Prospecting 101: Where to start and how to build business value

Whether you’re new to the real estate industry or you’ve been in the game for a while, there’s one thing that will make all the difference to your success: Prospecting.

Both an art and a science, prospecting is all about generating leads, nurturing genuine relationships, and establishing yourself as a trusted advisor to prospective clients. The goal is to stay top-of-mind so when a client finally decides to sell, it’s you they call.

Here’s the catch – prospecting isn’t a sprint; it’s a strategic marathon. If you’re game for the long run, prioritising lasting connections over quick deals and aggressive sales tactics, the rewards are yours for the taking.

To supercharge your prospecting game, we’ve crafted this checklist – covering everything from building and refining your contact list, to forging strong and effective relationships. By ticking off all the steps below, you’ll position yourself to be the first choice when a prospect decides to sell.

1. Define your target market

Before you start reaching out to potential clients, it’s crucial to understand who they are. Picture your ideal client – their age, lifestyle, property needs, and motivations. With this picture in mind, you can start to shape your ideal business.

For example, do you want to work mainly with investors? Growing families? Down-sizers? Being clear from the outset will help you tailor your messaging and connect with clients on a deeper level.

2. Grow your database and make yourself known

With your ideal client in mind, it’s time to grow your list of contacts. In building your database, leverage past clients (if you have them), new leads, and referrals.

Sometimes, you might need to trim your database down. This was the case for Daniel Capel of Harcourts Coastal. When he started in real estate, he was given a list of about 10,000 prospects. His first job was to narrow this list down, which he did by taking the time to reach out to every contact and clean up the data.

Before reaching out to individual prospects, establish a presence in your local community. Seasoned real estate agents use a combination of tactics: Be active on social media, and regularly update your website with new listings, videos, and blog posts. Use the content you publish on social media and online to help educate, inform, and engage potential clients.

Then, you’ll want to become a familiar face in the areas you work. Networking can be as easy as attending local business gatherings and community events or joining local chambers of commerce.

3. Establish a regular cadence of contact

To build long-term relationships with prospects, establish a regular rhythm. And this rhythm can look different for every real estate agent.

Paul Parkinson of Mint Real Estate sends a personalised Price Update to every prospect every four months. He relies on reminders from Realtair to ensure he doesn’t miss a beat – and finds that it’s a great way to keep in touch with leads and past clients.

To hit his targets, Paul sends 20 Price Updates every day. He says:

“With Realtair, I can go to a café by the beach or overlooking the river, and send them while I enjoy a coffee. That’s my prospecting done for the day. The next day, I follow up with a phone call – which often opens up new conversations.”

Daniel, on the other hand, aims for between 20 and 30 Price Updates every day. He likes to start with a phone call in the morning, letting the prospect know that an update will arrive in their inbox or on their phones later that day.

Either way, both Paul and Daniel have nailed one of the key elements of prospecting – which is to keep in regular contact with prospective clients.

4. Keep your database fresh

Building your database isn’t a set-and-forget task. To keep it fresh, cold calling may need to remain part of your routine. Before you reach out to potential clients through phone calls or in-person visits, prepare a script and have some information ready to share about your services.

To help grow your database, don’t forget to ask for referrals from satisfied clients and industry connections. You could consider running a referral program to encourage clients to refer others to you, too.

Price Updates are the modern, digital equivalent of a letterbox drop. If you’re sending out these digital missives like Daniel and Paul do, it doesn’t mean you should ditch the old way entirely.

Direct mail can still be an incredibly effective way of targeting specific neighbourhoods to showcase recent sales or upcoming listings. And there may still be people who appreciate a knock on the door.

5. Continue learning and evolving

To get better results over time, you’ll need to track and monitor the effectiveness of your prospecting strategy. For example:

1. Are you sending enough Price Updates each day?
2. What frequency of contact yields the best results in terms of signing new clients?
3. Look at your data and ask for feedback from clients about what they like or don’t like about your service, and use these insights to adapt your strategy.

Also, given the fast pace of change in the real estate industry, you’ll want to stay across the latest industry trends, emerging technologies, and best practices for prospecting.

6. Celebrate your successes

Let’s face it. Prospecting is hard work. It takes dedication, perseverance, and a genuine passion for connecting with people and helping them achieve their real estate dreams. 

To keep the momentum up, it’s super important to acknowledge and celebrate your accomplishments along the way. Remember that each new connection or piece of positive feedback is a step towards building a thriving real estate business.