The Most Important Thing I Learned About Sales In 45 Years In Real Estate

[Don Konipol]

THE MOST IMPORTANT THING I LEARNED ABOUT SALES IN 45 YEARS IN REAL ESTATE

I, like most people, thought exceptional success in a sales field was due to a unique ability of an individual to somehow “connect”, “convince”, or “persuade” people to purchase the product or service the salesperson was selling. Like the car salesman/hustler who converts “ups” at a super high rate; or the guys hustling oil well participations over the phone.  This, combined with long hours of chasing leads, cold calling, and “persistence” (“it takes 7 no’s to get to a yes”) was the formula shown by Hollywood, taught in classes, and written about in bios.

Back many years ago I met a young man who was interested in investing in one of my real estate syndications. Since he was under 30, I assumed he would be making the minimum investment at the time, $25,000. I was quite surprised when he invested $500,000, and followed up with a $250,000 additional investment the next year. Especially when the investor form he filled out listed his occupation as cellular phone salesman.

One day, while golfing with this investor, I inquired about how he was able to accumulate so large an amount of investment capital at such an early age. He told me that his family growing up was quite poor - he grew up in government subsidized housing. So, early on, right after college he decided to forgo the usual “management trainee” route and go right to where he could make a lot of money fast - commissioned sales. Since he didn’t seem anything like whatI thought of as a “super sales personality”, I asked him how he found such success. I will summarize the steps he takes to establish extraordinary sales success

1. Thoroughly research the industry, field, business you’re interested in to see if there’s a “niche”, unique approach, unserved customer base, or anything similar that can be exploited to earn income 3 standard deviations above the mean. This means spending 3 - 4 weeks just analyzing, studying and evaluating the market of interest rather than jumping into a sales job day one.

2. Educate yourself on every important aspect of the field or industry you’re getting into and especially the product or service you’re selling/providing. If ANY salesperson knows more about the product or service than you, you didn’t learn enough. You need to be THE EXPERT in that field.

3. ACT like the expert. DO NOT chase business by lowering prices, performing service for which you are not compensated at your desired rate of income, giving away consulting advice to people who will likely shop price, or accept any piece of business outside your field of expertise.

4. Find the ideal clients, and sell only to them. Do not spend time trying to turn an undesirable suspect into a client; spend time FINDING those who need your expertise and product, and are willing to PAY your desired price

5. Turn down the majority of business that approaches you. Most will not result in the profitability you desire. Don’t waste your most precious resource - your TIME - on less than the most desirable, profitable business. If you can find a resource to refer these people to who will refer your ideal client to you in exchange, that is a super win, win.

Well, knowing is one thing, being disciplined enough to turn down business, spend months educating and studying with no sales and no income, and spending hours finding clients who fit your profile, is no easy task. Despite that I decided to do just that in my private lending business. This was 2003. The first year I followed the above I more than doubled my net income. Two years later it doubled again.

The choice is yours. Most people will continue to do exactly what they’re doing, and getting the same results. But one or two may decide to take the plunge, and try the path less traveled.