The 5-Step Plan that Makes It Easy to List FSBOs

Transcription

1 The 5-Step Plan that Makes It Easy to List FSBOs It s easy to list FSBOs when you do it the right way. Read this book to discover how to list lots of FSBOs easily. By Ben Curry of Smart Agents

2 Published by Legacy Media Networks Copyright 2017 Legacy Media Networks All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. Notice: The content of this publication is intended to be used for informational purposes only, and is not intended to provide tax, legal, or accounting advice. Consult your tax, legal and accounting advisors before engaging in any transaction.

3 Table of Contents Part 1: FSBO Opportunities Why Most FSBOs Need Your Help Why It s Easy to List FSBOs How to Prove to FSBO Sellers that They ll Get More Money If They Hire You Warning! The Traditional FSBO Strategy Is Flawed Part 2: The 5-Step Plan That Makes It Easy to List FSBOs The 5-Step Plan Revealed Step #1: Get FSBOs to Talk to You without Rejection Step #2: Follow Up Step #3: This Strategy Makes It So Much Easier to List FSBOs Step #4: Sometimes You Have to Do This to Get the Listing Step #5: Leverage Yourself with Virtual Assistants Part 3: Closing the Seller on Hiring You How to Get Every Seller to Like You So They List with You How to Dramatically Boost Your Listing Presentation Conversion

4 How to Do a Killer Listing Presentation and Get the Listing Part 4: Hiring, Training, and Managing Your Virtual Assistants How to Find Your First Virtual Assistant Interviewing and Hiring Virtual Assistants Common Mistakes to Avoid When Working with Virtual Assistants The Easiest Way to Manage Your Virtual Assistants

5 Part 1: FSBO Opportunities

6 2 CHAPTER 1 Why Most FSBOs Need Your Help You may not know this, but it s true. Most FSBOs do a horrible job marketing their house. If a real estate professional put the same amount of effort into marketing a house that an FSBO does, that agent would be at risk of losing his or her license! Here s an example. I recently did a study and pulled up 20 FSBOs. Most of them did not put much effort into marketing their house. Only two or three of them had good-quality pictures. The rest had low-quality pictures probably taken on a cell phone. The angles were bad. The houses did not look attractive. Trees and shrubs obscured attractive structural features. In some cases, the picture was so dark that it was impossible to distinguish any detail. Several photos were selfies, showing the owner competing for attention with the house or blocking the view of the structure. Eight of the sellers did not even have a sign in the yard. Is that crazy, or what? Individuals who offer their houses for sale by owner do not understand how challenging it is to sell a house. They think it s so easy. After all, if they thought it took any effort, they would probably hire a REALTOR. Consider some common characteristics of FSBO sellers: :: They don t know much about marketing. :: They definitely don t know anything about staging. :: They don t want to show their home at times convenient for prospective buyers.

7 3 :: They don t want to paint. :: They don t want to spend money on plumbing, electrical, roof repairs, etc. :: They don t want to fix up their house. Even the most aggressive, hard-working sellers probably lack access to crucial resources. According to the National Association of Realtors, only 7% use an MLS website. Some are forced to rely on shoddy consumer real estate sites, none of which generate nearly as much traffic. Another 7% claim they advertise their FSBO on Facebook or some other social network, and 16% put their faith in online classified ads. Those kinds of scattershot efforts are a huge gamble, given that 51% of buyers say they find their homes on the internet. The most effective online advertising relies on knowledge of the local market, copy writing that hooks the reader s interest quickly, and keywords chosen with surgical precision. These are elements best left to real estate professionals! Where Buyers Found the Home They Purchased 51% Internet 34% Real estate agent 8% Yard sign/open house sign 4% Friend, relative, or neighbor 2% Home builder or their agent SHOWING A HOUSE WELL Many FSBO sellers rationalize their unwillingness to perform necessary repairs, such as painting, patching or 1% Directly from seller or knew seller 1% Print newspaper advertisement 2016 National Association of Realtors 2016 Profile of Home Buyers and Sellers even simple chores such as cleaning and decluttering the residence. They might say they re too busy, they lack expertise, or they can t afford materials and professional help.

8 4 Here s an example from an FSBO I listed recently. The owner had tried selling the home unsuccessfully for almost a year. During that time, the house had been dirty, poorly maintained, and hadn t shown well. The seller had never cleaned the house, After all, it was a vacant investment property, and he believed he had enough work to do on his own residence. A few weeks after I listed the property, I got him to clean up the place. Obviously, it showed so much better. A little while later, we got an offer. Even when FSBO sellers are willing to put in the effort making repairs and modifications, they re likely to spend their money and time on the wrong projects. Take a look at the average garage that s been converted into a bedroom. Not pretty. You ve probably known homeowners who wasted money adding a bathroom in a little-used part of their basement, an island that restricts traffic flow in the kitchen, or shudder! a high-cost, high-maintenance swimming pool. How many sellers have labored over back yard landscaping that has no effect on curb appeal? Homeowners are rarely skilled at showing their houses. They usually don t take time to find out much about prospective buyers. Consequently, these sellers don t know what to highlight and what to downplay when conducting a tour of their property. Their people skills might be poor. Some stand glumly with their hands in their pockets. Others annoyingly hover over prospective buyers. Either way, house hunters are unlikely to express their concerns candidly to the homeowner. THE PRICE IS NOT RIGHT Here s another big disadvantage that FSBOs have. FSBO sellers usually take a hit-or-miss approach to pricing. Lacking the resources to research properties that are only superficially similar, many FSBO sellers put their faith in unreliable statistics:

9 5 :: Some falsely assume their property tax appraisal accurately reflects sales value. :: Many rely on inaccurate, outdated websites and databases. :: Others thoughtlessly copy the asking price of a home in their neighborhood, without understanding how it compares to their own. :: Some ignore the fact that prices have changed significantly since they bought the home. :: Many owners make pricing decisions emotionally, inflating the value because they ve put so much effort and love into the house. :: Some base their price on how much they need to clear from the sale, ignoring market realities. :: Others take a relative s advice, or merely guess. REALTORS SELL HOUSES FOR MORE FSBO homes simply do not get as much interest from buyers, at least compared to homes listed with a Realtor. It might not seem rational, but it s true. Here s an example of an FSBO I listed a little while ago. The home had been on the market for three months at $220,000. Three or four people had looked at the house. All of them had told the seller that it was overpriced. Some had bluntly stated that the house was a rip-off at $220,000. I put it on the market for $240,000. Why? The house was worth it. It sold in about three weeks for that price. What made the difference? When a house is listed with a real estate professional, it s easy for other Realtors to show it. More showings = a higher sales price. According to the National Association of Realtors, the average sales price of an FSBO home is $184,000. By contrast, the average sales price of an agent-listed home is $230,000 a difference of $46,000.

10 6 The internet is replete with stories about FSBO sellers who ve mispriced their homes with disastrous results. I read about a Denver FSBO who undervalued his home by more than $100,000, and then had to spend $30,000 getting out of the contract. Another tale reveals how a Realtor made a seller $50,000 more than she had expected when pricing her home. FSBO Methods Used to Market Home 33% Yard sign 21% Friends, relatives, or neighbors 21% Open house 13% MLS 10% Online classified ads 9% Social networking sites 7% FSBO websites 3% Print newspaper ads 2% Direct mail (flyers, postcards, etc.) 1% Video Source: National Association of Realtors UNQUALIFIED BUYERS Few FSBO sellers understand or have the patience to deal with complex paperwork. This leaves them vulnerable to serious legal mistakes, scams, and outright fraud. As any Realtor knows, it s important to qualify buyers early in the sales process. An open house especially a higher-priced one tends to attract lots of curious folks who have neither the means nor the genuine interest to purchase the property. Besides, buyers are usually more comfortable disclosing their financial information to a real estate professional than confiding in an FSBO seller. After all, buyers are wary of scams, too, and they re more likely to trust a licensed professional.

11 7 Think the average FSBO is covered by errors and omissions insurance? Guess again. Add the cost of potential litigation to an FSBO sale, and suddenly, the money saved by avoiding a Realtor commission doesn t seem like such a bargain. Given all the facts, it s hard to believe anyone tries to sell FSBO. Amazingly, recent statistics indicate that 9% of US homes are listed as FSBO every year. A lot of people try FSBO just to see if they ll get lucky. Those are some of the easiest for you to list. Next, let s talk about why it s easy to list FSBOs. KEY TAKEAWAYS :: Most FSBOs do a horrible job selling their houses because they lack expertise and resources. :: Owners usually underestimate the challenges of selling an FBSO house. :: Often, FSBO sellers are reluctant to perform needed repairs, maintenance, and cosmetic enhancements. :: On the other hand, industrious sellers often waste money on misguided improvements. :: FSBO sellers lack access to resources for setting realistic prices. :: Realtor-listed homes are easier for other agents to show, which increases exposure to buyers. :: The average FSBO home sells for $46,000 less than an agent-listed home. :: The complexity of paperwork can result in sellers being victimized or exposed to greater liability. : : FSBO homes account for 9% of annual listings, presenting an enormous opportunity for Realtors.

12 8 CHAPTER 2 Why It s Easy to List FSBOs The biggest advantage pursuing FSBO listings is the lack of competition. All real estate agents know about the potential of expired houses leads, so those homeowners get a lot of calls. I sell in the Jacksonville area, which is a bigger market of approximately 6,000 Realtors. When a house listing expires, those homeowners will receive anywhere from phone calls from agents. In contrast, FSBOs may only get 50 calls over the course of three to six months on the market. These numbers show that the competition for FSBOs is reduced, making them much easier to list. When I was young, I remember being chased by a much larger kid who was going to shove me down to the ground. I was running, and as I ran around the corner, I came to a door that I tried to push open. I pushed as hard as I could, but the door would not budge. Suddenly, I realized that I had to pull the door open, not push it. I pulled on the door, and it easily gave way, allowing me to escape the building. It s a simple story, but it illustrates an important point about listing FSBOs. If you don t know how to go about it correctly, it s going to feel overwhelming, challenging, and frustrating. However, if you know the one little secret that makes all the difference, getting an FSBO to work with you is easy. TAKING A CHANCE ON FSBOS The reality is that approximately 25% of all FSBO sellers put their

13 9 house on the market for a few weeks, just to see if they can get lucky without hiring a Realtor. Every once in a while, in a hot market, they do get lucky, and their house sells in a week or two. Usually, they won t end up selling for the same price they would get with an agent, but every once in a great while, they will get lucky and net more money on their own. Seeing an example of success, others might try FSBO for a few months, but few enjoy good results. If they re motivated and under pressure to sell, eventually they will recognize that they are in over their heads. When that time comes, they ll go looking for a real estate professional. That s when you, as a pro, can tell them everything that needs to be done in order for them to sell their house: staging, cleaning, better-quality pictures, better marketing, and more exposure. If you know how to capture these listings at the right moment, you can list a high number of FSBOs. You just have to know the secret. KEY TAKEAWAYS ss FSBO listings are a great opportunity, partly because other Realtors tend to overlook them. ss Approximately 25% of FSBO sellers put their house on the market for a few weeks, just to see if they can get lucky without hiring an agent. ss Occasional lucky FSBO sales perpetuate the myth that FSBO is a good strategy for most owners. ss By assisting with an FSBO sale, you give the seller the benefit of your knowledge and expertise. s s The path to success is learning the secret to capturing FBSO listings at the right moment.

