand and write a comment about how happy business, and maintaining relationships with hundreds of people I am for them. Then I tag them in the photo so all their friends doesn’t take her more than 15 minutes a day via Facebook. see it,” Lysak says. “Usually, they write me back and thank me With relationships in mind, Lysak is careful not to turn for all my help, which turns into a testimonial. You can’t pay for her Facebook profile into a social media billboard that blasts that kind of testimonial.” constant messages to her 2,500-plus friends – which she hopes will be 3,500 by the end of the year. CREATIVITY BEFORE RESULTS “I don’t post too much about business,” she says, “that’s a good Lysak still pursues other lead generation activities. She spends way to get un-friended.” She keeps her eye out for people who the first hour and a half of her day writing back to leads, setting may be in the market for a home soon. For instance, if someone them up on searches and referring them to her Websites. She changes their relationship status to “engaged,” someone just also takes the direct approach on Facebook and simply asks for graduated from college or just had a baby; they may be looking the business. for a new home. “People post their lives on Facebook. I like to “If someone is getting divorced, I message them and tell them congratulate friends for buying their first home at a really great how sorry I am. Then I offer to help them with any questions price and offering details of the transaction,” says Lysak. they have about their home,” Lysak says. “If they just got married, I congratulate them and offer to help them find a new TYING IT ALL TOGETHER home. If the relationship is there, asking for the business is easy.” Lysak’s Facebook marketing strategy flows right into her online Like all lead generation activities, just because Lysak asks for lead capture approach. “Any time I post about my business on the business doesn’t mean it’s an automatic win. Some married Facebook, I send people to my eEdge Website to sign up for couples are in an apartment lease for the next 12 months. Some my IDX search.” In fact, her eEdge Website URL is on every new parents don’t have the budget to move into a larger house marketing piece including her voicemail. “eEdge is the No.1 yet. But Lysak is planting a seed, and because she is connected advantage Keller Williams offers. Tying it to my Facebook with future buyers and sellers on Facebook, she’s just an instant strategy allows me to further promote my brand AND capture message away. all the leads that come in.” “Just be real. Ask questions and don’t forget this is a Although the connections begin in the virtual world, Lysak relationship business,” Lysak says. “Get on Facebook and reach is quick to invite serious leads to her office for a face-to-face out to people so they feel like you care. It pays dividends.” kw Engage online without spending a dime Use Jen Lysak’s top tips to earn business from Facebook 1 “Friend” every client and then subscribe to their SMS feed. Visit your Mobile Settings to turn the notifications on. 3 Lysak uses the Facebook "Check-In" feature to let friends know she was at a new listing. In the comment area, she 4 Reach out to people who are in a transitional place in their life, offer appropriate condolences or congratulations, and ask if they need your help moving to the next stage of Every time a client posts a 5 status update, you’ll receive writes, “Coming soon their life. a text message. When …” and offers a few appropriate, respond. details about the house. Congratulate friends for buying their 2 She also adds a photo first home at a really great price and of the home. Lysak calls offer details of the transaction. When responding, the strategy a low-key way to remind people of 6 “talk” to people as if they were a close what she does and alert Route everything to your eEdge friend you care other real estate agents Website where consumers can sign about. Be yourself that she has a new listing up for specific search results and your and be genuine. their clients may want myMarketing campaigns. to tour. Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 17
  • 18. kw cover story FAST LEARNER By Celesta Brown Rachel Kendall raleigh, n.c. HEART + PASSION X EXPERTISE = RESULTS FROM MATH TEACHER TO KELLER WILLIAMS REALTY’S ROOKIE OF THE YEAR, RACHEL KENDALL’S SUCCESS IS ADDING UP. In 2008, faced with a market downfall and a brand new city, How do you and your team Rachel Kendall, a former middle school math teacher, jumped stay on track to meet your goals? into real estate. One year later, the Raleigh (N.C.) market Each of our team members has a whiteboard with our No. 1 center associate earned the Rookie of the Year Award for all of goal on it. There are at least four blank lines in each month for Keller Williams Realty. In 2010, on a success streak, she sold each team member to fill in with that month’s closings. If we are 41 homes, ending the year with $11.7 million in production. not achieving the goals we set, then we adjust. Each week we By 2011 she had doubled her business, closing