When you were growing your business, what did you do to grow it? Did you go the organic route or the purchase other business route? I'm trying to grow an accounting practice that I bought 7mths ago and am a tad confused on which way to go.
Mark
Thanks for your question.
In growing each of the different businesses I've had - I've always opted for the organic (ie: prospect and work your butt off) growth method.
While I've never had an accounting practice if I were coming into your business as a consultant, prior to considering growth through acquisition (which I'm not saying isn't the right move for you) I'd also look at:
I would like your opinion on whether you think it is better to start an "independant" real estate agent or to go with a "chain" - I can see advantages to both sides but would like your take on it.
Janelle
I don't see that there is a "better" in this situation, merely "different"
as both have advantages and disadvantages.
To follow are what I see as the main advantages of both situations, from there all you need to do is chose which list sounds more like you!
Independent
www.unleashedknowledge.com.
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Question
Just wondering if you could give me any tips on saving money (I'm hopeless) I want to start a new years resolution!
Katarina
Kirsty's Response
Tough question here and almost impossible to answer without knowing all your financial ins and outs.
That said, to follow are a few simple but tried and tested tips I would recommend anyone follow:
- Spend less than you earn (it sounds simple but many people don't do this!).
- Around Christmas and birthdays look for ways to give gifts that are really heartfelt but don't blow your budget (a hand made gift voucher booklet for your partner with IOU massage vouchers etc, a bulb planted in a pot for your Mum that she won't find know what it is until it blooms, also check out www.whiteenvelopeproject.org .
- Read this article on credit cards - www.kirstydunphey.com/samplez.html .
- If your problem is that you spend everything you have in your wallet (I know this is true for me!) - organise to have part of your salary automatically (ie before you can get to it!) deposited into a high interest bearing account that you can't touch.
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Question
Where can I find online articles directories to read and post to?
John
Response by Megan Hampton, Project Director
There are a range of article sites out there where you can search for articles by subject or author. Kirsty posts articles to several of these including -
www.articlesbase.com
www.amazines.com
www.positivearticles.com
www.goarticles.com
You could also try contacting websites or magazines within your field of interest and offering to submit an article for them to publish.
Blogging is also a great way to get your name out there and to get people reading about you and your product or service. Kirsty blogs to several general business and some real estate specific sites, you should be able to find sites that are relevant to your area of expertise.
www.zoodango.com
www.activerain.com
www.realtown.com
www.myspace.com
You will also find that many entrepreneurs have links on their websites to articles www.kirstydunphey.com/usemebaby.html.
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Question
I work in real estate and my boss won't train me - what do I do?
Paul
Kirsty's Response
Here's what I would do in this situation:
- Check with the real estate institute in my state - most of them have free or low cost training libraries that you can borrow materials from.
- Encourage the rest of the agents in your office to, as a group, go to your boss with a plan for establishing a training library in your office that all agents can borrow books, CDs and DVDs.
- Go to my boss with a plan for my training development. I'd include things like, what amount of commitment I intended to put in to the training - ie:
number of hours a week, what books I'd read, what financial commitment I was prepared to make etc, and what I would like to request of my boss - ie:
courses I wanted to attend in the future if I lived up to my commitment, what benefits my boss would receive etc etc. Make it a negotiation - show that you're prepared to put in the time / effort and show your boss what benefit they will receive.
- Training comes in all forms - ask for a coffee with the most successful agent in your office to pick their brain - it's a great way to train yourself.
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Question
We are doing some phone interviews for vacant positions and I was wondering if you can think of any questions that you found particularly good for getting a feel for people?
Bindi
Kirsty's Response
Questions for interviews that I really like revolve around posing situations to people and asking them what they'd do in those situations - so for you, perhaps something that commonly happens in the bar that tends to throw off people (I don't know - rowdy person, someone asking for drinks when it looks as though they're giving them to someone under age, 5 people show up at the bar at the same time and there's no one else on staff)
Also - I liked asking people what they knew about the company - so in your case, what do people enjoy about your bar (if you're brave, what do they think could be improved) - but this also shows you if they've taken the time to come in, have a drink, do some research...
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Question
When you started M&M Real Estate and you were in a two bedroom unit, did clients react negatively that you didn’t have your own commercial “office” space?
Belinda
Kirsty's Response
This was a temporary move for us and we were only in the unit for about 3 months. That said - we just didn't see clients in the unit. We saw them at their homes and their places of business. This should be an easy mode for you to replicate with your business (go to them - be available - make it a point of difference).