14 10 CHAPTER 3 How to Prove to FSBO Sellers that They ll Get More Money if They Hire You Realtors can sell homes for more money than FSBO sellers can on their own. Unfortunately, not every agent believes that this is true. Until you really understand that fact, you ll always struggle to list FSBOs. Why? Because before you can convince someone else, first you have to convince yourself. Perhaps this story will help convince you. I recently listed an FSBO. The house had been on the market for three months at $189,900, with little activity. I put the house on the market for $200,000. It sold two months later, for $198,000. On their own, given how long their house had been on the market, the seller likely would have accepted a reduced price of $185,000, had it been offered. Perhaps they would have accepted an offer as low as $180,000. However, I was able to sell it for more money. How did this happen? Here are the four reasons, and they re the same reasons that 91% of sellers use a real estate professional to sell their home. REASON #1: WE CAN SELL HOMES FOR MORE MONEY. Most sellers net more money in their pocket, even after they pay the Realtor s commission. Remember, the average home sold by an agent sells for $230,000, while the average FSBO home sells for $184,000. This doesn t mean that a Realtor can sell the home for more money every time, but the numbers support that they often can.

15 11 REASON #2: THE WHOLE SELLING PROCESS IS EASIER WHEN THE SELLER HIRES AN AGENT. I talked to a title company manager who handles FSBO closings and Realtor closings. He told me that when an FSBO sells their home, it takes about 45 days for the two parties to sign the sale contract. He said that sometimes they don t sign the contract at all, until they sit down for the closing process. When a Realtor sells a property, the sale contract is usually signed in less than 48 hours. This is no small matter. Have you ever heard of buyer s remorse? That s what it s called when a buyer makes a commitment to purchase your home, and then begins to question the wisdom of that decision. It doesn t matter whether the decision was good or bad. I ve seen buyers get buyer s remorse even when they were practically stealing a home. The very act of making a large financial commitment can be daunting for otherwise practical individuals. Sometimes it goes so far that they actually change their minds. If the seller has a signed contract when the buyer tries to back out, then the seller can hold their feet to the fire. If not, the buyer walks away, and the owner has to sell the house all over again. This doesn t mean that someone can t sell their house themselves. They probably can, eventually. But unless you have sold a lot of homes yourself, you probably are not going to be as successful and efficient as a professional would be. REASON #3: A GOOD REAL ESTATE AGENT CAN SAVE HOURS OF THE SELLER S TIME. Realtors save homeowners time, because they are equipped to handle all the tedious tasks. They are experts at financing, home inspections, surveys, title work, appraisals, negotiations, and so much more.

16 12 It is estimated that Realtors do different tasks in the process of selling a home. It s better for someone else to do that than the seller. REASON #4: THEY SOLVE PROBLEMS. Problem solving is the most important part of an agent s job. Selling a home is complicated, and there are multiple things that can go wrong throughout the process. A Realtor is an expert at handling these upsets, and is motivated to make sure that sellers are successful in their sales. KEY TAKEAWAYS ss The average home sold by a Realtor sells for $46,000 more than the average FSBO home. ss Realtors tend to get buyers under contract quickly, which helps protect sellers against buyer s remorse. ss A good Realtor can save hours of the seller s time. s s Selling a home is complicated and often requires the problem-solving expertise of a professional agent.

17 13 CHAPTER 4 Warning! The Traditional FSBO Strategy Is Flawed The traditional FSBO strategy is flawed because it centers on Realtors making potential sellers feel foolish for wanting to do things on their own. Sellers may lack the knowledge and ability to sell their own homes effectively, but telling them that is no way to introduce yourself. The reality is that the seller is much better off with a Realtor, but explaining that to them needs to be handled the right way. RELATIONSHIPS ARE GOLDEN Another flaw is that most Realtors only call an FSBO lead once. FSBO leads are different from expireds, because they require a longer sale process. It s about building a relationship not about making a sales pitch one time and closing the deal. You ve got to build that relationship by genuinely wanting to help them, and then following up. You need to be helpful. Interestingly, many Realtors aren t willing to put in that extra effort because they re looking for a fast, proven result. That isn t how FSBOs work. If you want success with FSBO listings, you need to think long-term. Make an appointment with the seller, just to preview their house. Or meet with them just to talk about their options and develop a good rapport. Those relationships are invaluable. I have met with several FSBOs through preview appointments, and my conversion rate with those appointments was almost as

18 14 high as my conversion rate with appointments for expired listings. If you re serious about FSBOs, you have to value those appointments as highly as you do the expired-listing appointments, even if the results are slower. KEY TAKEAWAYS :: The traditional FSBO strategy is flawed because it requires agents to make FSBO sellers feel foolish. :: Your FSBO strategy should focus on building a relationship, not closing a deal after one sales pitch. : : If you re serious about success, you must value each FSBO appointment as highly as an expired-listing appointment, even if results are slower.

19 Part 2: The 5-Step Plan That Makes It Easy to List FSBOs

20 16 CHAPTER 5 The 5-Step Plan Revealed This chapter covers the five steps of the FSBO plan in summary, followed by a series of chapters that detail each step individually. STEP 1 Start conversations. Get to know the potential FSBO seller, and let them get to know you. The connection you develop will help you get the listing. STEP 2 Follow up on the conversation. Turn those conversations into relationships. Follow up until they re tired of trying to sell the house themselves, and they decide to list their house with you. STEP 3 Use the Smart Seller Plan strategy. This strategy, explained in detail in a later chapter, will make it so much easier and faster to list an FSBO house. It will make you the best choice in the eyes of any potential seller. STEP 4 Consider buying the listing. Whether or not this is a smart move depends on the circumstances. Personally, I have made great commissions off of listings that I bought. I ll explain the pros and cons of buying listings in a later chapter. STEP 5 You re going to want to systematize everything. In this step, I show you the easiest way to systematize all that you do so you

21 17 can build an entire system that brings in FSBO listings for you like clockwork. That s a summary of the five steps. The next few chapters will take an in-depth look at each step in the plan. KEY TAKEAWAYS There are five steps to the successful FSBO plan: 1. Start conversations. Get to know the potential FSBO seller. 2. Follow up. Build relationships. 3. Adopt the Smart Seller Plan strategy. 4. Consider buying the listing. 5. Systematize everything in your process.

22 18 CHAPTER 6 Step #1: Get FSBOs to Talk to You without Rejection The key to getting FSBO sellers to be willing to talk to you is to be helpful. FSBO sellers who begin optimistically can quickly feel overwhelmed. Finding an expert they perceive to be genuinely, unselfishly helpful offers them relief and hope. It immediately sets you apart from the myriad high-pressure salespeople they encounter in other aspects of their daily life. Your helpfulness can also lay the foundation for a continuing relationship. Why not establish yourself as a nonthreatening, go-to resource for FSBO sellers who have questions and insecurities? It helps ensure that when those sellers are finally ready to turn their listings over to a professional, they ll turn to you. THE MAGIC OF FREE SAMPLES Here s a strategy that sets you apart from your competition. I m sure you ve observed how effective free samples can be in a marketing campaign. You go to the grocery store, and people give you a free sample of their cheese. So you eat it, you think it s good, and as a result, you buy some of their cheese. This works, and it also works for real estate. Here s a quick example of how samples enabled one company to beat their competition dramatically in an industry where most people don t give away samples. I was walking through Savannah, Georgia, recently on vacation, and one of the stores had a little sign in the window that said Free Cookies.

23 19 I wasn t hungry, but you know what? Free sample cookies? Let s try it out! There were a lot of shops. Some were busy, some were not, but I decided to check out the shop that had the free cookies. I walked in, and the free cookies were tiny probably half-aninch in diameter. The store allowed me to try one chocolate and one peanut butter. This store was busy. I tried some of their cookies. Although I didn t buy any, many shoppers did. If I had been in the mood to buy cookies, I probably would ve bought one of their standard bags for $6 or $7. Why did this shop offer free cookies? It was to get people into the store, so potential buyers could experience what the owners had to offer. Once inside, prospective customers could enjoy the quaint décor perhaps listen to the owners talk about their fresh ingredients, high-quality standards, and the love they put into their home-style baking process. All of these elements created a goodwill relationship between the shoppers and owners that represented more than just baked goods. Most importantly, customers could smell the cookies baking! Not surprisingly, this shop attracted a bigger crowd than any other store around. I m sure they sold a lot of cookies. You can put the same kind of proven marketing to work for you. What s a good sample that you can give away to FSBOs, to get your foot in the door and let them see what you have to offer? Offering free pictures works well for me. Remember in Chapter 1 when we discussed the poor quality of photos taken by sellers? Here s a way you can be genuinely helpful. It takes about an hour to take pictures of the house. You get to talk to the people, go through their house, see the advantages and disadvantages, and discuss some of your marketing ideas. This has enabled me to list a lot of FSBOs. Once this gets me in the door, I have my assistant call and offer the pictures. In

24 20 several instances, the sellers never even wanted the free pictures after I shot them, but I got their listings because I offered the samples. Offering a service before asking for anything in return accomplished several important goals. It demonstrated my willingness to help. It allowed me to prove that I possessed expert knowledge about marketing homes. It lowered the seller s natural sales resistance. It created the basis for a conversation, which in return, formed the foundation for a relationship. My assistant contacted one seller. (I don t do any prospecting myself in real estate. I have virtual assistants do all of it.) The seller had been FSBO, but was finally ready to give in and hire a Realtor. My virtual assistant called and offered the pictures, but the seller was so impressed, they just skipped right to hiring me to sell their house. I ve even gotten referrals from doing the pictures. I took pictures for one seller, and her house ended up selling FSBO. However, she referred me to her friend, and I listed his $400,000 house. Here s another free sample idea that has worked very well. I leave a copy of my book, For Sale by Owner Guide. (This book can be customized with your name and branding.) If the sellers are home, you can knock on the door of the FSBO and ask whether they d like a copy of the book. You can see the cover on the next page.) I know agents who have had success with this method. Not long ago, one Realtor in New York handed a book to an FSBO, and a week later, the sellers listed their home with her. If no one answers the door, I place my book inside a small plastic bag that hangs from the knob inside the screen door. (I get my bags from Uline.com, but there are probably plenty of suppliers in your area.) This is my preferred method because it enables me

25 21 to cover a lot of ground in a short time, and because I ve gotten listings this way. My For Sale By Owner Guide shows homeowners how to sell their home without a Realtor. Why would I do that? It makes sense for several reasons. First, providing a book of free advice shows that I m helpful. I designed the advice in the book specifically for sellers who choose not to engage Realtors. I literally offer the FSBO seller something valuable for nothing. Second, it establishes me as an expert. Being an author conveys credibility. It demonstrates that you ve put a great deal of thought into your subject, researched it, and committed your time and effort to sharing the information in an accessible format. When the sellers at last decide it s time to consult a real estate professional, I ll probably be the first one they contact... and my credentials will already be impeccable in the sellers eyes. Below is the cover of my For Sale By Owner Guide and weatherproof door hanger. Remember, the book can be customized with your name and branding!