the year with 84 meet to discuss our individual problems or obstacles – things contracts and $22.5 million in production. that are preventing us from reaching our monthly and yearly But if early success and industry clout weren’t enough to goals – and we brainstorm to solve problems together. convince you of Kendall’s superstardom, last month, she was asked by the Obama administration to participate in a small- What is the single biggest hurdle agents business mastermind at the White House. We also called upon need to overcome to accelerate their business? Kendall to get her wisdom on winning in this market. Picking up the phone and asking people for business. Don’t be afraid to remind clients that you’d like to help their friends and What’s your No. 1 source of business? family, too. Of course, to call on a relationship, you must first Right now our business is 98 percent referrals. Those include have a good one. client referrals, corporate relocation referrals, and referrals from Keller Williams associates. It seems like you have great relationships Describe your team with your clients, how do you foster those? Our team is dedicated to heart, compassion and results. It’s often The Rachel Kendall team is made up of Dan Kendall and Gene lonely waiting on a house to sell. We’re empathetic. Our goal is Pitzer, brokers, Angie Cole, broker and buyer specialist, Karen to deliver the highest level of service possible during the entire Huckabay, broker and buyer specialist, Amy Anderson, team home buying or selling process. For some families that means administrator, Lisa Luke, client care coordinator, Candace dropping off warm meals or perhaps delivering a baby gift in McGhee, our team’s stager and decorator, and Tina Frost, person. We stay in constant communication with our clients. broker and marketing manager. Which team member do you recommend hiring first? How can agents improve You need to hire administrative support. An agent needs to be and solidify their pricing techniques? in front of people, not behind paperwork. If you can’t afford it, The Rachel Kendall Team supports our clients’ decisions. When share an assistant with another agent on a part-time basis. we run into a seller who isn’t ready to come down on price, we will occasionally agree to a three-week trial at their price to see if the market responds. If it doesn’t move in three weeks, we do 18 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 19. "We solidify our credibility through facts ... we let our clients know that we are not emotionally listing the property – this is about getting the most money for their home given current market conditions. " – RACHEL KENDALL a correction instead of a reduction, and then treat it like a brand-new listing. How do you establish credibility and counsel sellers on price? We solidify our credibility through facts. For instance, last week we sold a house at 100 percent of the list price in three days and we average 59 days on the market. Those are compelling examples of our expertise and market knowledge. We let our clients know that we are not emotionally listing the property – this is about getting the most money for their home given current market conditions. How do you stand out from the competition? We have a reputation of excellence and fun in our community. We pay to have a seller’s home staged within 24 hours of receiving a signed contract. Each week we post a “Where in the World Is the Rachel Kendall Team?” on YouTube. One week it’s Angie Cole*, our exceptional buyer specialist out on the town or it’s me at a listing appointment. The videos catch us at work or in our personal life and add a personal touch. Our clients look forward to the video each week because it’s unique. *Watch for Angie in an upcoming episode of HGTV’s "House Hunters." What advice can you offer someone who may be struggling? I strongly encourage everyone to take Keller Williams University’s Ignite. Do what they tell you to do. I did it verbatim. You were diligent in researching companies. Why did you choose Keller Williams Realty? No other real estate company comes close to offering the resources that Keller Williams does. Not one other company compares. I visited several agencies in the Raleigh-Durham area before going to Keller Williams. I would have saved myself a lot of time if I had just gone to Keller Williams first! What do you like best about Keller Williams? I like that I have complete autonomy. And at the same time, doing exactly what they tell me to do - following the models – I am successful. Any last words of advice? If you put people first and follow the models, you will make money Watch Kendall’s videos on YouTube: (http:// and reach your success goals. kw www.youtube.com/TheRachelKendallTeam) Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 19
