How to Close 3 to 4 Homes per Month Without Cold Calling, Paid Leads or Expensive Referral Sources

I want you to get rid of this mentality that the only way to grow your business is to pay for leads. And that's the way the industry wants you to think of it. I'm not going to name the name, but he's the son of the OG of coaching. I was in a room with this coach and he was presenting where he told the room something to the effect like, you just need to spend more money on leads. And he named Zillow in particular. And I was like, oh, my Lord. Like, if that is what you're coaching. I was not breathless, but I, I was at a loss of words when I heard that because we were able to get out of paid leads 100%, you just gotta do the work. There are only 2% of agents, yes, 2% of agents that sell 25 homes or more per year. How can I sit here and make the claim that what you're about to watch is going to lead you to three to four closings per month if you just listen to what I tell you? Not only did I do this in my business very, very quickly, my first full year of real estate, I sold 44 homes, which is almost four homes per month. And 2,000 plus folks have been through Real Estate B School since we launched over 11 years ago. Okay, so my name is Lars Hedenborg. If you don't know me, I'm the founder of Real Estate B School and the creator of the Million Dollar Agent method. And you, if you've been around for a period of time, you've probably seen me show this chart here. And the reason that I was able to build was what I was able to build. And there's no ego in that statement. But I thought about my business as a system of systems. I was influenced early on by a book called E Myth Revisited by Michael Gerber. And in that book, there's really no tactics in the book that stuck with me. Like, it doesn't tell you how to do anything in the business, but the mindset is like, what if I were to replicate this business 10,000 times, how would I think about it differently? And I think that's actually like the guiding principle of E Myth. And so essentially, if I had to create my business as a franchise prototype, even if I never launched a second location, the mindset that I would have to adopt in order to build it in a way where not everything relied on me, that's what I needed to focus on. So I do believe my journey was 80 plus percent psychology and mindset and thinking about the business. Differently. So when you go back to the left side of this funnel here, every agent wants to talk about, just give me the leads, give me the leads to the point where agents are willing to pay upwards of 40% for you. You be whatever lead aggregator, you know. So these expensive referral sources or Zillow Flex or any paid leads works out to a pretty high percentage of the commission check. You're just admitting that they're a better marketer than you. And that may be true today, but if you hang around long enough and for sure, if you come into our world, we will build all this out with you on your systems and you own it forever and always. So when you think about the left side of this funnel here, yes, you need to focus on building out the business in a way where there's a steady stream of organic, inbound, high quality buyer and seller leads. And it does take some work to set up the mindset. I want you to adopt around what I call lead gen levers. So a lead gen leverage different than just leads. Leads you can go buy, just go buy them from someone, they're going to be super, super low quality. Less than 1% of them are going to convert. It's going to cost you, you know, 20 to 40% of, let's say a $10,000 check, even if you're not paying referral fee paid leads in general. Don't even get me started on cold calling and the life sucking, the soul sucking work that cold calling is. But generally you're going to pay about 20 to 40%. Our economic model, because we deal with agents that legit want to go from six figures to seven figures, we teach and preach an economic model that has you spending a lot less than 10%. And the frustrating thing is, you know, we'll be on a call with, with someone, they'll come into our world and they'll book in a strategy session and they'll say, oh, I thought this was a paid lead service. And like, I'd rather just pay for a deal at closing because then I don't pay for it. How can you think that, you know, only getting 60 to 70% of your commission check at closing is you not paying for it. Right? So the mental model that I want you to adopt is that you will follow an economic model. And even if you're paying for leads now, and even if you're on the referral sites for now, we've got to get you off of them. So this is the whole business and I'm going to ask you, as long as you're watching and engaging in the work that we're doing here is that you have to start playing a different game and setting up Legion levers that, you know, back to the mental model or the mental construct and mindset that I had is that I wouldn't set up all the systems around a lead gen lever, as I called them, unless I was convinced that I could do 50 transactions per year from that lead gen leverage. So when I was working on my database, I wasn't working on my database to sell like a home here or there. I was working on the database and the touch blueprint and building the database and adding massive value and doing all the right things and building that out over time because I knew that it could be worth more than 50 transactions per year. And we got that up to 40% of 450, you know, so almost 200 transactions per year. We've got members doing multiple millions of GCI per year on just that one Legion leverage. So I viewed the database and I'm going to go through all the things that you would need