26 22 KEY TAKEAWAYS The key to getting FSBOs to be willing to talk to you is to be helpful. Free samples can help to demonstrate your expertise, start a conversation, and lower an FSBO seller s sales resistance. One way to provide a useful sample is to offer to take free pictures of the seller s home. In addition, you can give sellers free copies of the For Sale By Owner Guide by mail, in person, or by leaving the book on the doorknob in a weatherproof bag. ; ; Presenting sellers with books establishes your credibility as an expert, shows your commitment to helping them sell their houses, and creates name recognition for future contacts.

27 23 CHAPTER 7 Step #2: Follow Up I remember that, back in 2003, I worked as an assistant on a team. This team mailed all the FSBOs in their marketplace a series of generic, watered-down letters. I was the assistant, and it was my job to mail those letters to the FSBOs. We printed the letters automatically through Top Producer. We d mail out the same watered-down letters week after week, and rarely saw a listing come from it. Their primary purpose was to assist the team leaders with prospecting. We weren t terribly advanced at marketing, but no one really was at that time. We did get some business from the letters, and I believe that they did assist with prospecting. However, what is really interesting is that we listed several homes a year, simply because we kept mailing the FSBOs when no one else was. Our persistence paid off every time we got a call from an FSBO wanting to list with us. During initial consultations, the leads would often explain that they had decided to call us because of the stack of letters they had received. The reasoning seemed to be that if we were so good at marketing ourselves to them, we must be good at marketing houses, too. According to all the studies, you have to follow up continually with leads to secure their business. This is especially true with FSBOs, because they take longer to nurture into a listing. If you look at the study below, you will see 79% of all Realtors have given up on the FSBOs after the third call.

28 24 If you continue to stay in touch and build rapport, you re going to get the listing down the road when they re ready. If you call an FSBO back a fourth time, you ve pushed yourself ahead of 79% of all your competition. Because only a handful of agents focus on securing FSBOs, that limits your competition even further. Beyond that, the potential seller will respect your determination and persistence. Who wouldn t respect that kind of follow-up? The key is to keep yourself motivated to follow-up with them. The best way to do this is to consider each FSBO lead that you build a relationship with the same as an expired listing lead. Often, I will offer to go by an FSBO home and give suggestions on ways they can better market their home. Help them out that way, and most likely, it will turn into a listing for you. I converted as many of those soft-sell appointments into listings as I converted expireds into listings. Of course, you ll want to build up to this preview appointment. The first time you call them, just ask them how long they plan to market their house themselves before they would hire a Realtor. Next, offer them free pictures of their house. Then offer them a free copy of a book about selling your own house.

29 25 Finally, after you ve made several calls and switched up your offers enough, ask for that preview appointment. Of course, if you don t have time for all of this, you can always hire a virtual assistant to help you with some of the process. We ll discuss everything you need to know about finding, hiring, and managing virtual assistants in later chapters. Below are a couple of scripts you can use to get your foot in the door with FSBOs. The first script has worked very well. I think it s because it s so simple and honest. FSBO SCRIPT 1ST CALL Step 1: Make sure you are talking to the owner. Hey, do you have your property for sale? Alternate: Hi, I m calling about the home for sale. Is this the owner? Step 2: Ask if they have a minute to talk. I just had a quick question for you. Do you have a minute? Step 3: Find out when they are open to hiring a Realtor. My name is. I m a local Realtor here in. But I m not calling you to list your home. (Slight Pause) I was just wondering if by chance, down the road, if your property doesn t sell might you consider hiring a Realtor? Step 4: Get their address. Ok. Well, then, let me do this. Can I get your so we can send you some information and, by chance, if you ever wanted to contact us then you could? Pause for a second to see if they ll give you their . After 2 3 seconds, say the following with a downswing: What s your address?

30 26 Note: Unless they object assume they want to give you their address. Step 5: If you think there s an opening, then continue. Now, if you could sell your home with a Realtor, and they did all the work and you still NETTED the same amount of money in your pocket is that something you would consider doing? Most will say, Yes. If so, then continue: I know this may sound crazy, but in most cases, a Realtor can sell your home for more money. For example, there was recently an FSBO on the market for $220,000. After four months on the market, they hired a Realtor. The realtor sold it for $240,000. Even after paying commissions, the seller got an extra $5,000 in their pocket. I m not saying this happens every time. But, it happens more often than not. [End Script.] I recently used the script above and got a $350,000 listing. My assistant happened to call the seller at just the right time. They had given up on selling FSBO and were looking for an agent. I had a good presentation, and they listed with me. FSBO SCRIPT FREE PICTURES Step 1: Make sure you are talking to the owner. Hi, I m calling about the home for sale. Is this the owner? Step 2: Ask if they have a minute to talk. I just had a quick question for you. Do you have a minute?

31 27 Step 3: Find out when they might be open to hiring a Realtor. My name is. I m a local Realtor here in. But, I m not calling you about listing your home. I wanted to see if I could offer you FREE, PROFESSIONAL-QUALITY pictures of your home. You can use those pictures to market your home for sale by owner. (Slight Pause) Do you think that s something you would be interested in? (Pause and wait for them to respond.) Most people will reply, Why would you do that? It sounds like a scam. To which you reply, It s like when you go to the grocery store and someone offers you free samples. They give you the food samples, whether or not you buy more food from that. That s why I m giving away the pictures. It s a free sample of what I can do to sell your home. (Slight Pause) Is that something you d be interested in? Step 4: Schedule a picture appointment time. (I prefer to take pictures on Friday or Saturday, so that s when I schedule it. You can do a different time.) When would you be available on Friday or Saturday for me to come out and take the pictures? Step 5: Confirm the address and time. [End Script.] KEY TAKEAWAYS FSBO take longer to nurture than other real estate relationships. ; ; Because 79% of Realtors give up on FSBOs after the third call, persistence can set your marketing apart.

32 28 Staying motivated leads to success. One way is to treat each FSBO lead like an expired listing lead. Don t rush FSBO sellers. Be helpful. Drive by and offer FSBO sellers free advice. On your first call, just ask how long they plan to market their house before possibly hiring a Realtor. Next, offer them free pictures of their house. Then, offer a free copy of a book about FSBO selling. Use one of two scripts included in this chapter to get your foot in the door. The first script is for an initial call to an FSBO seller. I designed the second script to work with an offer to provide free pictures of the seller s house. Ask for a preview appointment only after you ve made several calls and several free offers. ; ; If you don t have time for all of this, consider hiring a virtual assistant to help with some of the process.

33 29 CHAPTER 8 Step #3: This Strategy Makes It So Much Easier to List FSBOs Let s continue from step 2. You are now in the process of following up with the FSBO lead. You re staying in touch. They re close to listing with you, but they re hesitant. They know you re the best agent, and they re going to list with you, but they re reluctant to commit. What do you do? I use the Smart Seller s Plan, which is essentially an exclusive agency listing. This kind of agreement means that the seller lists with you, and agrees to pay you your commission if you or any other Realtor sells the house. At the same time, the seller retains the right to market their house on their own, and owes you nothing if their house sells as a result of their own efforts. When I call an FSBO lead and ask if this plan seems attractive to them, a lot of them will say that it does, because it doesn t require full commitment to a Realtor. They still have the right to market on their own, and to hold out hope of selling their home that way. What s interesting, though, is that once you list the house and begin doing the work to market it, the seller will often stop doing their part of the marketing because they feel that a professional is handling it. Within two or three weeks, they re relying on you to sell their house. In my experience, I have never had a problem with homeowners selling their homes out from under me after I assume the listing. Anyway, the potential benefit to you outweighs the risk of this approach. You can do two things to minimize your risk. Make

34 30 sure that it is your sign in the yard, and that the Zillow listing is under your name or company. If the seller already has a Zillow listing, Zillow s support team can help deactivate it, so that you can put the house back up with you as the listing agent. There can be complications with this if the Zillow listing is not correctly transferred. Again, this approach is not without risk. But everything comes with a risk, and this is still a great way to get listings no one else gets. Sometimes there is an issue with listing an exclusive agency house with MLS. If that situation occurs, I simply list it as an exclusive right-of-sale agreement. In that case, I write into the agreement a little bit of legalese stating that, if the seller were to find a buyer on their own, they would not owe me a commission. This is similar to the approach taken when, prior to listing with you, the seller already has a buyer lead. Overall, this approach may not be traditional, but it does work, and I ve made a great deal of money from listings that I ve secured through this method. KEY TAKEAWAYS The Smart Seller s Plan is appealing because: The FSBO seller agrees to list with you and pay you a commission if you or any other Realtor sells the house. Sellers pay no commission if the house sells as a result of their own efforts. In actuality, most FSBO sellers discontinue their own marketing efforts after listing with you. You might put work into the sale only to ultimately lose the commission, but benefits outweigh risk. To minimize your risk: Make sure it is your sign in the yard.

35 31 Make sure the Zillow listing is under your name or company. ; ; Make sure the Zillow listing is transferred correctly and that you meet requirements to list with MLS.

36 32 CHAPTER 9 Step #4: Sometimes You Have to Do This to Get the Listing People don t always like to admit this, but sometimes you have to buy a listing. When the market is hot, you actually want to buy listings. In fact, when the market is really hot, and there are a lot of FSBOs, the only way you re going to be able to list any of them is if you buy the listing. This method usually works out in your favor, because you generate a lot of activity for the client, driving up the price. I met with an FSBO 12 years ago. He had his vacant lot priced at $180,000. I told him that I thought I could sell it for about $200,000. I listed it at that price, and after about three months, it sold for $185,000. His net, after commissions, was $174,000. Basically, he made money by hiring me to sell his vacant lot. Let me explain why. His net profit after commissions was about $174,000, but if he had sold the lot on his own, he likely would have accepted an offer of $170,000 So he made more money than he would have, and he didn t have to do the work. He got a great deal, especially considering that most FSBOs have to put in hours of their own time to sell their property. He saved a lot on time investment as well. I ve done this same thing with many other FSBO listings. On multiple occasions, I have secured an FSBO home, and then listed it for $10,000 $15,000 dollars more than the owner felt they could get for the home.