  • 20. kw From the Chairman THE 11TH H UR New research from the Keller Center at Baylor University finds cold calling still works, but agents stop too soon! I’ve never lost my confidence in cold calling as a fundamental and successful lead generation activity. It is, in fact, how Keller Williams Realty was built – literally one call at a time. No ads, no Internet. Just a man and a phone. By Gary Keller, co-founder and chairman, Keller Williams Realty But over the past few years, it seems cold calling has been set we’ve always used anecdotal evidence from interviews with aside in favor of other sources such as Internet lead generation successful agents. This research has always said cold calling activities and online sharing tools – both of which are known works, but I’m not sure how many people actually believed it. for producing measurable results. Frankly, I think it’s imperative So we asked the Keller Center at Baylor University to research that you adopt these new opportunities for generating leads. this to see if we could get a true researched finding. As a company, we strongly advocate innovation that can They proved cold calling works. produce results for your business. At the same time, we also In the study, with the support of our Keller Williams don’t want to see you drop those things that work. That was research and development department, the Keller Center set the philosophy we used when we set out to establish models out to determine if cold calling as a baseline lead generation and systems outlined in The Millionaire Real Estate Agent and it activity – meaning no experience, no contacts, no database, continues to drive our curiosity today. no marketing, no listings and no “just-solds” – would generate Up until now, we’ve never actually had hard proof that cold appointments taken for agents. Their findings brought to light calling was a fundamentally effective lead generation tool compelling facts behind cold calling’s effectiveness, and some for you to use to build and sustain your business. In the past interesting behavior patterns. WN EA KDO LL BR CA 14 LD CO 3,450 no answers DAYS 1,774 calls answered 134 1,037 numbers not working PARTICIPANTS 19 appointments set 929 were not interested 6,264 11 referrals received CALLS MADE 132 said to call back later 20 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 21. How we did it calling by the 11th hour – one hour short of reaching the goal. In the study, 134 agents from 10 different geographic areas were One hour short of winning a listing. divided into two groups. Each group was asked to set aside a different hour each day for seven days to make cold calls. They This phenomenon has several implications. Assuming the average used the same script and were asked to record the results of their commission rate of a listing agent is 3 percent and the median calls in an online form so that the data could be collected in real house price in January 2012 was $154,700 , then the commission time. For this study, cold calling was defined as dialing random from the sale of this home would have been $4,641. If 12 hours numbers from a certain farm area not previously marketed to by of lead generation yields one listing, then the listing agent would the agent. The result was 14 hours of lead generation over 14 days have made $386.75 an hour. Think about this: spending 3 hours a day, cold calling, Monday through Friday can – are you ready for What we learned this – potentially yield $290,063 a year in total commissions. 1. The conversion ratio of calls to appointment was 330 to 1, or 330 calls for every appointment set. The conversion ratio What does this mean for you? of calls answered to appointments was 93 to 1, or 93 calls When I was just starting out in real estate, I set a goal to sell three answered for every appointment set. homes in my first month of business. I went above the baseline 2. The conversion ratio of calls to appointment or referral was 208 and improved my odds by calling expireds and for sale by owners. to 1, or 208 calls to get either one appointment or one referral. I got on the phone daily, hosted open houses, took calls when And 59 to 1 calls answered to appointment or referral. nobody else would and ended up selling five homes that first month. Doing more than cold calling made it possible for me to Let’s stop for a moment and think about this: If an agent can quickly reach Runner-Up to Rookie of the Year status in my office make 50 calls per hour, it will take them approximately six hours Had I not taken my 12th month off after hitting my goals in 11 to achieve one appointment. Anecdotal evidence suggests a 2-to-1 months, I would have earned the award. appointment-listing conversion ratio, which means for every 12 The 11th hour is defined as a time in which it is almost too late. hours of calls, an agent can expect to achieve one listing.