Question
I will also be in free office space (until I get some money, I’ll be working from a desk in my father’s company office) so I don’t really have any overhead costs, but I’m not sure if I would be seen as credible if I didn’t have the fancy logos, letterheads, business cards, etc all printed up and ready to go for my first jobs.
Belinda
Kirsty's Response
I say, if you have access to free office space on demand, use it! Get a post office box and really take full advantage of the limited overheads during your set up period. One thing I would consider getting set up though is your business card. This doesn't have to cost the world though - but in your line of work, I think you do need to present a professional marketing image to your clients and that starts with your business card. Have a look at some online solutions for logo / business card design like www.elance.com and consider other creative options like doing a contra deal with a logo designer (you'll do something for them in exchange) or even finding a design student who can do professional work but on a cheaper budget.
Question
I am also worried about being so young. There are a lot of well-established marketing/advertising agencies here in my town that have a good reputation, and I do feel as if I am not as knowledgeable as those people might be. I do read a lot of business and marketing books, and I am studying for Bachelor of Business, but I still worry that I won’t have an answer to questions I may be asked and that is probably my greatest fear.
Belinda
Kirsty's Response
This is a tough one. I never have a problem dealing with young people just starting out in business (in fact I think many people really want to actively support young entrepreneurs!) however - I want them to know their stuff as well or better than their older counterparts and be confident in their knowledge. Until you feel like you are as knowledgeable as your competition your confidence will continue to be something that concerns you. My advice would be, keep reading and studying as much as you can; your quest for knowledge should never be over. You need to get to a stage where you can confidently go into any pitch for a client and clearly list why you are the best person for the job - and believe it! I'd start by writing a list of ten reasons why someone should do business with you right now - don't forget to include things like your youth and enthusiasm. Just because someone's been in the game longer doesn't mean they can attack the job with as much verve and energy as you can!
Consider cutting your teeth by doing a few jobs (for a reduced or nil fee) that will get your skill up and give you opportunity for publicity and will get you some great testimonials (think charitable organisations that you really support etc) - be creative. To get your credibility up I'd also start writing articles for publication online and in newsletters - see www.thatnametagguy.com for some great examples on this sort of blogging / article writing. Feel free to also send them through to us as we love to publish others work.
Question
I know I can do this but the fear is causing me to procrastinate.
Belinda
Kirsty's Response
I'd recommend sitting down and writing a list of your "worst case scenarios" - ie: what's the worst that can happen if the business fails. You'll see there's a chapter on this in the new book Retired at 27. But in short, if you write down your worst case scenarios if the business fails and you can survive it - I say give it a go! What scares you more - doing it and failing or never having done it and looking back on the experience in 50 years time and feeling that regret?
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Question
I am amazed by what you have done. I am a mother and my goal is to start investing in property but I don't know where to start? I have a property which I am in at the moment but I am seeking to buy another one.
Sia
Kirsty's Response
Great to hear you're looking at moving ahead with your goals.
Bear in mind that I’m not a financial planner, so I don't offer financial advice, but I would recommend taking the following four steps:
- Find someone in your sphere of influence who has an investment property and take them out for a coffee and fire away questions!
- Chat with your accountant or a financial planner about the logistics
- Have an obligation free chat with a mortgage broker (free of charge too) that will outline for you what financial hoops the banks will need you to jump through
- Read, read, read. I recommend The Wealth Through Property back here: www.unleashedknowledge.com/more.html and Australian Property Investor and Money magazines.
I hope this gives you a good start!
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Question
I'm currently doing a traineeship in real estate but I’ve hit a problem - my boss that gave me the traineeship sold the business and now I’ve had re-sign for the remaining 1 & 1/2 years to the new boss... I'm in administration but I've hinted about letting me go into sales and have proved I am capable as I am currently 1/2 way through a 2 year correspondence course for my real estate license in only 3 months... What can I do to get through to them that I would be a competent sales woman?
Kirralee
Kirsty's Response
Tough questions here!
I know I felt pretty similar to you when I was 19 years old and working back in administration. Although - I didn't have to do a lot of convincing to get myself selling. However - once I got there, it was tough! Don't expect it not to be.
In terms of what I might do if I were in your situation, here are some suggestions:
- Ask the other agents in the firm if you can tag along to their open homes and assist them (free of charge to get the experience, and show initiative to your boss)
- Start building your own personal database (so you can go to your boss and show him all the potential people who would list with you)
- Get every last piece of sales training material in the office and read / listen to it (again showing initiative)
- Consider perhaps transitioning into a letting or new business role in property management as a step towards sales
- Ask your boss if you can stay back late and assist tele marketing or doing open home call backs (again showing how keen you are / initiative)
- Ask your boss if you can set up a bonus scheme right now for any listings you bring in (and then get cracking showing him what you can do sales wise from administration - if you do well, he'll be far more tempted to get you into sales doing it full time)
- Be the best darn administrator you can be
- Set some personal development goals, like taking one successful sales consultant out for coffee a month and probing away with questions to get more info / experience
I hope this list gives you some ideas and maybe some starting points!