to put in place to accomplish this in your business here in a second. But database good for 50 social media. Honestly, I didn't crush social media when I was growing up in this business. I don't know why. Maybe it wasn't a thing back then or maybe I was just busy doing other things, building other Legion levers. It's hard now though to not basically as an extension of your database, your digital footprint, doing the right things on the daily with a bigger picture in mind around building your authority online. That's what we call the agent brand authority builder. So database touch blueprint, agent brand authority builder. Mentally, each of those are good for 50 transactions per year at scale. And then you need to pick another couple Legion levers. All of our the expectation for the Legion levers that we help our members install and we do it in 13 week period is they're good for at least one transaction per month, if not multiple transactions per month. They take time to build and get operational, but they're on your technology. You own all of it. You'll never have to pay for leads again. There's some tech involved in some of them and a little bit of cost, but generally they're either no cost or low cost. So I want you to get rid of this mentality that the only way to grow your business is to pay for leads and that's the way the industry wants you to think of it. I'm not going to name the name, but he's the son of the OG of coaching. I was in a room with this coach and he was presenting where he told the room something to the effect like you just need to spend more money on leads. And he named Zillow in particular. And I was like, oh my Lord. Like if that is what you're coaching, I don't even. I was sort of like, I was not breathless, but I was at a loss of words when I heard that because we were able to get out of paid leads 100% probably like seven, eight years ago. And we only had a small amount of spend on Zillow. And then at one point we had a little bit of Google pay per click and we just tracked the numbers and year over year they were just going down and just less effective. So this is the mental construct. You know, all the agents just obsess over top of funnel. They don't really work on systems around meaningful conversations or setting, meeting, signing. A lot of agents spend a lot of time with their clients, important work, but there's kind of a different game that ultimately you want to play. All right, cool. So you guys should be able to see this here. Most of the training I'll do, it all revolves around the four pillars of the million dollar agent method. So today we're going to specifically dive into leverage lead generation and how I would set up lead gen levers in my business to each throw off one transaction per month. The most important part here is the 90% of leads that you generate up here are not ready to transact and you need the nurture sequences in place. There's a fortune in the follow up. You've heard that saying, that is a hundred percent true here. So qualifying appointments, using scripts at a high level, then the consultation frameworks to get your commission at scale with admin fees. And then once you get busy enough, once you get to 2, 3, 4 transactions per month, you do need to buy your time back. And that's the fourth pillar. But let's spend our time here today on leverage lead generation. I mentioned database touch blueprint. I think the reason most agents don't treat this like they should, this one pillar, is because I don't think they think that it's worth a million dollars a year. But if it took less than an hour a day, five days a week for you to focus on your database and build it out the right way, and it was going to be worth a million dollars in GCI three to five years from now, would you do the work? Of course, of course, of course. That's the answer. But rarely does an agent come into our world. Even if they have 15, 20, 25 years in the business, do they even have their database organized. And it's not your fault. I think that the business, for a whole bunch of other reasons, I think it's just, it runs people ragged, which we also teach. But you're not following a time system to be able to do that work on the business. So setting up the database properly, you've got hundreds of people that know you that aren't even in your database. And we have a process for that. What do you send out to your database? We'll talk to an agent and we'll say, you know, let's talk through your, what you're sending to your database. Like, oh, I got that covered. I pay $300 a month to this email company and you know, it automatically sends emails. I'm like, does anybody open the emails? Is there a call to action? It's like, no, it's just branding. That is not what I'm talking about. Specifically designed database touch blueprint so that the byproduct is minimum 5%, but more likely closer to 10% of people that legit know like and trust you will transact with you. So if you have a hundred people in your database that you've added value the right way, According to this 60 touch blueprint, 10 of them will refer a piece of business to you or they'll become a repeat client of yours or a first time client if they're, if they're just a, you know, someone that hasn't done business with you, but they're in your, in your database, we have a process to grow your database. So if you can go from 100 to 250 contacts that know like and trust you, and we could do that very quickly, there's 25 deals there. If you can grow that to 500, there's 50 deals there. Right? So now are you starting to. Even if it takes you a couple, three years to get to 500 people that legit know like and trust you, and we have like memory joggers of where to find these