37 33 Even if I do not end up selling the home at a higher price, the seller ultimately realizes that they haven t really lost that 6% commission, because I ve done all the work for them, and they likely would have ended up with a much lower offer anyway. Buying a listing can be a great strategy. It s not something that you would want to do all the time, but used correctly, it can often work in your favor. KEY TAKEAWAYS Sometimes especially in a hot market it may be advantageous to buy a listing. ; ; This usually works in your favor, because you generate activity for the client, driving up the price.

38 34 CHAPTER 10 How to Get Every Seller to Like You So They List with You I ve seen a lot of real estate agents get listings, even those who don t do the best job. Maybe I should say they do a low-quality job. The reason they got that listing was that the seller liked them. You don t have to do a low-quality job selling houses in order to use that same strategy. Instead, you can do a great-quality job selling houses and still use this strategy to get more listings. That is, you can figure out how to get every seller to like you, and you can build rapport with people. It s so important to build rapport. One of the things I recommend doing, if you want to learn how to build better rapport with people, is get the book How to Win Friends and Influence People by Dale Carnegie. It s an excellent book, and it will show you all the ins and outs of how to build better relationships. Use me as an example. I have gotten a lot of listings by showing people how I can do a better job of marketing their house. However, I ve also gotten a lot of listings just because I was good at developing rapport with that seller. Here is my biggest advantage in this area: I m a good listener. Maybe I m not the best listener, but I am halfway decent at it. I will sit there and listen to someone. They ll tell me their story for an hour or sometimes two hours. (I try not to let it go that long.) I remember a recent example about a former architect. I sat there and he told me stories. I was genuinely interested in what he had to say because I love houses. I didn t back slap him. I wasn t fake.

39 35 I asked him questions about how he designs houses. We talked for probably an hour-and-a-half. I m not sure if that was what got me the listing, but I think it was a big part of it. So do this: listen to people. Let them talk! It makes a huge difference, because everybody wants someone to listen to them. So let them feel important. DON T BE FAKE You have to be genuine. If someone wants to talk about architecture, then I ll listen for hours. (At least if they are a potential customer.) Architecture has a big impact on what I do, being a Realtor. I asked the architect about drawing the best floor plans. Specifically, I asked him how to get the house to look more attractive, so it is easier to sell. As I said, I was naturally interested in the answer, because it had so much to do with real estate. Let s imagine, however, that you meet a guy who works on cars. Some people who work on cars can make a lot of money. They live in high-end homes. Talk to them about cars. What do you do? How do I figure out how to fix my car? How do I find the best mechanic? You just talk about what their interests are and how those interests relate to you. You do need to be careful with this. You don t want them to take up too much time, but if you let them talk for a while, you ll develop really good rapport. Here s something else that has helped me develop better rapport. I used to be very argumentative. I argued with everybody. After reading How to Win Friends and Influence People and becoming better at listening to people, I stopped arguing so much. As a result, I get along with everybody a lot better. And not just with listening presentations. I ve also gotten better at interacting with other Realtors, people at the office, and more. Here is the fastest way to get someone to like you instantly. Give them a genuine compliment. You don t have to be a glad-handing,

40 36 back-slapper. Don t be a fake! Find one thing on which you can genuinely compliment them. You can find something positive about everybody you meet. Here s an example. My hair is thinning slightly. So if I were to meet somebody I didn t hit it off with, who had a thick head of hair, I could positively compliment them. I could say, Wow, you have a really nice head of hair. I wish I had hair like yours. There are a lot of different little things that you can do to compliment people. When you do that, you ll get the listing. Here are some other things you can do to get the seller to like you. OTHER WAYS TO BE LIKED Have some empathy for their situation. Find out exactly why they are selling. Discover their goals. Learn about their frustrations. Everyone wants someone to listen to them. You also will improve your odds of getting the listing. Here s why. You will know about their biggest concerns and problems when you give the listing presentation. Consequently, you are way less likely to say something inadvertently stupid or offensive and lose the business. Maybe you never say anything stupid or offensive. (If so, then good for you!) I do, from time to time. How many showings have you had so far? This question is going to give you an important reading into the situation. If there have been a bunch of showings, that is not a bad sign. It s a good thing. This means that people are interested in the property. Did you have any offers? This may be the biggest factor. If they ve been turning down offers, it shows they aren t flexible. If you decide it s worth it, you re going to have to work hard to convince them to lower the price. Find out what the offers were and how they were structured. With new information, you will be better equipped to present a pricing and marketing plan that positions the property to sell quickly.

41 37 KEY TAKEAWAYS Even a good Realtor can benefit by working on his or her skills at building client rapport. Listen. Don t argue. Always be genuine, never fake. Talk about the other person s interests and how those interests relate to you. Find one thing on which you can genuinely compliment them. You can find something positive about everybody you meet. Show empathy. Ask questions: Why are you selling? What are your goals? What frustrations are you experiencing? How many showings have you had so far? Have you had many offers? These questions will help you gauge interest in the property and determine how flexible the seller is. ; ; Learning about sellers will show empathy, help you avoid offending them, and make you more likable.

42 Part 3: Closing the Seller on Hiring You

43 39 CHAPTER 11 How to Dramatically Boost Your Listing Presentation Conversion Here s the number one thing you need to do to boost your listing presentation conversion dramatically. It s not that complicated, but hardly anyone ever does this. Prove that not all agents are the same. Here s an example of this. I know of a man who is extremely businesssavvy. He runs a multi-million-dollar business with 30 employees. He s tremendously astute when it comes to sales, having been in sales for 20 years, and has plenty of experience selling all sorts of different products. And yet, this man couldn t figure out which Realtor was better than other real estate agents. All the agents looked pretty much the same to him. He didn t know enough about real estate to figure it out. Even though he knows how to sell something, he still didn t realize that selling your house is the same as selling anything else. The Realtor s job is this: sell the house. Anyway, he ended up hiring the agent who sells the most houses in his area. I don t know exactly how he found the agent. I think he checked out the different Realtors, found the person who sells the most homes in his area, and just hired that individual. He interviewed several people, but nobody blew him away. Nobody showed him why they were different. As a result, he just hired the biggest agent. He figured that agent would get him the best results. DIFFERENTIATING YOURSELF Here s how I avoid appearing the same as everyone else. When I meet with a seller, I show them that real estate is not all luck. There actually are things that a Realtor can do to get a seller a

44 40 better result. The first thing I do in my presentation is show where I was able to sell a house that another Realtor was not able to sell. However, I also do this: I show them that not all homes sell for what they are technically worth. Here s how I do that. I went into my local marketplace and found a neighborhood where just about every house is identical. It was a neighborhood in which the developer built all the houses with almost exactly the same floor plans. This developer had a really good location. I guess he thought, Hey the location s so good, we don t have to make the houses that different. We ll just build a basic floor plan that everybody will like fairly well. That will sell. Guess what. He was correct. They did sell pretty well. Therefore, this neighborhood is the perfect statistical case study that proves that identical homes sell for different prices. Here are the two houses that I showed in my listing presentation: Zillow thinks these houses are worth about the same amount of money. I might not agree with Zillow s valuations, but I do agree that both houses are worth about the same amount of money. I researched why these homes sold for different prices. The only difference I could see between the two townhomes was

45 41 that one was in better condition and the agent did a better job marketing it. I was familiar with both properties because I used to live in this neighborhood. In fact, I lived right across the street from one of the homes that sold. Here is how to do the same kind of research in your marketplace. Look for a neighborhood where all the homes are very similar. Neighborhoods with condominiums and townhomes are excellent for this. Then, you can meet with a seller and tell them: Not all homes sell for what they are technically worth. Look, here s a condo that sold on the sixth floor of this building for $450,000. A unit with exactly the same floor plan on the fourth floor sold for $498,000. That s a 10.7% difference in price. They had a similar number of upgrades. When you do this, the sellers are going to realize that real estate isn t all luck. The agent you hire matters. There actually is a difference that the Realtor can make. If you hire the wrong agent, it can cost you 5%, 10%, and maybe even 15%. You don t need to geek out on data. Just show them a quick example. Look for the smoking gun on some good examples. Your examples don t have to show extreme price differences. A 5% to 10% difference in price is adequate. KEY TAKEAWAYS To differentiate yourself from other agents, explain how you sold a home another agent could not sell. Start by demonstrating that not all homes sell for what they are technically worth. ; ; Identify two similar homes in a neighborhood that have sold for different prices.

46 42 Point out that these sales didn t depend on luck. In each case, the agent made the difference. ; ; You needn t demonstrate an extreme price differential. A difference of 5% to 10% is sufficient.

47 43 CHAPTER 12 How to Do a Killer Listing Presentation and Get the Listing Here is the most important thing that I have done to get more listings from sellers: I show how I can do a better job at marketing their house. I show them how my marketing plan will increase the odds of their house selling, and selling for more money. #1: I GIVE THE SELLERS A COPY OF MY FSBO BOOK. I gave away about 300 copies of my For Sale By Owner Guide books in a six-month period. During that period, I listed approximately 30 homes. Every one of those sellers got a book from me. I mailed it to them or dropped it off at their door. #2: I SHOW THEM LOTS OF CASE STUDIES. For example, I might say something such as, Look at this house right here. John was trying to sell it himself for $285,000. But he wasn t having much luck. I looked at his house and immediately saw that it was underpriced. But that s not what John thought. After all, several buyers had looked at his house and told him it was a rip-off! They thought it should have been priced at $250,000. But I saw the value. So I put it on the market for $299,900. I did a good job at marketing it, and I sold it a few weeks later for $296,000. Now, my marketing helped out quite a bit. But this story also illustrates how a Realtor will get you more interest in your home. That s why you should list your house with me.

48 44 #3: I SHOW THEM THAT REAL ESTATE IS NOT LUCK. Not all agents are the same. (I talked about this at length in the previous chapter.) It s not all luck. There actually is something to this. The Realtor you hire can get you a better result. I show them that they might not get a fair price for their house unless an expert markets it properly. In addition, because I do great marketing, I might actually be able to sell it for more than another Realtor can. Or I m going to sell it faster. #4: I SHOW THEM HOW I WILL DO A BETTER JOB AT MARKETING THEIR HOUSE. I go through all the things that I do differently to get more buyers interested in the house. Here s a quick list of the things I do differently that cause homes to sell for more money: I take excellent pictures. I understand online marketing and how to hook the perfect buyer who will fall in love with their home. I do special marketing that causes buyers to fall in love with the home and happily pay the asking price. I m good at solving problems. But I don t just hype things up. I back up everything I say with proof. For example, when I m talking about excellent pictures, I show them pictures that I ve taken of various houses. While I m sitting in the presentation, I ll say, Okay, look at this. Imagine you were looking for a house online and you ve got these three houses right in front of you. I show them three different houses. (An example of that PowerPoint Slide follows.)