* In the case of cold calling, the 11th hour is too early to give up. When you look at this data as it relates to the activities that will 3. The study uncovered some interesting behavior by participants honestly produce business, you’ll know with confidence that when … On day one, agents began strong, making nearly 1,200 you make cold calls through the 12th hour, you can expect to calls. By the fifth day, though, the call volume had dropped by generate one listing. nearly 50 percent to just over 600 calls. And by the 11th day of the study – or the “11th hour” collectively – they stopped Here’s my point. Our goal as salespeople remains the same: lead calling completely. If we know it takes 12 hours of calling to generate and never let up. No matter what market you are in, the accomplish one sale, then collectively, everyone had stopped active and persistent lead generator always wins. kw *Based on research from The Millionaire Real Estate Agent. Look at it this way: 50 Calls every hour over 6 hours ... leads to 1 appointment For every 2 appointments, an associate can expect to earn 1 listing 12 hours of calls (6 hours + 6 hours) = 2 appointments = 1 listing. 16x More than $4,641* Average agent commission 12 hours of calls = the average hourly $386.75 per hour earnings in the United States ($23.29). return on investment (ROI). *Based on median home price in Jan. 2012 ($154,700) according to NAR and assuming a commission rate of 3 percent. Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 21
  • 22. kw state of luxury THE MARKET A LUXURY Momentum and movement point to new opportunities. The last 12 months included a series of high and lows for the luxury market. While home prices and inventory were down in many areas of the country, the ability to secure a jumbo loan strengthened. And the credit market wasn’t the only portion of the population loosening up. An enormous amount of money began to venture back into the market. According to Merrill Lynch Global Wealth Management, the top 5 percent wealthiest individuals made up 37 percent of all consumer spending in the United States in 2011. Dive deeper into the numbers and you’ll find the same group of affluent consumers allocated 19 percent of their investment portfolios to real estate. This is good news for agents interested in diversifying their core business and branching into the luxury market. Outfront spoke with four members of the KW Luxury Homes International division for a look at the local trends affecting the high-end market. Lee Ziff | Beverly Hills (Calif.) market center What do you expect to on the home, but it’s a clear indication institutions. Wealthy individuals from see for the luxury market of the buyer’s mindset. In 2012, I don’t around the world will continue to view in 2012? anticipate much change – agents will us as a great place to buy. The Los Angeles luxury have to know their market and continue market will continue to to be the local economist of choice. What makes your city a see big sales over the “market to watch”? next year. While we’re What do you expect to More than 12 million residents call not completely out of see in terms of interest the Los Angeles area home. We may the housing slump that from international buyers? be known for our celebrities, directors, hit in 2008, buyers will keep Individual foreign buyers are taking producers and athletes, but we have a buying and sellers will keep selling. advantage of the low luxury home growing population of affluent clients The challenge we’re facing right now prices to snap up good bargains. While who avoid the limelight and are simply is urgency. Buyers have the perception our economy may not be in the best searching for properties to match their that prices will continue to go down and condition right now, our government high-end lifestyle. The year-round aren’t quick to act on properties new to and history of recovery make the Mediterranean climate, beautiful beaches the market – you could say they “feel the United States a safer place to invest and educational opportunities are just a luxury” to negotiate on every little thing. money. Los Angeles is supported by few of the amenities that have put Los Last month, for instance, I maxed out at the entertainment industry, as well as Angeles on the map as a market to watch. 16 offers and counteroffers. We closed healthy financial, industrial and tourism 22 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 23. Terry Belt | McLean (Va.) market center What do you expect to woodwork to purchase a luxury property What makes your city a see for the luxury market at a great price. On the other side of “market to watch”? in 2012? the transaction, sellers are more realistic McLean, Va., and the surrounding areas Northern Virginia will about price adjustments. have some of the highest-paying jobs maintain a very healthy in the country. Fairfax County, just 12 housing market. Its What do you expect to miles to the southeast, is the second- proximity to Washington, see in terms of interest richest county in the United States. D.C., – we’re just 10 from international buyers? In addition to government-related miles away – will keep Washington, D.C., is home to many jobs, our local market is fueled by a unemployment low and foreign embassies and political diplomats, very strong technology and health care create new jobs to fuel the employment which creates an active international market – another factor that keeps our demands from businesses who work market in McLean. As jumbo loans unemployment low and income more directly or indirectly with the federal become more available and rates remain stable. As people