Good luck
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Question
I recently read with great interest the article Killer Customer Surveys. We are a municipal electric utility looking to implement a customer satisfaction survey system to test how well we are meeting and exceeding the needs of our major industrial clients following each personal visit to their site. Do you have any recommendations regarding vendors who support this type of ongoing customer satisfaction analysis and/or examples of businesses who have implemented such a system? Many thanks for your time and consideration.
Marc
Kirsty's Response
In our real estate business we surveyed clients on a continual basis as you mention most commonly in our property management department (to landlords each time their property was rented). My advice for these types of surveys would be:
- Keep it short and simple (tick boxes, ratings 1-10, and only one or two places for comments)
- Keep it to one A4 page, have it online emailed to them (great for compiling stats / reports) or have the person dealing with the client ask say 3 simple questions at the completion of their time with the client
- Pay particular attention to the types of questions you're asking - If you're looking to measure if you are not only meeting but exceeding the needs of the client then the questions you ask will be vital.
Good luck with formulating and implementing your survey system!
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Question
What was your hook or point of difference, in a listing presentation, to a prospective vendor?
Bertram
Kirsty's Response
In reference to my listings presentations - I've had lots of different "points of difference" I've tried to stress over the years. Some of them include:
- I have no clients
When I first started out selling at 19 I was honest about the fact that I had no other clients and that I needed to make a name and a reputation for myself and that they could be guaranteed my utmost attention because of it!
- Youth / motor mouth / enthusiasm
I've always used my youth and youthful enthusiasm as a point of difference.
When I started selling I had no husband and no children which meant I had all the time in the world for selling and all the enthusiasm to do it! I used my youth as an advantage, wowed them with my excitement and in many cases just wouldn't stop talking until I got the deal.
- Internet
When we started our own agency our internet site was a huge point of difference and we made sure our entire team knew point by point what the benefit of that was to our client. Always remember there's no point stating a feature without letting the client know how that helps them.
- Marketing plan
I would often develop a customised marketing plan on the spot or very soon thereafter and have it delivered back to them.
- Little things
A card straight in the mailbox as I left the appraisal, a dog bone with a bow around it sent back with the appraisal letter or a photo of a child done up as a calendar. All tiny things, but the impact was huge.
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Question
How do you stay motivated and on track? How do you set yourself up to become successful? What daily tasks are necessary?
Carolyn
Kirsty's Response
Carolyn – great question. Let me first of all say that what works for me may not necessarily work for you – so experiment! It’s how I got my list.
Daily tasks to keep me motivated and on track
- Read every day for around 30 minutes a day
- Learn something new every day – whether it be reading an email, looking something up, watching a DVD, learning the meaning of a new word (just don’t let your brain go stagnant!)
- Mix with positive people - set up a monthly lunch date with like minded friends, ask someone you admire out for a coffee and pick their brains – find ways to get and stay inspired
- Exercise every day – even if it’s only as simple as a walk around the street to clear your mind
- Look at my mission statement which clearly defines why I’m here and what I’m trying to do with my life
Work through a defined list of what I want to accomplish for the day (direction make sure I’m making progress towards my goals)
- Do something nice for someone else each day (an email, a smile, a compliment, a gift) it doesn’t matter what just that you’re out there putting your efforts in some small way into making the world a better place
Other things I do – but not always on a daily basis
- Listen to music that gets me in the right state of mind
- Play with / look at mementos on my desk that remind me of great times I’ve had (holidays, my wedding etc)
- Re-read articles that inspire me
- Holiday! A change of scenery always inspires me - even if it’s just a long drive around my home state
- Review my goals – again this fits into the “why am I doing” this category and helps me understand how everything meshes together.
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Question
I was wondering how someone could get a loan for a property if that person has a bad credit rating?
Fiona
Kirsty's Response
My recommendation would be to go to a finance broker (or a number of them) looking for a "non traditional" or "low doc" loan. The brokers have access to many different bank / lending institution's products and if anyone can help - a broker will be able to point you in the right direction.
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Question
I notice you have created an e-book. I am interested in doing this. Did you use an online creator package? I am just not sure how to go about the layout etc. By the way I love reading your weekly newsletter.