people and a process to do it on the daily, it will be well worth your time to do it. So you will never win the argument with me that you know, you can't get to four transactions per month just by working the database touch blueprint and doing that the right way. But let's just say you can only get to one deal a month, which would be 120 people that know like and trust you and you're sending them 60 meaningful valuable touches, only four of which are phone calls. We have voicemail drops and giveaways. We have market updates. We have a bunch of stuff that we help our members send out and put the processes in place to do it systematically where it's not that heavy a lift and it's just part of their process. All right, so that's number one. Let's just say that only yields one transaction. The second thing that we help agents do is what we call agent Brand Authority Builder. Really the this is your digital footprint, your Google profile, your Google reviews. We've got processes for that. This is what you're posting on social media. We work with a company that provides really great market data that is packaged in a way where it's really super easy to share on social media. Also just sharing how crazy it is to be a real estate agent and be a parent or a spouse or, you know, to try to get a workout in when you're busy with multiple clients. Right. To share what it is like to be an agent. We've got three of our members. One took 30 listings in 90 days just by doing Facebook lives. One sold 35 homes in a single year from her business. Instagram account gave her entire system away to our group. Another one of our members sold a hundred. Half her business was from social media and she gave her secrets away. All based on the agent Brand Authority Builder. Everyone has a different flavor because it needs to be built out. The way you show up online needs to be true to who you are and everyone has a different flavor of it. So that's number two. That could be good for 50 transactions per year. I know this to be a fact. We have members doing more than that. Let's just say it's only good for one transaction per month so far. Are you tracking with me? Are you buying the fact that your database can yield one transaction per month if you set it up from the ground up and you add value the right way? Do you buy into that fact? Do you buy in that? It could be possible if you do the right things on the daily to establish a brand and authority online that you could generate at least one transaction per month from social media? If you don't believe it, I will tell you it is 100% doable. The next question is where do we get another couple of lead gen levers? So let me kind of show you a little bit the inside here. So we went through Database Touch. This is the little bits and pieces that you get access to. In our world and we have a platform that we use that guides our members through all of that. This is Agent Brand Authority Builder. We've got a bunch of video trainings here and we have implementation coaching that, you know, we've got a recommended cadence that we follow with all of our social media and a 66 day challenge. But I'm going to spend some time here on leveraged Legion. But the additional Legion leverage. So the mindset here is that you need to only pick a couple of lead gen levers and commit to them in the long term. People will say, you know, expireds went away and they stopped doing expireds and I'm talking expires where you mail out stuff and expireds reach out to you. And we've got a very effective script when those calls come in. We have tracking numbers and it's not very expensive. There's a data source you'll have to use there, but that's easily at 20 plus times ROI. Just so you know, you're spending about 5% of the commission check to generate that closing a 10x is you're spending 10%. So how many of you would spend $1,000 to bring in a $10,000 commission check? So our expired direct response system, basically it's a series of letters, postcards and handwritten letters that are designed to have people call into you. And we have a luxury version of it as well. And you could basically use it to target any neighborhood or market or whatnot. The first system I would put into place, we're seeing an uptick in expireds big time across the country. The second system I would consider and our members have access to all of this forever. We do have paid home search leads only because one of our members actually a guy that was on our team, my team personally mastered that lead gen lever. He gets like a 13 times return on Google pay per click. So that's the only reason why we have that there just I didn't want you to think I was lying. Lying to you. Our for sale by owner system is two parts. This is where you're sending out different information than you were in the expireds but more value added information. So let me click on here the handwritten letters sample FSBO letters. So let me just open up this here. So this is a. You'll print this out the marketing toolkit and you'll send it with a letter here. So we make these calls every Friday. When you make that call it's like hey Mr. FSBO or Mrs. FSBO, I sent out some information. Did you get it? Right? So leveraging New construction is another one listing Marketing Maximizer open houses. We've got a system for 250 open houses, but between these two, I think you are good to go. I'm going to cut this video short. As a member, you get access to all of them, but you only implement two outside of the other two that I just went through. Okay. So much love, much respect. Go to million dollaragentmethod.com if you want us to implement all this stuff for you. We implement all four of these pillars. We'll talk to you soon. Be good.