49 45 Most people either choose the top or bottom house. You may not be able to see it in the picture, but the middle house is ugly. The picture quality is such that the dark house seems to merge with its background. When people choose the top or bottom house, they ve validated what I told them about taking pictures. They ve just told me that there s a difference in which house they re going to click on first. I show actual case studies about how I sold a house that another agent was unable to sell, and sold it without dropping the price. I show them two different pictures of the same house. Then, I ask them which one they think looks better. I talk about charm, and how I will find their home s natural charm and showcase it. I show them how charm can sell a house. The bottom line is that I take everything that I do and show how it will get more buyers interested in their house. And it works. Before I adopted these four steps, I didn t get a lot of listings. But once I started using them, I listed five to six homes a month. The only reason I didn t list more is that I didn t have enough time! I m sure you re wondering how you can build a presentation that does all these things. You can build it yourself. Or you can use mine. It s completely built, and it talks about all of these things. If you d like to get your own copy of my listing presentation, then go to:

50 46 Here are some of the things that my Instant Listing Presentation already has built into it. It talks about the seven important things I do differently from other Realtors that cause my listings to sell for more money. It has data with specific examples that prove that not all real estate is luck. I show them how I will use a commonly overlooked service to post their home to 100+ websites. I show how I use Ad Agency Marketing to sell houses that other agents are unable to sell. (The Instant Listing Presentation comes with training on how to do this yourself quickly and easily.) I have examples of homes with good pictures (mine) and bad pictures from another agent. I explain how the pictures helped the home to sell. I have good examples of exactly what a charming picture is. I show the contrast between a good-quality picture and a charming picture. I show them several case studies and present them in a way that the sellers understand how I am different from other Realtors. You can get this entire presentation for just $7. You can customize it to how you do business and to your marketplace. If you d like to get your own copy of my listing presentation, then just go to:

51 47 KEY TAKEAWAYS The key to your listing presentation is to show how you can do a better job marketing the seller s house: You take excellent pictures. You know how to hook buyers online. You do special marketing that other agents don t do. You re an excellent problem solver. Back up all your claims with examples. Give the seller a copy of the For Sale By Owner Guide, customized to reflect your branding. Use case studies that prove your success. Demonstrate that real estate sales are not just luck. The agent makes a huge difference. ; ; The Instant Listing Presentation, available at www. InstantListingPresentation.com, contains all the elements you need for a successful presentation, which you can customize to your marketplace.

52 48 CHAPTER 13 Step #5: Leverage Yourself with Virtual Assistants You re a Realtor, you re busy, and you get interrupted all the time. So if you build a system that relies on you to do the work, it may crash and burn. Why? Because you re busy. It s difficult to control your schedule. And the interruptions never stop! The phone s going to ring, you re going to meet with sellers, and you re going to work with buyers. Because you re so busy, you can t rely on yourself to have the free time every day to implement your FSBO marketing plan, just as the McDonald s CEO can t do everything himself. However, the McDonald s CEO can systematize what he does by delegating certain tasks to employees. Don t hire an expensive employee. Get a virtual assistant. The beauty of hiring a worker who functions online is that you can choose someone from nearly anywhere in the world. Not having to maintain office space for your virtual assistant saves you money on overhead. I have had especially good luck working with individuals who live in the Philippines, where you can hire a virtual assistant to do all the work you require for about $2 to $3 dollars an hour. Bear in mind that wage scales vary widely throughout the world. In many developing parts of the world, costs for food, shelter, and other goods and services are much lower than they are here. What seems like a very low salary in America if often a sought-after amount in another country, and more than enough to sustain your virtual assistant in comfort.

53 49 You can have your virtual assistant do everything you need to establish FSBOs as a dynamic part of your growing business. Obviously, you have to make sure that you, not your virtual assistant, will handle anything that requires a license. I have my virtual assistants set up listing appointments. Turn to the next page for an example. She set up the appointment and I listed the house. She did all the work of contacting the FSBOs to find the ones interested in hiring a Realtor. You can have your virtual assistants pull the leads and call them on your behalf. They can put your leads into a database or CRM system and track them for you. I would have them call the leads, using the scripts that I m going to give you below, and find out if there are any opportunities to get the listing. Here is what I do that gets the most listings. When I first started out, I did a lot of cold calling. I actually became fairly good at cold calling. I wouldn t say that I was the best at it or that it was the best use of my time. But I got listings, and that s what mattered. I developed my own scripts, voice inflection, and methods for handling objections. However, I knew there was a better way. So I put a lot of time into direct mail. I ve obtained many listings from direct mail.

54 50 Then I started mailing out books. That worked even better than direct mail. Moreover, eventually, I found that this worked best. Mail the seller a book and then follow up by phone four to five days later. I call this warm calling. You get the results that a good cold caller gets, without the rejection. Often, when you follow up, people recognize your name. Oh yeah. You re the guy who mailed that book to me, they say. We recently did a marketing test here in Jacksonville to see how this worked. We had 10 FSBO homes, and we sent all 10 of them copies of my For Sale By Owner Guide. Out of those 10 FSBO homes, one owner called back without further prompting, and we met with him to talk about listing his house. However, we went back and called the other nine FSBOs, and we set up appointments with two more of them. Because we follow up after mailing the book, the owners are already sold on working with our team. They re already interested. We found that they had simply procrastinated about calling us. So when we follow up, we re able to set an appointment quickly. The bottom line is that we tripled the results we would have had from just mailing out the book and waiting for them to call. Have your virtual assistants call the FSBOs and offer them free pictures that you will do, because it s a great way for you to build rapport one-on-one with the seller. Have them call the FSBO every single week and do the follow-up for you, so when the homeowner does get tired of selling FSBO, they end up listing their house with you. Following are some of the scripts your assistant can use to call the FSBOs and cultivate them, so they turn into listings. These scripts are very similar to the ones presented in Chapter 7, but have been modified very slightly for use by a virtual assistant.

55 51 VIRTUAL ASSISTANT S FSBO SCRIPT 1ST CALL Step 1: Make sure you are talking to the owner. Hey, do you have your property for sale? Alternate: Hi, I m calling about the home for sale. Is this the owner? Step 2: Ask if they have a minute to talk. I just had a quick question for you. Do you have a minute? Step 3: Find out when they are open to hiring a Realtor. My name is. I work for a local Realtor here in. But, I m not calling you to list your home. (Slight Pause) I was just wondering if by chance, down the road, your property doesn t sell might you consider hiring a Realtor? Step 4: Get their address. Okay. Well, then let me do this. Can I get your so we can send you some information and if, by chance, you ever wanted to contact us then you could? Pause for a second to see if they ll give you their . After 2 3 seconds, say the following with a downswing: What s your address? Note: Unless they object, assume they want to give you their address. Step 5: If you think there s an opening, then continue. Now, if you could sell your home with a Realtor, and they did all the work and you still NETTED the same amount of money in your pocket is that something you would consider doing?

56 52 Most will say Yes. If so, then continue: I know this may sound crazy, but in most cases, a Realtor can sell your home for more money. For example, there was recently an FSBO on the market for $220,000. After four months on the market, they hired a Realtor. The Realtor sold it for $240,000. Even after paying commissions, the seller got an extra $5,000 in their pocket. I m not saying this happens every time. But, it happens more often than not. [End Script.] As I mentioned earlier, I recently used this script and got a $350,000 listing. My assistant happened to call the seller at just the right time. The seller had given up on selling FSBO and was looking for an agent. I had a good presentation and they listed with me. The other script we use is one in which we offer to take free pictures of the seller s house. It s worked very well for us. You can see it on the next page. VIRTUAL ASSISTANT S FSBO SCRIPT FREE PICTURES Step 1: Make sure you are talking to the owner. Hi, I m calling about the home for sale. Is this the owner? Step 2: Ask if they have a minute to talk. I just had a quick question for you. Do you have a minute? Step 3: Find out when they might be open to hiring a Realtor. My name is. I work for a local Realtor here in.

57 53 But, I m not calling you about listing your home. I wanted to see if I could offer you FREE, PROFESSIONAL-QUALITY pictures of your home. You can use those pictures to market your home for sale by owner. (Slight Pause) Do you think that s something you would be interested in? (Pause and wait for them to reply.) Most people will reply, Why would you do that? It sounds like a scam. To which you (the assistant) reply, It s like when you go to the grocery store and someone offers you free samples. They give you the food samples, whether or not you buy more food from that. That s why I m giving away the pictures. It s a free sample of what we can do to sell your home. (Slight Pause) Is that something you d be interested in? Step 4: Schedule a picture appointment time. (We prefer to take pictures on Friday or Saturday. So that s when I schedule it. You can do a different time.) When would you be available on Friday or Saturday for us to come out and take the pictures? Step 5: Confirm the address and time. [End Script.]

58 54 KEY TAKEAWAYS Leverage your efforts by hiring an inexpensive virtual assistant. Your virtual assistant can: pull FSBO leads for you initiate calls to those leads set up appointments with those who wish to list with a Realtor enter and track leads in a database or CRM Make sure you, not your virtual assistant, will perform any task that would require a license. To ensure consistency in client contacts, have your assistant adhere to one of the scripts provided above. ; ; Instead of cold calling, mail sellers the For Sale By Owner Guide under your branding, and then follow up four or five days later.

59 Part 4: Hiring, Training, and Managing Your Virtual Assistants

60 56 CHAPTER 14 How to Find Your First Virtual Assistant For simplicity, I ll relate most of this chapter to hiring virtual assistants from the Philippines, because that s where I ve had the most experience and the best results. Please understand that the principles of what I tell you will be similar to hiring in other countries. I ll leave it to you to make the necessary adjustments for purposes of your hiring needs. The first thing I do when I hire a new assistant is explain what the job entails. Secondly, I clearly state all the benefits of completing the job. One important benefit for the assistant is that I will always give them the day off whenever there is a national holiday in their country. If they choose to work on those days, we will pay them extra for their time. So they know we will respect whatever date is important to them, such as, the Filipino equivalent of the Fourth of July. Since I rarely have to pay an overseas assistant even half as much as I would pay an American assistant for the same work, I try my best to keep them happy, hardworking, and committed to my company. Imagine having someone who works for you all day, and you only have to pay them $500 dollars a month. You could even get people to work for $300 or $350 dollars a month. When you choose to pay higher than this, you tend to get better employees. For example, you can employ an incredibly capable accountant from the Philippines for only $500 a month, and if you are willing to pay $800 or more, you will get the best of the best working for you.