Kate
Kirsty's Response
Regarding our e-books they've simply been done in word and saved with a pdf creator (like adobe). That we you can add any design / graphic elements we like.
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Question
I need to work on my confidence, I have been in real estate for 4 years but I still struggle with confidence, I am hoping it will come with more years of experience. I just feel I learn something new every day. How did you get your confidence?
Rowena
Kirsty's Response
First thing I want to say is - don't ever lose that feeling that you're learning something new ever day. That's vital! The best agents in the world keep growing and learning each day - it's what makes them the best. To facilitate this check out www.kirstydunphey.com/recommendations.html and sign up for a few newsletters.
As for me, not being a natural extrovert, my confidence is something that I've had to work at for a long time. My best tips would be:
1. Right now write out a list of ten things you've been putting off and vow you wont end today without doing at least 3 and commit to having done all 10 within a week. I bet most of things on your list will be things you're putting off due to your perceived lack of confidence (ie: not calling that difficult client etc)
2. Hang out with people who make you feel good about yourself, who talk you up and who make you feel more confident. For some people this may mean you might need to start looking for some new friends!
3. I didn't feel completely comfortable with my age in real estate until I felt as though I knew as much as my older counterparts. For me that meant reading (a lot!), going to conferences and training sessions and really increasing my knowledge.
4. Set your tone. As we spoke about in the training day - have the right music, wear the right clothes, listen to the right inspirational CDs to get you in the right frame of mind for you to be confident. For one of my friends it's wearing bright red lipstick - on her it looks dynamic and makes her feel confident - on me it might make me look like a corpse! What I'm trying to say is, when it comes to setting tone, no-one can tell you what's going to do that except you.
5. Be a story collector. Most confident people who can hold conversations, talk on stage or give excellent one on one presentations are story tellers. They draw you in to whatever story they're telling and they use that story to illustrate and help sell their point.
6. Fake it till you make it. Even though you may not feel confident - going out there with a huge smile on your face, shaking hands confidently and being engaging like I know you can be will make a huge difference.
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Question
I'm wondering how you would offer support to those wanting a career in Real Estate sales given the starting salary is so low eg: $30K + commission. How would you encourage people to take the risk and be confident that they will have the skills to earn enough to pay their own bills eg: mortgage? It’s a significant drop in salary from other careers which ultimately can be the only deterrent from making the change. Also, I have heard that some companies require the salary to be paid back to the company - how does the standard salary and commission structure work (from you own experience)?
Rebecca
Kirsty's Response
Thank you for your question. This is a bit of a tricky one as legislation and pay rates differ from State to State in Australia and in other Countries are all over the place!
In Tasmania for example by law sales consultants are paid a minimum wage (mid $20,000’s presently) as a “retainer”. A retainer means they get paid this amount as a guaranteed wage, however when commissions are earned the commissions go to pay back the retainer first and then commissions earned in excess of that go to the sales person. This means that the sales person will not earn under that retainer figure while they are employed as a sales consultant. Let’s say for example a sales person earns $30,000 worth of settled commissions due to them in their first 6 months and has a retainer of $25,000 per annum (we’ll use round figures to even things out). This would mean that in 6 months that sales person would earn $12,500 retainer + $17,500 commission ($30,000 – $12,500). This is a very basic example and other factors need to be considered but it illustrates the point.
In some areas sales consultants are not required to be paid a retainer, therefore they simply earn what they make in commissions meaning they could be paid nothing if they earn nothing.
The third situation is where a guaranteed wage is paid and then commissions on top of that wage.
The other very important factor to consider is what percentage of the sales commission the sales person will be paid. For example, a sales commission of $10,000 comes into the company – how much will you as the sales person get paid for this? Typically the amount the sales person gets is split between who has listed the property and who has sold it (frequently this can be the same person). These percentages due to the lister and seller vary widely and are as important a factor to consider as the wage or retainer paid (much more important the better a sales person you are).
Also bear in mind however there are many other expenses sales consultants need to consider including car, phone, marketing, equipment etc.
On to the second part of your question: “How do you deal with the fact that your wage may drop considerably?”. Again – it’s a tough question and a very personal matter. Many people in relationships or with family have to learn to survive on practically one wage and be prepared to do this for a number of months. I would suggest that you shouldn’t get into sales unless you can survive on just the minimum retainer or wage for at least 6 months, preferably 12.
In your question you ask how I “encouraged” people to take that risk. In actual fact I probably discouraged more people! The change is tough – don’t expect it not to be. Almost everyone initially takes a considerable drop in salary and you have to personally be able to deal with that through a partner’s income, through living very frugally or through relying on savings / other income.