move out from the city government. low, we expect to service more and more in search of more value, McLean will be Currently, we’re seeing the upper-end international clients. In fact, some of our seen an attractive market to purchase a market tick up as the stock market levels most recent clients have secured 4 and home. out. Because of the perceived stability, we 5 percent interest rates on large jumbo anticipate more buyers coming out of the loans. Irene Kaushansky and Philip Brown | Keller Williams Advantage Realty, Brokerage (Tortonto,Canada) What do you expect to What do you expect to What makes your city a see for the luxury market see in terms of interest “market to watch”? in 2012? from international buyers? Toronto is an important market to watch With the exception of Vancouver and Toronto has one of the most diverse for a number of reasons, not the least of British Columbia, which economies and resident demographics which is short- and long-term growth. are on the west coast, in North America. In fact, the city We are the economic engine of Canada, economists and market makes its residents' and visitors' with many national and multinational analysts are predicting information available in more than 20 corporations running their head offices another strong year different languages. We have very strong out of our city. We have an amazing in both sales volumes trade, education and business ties to array of urban lifestyle amenities, but are and price growth across India, China, Japan, The United Arab surrounded by easy-to-access parklands, Canada’s major cities. Emirates, Africa, Israel, South America, waterfronts and rustic cottage getaways. As that market begins to and throughout the European Union. Our airports make business or personal resemble a “bubble,” investors are moving Our city is home to three expanding travel incredibly easy, and bring the world into other markets across the country. universities with international MBA to our doorstep. Our city is famous for Toronto’s luxury market is expected programs, as well as world-renowned its safety, its schools, its arts, and music to continue to benefit from record-low design and arts and fashion. We are and film festivals. All of these amenities borrowing rates and a strong mixed also home to a huge film and television benefit the luxury homeowner, and create economy. With a variety of luxury industry. Our attractiveness to business, opportunities for luxury home developers neighborhoods available, buyers have academic and creative industry leaders from around the globe to find a new their choice of lifestyles and price points. grows every year. When that demand and growing client base just north of the Sellers are enjoying quick sales cycles, an is teamed with the incredible upside border. average of 33 days on market, and great potential for luxury home investment net prices (96 percent of list price). here, given our relatively low prices and long-term economic stability, we expect to see continued growth in international investment in the years to come. more luxury Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 23
  • 24. kw state of luxury THE MOVEMENT THE LUXURY Jason Glast, Debra Janes, Kevin Crawford, Martha Small, Charlotte Lipscomb, and more than 60 other top-producing luxury specialists located in San Antonio and Austin, Texas, were in “business as usual mode” when the opportunity to align with the KW Luxury Homes International division came knocking. Now the former Sotheby’s International and Phyllis Browning Company in San Antonio and AvenueOne Properties in Austin agents are earning more money while solidifying their brand and enjoying the synergy that comes when the top echelon of agents all call one company – Keller Williams Realty – home. Domino effect at the Dominion opportunity, Harrelson jumped at the chance to purchase a The San Antonio IH-10 market center has earned a reputation competing company’s vacant office in the high-end Pavillion at for consistently appearing at the top of the Keller Williams the Dominion San Antonio community. It was certainly a risk system for high production and profitability. 2011 was no for Harrelson who didn’t have any agents to fill it. different. Wendi Harrelson, team leader and area director of That was until she rekindled a long time relationship with South Texas, has been attracting successful agents to the market Debra Janes, a top-producing luxury agent in San Antonio. “We center ever since the KW Luxury Homes International division ran into each other during an open house and Wendi mentioned launched in 2009. But she’d been looking for that she was thinking about buying our city’s old Sotheby’s office. a way to provide a unique opportunity I said ‘If you get that building, you get me,’” says Janes. When to a group of agents who hadn’t yet Harrelson jingled the keys over the phone a few days later, she experienced the power of the division. knew it was time to make the move. “The way it all happened is quite “Things snowballed from there,” says Harrelson on the a story,” says Harrelson. Never momentum surrounding the new office and the caliber of agents one to back down from a good who were deciding to join. Within a couple of months, 48 luxury agents had migrated to Keller Williams Realty and joined WENDI HARRELSON Team Leader San Antonio IH-10 SAN ANTONIO IH-10 LUXURY MEMBERS AT THE DOMINION 24 outfront First Quar ter 2012 • vol. 9 no. 1 Keller Williams Realty