61 57 My own standard price is $500, and I no longer offer anything below that benchmark. Paying your workers $500 a month means that you pay them $25 for every working day. For workers in the Philippines, that s really good money. When you give them benefits, such as all public holidays plus some vacation pay, you can expect them to stay loyal and hardworking all year round. Another thing that I put in my advertisements is a test task. I ve included samples here. Setting a test task is probably the best way to screen people quickly, especially when you have plenty of applications to go through. If that doesn t appeal to you, you can use another style for your advertisements. I think this style is almost as effective as the previous one, and I ve included a sample. I tell prospective applicants to send me an with, application for the position of a virtual assistant as the subject. I also ask them to send me answers to some questions in the . I choose the questions I ask for a specific reason, which I will explain. The first thing the will do is help you identify people who won t, or can t, completely obey instructions. You should avoid such people. In every job advertisement, I try to quickly identify and dismiss those who don t obey simple instructions. It may be because they didn t pay enough attention. I created this method when it became too stressful to go through the hundreds of applications I received. I realized it was a waste of my time to go through up to 200 resumes, knowing that most of them exaggerate the person s skills. So I devised an effective method to identify the best of them without wasting much time. I used this method frequently, before I started using test tasks. The first method requires the applicant to send me an , from

62 58 which I can observe two things: whether they read the entire job advertisement, and whether they carefully noted all of its details. This is a much better strategy than just allowing them to hit a button and apply through a website. I will tell them to type in something such as, I am fantastic, or applying for the position of a virtual assistant. I vary the words I ask them to include in the subject line, depending on whether the advertisement is for a graphics designer, SEO specialist, writer, or some other job. Once I have given the instructions, I can quickly filter out the applicants who did not follow them exactly. This helped me save a lot of time before I decided to start using test tasks. When I have gone through this process, I usually have been able to reduce the number of applications drastically, from 200 to less than 40. That s about 80% fewer resumes to go through, and 80% of my time and effort saved. There are a lot of ways to get creative with the hiring process. Sometimes I ask for samples. I may ask web developers to send me links to all the websites they have built in the past year. Usually, I require at least five such examples. This gives me the opportunity to observe their skills closely. I bring up the websites during interviews, and ask them questions about how each site was built, and how much time it took them to get it done. Once you have identified one or two job candidates who impress you, then you can begin conducting interviews. My interview is usually in the form of a test task. I check the they sent, because I want to see that they obeyed my instruction to the letter. Then, if they did, I send them a test task. By screening individuals in this manner, I reduce the number of applicants from hundreds to maybe 10 or 20 and it helps me determine which of them is really worth the trouble of assigning a test task.

63 59 USING TEST TASKS EFFECTIVELY The test task will show you a few things. It will show you those who are really interested in getting the job, because it is those people who will take the time to complete your task. It will also show you how each applicant thinks, and what their work style is. This is why I think that a test task is the best way of interviewing, even though it might be difficult to design a test task for some jobs. For most jobs, creating an effective test task to help you screen job applicants is quite easy. All you have to do is develop a test based on the skills the worker will need to complete the tasks you are planning for them to do on the job. For instance, I will have a graphic designer create some graphics for me as their test task. Then, I can easily choose the best design out of the submissions. For a writer, I might have them write an article for me on a topic of my choosing, so I can evaluate their writing skills. It is in your best interest to match the test conditions closely to the task you have for the applicant. Also, don t give them more help in the test than you will when they start working for you. For example, you should only give an SEO specialist sample articles for the test task if you will continue giving them sample articles to use in their regular work. If you eventually need them to do their own research, then you should have them conduct research for the test task, too. The test is very important, and even more so when you are looking for a virtual assistant with a specific skill set, such as graphics, SEO, or writing. The test tends to expose mediocrity. Here s an example. Perhaps you need an assistant who will build a website for you. As a test task, you could give applicants access to a simple website, and ask them to make some specific changes. If that s not feasible, you can ask them to explain the process of editing a website in step-by-step detail.

64 60 Based on responses, you should be able to tell which applicant is the most skilled web developer. Alternatively, you could have them create a page for you on their own website. You can request that they place your logo or some other item on their site so that you can be sure they actually created the site content. Good web developers should be able to do this in very little time. You want someone who can do good work for you in the shortest time possible. In the event that two of your applicants perform work of similar quality, you can differentiate between them by seeing which one finished more quickly. I once needed to hire a web programmer, and it was a bit difficult to design a test task for him. I decided to do a paid task instead. I got him to build me a little web program that allowed me to modify my website without using Dreamweaver, WordPress, or any of the higher-end programs. Recently, I interviewed two men who, by coincidence, had built fairly similar websites. One did it in just two hours, while the other one took two weeks because he was wasting time with unnecessary tasks. The first applicant liked to get his work done quickly and move on, while the other became too caught up in the minute details that ultimately didn t matter. In the end, the latter s website may be slightly better, but it took too much time to get it there. I prefer people who do good work in good time, so I hired the first applicant. WHY THE ASSISTANT S LOCATION MATTERS Another factor you should consider when hiring someone is their location. You can add it to the questions in your job advertisement, or you can tell them to include where they are from in the . You can also look them up on their website or Facebook page, to see where they are from, exactly. I pay attention to their location

65 61 Test Task Checklist Here are some points to remember to help you design an effective test task for screening job applicants. Tests are especially important when you are looking for a virtual assistant with a specific skill set, such as graphics, SEO, or writing. Base the test task on the skills the applicant will have to apply on the job. For graphic designers, ask them to create some graphics. For writers, have them write an article on a topic of your choice. For web programmers, ask them to build you a simple web program. When hiring an assistant who will build a website for you, you have several alternatives: Give applicants access to a simple website and ask them to make specific changes. Ask them to explain the step-by-step process of editing the website. Have them create a page for you on their own website. Request that they place your logo or some other item on their site so that you can be sure they actually created the site content. Don t give applicants more help than you expect to provide when they start working for you. For example, if you will need an SEO specialist to do his or her own research, don t provide sample articles for the test task. In the event that two or more applicants submit work of similar quality, give preference to the one who finished more quickly. Be willing to pay applicants for a test task that requires a lot of their time and effort, or that will produce an item of value for your business. If you intend to pay for certain test tasks, make your help-wanted ad very clear about terms and conditions for payment, submission, and acceptable quality.

66 62 because experience has taught me that people who come from major cities never stay on the job for long. For example, people from Manila rarely keep the virtual assistant job for more than a few months, because there are so many job opportunities in Manila. It is best to hire people further away from the big cities. You can do online research to help you figure out which cities or areas are best for hiring virtual assistants. While you want to stay away from the big cities, you also don t want to hire from a place where there is no internet connection. If you hire from a place where the internet is not good, that may pose a serious communication problem. TARGETING YOUR ADVERTISING If you want more options for job advertisement strategies, you can always visit the website platform you plan to use and see what other people are posting. You ll be able to borrow from their ideas, and you ll get a feel for your competition. Hiring in the Philippines A virtual assistant, working online and/or by phone, can be especially effective at conducting research and prospecting for new FSBO clients. This will allow you to focus your efforts on tasks that require your special expertise and licensing. You can find virtual assistants with excellent business skills in many parts of the world, and many websites specialize in hiring for specific countries. I have had excellent results hiring individuals who live in the Republic of the Philippines. There, advanced business education has created a professional workforce with state-of-the-art technical skills, and widespread English language fluency makes those skills especially appealing to US businesses.

67 63 If you choose to hire a Filipino assistant, one thing you ll want to do is familiarize yourself with the conversion rate from US dollars (USD) to Philippine pesos (PHP). You can always check Google for the current market rates. Google Finance has a convenient converter to help you check the equivalent of your USD in PHP. In the year or so prior this writing, the exchange rate has ranged from approximately 44 to 51 pesos for a US dollar. If, for example, you want to pay an assistant $10 per hour, you can easily put that into the calculator and see how that converts to pesos. If you are interested in exploring the website platform to learn more about devising job advertisement strategies, visit onlinejobs.ph, and you will see all of the job categories. When you post job advertisements online at sites such as this one, don t be surprised if you get as many as 200 responses from applicants bidding for the job. It is useful to know how much people are offering for jobs similar to those you need done, and this will help you design your own advertisement to be attractive to potential applicants. If you want to post an advertisement for a web developer job, it will be good to know that most people are paying between $500 and $1,000 dollars for that kind of work. Otherwise, you may offer only $200 and not receive any good applicants. This next section teaches you how to qualify applicants for the job you re proposing. This might involve going through hundreds of resumes or test tasks to find those individuals who are the best fit for the job. I want to teach you how to do this most effectively. I look at several factors when considering applicants. First, as I ve mentioned, I look through the I asked them to send me. Sometimes I ask them to explain why they want the job, or when they can begin working. I also want to see evidence of their work experience and figure out their salary expectations.

68 64 Of course, there are plenty of other questions you can ask, but these provide a good base of knowledge. SHOULD YOU PAY FOR A TEST TASK? It s important to decide whether you will pay the applicant to complete the test task. I have come to realize that employers have shortchanged many people from the Philippines in the past. Some bosses hire them to work on something for a week, and then disappear without paying them. Unfortunately, employees frequently deal with this, and are understandably skeptical of American hiring authorities as a result. Because I know this, I sometimes decide to pay for a test task, but most of the time it s not necessary. However, any time that I post a job advertisement where the test task will produce content that is useful to me in one way or another, I make it a point to pay the applicant. Usually the test task is just something to help me determine their abilities, but on some occasions, I do actually profit from the work they produce. Sometimes I will also pay an applicant for the test task if I know that completing it will take them considerable time. For example, if I have someone develop software for me as a test task, my primary goal is to see whether that individual can do good work. However, if I know it will take them a great deal of time to complete the task, I might pay them for it if they do a good job, or when I eventually hire them. I once gave a couple of applicants a test task to create some posters for a local event that would be taking place around that time. When I gave them the details of the job, I told them that we might pay them $5 or $10, depending upon the quality of their work. This helps assure applicants that I m not trying to cheat them out of their time.

69 65 However, I prefer to design test tasks for which I don t have to pay. To do that, you have to make sure that whatever you are asking applicants to do will not take more than 30 minutes. If the task won t take long, many people are willing to complete the work, except those who work so slowly that they think it would take six hours to complete the test task. Those people won t bother to do the task, and that s a good thing because you would not want to hire someone so slow anyway. I only do paid test tasks once in a while. WORD YOUR AD CAREFULLY You have to exercise some caution though when using paid test tasks. As I mentioned above, when I started using test tasks in job advertisements, I volunteered that I would pay $5 or $10 for the test, depending on how good the posters were. I had to change that policy when I saw the quality of the posters that some applicants submitted. There were posters so poorly done that they weren t even worth $1. When I saw that trend, I edited the job advertisement to say that I would pay $10 to the applicants who went onto the interview stage. That is my method of qualifying people. A well-structured test task is still your best bet for qualifying people under any circumstances. Let s discuss a few of the hiring evaluation questions and the motive behind them. WHY DO YOU WANT THIS JOB? This question reveals the applicant s motivation. I am not interested in anyone who claims to be looking for something short-term or who is just experimenting with online work. I don t want this because I invest time in building a relationship with my employees, and in training them. After I have done all of that, I want them to remain with my organization for a long while.