The upside though (and yes – there is one!) is that it takes limited up front education to get into real estate sales and there are agents operating in your marketplace (in any marketplace) earning more than doctors and lawyers and other professionals who have had to spend many years in University and other forms of training. You can guarantee that a doctor wasn’t getting paid a doctors salary while they were doing their training – they saw that low return as an investment in their future salary. Sales is no different you just do your training and education more on the job.
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Question
How long did it take you to write your first book - Advance to Go, Collect $1 Million?
Debra
Kirsty's Response
I wanted to make something that people could read in a session if they wanted to. So many people buy books and then don't read them I wanted mine to be a manageable length! That said, book number one took almost 3 years of my life and sanity!! Book number 2 was written in a week and I'm hoping will be in people's hands in June 2007!
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Question
As I have in the past been an audience member at speaking seminars I can't help but feel the need to write to you and ask how you got into motivational speaking. I have never done such a thing but feel I have what it takes to become a successful speaker. I would love to know information on how to go about this.
(Stacey then went on to let me know about her personal journey and the message she would like to get out there.)
Stacey
Kirsty's Response
Thanks for taking the time to email me about your story. Wow - it sounds like you've lived more than most people get to in a long life and you're still so young!
I agree with you that your story should be shared. Here are some ways you could go about doing that now:
1. Write some articles and submit them to newsletters or websites that could get your message out to your target audience - Mums - www.prisms.com.au may be a good start
2. If you're keen to start speaking, then it's as simple as drafting up a one page letter about yourself and sending it out to different organisations - Rotary / Lions / Probus clubs are a great place to start, but with your particular story you should also consider targeting organisations that help women in similar situations to those you've been in.
3. Start a discussion / mentoring group for women in your area.
Best wishes with your journeys and congratulations on your determination and passion.
An addition from a reader (who has reminded me of something great!): Hi Kirsty... your newsletter is fantastic-thank you! In your
Q and A section, read one from Stacey about how to become a successful speaker.
I have found success by joining Toastmasters. It's a wonderful organisation for building confidence and speaking ability. There are some clubs in
Tassie and many on the mainland. Best wishes Helen
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Question
Here we had a lengthy question via email from a real estate agent who was considering changing firms from a traditional real estate company and moving to a company that has a strategy of offering a discounted commission.
Kirsty's Response
Phew - tough question, but a good one. As I always say to people when they ask questions, I'm not going to provide you with the answer. But I will hopefully get you to ask yourself some questions that may help you get to the right answer for you. So, in that vein, these would be the questions I would ask myself were I in your situation:
1. Have you considered any other options other than the group who always discounts? Ie: other offices within your own franchise, other franchise groups, other independents etc.
2. You’ve mentioned that you're winning listings now with higher commission at your current company - why would you need to go somewhere where you'd have to drop your commission? Why not go to somewhere you can charge full commission?
3. How many more homes do you need to sell at the discounted commission to make the amount you want to make? Ie: say it's 1 home a week at full commission, does that mean it's now 3 a week at the discount? (figures are just examples) and will this be worth your time or is it better to work with less clients, provide a higher level of service and earn more per client.
4. This isn't so much a question as it is just advice from my experience - you've heard that saying "the grass is always greener"? Try and do as much homework as you possibly can before you go making any moves, consider taking out sales people from the new firm to lunch, quiz as many people as you can and even consider calling a sales consultant you know has left to find out why. Be sure you get every part of your deal spelt out and ask as many questions of the new owners as you possibly can.
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Question
Firstly I would like to congratulate you on your amazing business success which I recently read about in a book 'secrets of female entrepreneurs exposed'. I feel that your story is a real inspiration for young people such as myself who have an entrepreneurial flame burning within them - as it shows that there are young people out there pursuing their business aspirations, and also that dreams are possible. I'm sure your schedule is considerably full and in the hope that this e-mail reaches you I would kindly like to ask you what advice you would offer to a young person with entrepreneurial aspirations? Matthew
Kirsty's Response
These would be my top tips (they're expanded on in my book Advance to Go, Collect $1 Million and my new book which I just finished last week!)
READ! Which you're obviously a fan of given how you came across my story - but, just make a commitment to yourself that you'll never stop learning.
Get a mentor or two - be careful who you chose as you want to get someone whose life / work experience is greater than yours so that you can learn off them - but also you want to get someone who you can trust implicitly and who will actually be helping not hindering!
Learn to deal with disappointments and failure. It happens to all of us - more so to the successful.
Commit to excellence, even if no-one's watching.
Network like crazy - any business in the world no matter how remote it feels can be enhanced with a quality set of contacts.
