Network Marketing, The Right Way

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By ⋅ March 2, 2009 ⋅

Let me start by saying that Network Marketing is not something that you just decide to do and BOOM you become successful in. I can say though, it does work and you can find good deals from it. With time, it could move from a supporting source of leads to become your main source of leads and income.

What is Network Marketing?

In simple terms, and at least in my view, Network Marketing is nothing more than staying in touch with people and reminding them of what you do. The more people in your network, the more possible leads you can get.

There are those who depend on Network Marketing an Referral Marketing as their main source of leads.I know one extremely successful Real Estate Mortgage Broker who goes from one meeting to the next, organizes training meetings, and speaks for different organizations. She always comes out of the meetings with no less than 10 business cards or contact information.

How Can You Make It Work For You?

Before I get into the exacts, lets talk about some of the blocking issues you may face. I want to get the obstacles out of the way because if you don’t overcome them, you won’t get anywhere.

Lack of knowledge

I attribute any lack of action to lack of knowledge. You may feel intimidated to introduce yourself or present yourself as an expert in an area, or as a specialist. When I was first starting, I was extremely reluctant to tell those I worked with that I was getting into the Real Estate Business because I knew so little about it.

Knowledge, or our perception of it can be a very detrimental force that you need to overcome. If you feel that you are not comfortable presenting yourself to someone, then you need to do one of two things: fake it till you make it, or quit.

Let me qualify my last statement. When I say fake it till you make it, I do not mean lie. You need to act and talk as a Real Estate Professional even if you never done a deal. What you know is already more than what average Joe knows. You need to use what you know until you build more knowledge and experience. But never let that stop you.

How many times have you had a boss who you thought who was an idiot. Or seven someone successful and you wonder how lucky they were. What is really in common between the idiot and the successful is that they both took action. One didn’t know he didn’t know jack, and the other knew it and overcame it to become successful.

Only those who do not act fall behind and envy those who didn’t. They justify it by branding it as luck.

Our Selective Moral Obligation^TM

The other obstacle is our lack of faith in what we do. This too can stem from our lack of knowledge, but it can have big impact in its own as well.

There are new Real Estate Investors who are held back thinking what they do is taking advantage of people in bad situation. You have to 100% believe in what you are doing, or you will fail. You cannot convince someone to sell you their house if you are not convinced you are doing the right thing. Buying a house for 40 or 50 cents on the dollar is not as bad as some think it is. The reality is that this is a business like any other business, and after you do few deals you will realize how bad some things can go.

I have had a house sit on the market for 10 months because it was rezoned in a flood zone with me paying $700/month to sell it. On that same house, I was cheated out of $10k in material costs (another story). If I did not buy that house cheap, I would have had to let it go into foreclosure, or lose so much money.

The other thing you need to remember is that it is not your fault they are in the situation they are in. Sure life may take bad turn for people, but you cannot get emotionally involved. They made choices in life, and they need to deal with it. Besides, would the bank foreclosing on the house, destroying their credit, and giving them nothing a better option?

I have even talked to a Real Estate Agent who believed that Real Estate Agents have moral obligation to get home owners the best value for the house. This came up when we were discussing ways to increase sales by providing guarantees.

Here again, his selective morals failed him. As Agents, our obligation is to help them sell the house at a price they agree to. If they want me to guarantee the sale of their house in 30 days, they need to be willing to list it at an appropriate price. Otherwise, they can pick their price (and yes I will tell them what their house is worth) but I can no longer guarantee the sale since they are now asking full price.

Think of it this way. If your mother, sister, or daughter is going through foreclosure and asked you for help. Would you not do what you are doing to help them? sure you may not make any profit of of them, but wouldn’t the process be the same?

If you so strongly do not believe you should do what you do and feel that they deserve better, would it not make more sense to refer them to someone with more experience and knowledge? Not something you would be willing to do on every deal because then you would have no business.

Lack of Contacts

Some of us feel that we do not know enough people, or we do not know the right people. There is really no quicker fix to this than getting out and meeting people.

When you hear of an event, go out and mingle. Remember to always be selling. Everyone you talk to, give them your elevator pitch. Ask for their business card. Explain to them what you do and ask for referrals.

You may find it to be intimidating at first, but if you get over the first two obstacles, this will become trivial. It is something you need to do if you want to do Network Marketing.

There are ways to speed up this process. Remember, the first time around is the most intimidating, but remember it is your business and it is something you need to do. If you cannot fill your day with work, then try to spend it meeting people.

So Lets Talk Process!

OK, if you are ready to start Network Marketing, here is what you can do:

Always Collect Contact Information

Every time you meet someone new, ask them for a business card or contact information. It doesn’t matter if they are in the Real Estate business or not. A referral does not have to come from a fellow in a related market, it can come from different places.

Add Them to Follow Up System

Every time you collect someone’s information, add them to a follow up system. You can do couple of things here… you can send them email, or you can send them regular mail.

I would opt to send them emails unless they are a customer or potential customer. Lets cover each:

Emails

For those who you meet and collect their business card, when you get to the office or home add them to an auto responder email system that would send them emails on regular basis. Make it sound personal… for example:

Email 1: Hey John, this is fadi… we just met at XYZ and wanted to …..etc. If you know of anyone who is interested in [your service] could you please send them my number or email? I run my business on referral basis and would appreciate any business. Yours, Fadi

Email 2: Hello John, just wanted to touch base and stay in touch. I hope everything is going well. If you need anything, please do not hesitate to call me. Fadi

Email 3: …etc.

You get the point. These would be automated emails that go out after X days from being recorded in the system. You add the email address, couple of variables and it is all automated.

If you add everyone you meet to your list, you will have a solid referral network. Not everyone will know of someone who may meet your needs, but you will be the first on their list to contact because you are constantly reminding them.

You can also customize different lists to different type of people. customize it to investors, mortgage brokers, real estate agents and everyone else.

Regular Mail

No business like repeat business. Those we have done business with are the best source for new leads, or repeat business. always stay in touch with them.

When you buy, sell, help buy, or help sell a house grab their new information and add it to mailing system. Every so often, send them a letter checking on them and remind them of what you do.

Always include 3 business cards with each letter for them to hand out to their friends, family, and co-workers. While few may not like it, the majority will oblige.

If you made few thousands from a sale, sending few letters a year should not be a problem. I would mail them for couple of years.

The more deals you do, the bigger your list will get and more leads you will get.