70 66 CAN YOU GIVE ME EXAMPLES OF PAST WORK? I use this question to verify that the person is the expert he or she claims to be. If you are looking for a writer, and the candidate doesn t have samples to show you, then you might be hiring somebody with no experience. Jobs such as SEO and graphics usually require someone with a bit of experience, and those who have experience will always have plenty of samples to show you. WHEN CAN YOU BEGIN WORKING? I ask this question because I want to know whether the applicant is going to be available within my timetable. It is common to see applicants who currently hold a job at a local company, but are trying to change jobs. Some of them want to be able to work from home, so that they will be able to take care of their children and manage their homes without hiring help. However, people who are in the process of changing jobs might not be able to start working on your job immediately. They may need to wait until their two weeks notice is over, and this can cause a problem if you are in a hurry. HOW MUCH DO YOU WANT ME TO PAY YOU MONTHLY? Sometimes I phrase this question differently: What is the maximum amount you think you can make as a virtual assistant? Whatever form the question comes in, the motive is always to see whether their expectations are similar to what you would like to offer. If they overvalue themselves, they probably won t be happy with the job. If they undervalue themselves, then you can save some money by giving them only what they asked for. I have used this method in the past, when I didn t want to tell people how much I wanted to pay. Instead, I wanted to see how much they thought the job was worth. I don t use that method often

71 67 anymore. However, before I stopped implementing it, I realized that those who undervalued themselves were usually those who lived far away from a major city, or those who were inexperienced. If I simply set the price at $500 dollars, then I may end up overpaying someone who is not experienced enough to earn that kind of money yet. Because I prefer not to overpay or underpay, I saw some benefit to this method. I stopped doing this because when someone would undervalue themselves, and I would pay them the amount they asked for, I found that they often quickly left for a job that paid what they deserved. I was losing good employees. This is one of the reasons that I rephrased the question. By asking, What is the maximum amount you think you can make as a virtual assistant? I can identify what people hope to make. This question helps me identify people who are freelancers at heart. They might be taking the job in order to stay busy for a short while before they begin true freelancing again. This type of person may say that they are interested in taking a steady position for a short while so that they do not have to market themselves continually. Out of every 10 people, you are bound to find one or two who exaggerate what they are worth. Paying them the amount they ask for may not be prudent, even if you can afford it. You might also want to ask why they want to earn the amount they suggest. If you run into someone who thinks they can support a large network of people, such as their family members, with the money you give them, you might want to think twice about hiring such a person. When you know the person s motivation, it will help you decide whether they are the best fit for your job. If the person has the right motivation, it will help build a great working relationship, they will be satisfied with the job, and they are far more likely to stay for a long time.

72 68 KEY TAKEAWAYS Because assistants can do most of their work online or by phone, you can find dedicated, affordable workers outside the continental United States. Professionals are available to assist you virtually, with skillsets such as web design and SEO, accounting, graphic design, and writing. Browse online to discover hiring sites for other countries. For example, onlinejobs.ph is an example of an employment site for the Philippines. When hiring a virtual assistant, clearly detail all responsibilities and benefits. Ask candidates about their experience and salary expectations. Consider including a test task in your hiring advertisement. If the test task requires significant time or produces valuable content for your business, pay the applicant. One way to determine how well applicants follow instructions is to require specific, detailed responses. If your virtual assistants are from countries outside the United States, consider some special guidelines: Understand and respect their holidays. Ensure employees satisfaction and loyalty by paying a competitive rate, based on their regional standards. Understand the monetary conversion rate. When deciding whether to pay for a test task, realize that employees may be wary, having been victimized by unscrupulous employers.

73 69 CHAPTER 15 Interviewing and Hiring I actually conduct the interview personally. Because most of my clients speak English, it s important to hire someone with an accent Americans can easily understand. You also will want to communicate with your assistant without difficulty, via either phone or Skype. Of course, there are other options, such as Google Chat or Google Hangouts. Personally, I like talking to the person over a live microphone, so I just go ahead and put on my headphones or turn on my speakers, and I m able to talk with the candidate. If you re hiring an individual who will work extensively with your clients, make sure they are highly skilled in the English language. When prospecting, for example, an assistant must be able to follow a telephone script, understand regional American accents, and respond appropriately. When interviewing, also make sure that the person responds to your questions quickly and easily. If they take a five- or ten-second pause before responding to a question, their English skills may not be sufficient. People who are fluent in a language can think in that language, without having to take time to interpret it in their mind before they speak. We will discuss language skills more later when we go through the questions you ask in the interview. When beginning the interview, it is nice to start with a certain amount of small talk. You might ask job candidates how they are, what the weather is like, or in what specific area they live. There are a couple of reasons to do this. First, you want the

74 70 candidate to be relaxed and comfortable. They might be nervous about the interview, so allowing them to see that you re a normal person is helpful. There may be instances in which conversing on the phone is not as important. For example, if the candidate has a great deal of experience and can communicate effectively through , it might not be important for them to speak well on the phone. A person who lacks the ability to speak English well usually makes less money. This can be both good and bad. You just have to determine the importance you place on English skills. There are virtual assistants who have worked with me for many years, and I have never once spoken to them on the phone. For example, I have never spoken to my programmer. In fact, I can guarantee that his English is terrible. However, he is excellent at what he does, and he writes well, so his lack of spoken fluency doesn t matter. If spoken English skills aren t important to you, I would suggest interviewing via chat. You can use the Skype chat function, and see how quickly the candidate can respond to your written questions. There are many other chat programs as well, such as Google Chat, MSN Messenger, or Yahoo Messenger. Keep in mind that it may be a problem if a candidate doesn t respond quickly in a chat conversation. We will now discuss particular questions you may want to use during the interview. This first one falls into the chitchat category. I usually begin with, Please tell me something about yourself, because I want the person to volunteer information without my having to ask a more specific question. In general, open-ended questions elicit more information than questions that candidates can answer with a simple yes or no. Sometimes the candidate will try to clarify whether I mean

75 71 something personal, but I avoid answering this because I want them to talk about whatever they feel most comfortable telling me. I invite them to allow me to get to know them a little better. During this portion of the interview, I don t talk much. I simply react and respond when appropriate, and try to build rapport. On occasion, I might want a few more details about what they ve told me, so I ll ask follow-up questions. Often you can find out why they re not at their former position anymore. Was their employer unhappy with them? Did the company close? Was the candidate fired? Next, I usually ask, What type of work have you done until now? This question is very generic, and the candidate might even repeat some of what they said in answer to your first question. Sometimes I will vary the questions or skip some of them. Another good question to ask is, In your area, what s the best internet you can get? Keep in mind that it s possible they don t have good access to the internet. Let s assume that you need a video editor. He or she will need to take video footage that you create in the United States and edit the footage on their PC, before sending it back to you. If they don t have reliable, high-speed internet service, they perhaps would need an entire working day to download a small video. That s going to be a waste of your time. Internet speed might not be so important if you hire a graphic designer who has the ability to work offline. In that instance, he or she can simply get online when it s necessary to submit work. The same is true for a writer. In most cases, it s important to make sure that your assistant has the best internet access possible, and to consider whether they can afford to pay that internet bill.

76 72 If you want to hire someone for $100 dollars a month, and their internet bill is $25 dollars a month, that indicates they are going to be living below the poverty level. That can be a red flag for you, and you might not want to hire them. I suggest that you not hire someone for such a small amount of money. You also might want to ask them if they went to college, and where. This will help indicate their ambition level. If you have multiple candidates, you likely want to hire someone who went to college over someone who didn t. You also will want to ask them about their desired salary. Ask them how or why they came up with the figure they ve requested. You will want to make sure that they are not motivated by greed or the desire to get rich quick. Perhaps they want to provide for their children, or help pay family medical bills. These answers will help you determine whom to hire. I often avoid people who are too ambitious because I know they will quickly become dissatisfied and move on. I also avoid people who are actually freelancers, not virtual assistants. It may also be a good idea to ask them for the highest amount they can reasonably imagine making in one year. Because in the Philippines it is customary for a person to make about $300 dollars a month, their reasonable annual income is between $3,500 and $5,000. If someone hopes to make $100,000 dollars a year, or anywhere close to a salary more common in the United States, that may be a red flag. The next question you should ask is, Do you have an account on freelancing websites, and do you take jobs there? I don t tell interviewees the names of the websites, unless they

77 73 provide those names themselves. If they do provide the names of the websites, they most often mention Freelancer, Upwork, or Elance. If they are actively freelancing, and getting a great amount of work, I usually decide against hiring them. Freelancers often are working for more than one person at a time, and may not be as devoted as a virtual assistant would be. I have never had a good experience hiring a freelancer as a virtual assistant. One of the last questions I usually ask is, When can you start if I decide to hire you? In a situation in which I like the candidate and instinctively feel they will do a good job, I usually offer them the job at the end of the interview. Therefore, I need to know when they can start working before I make that official offer. These are some of the questions I use during an interview. You don t have to use all of them, or ask them in this order. These are just examples that you can use if they are helpful to you. PAYING A VIRTUAL ASSISTANT When you decide to hire a virtual assistant full-time, you need to research the public holidays in their country. If the person is going to work part-time, this step may not be necessary. You should know that, in the Philippines, there is something called Bonus 13 th Month Pay. This is required if you own a company in the Philippines, or if you employ someone from that country. Let s assume that you own a business in the Philippines, and you have employees working for you. You are required to pay this bonus to each employee. Therefore, in December, you pay anyone who has been working for you for at least a year an entire additional month s paycheck. I usually pay this before the holidays, so they have time to shop and prepare for the season.

78 74 You can also consider giving that person a week or two off somewhere over Christmas. If you choose to do that, you ll be paying them two months salary despite the fact that they re only working two weeks. If they have only been working for you for six months prior to Christmas, you can prorate the bonus. If it were the middle of the year, you d just pay for half a month extra. Similarly, if they have only been with you for three months, then you d give them 25% of a month s pay extra. Regarding holiday pay, you have two options in the Philippines. First, you can offer your Filipino employee the five paid holidays that an American employee would receive: Christmas, New Year s, Fourth of July, Memorial Day, and Thanksgiving. This is not terribly desirable for them, because those holidays do not match their own public holidays. Your second option is to recognize the Filipino holidays, and give your assistants those days off with pay. You can also offer to pay them overtime if they choose to work on Filipino holidays. It is then expected that you would pay them double on those days. If you pay someone $500 a month, divide that by 20 days to get $25 dollars a day. That is not a high sum to double. You can decide which of these options works best for you, but I usually prefer that my overseas assistants take American holidays. That way, they re on the job when most of my prospects are available, and off duty on the same days we Americans are. It is a good idea to create a work made for hire agreement. Let s assume, for example, that you hired a web developer or an article writer. While they work for you, they are developing work items, and a work made for hire agreement ensures that what they produce belongs to you, not to them. If you neglect to get this document signed, in the event that the

79 75 assistant were fired or quit, they would have the right to claim all of the work they had developed, preventing you from using it in the future. Suppose you hired someone to develop some software over the course of a year, and it cost you a few thousand dollars perhaps as much as $20,000 to complete this project. Now, if you didn t sign a work made for hire agreement, your assistant would have the right to clone this software, resell it, and even compete against you. Your competitor could contact your assistant and offer to pay more for the content. This is not that uncommon, so it is important to have the protection of a work made for hire agreement. This is more important for some hired positions than for others, but it is always a good safeguard. I send the applicant the work made for hire document, and ask them to sign it. If they do not own a scanner, but do have a smartphone, I ask them to make a photo of the document, and then mail it back. That s all they need to do. However, sometimes the assistant will tell you that they do not have a scanner or a smartphone. In this situation, you should ask them to send you an in which they state that they agree to all the terms and conditions in the work made for hire agreement that is attached in this . Once they do this, you have their word. In the future, if necessary, you can show them that and remind them that they do not have the right to sell their material to anyone else. Usually I like to make sure that people understand these terms and conditions before I invite them to work for me. Making sure that the assistant and I have a clear understanding is far more important than the actual document, because, if we are being honest, I am not going to sue them over the material. It is usually not worth the time. However, I do want them to understand what I expect.