That's just a couple of things, but also consider signing up for the weekly email as we cover this sort of content and a lot more.
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Question
We had a very long and detailed email from Dean asking Kirsty’s advice as to whether he should stick at his job which he’d just started out or pursue his ebay business partnership.
Kirsty's Response
Dean,
As I say to everyone – when I reply to your question I'm not going to be able to give you all the answers when the question is as yours is. My job isn’t to tell you which is the right move for you, but if I were you, these would be the questions I'd ask myself:
1. Can I do both? ie: is my ebay business suffering because I'm not presently giving it my full time?
2. What are the advantages to staying in the corporate job. ie: job prospects, future promotion opportunities.
3. Are you worried about how it will look on your resume if you only stay in the job 2 months? (If the answer to this question is yes, consider that an entrepreneur doesn't really need a resume if they don't ever intend to work for anyone else).
4. I'd write down a list of everything I want from my ideal career. Then look at what both your business and your job could be in say 2 - 5 years and see which gives you more of what you want.
5. I'd also want to know I'd done a full risk analysis on my business. ie: what if you have a conflict with your partner, what if your suppliers can't ship what you want, what if they ship identical product to someone else, etc etc.
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Question
We’ve had numerous requests over the past months from students wishing to do a project on Kirsty for school.
Kirsty's Response
I love these sorts of things and I’m flattered to be asked! If you use the Contact Page and let us know you’re doing a project we’ll send through a stack of interviews I've done in the past which should give you all the project information you need.
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Question
I am new to real estate and am having trouble establishing and expanding my client base, have you any advice on prospecting strategies online.
Lisa
Kirsty's Response
I would recommend Rick DeLuca's www.realestateideaclub.com. It's an absolute wealth of ideas. Also try looking at our recommendations page - I list a lot of other sales based websites that could also be of help.
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Question
I was just wondering what service provider you use for your emails. I’m after a cost effective way to send out emails, where my ISP would not let me send out even 20 emails at a time, I know there are ways to do so, like you do. My congratulations on your awesome weekly email.
Glenn
Kirsty's Response
For newsletters I suggest Intellicontact - click here to organise a free trial.
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Question
Your newsletter is very valuable and I so enjoy getting it every week. If there is one thing that you could advise me in regards to become the best Sales Person / Principal I can be, what would it be?
Tracy
Kirsty's Response
As a sales person - I would say my advice would be to make a commitment to ongoing and continual learning. People want to deal with someone who makes them feel comfortable - product knowledge and expertise in any sales industry goes a long way towards helping create that trust and comfort. I'd be making sure you did one thing towards your ongoing level of learning each week. Watch a training DVD, read a book, take a more successful agent out to lunch, do a role play with a "pretend" client who is actually a friend and have them be the client from hell asking you every difficult question they possibly can.
As a Principal my advice would be to never stop trying new ideas. As a Principal in my own office I think I drove a lot of people crazy with all my hair brained schemes - but innovation isn't about being perfect, it's about trying on new ideas to see how they fit. Many won’t work, but you can't let that discourage you - because the small percentage that do work will be what drives your company to new levels. That and surround yourself with amazing people within your team!
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Question
In reference to your property portfolio, was there a particular way that you gathered the funds for borrowing each subsequent property. My husband and I have an investment property and our own home, however financially we do not have the spare cash for a third property, We would really like to continue to build our portfolio.
Kelly
Kirsty's Response
When I purchased my second and onwards properties I rarely put my own cash into the deal either as a deposit or otherwise. I simply used the existing equity in my properties as leverage to continue buying.
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Kirsty's Note
The first time I got emailed this question out of the blue I was a bit surprised and certainly wouldn't have put the answer online. However - I've been asked it so many times in the past year and a bit since my marriage that it seems I should put the answer here as it's a topic on a lot of people's minds! - Kirsty
Question
Seeing that you were recently married and a successful business woman in your own right before you met your husband I was wondering what your thoughts were on pre-nuptial agreements?
Donna
Kirsty's Response
From what I’m told, In Australia, a pre-nup is called a binding financial agreement. From many discussions I’ve been party to around this subject I understand they aren't as common here as they are in some other countries - of course the States is one that instantly pops to mind.
The thing that differs in Australia from what I'm told is that a binding financial agreement can be set up before after a marriage - so it's a little different to some other countries.
My feel on these types of agreements is that it's something that if either party is at all interested it should be discussed as far in advance of commitments like marriage as possible. The agreements can be quite costly to set up, but I would advise anyone at all interested to do their research and get proper advice from a lawyer and to of course have a lot of big rational discussions with their future life partner!