  • 25. the KW Luxury Homes International division. The high-minded, Leads aren’t the only thing rolling in for agents in the high-end synergy that agents are experiencing in one office is Dominion office. Janes is happy to report that less money to paying off – currently they are closing 300 percent more sales than the company means more income in her pocket. “My GCI has competing offices. Among those having success are Jason Glast increased by 26 percent. I look back now and realize that I was and Kevin Crawford. giving more than $1 million to Sotheby’s – now that’s all mine.” How do you go up from No. 1? What’s in a name? Before joining Keller Williams Realty, Glast, San Antonio’s No. 1 Crawford is a marketing guy through and through. A Platinum agent, had achieved more than $31 million in sales. While Glast Top 50 agent with sales over $15 million in 2010, Crawford was reflects on that success, he also knew more was possible. As he was drawn to Keller Williams because of the control that he could making his decision to switch affiliations, Glast attended Mega have over his own name. “Unfortunately, my previous company Camp for one day. “I implemented what I learned in that one was more interested in their name, not mine. Now I have the day and made money because of it,” he explained. In the three freedom to continue building my name and my brand. I have months since he joined the San Antonio IH-10 market center, intentions of doubling my business this year. Now I have the tools he’s continued to introduce new systems and processes and has and the liberty to do it,” he offered. Glast’s account is similar: “My seen an immediate, positive upturn in his business. “I am getting former company wouldn’t even allow my cell phone on my listing more exposure from multiple platforms. My leads have increased signs,” he says.” Now I can hire my own photographers and use it 50-fold. Now I’m getting about five or six every day.” to enhance my own look and brand.” PORTFOLIO PROPERTY MEMBERS CHARLOTTE LIPSCOMB Better Together MARTHA SMALL EAGER FOR EXTENDED REACH, NINE AUSTIN AGENTS ALIGN WITH KW. There’s even more movement environment, Small knew that the recognized the advantage of the national among agents specializing in the group wanted to stay together. “The and international reach as a luxury luxury market, and it’s happening in thought of us all blowing to the winds brand. Keller Williams Realty was able to other boutiques got us thinking about to provide both,” she says. “It’s no longer Austin, Texas. As the city grows in alternatives.” All nine agents, which enough to merely market in the Austin popularity, successful start-ups and also include Jeannette Spinelli, Mark area. We must sell Austin throughout the big businesses are being drawn to Moore, Francie Little, Shari Chambers, world, and Keller Williams provides the its entrepreneurial spirit. Laurie Graham, Weston Lipscomb resources to support that effort.” Watching the trend and eager to take and Elaine Trull, looked seriously into Dee Shultz, president of KW Luxury action were Charlotte Lipscomb, Martha launching their own boutique company, Homes International and associate with Small and seven other luxury homes but realized start-up costs were too high. the Austin Southwest market center, is specialists, formerly of the boutique That’s when Diane Johnson and Melanie very excited and pleased to be in business luxury firm AvenueOne Properties. After Kennemann, team leaders in the Austin with the group. “Having watched the careful thought and consideration the Southwest market center, approached division grow from the ground up and agents came to the conclusion that their them with the idea of creating their expand with such a high caliber of agents current company wasn’t going to support own luxury team within Keller Williams who believe in an environment where their desire to spread their brand outside Realty. sharing, networking and friendship are the Austin city limits. “It just made sense,” says Small, citing widely accepted has been very rewarding Having come the international reach, technology and to watch.” from a boutique resources already established within Jump-starting their brand and getting the KW Luxury Homes International the word out is first on the priority list division as the key benefits for moving. for all 11 agents. There to give them some Lipscomb, a top-producing luxury sound advice: the 40 additional KW agent and member of the newly formed Luxury Homes International members team, agrees. “We wanted to form currently with the Austin Southwest DIANE JOHNSON Team Leader our own luxury boutique agency, but market center. kw MELANIE KENNEMANN Team Leader Keller Williams Realty First Quar ter 2012 • vol. 9 no. 1 outfront 25