Show notes
Good morning.
Rules sound like a limiter.
Constraints on how you do business, on who you'll take on, on how long you'll work at something... they feel like they can only cost you.
They're the opposite.
They're one of the greatest multipliers you've got, because they quietly remove the opportunities that were never going to work out anyway.
Let me show you what I mean.
There's a page in my 1997 journal titled Rules for Good Listings.
I'd been practicing this in my own business and overlaying it on everything I was learning at the time.
Deming, on the stability of a system and taking the friction out of it.
And my own experience, which was simpler than that. When a listing didn't work out and I went back and looked at why, there was usually a pattern.
Here's the uncomfortable part.
In the back of my mind, I usually knew. Right at the start, I knew that one wasn't set up to work.
Now, before the rules, the thing that makes any of this possible.
When you've got a system that generates all the leads you need, you stop operating out of scarcity.
You've got abundance instead. And abundance means you get to be selective.
You can't set standards for who you work with until you've got more people than you need.
That's really what the lead generation is for.
So here they are. And read them as clients or customers rather than listings, because that's the whole exercise.
Number one. Geographic area limits.
In my final years selling real estate, the tighter I drew my area, the more money I made.
We could theoretically have covered Caledon and Hillsburgh and Erin and every outlying town.
Choosing to focus on Georgetown and Halton Hills was a freeing decision. I didn't have to stay on top of the inventory anywhere else.
Number two. At least neutral in condition, or willing to get there.
Some of the listings I took early on were dumps, or so packed with stuff you couldn't see the house.
When you're starting out you take them anyway, because it's a foot in the door.
Neutral just means clean and clutter free. I'm not talking about renovating. I'm talking about nobody walking in and being repelled by the work ahead of them.
Number three. Motivated to move, and in agreement.
The best situation is somebody with a job transfer who has to be in Calgary by a certain date.
Motivated, and both of them excited about going.
If one of them is driving the move and the other one really doesn't want it, the one who doesn't want it can quietly make sure it doesn't happen.
Number four. Priced within 3% of the selling price. No more.
I wanted to work with people who wanted to sell, and I wanted the house sold quickly.
The homes that sell faster and for more money are the ones priced closest to what they're actually worth.
Number five. Able to afford the move.
People have a dream of the bigger house or the place out in the country, and sometimes the math just isn't there.
If the whole thing depends on their house hitting a number, everything can fall apart very quickly.
Number six. Willing to participate.
Willing to do the things that give the house its best chance. When I showed them how to tap into the 18% of homes that sell by direct or indirect referral, they were on board.
Number seven. Listed for 90 days only.
This was a big one, and the constraint was on me as much as it was on them.
My home selling system was a system that got homes on the market and sold in under 90 days.
The temptation is to take an overpriced listing on a six month or a one year term. We'll test it at your price, and if it doesn't sell we can revisit it.
That's permission to be lazy. For both of you.
And saying you'll only take it for 90 days does something else. It tells them you mean the price you just recommended.
You've seen more homes than they have. You know what the market is doing right now, especially if you're concentrated in one area.
So when they want to test it high, being unwilling to sign for six months is the most reassuring thing you can do.
Number eight. Easy to show. Lockbox, no restrictions.
No we can't show it when we're not home. No we have to be there. No only on these days.
It needs to be available when buyers want to see it.
Number nine. A winning story.
I've told you about Jerry Spence, and the way we'd tell the story of a listing so a buyer had a reason this was the house for them.
The losing stories are the ones you hear all the time. We're not giving it away. We don't have to sell. If they want it they can pay our price. We've put a lot of money into this house.
All resistance. No power.
The winning stories sound like this. We got our dream job in Calgary and we have to be there by the end of next month. We found our dream home in the country and we need to sell this one to get it.
You'll win more if you let them feel like they're winning.
Tim and Darlene's townhouse sold for more than the asking price that way. We told people the situation, the dilemma, and what the house was worth.
Number ten. No roadblocks.
Nothing standing between where you are and getting this thing sold.
Now translate all of that into your business.
Is there a geographic constraint that would help you?
Is there a minimum standard somebody has to meet before you'll work with them?
Do all the partners or decision makers have to be on board?
Is there a budget somebody needs to have?
Is there a time frame you'd hold yourself to, out loud, in front of them?
Here's the exercise.
Take a page in your journal and write the rules that have to be true for your very best clients. The ones you get the very best outcome for.
Then use them two ways. As selection criteria... and as the thing that keeps you grounded when you're tempted.
It sounds paradoxical, winning by having constraints.
But the constraints are exactly what free you up to go as fast as you can.
I got a funny email from Rick the other day. Dean, question. Are you saying you can teach me to make fat stacks by hanging out at a pub drinking coffee like you?
And I laughed to myself, because... yes. That's exactly what I do.
Every idea I've ever had, and every dollar I've made in thirty years, went through my brain and my pen and onto a journal page before it ever went out into the real world.
So I'm running the 50-Minute Profit Finder this Friday at 1pm. Free, live on Zoom, and I'll walk you through the exercise myself.
Bring a pen and something to write on. We'll go looking for the lowest hanging fruit in your business, and probably some fruit you didn't know was there.
And here's your nudge for today.
One page in your journal. Rules for good clients.
Start with the last one that didn't work out... and write down the rule that would have kept you out of it.
Show notes: https://deanjackson.com/podcasts/tol/070-how-to-use-constraints-as-a-multiplier/
Join me live on the next free 50-Minute Profit Finder call: 50minuteprofitfinder.com/podcast