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Question
Hi Kirsty, I emailed you some months ago as I was thinking for going into Real Estate, however my career took a different direction. I am now thinking again of going into Real Estate, but I am a little nervous to take the plunge. I know now is not the best time to be selling Real Estate and I am told that new agents don’t make much at all in the first six months. I would really appreciate any advice you could give me. I really enjoy your newsletters.
Jenni
Kirsty's Response
People enter real estate for all sorts of reasons. For some it’s the appeal of money – and as in many sales roles, in real estate you really set your own limits as to how much money you want to be able to earn. There are agents in Australia earning millions through real estate sales (most often with a good support team), but there are also many agents who aren’t earning enough to even support themselves at present. This will always be the case in real estate sales.
Others get into real estate because they really want the flexibility that the career can offer. Now don’t get me wrong – you can be very flexible with your hours in real estate, but don’t get into the industry thinking there won’t be late nights involved, or that there won’t be weekends involved. I hear so much about working “smart” not hard. I agree with this concept in principal, but if you want to make a go of it with real estate – you’ll have to work hard at first until you have the experience, contacts and runs on the board to start to tailor your strategies. Real estate is hard work both emotionally, mentally and physically.
Then, in many parts of the country people have seen the amazing success real estate agents have had over the past few years with many areas booming and they think it will be an “easy” career to get into. That sort of thinking is really short term and those people rarely have longevity in the industry.
You’re right on your point that most agents don’t make much in their first 6 months – this is pretty common, but most agents don’t make steady money for their first few years. It’s a common occurrence that when business is slow, real estate agents prospect more, meaning that in 60- 90 days their business is up again, which means they stop prospecting as much. You’ll find that many agents go through these waves of productivity and famine for a long time when they start.
My advice to you would be the following:
- It’s not going to be easy – if you’re going to get into the industry accept that straight away.
- Preparation is key, your personal database should be established BEFORE you start, your initial induction training should be completed BEFORE you start, you should have spent time in the office, going to open homes, learning systems, learning all the documents, explanations and terms BEFORE you start.
- Take out three sales consultants individually to lunch and ask them the tough questions, find out from them what it’s really going to be like for you.
- Talk with your family about the ramifications on them. Are they prepared not to see you as much initially, are they prepared for the weekend / after hours work, are they prepared for your mobile phone to be like an extension of your hand?
- If you are going to get into the industry make a commitment to yourself that you’re going to be one of the best educated consultants in your area. There’s not a book you won’t read, a DVD program you won’t watch and a conference you won’t attend. Knowledge is power.
Now – I may sound a bit doom and gloom here, that’s not my aim. I think real estate can be the most fulfilling industry both personally and financially. I just think the reason we have a high turnover in this industry in many areas is that people don’t often look at the full picture. Good luck with your decision Jenni
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Question
I loved the listing presentation tips (in your most recent weekly newsletter). I'm not in real estate but I can definitely use quite a bit of few of those. The sales books I read are often just too general. Do you have more in your book? Or other books you'd recommend? I'm after specifics, a 'recipe' to follow as Dale Beaumont calls it. Kerri
Kirsty's Response
Hi - and great to hear from you and that you enjoyed the article. My book - Advance to Go - is probably of more of a general nature about my story - overcoming obstacles etc than it is pure sales tips (I still think it's a great read though! :) )
I really like Zig Ziglar's books on closing and sales and really enjoy Jeffrey Gitomer's weekly sales newsletter which is linked to in my recommodations section. I hope that's of some assistance!
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Question
Hi Kirsty. I just read your article in That's Life and think its amazing what you achieved at such a young age! I have been in Real Estate from 4 months now. I am now a Sales Assistant. I'm finding it hard as I am one of the youngest agents in town and am also the only female in the sales team. I love Real Estate but find the pressure of clinching a sale and also gaining listings really stressful at times. Is there any advice you could give me about ways to stay motivated and positive.
Sarah-Jane (19)
Kirsty's Response
Sarah-Jane, wow – what a broad question! Motivation is a tricky subject in real estate due to the many ups and downs inherent in the job – especially when you start. Consistency isn’t a word new real estate agents learn about for a while – in some cases if ever.
As for being the only female on your sales team – I’ve been there at the same age you are and while female agents are it’ s still common even with females becoming a lot more prevalent in real estate in both New Zealand and Australia. BUT – instead of looking on it as a down side – this should be a major upside to you as it is for so many successful female agents around the country. Now – I don’t think females or males have any inbuilt real estate advantage, but I do know that there are some people out there who, for whatever reason, will want to list with a female (or a male) – and in those circumstances, if they want your firm – you’re the obvious catch. Secondly, I’ve seen a lot of women in the industry really excel in areas where empathy and specialized customer service are key. It’s an advantage – never think of it otherwise.
As for staying motivated, well here I can only really tell you what works for me. Firstly – I read, at least 20 minutes a day of something to help me build my business. Grab a book or subscribe to a weekly email and read someone else’s successes and mistakes so that you can learn from them and avoid the pitfalls and reap the benefits of their experience. I also stayed motivated at your age by trying to learn more about the industry than those who had been in it 40 years! I wanted to make sure that my age could only be seen as an advantage and if I combined it with knowledge – I was sure that it would. Also – ask someone you admire out to lunch or coffee once a month and suck your motivation from hearing their story!
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Question
Firstly I would like to congratulate you on your achievements, they are nothing short of amazing! Could you please tell me where I am able to purchase your books from as I have been waiting for a couple of months for the Angus & Robertson books stores to order your books in for me but so far they haven't got them in for me! One book store said they couldn't get it in!
Scott
Kirsty's Response
The bookstores can be a bit unpredictable! Most people order the books direct of our website from us which is pretty straight forward. However we happily supply to all bookstores – they just need to get in contact with us! Click here to download a form you can take into your local bookstore with contact details for how to get the book.
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Question
Congratulations on your enormous success. I have just read your story in That's Life magazine and I think you are. I am in the process of starting up my own jewellery business. I am researching as many jewellery wholesalers as I can to do what you were doing as a school girl - importing my own jewellery into Australia from overseas. I was very interested to read that you imported yours from Thailand, and that is why I am contacting you. Can you recall the name of the company you traded with?
Una
Kirsty's Response
I appreciate your email and wish you all the very best in your future success with your jewellery business. I get asked all the time for my contact in Thailand - however as it was over 10 years ago, I don't still have their name unfortunately. Originally however I was wholesaling from a company called Lidore in Caulfied in Melbourne. The way I found my Thai contact was over the Internet - and also you can buy a lot of bulk lots on ebay these days. Sorry I couldn't be more help with a name!
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Question
I was just wondering if you could give me any advice, on starting in the Real Estate industry. Tomorrow is my first day at Tafe, doing my Real Estate certificate and I couldn’t think of anyone else, who could give the same information that you could. The way I would like to go, is to become a PA for a little while until I’m able to go into sales.
Casey (19 years old)
Kirsty's Response
Casey, here's a few pieces of advice that I wish someone had told me before I went into a PA / selling role!
- Real estate is a business all about people, not houses! Your database is key, so make sure you start building it up from day one. First, just put in everyone you personally know, and then start to add clients. A good goal is to say that you're going to put in 5 people a day every day and do it religiously. Just because you're not a sales person yet doesn't mean now's not the best time to start!
- Real estate can be one of the most rewarding industries in the world, but it can also knock you around a lot! Be prepared for this. Be prepared for long hours, cranky clients, unusual situations and homes that will be hell to sell! Do not go into real estate thinking it will all be sunshine. Go into it thinking - this job will make you stronger, it will give you sales skills which you will then be able to use your entire life in any job, and it is one of the only professions in the world where your earning potential is determined by how much you put into it.
- You're young. Accept it but constantly tell yourself - "If I'm good enough, I'm old enough". Your only challenge now is to get good enough. There's no easy way around this. You'll need to read read read, attending as much training as you can and network with other successful agents and PAs - ask one out to lunch this week!
- Learn to love prospecting (set yourself a goal as to how much you'll do each day). Learn to love negotiating (head down to your local Harvey Norman and practice negotiating with them for a fridge or similar). Learn to love networking (start increasing your sphere of influence today - joint a service or sports group, start a breakfast club, reconnect with old school friends - do something!)
I'm also presently working on a "how to" real estate guide which will step listeners through this in detail – more info soon!
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Question
I am interested in doing some public speaking and would love to find out more about it.
Peter (Real Estate Agent)
Kirsty's Response
Peter, I would suggest the following for you:
- The best place to start is at Rotary groups and other service functions - which are kind of fun as they're sort of like doing a mass listing presentation to a captive audience and they give you a great opportunity to hone your skills. The same can be said for school groups - but as a warning these prove to be my toughest audiences!
- From there, you're part of a big group (franchise group / marketing group). I'd do a mail-out to other offices within your network to let them know that you're available to address other teams within the group, also let your head office know in case there's an opportunity to do work at a National conference.
- Once you're ready start approaching the larger National groups. Make sure you know what your hook is - why do they want you, what's special about you, what's going to make the audience get excited about you before you even get on stage.