80 76 Let s discuss employee paperwork for virtual assistants. I have a lot of documents, employee handbooks, and materials for employees who work in an office. In-house employees probably sign pages of agreements. However, when you hire overseas, that is not necessary. Sometimes all I obtain is a work made for hire document. I usually create a document that explains how many hours the assistant has agreed to work, and what I have agreed to pay them. It is not complicated. I then state that, This is your job offer with all of its terms and conditions. Should you make a decision to accept the offer, please reply and state in the that you agree with the terms and conditions. Most of the time, this type of document is good enough, especially if the employee is not particularly skilled, or if the job does not pay much. However, it is important to pay close attention to the hours they ve agreed to work. Consider what the assistant is like, what they will be working on, and how often you will need to communicate with them. Many people use the system in which they have their workers work four hours of the employer s time, and the same number of hours in the Philippines time. In fact, the solution that I like best is asking them to work from 6:00 p.m.to 10:00 p.m. their time, and then four more hours on my time. This usually ends up being convenient for everyone. The time difference is exactly 12 hours from Eastern Standard Time and the Philippines. Philippine labor laws require a night shift differential of not less than an additional 10% of the regular wage for an employee who works between 10:00 p.m. and 6:00 a.m. An agreement regarding hours will, as usual, depend on the job at hand. I have four or five graphic designers, two of whom are working independently on the creation of unique graphics.

81 77 They do not need to communicate with my team often, so I have them work from 8:00 p.m. to midnight their time. When they finish those four hours, they can work any other four-hour block that they choose. Allowing an assistant to choose which hours they work is attractive to them, but if you give them full freedom, keep in mind that you will want to stay up to date with what hours they are actually putting in. I don t recommend the second option above because it can make contacting your assistant difficult. Some questions may go unanswered for 12 hours, and by then, the answer may be too late. Lately, I have been insisting that my assistants work only my hours. Often, I have to pay more for this service, but it is valuable to have them at my disposal for the full day. If I do pay extra, it is not a huge sum of money. Most of my virtual assistants make between $350 and $500 dollars a month. PAYING VIRTUAL ASSISTANTS Let s discuss ways to pay your virtual assistant. In the very beginning, I never put my assistants on US payroll. I also don t deduct US taxes, simply because they already pay taxes in their own country. I usually pay through PayPal, as it s the easiest method for everyone. If they cannot accept PayPal payments, it can be quite inconvenient. I don t hire people who need their salary paid via wire transfer, or any other way that is a hassle for me. When I first began hiring virtual assistants, I did hire people who were unable to get payments via PayPal. I sent them money via Western Union, but that was complicated and expensive. It added the inconvenience of having to go to a store to make the transfer, which may not always be possible.

82 78 My recommendation is that, if you cannot pay them via PayPal, do not hire them. It is easy enough to find someone who does have a PayPal account. While I am not an attorney or an accountant, it has been my experience that there is no need to fill out any tax paperwork for overseas virtual assistants. I have never needed to do so. However, keep in mind that this is not official legal advice, but just my experience. I simply track what I have paid to overseas contracts, and report that to my CPA at the end of the year. Overseas employees pay taxes in their own country, and I provide them with proof that they work for my company. With all of this in place, I have never had an issue with paying people overseas. If you are concerned, you can always ask your assistant to provide you with an invoice each month, for your records. If you keep those invoices for your taxes, you can better protect yourself against any potential audit. I have a programmer who sends me an invoice for every paycheck. I suggest you employ the method that works best for you. KEY TAKEAWAYS Interview job candidates personally, via Skype, Google Chat, Google Hangouts, or similar means. This helps build rapport and demonstrates their communication skills. Determine whether these factors are necessary in the job for which you are hiring: English language fluency a college degree good internet speed ; ; Be prepared to offer the job at the conclusion of the interview.

83 79 Paperwork can actually be simpler for workers outside the United States, but be sure to protect yourself with a work made for hire agreement. Recognize the time difference between your area and the country in which your virtual assistant lives. Familiarize yourself with labor laws and work customs in your virtual assistant s country. Keep a record of your virtual assistant s agreement to terms and conditions related to the job. Consider paying your virtual assistant via PayPal, which is the easiest way. ; ; Strongly consider having your virtual assistant provide you with a monthly invoice for services.

84 80 CHAPTER 16 Common Mistakes to Avoid when Working with Virtual Assistants After many years in the business of employing virtual assistants, I have learned the many mistakes people make. This chapter includes the most common mistakes. The first mistake people make is hiring someone as a virtual assistant when that person actually wants to be a freelancer. You cannot expect someone who loves being a freelancer to make a good virtual assistant. It just doesn t work. Individuals with multiple bosses have multiple priorities, and freelancers tend to take time away from their responsibilities to you in order to communicate with other clients or prospect for new contracts. A freelancer is rarely satisfied with a virtual assistant position because they are constantly on the lookout for better jobs. I also avoid virtual assistants who work two jobs. Some have a local job, and others are virtual assistants to two different people overseas. I only work with people who are ready to concentrate on the work I give them exclusively. I need people who will stay loyal to me, and I pay them very well in return. I prefer not to share my virtual assistants because I don t want them to be overstressed. They are human beings, and there is a limit to the number of hours they can work without feeling drained. If they work for me every day and are also working for someone else, they will feel exhausted, and that will affect their output. A freelancer knows that easy jobs or lucrative, overpriced gigs

85 81 come along sometimes, and this will not allow them to concentrate on the task at hand. I have seen how freelancers work once employed as virtual assistants. I have experienced a virtual assistant who did a great job one day, and then disappeared the next because he was working on a new job he had just landed. When they come back, they will offer excuses, then work hard again, then disappear a few days later because they landed another freelancing job. SCREENING TOO MANY APPLICANTS The second mistake you should never make is spending hours sorting through submitted resumes and contacting potential candidates. Always make sure that you re posting advertisements that help you weed through the replies and narrow down the field to the ones you want to interview. The third mistake you might make is to hire someone without consistent and reliable internet access. In developing countries, you usually find that people have internet problems, whether with connection or widespread blackouts. This is why you must find out whether the person you are interviewing will have access to a good internet connection before you hire them. People who live in rural areas often have this problem with their internet service. Ask the interviewee if internet continuity is going to be a problem, and how they would handle the situation, if it were to arise. You should also ask how frequently there are blackouts in your candidate s region. For example, in the Philippines, it is quite common for your employee to be unreachable because of blackouts for one or two days a month. Naturally, people closer to the cities will suffer from this less.

86 82 Typhoons, which are similar to hurricanes, also happen in the Philippines, and may destroy someone s house or other property. When this happens, it s usually in the news, so you should be aware of what is going on in the areas where your employees work. In the event of a natural disaster, it is important to be compassionate, and to do what you can to help. Some time ago, a massive typhoon struck some of my Filipino employees. We were unable to reach those it had affected for about a week. When we at last made contact, we donated to some of the suggested charity organizations, and personally helped a few of our assistants who had lost some of their property. We wanted them to know that they were part of an organization that cares about what happens to them. That is how we relate to all of our employees, clients, and colleagues. Another mistake people make when hiring virtual assistants is hiring people from the big cities. You want to hire individuals from areas that are a bit rural. I have had bad experiences hiring people from Manila. They will probably expect you to pay more than you are willing to pay. On the other hand, they might leave soon to pursue better opportunities afforded by the abundance of jobs in their area. Instead, you should look for people who live in the more rural provinces, where there are fewer distractions. Rural people are usually quite happy to work with you, and they love the idea of working with an international company. It s important to ask job candidates questions about their location, because that can determine their loyalty, longevity, and pay scale. KEY TAKEAWAYS : : Avoid freelancers who work for multiple employers and often have conflicting priorities.

87 83 :: Word your job advertisements so that you will not be bombarded with hundreds of resumes. :: Avoid candidates with unreliable internet access. :: Keep abreast of major events that occur in your assistant s country, including natural disasters. : : Consider how the area in which candidates live could affect their job performance and loyalty.

88 84 CHAPTER 17 The Easiest Way to Manage a Virtual Assistant Now that you have hired someone, and they have signed all the required documents, how should you manage their work? How do you keep them busy, and what are some good ways to train them? We will begin this chapter with a discussion on training. One training tactic I like is actually shooting screen-cast video. I usually have two pieces of software at my disposal for this. Jing allows you to create a five-minute video. The videos must be no more than five minutes in length. Once you have recorded it, you can simply press a button to host it, making it available to your assistant. This is a free service. Snagit has similar features, but includes the option to host the videos immediately and allows for videos longer than five minutes. However, this account requires a one-time $50 fee. This software is best if you need to post significantly longer videos. You can also record videos on your own and then upload them to YouTube as private videos that you share only with your assistant. It would be easy to store past videos this way and reuse them to train future hires. I try to keep the videos simple and instructive, regardless of which platform I use to upload them. MAKING TIME COUNT When you give your assistant a few tasks to accomplish, they may finish them more quickly than you anticipated and have questions about what to work on next. However, if you re a busy person such

89 85 as a real estate agent, you may not be able to respond to them for several hours, or maybe for a full day. To avoid these situations, I provide my assistants with filler work in advance, so that they always have something to keep them productive. I often do this with graphics designers, web developers, and article writers. Make sure you provide them with numerous tasks up front. Because they work remotely, they might have to wait extended periods for feedback from you. That means they ll require a filler task in the meantime. For example, with an article writer, you can give them a list of articles that you need for your blog, and then have them research or even write the articles. Instruct them that they should work on one of these projects whenever they are waiting for a reply from you about some other project. Projects for graphic designers can be especially time-consuming. That means significant downtime if they have to await your feedback or instructions. You may have some assistants who would be likely to clock out in that situation and end up not working the full 40-hour week. Because you ve agreed to pay them for 40 hours, and they re relying on that money for their families, it is in everyone s best interest that you keep them busy with plenty of tasks. TRACKING ASSISTANTS HOURS I use Time Doctor software for managing people who work for me. I like them to go to timedoctor.com and track their hours. I don t always use this site for everyone, but I do for most. Time Doctor is simple. All the assistant has to do is log in, then clock in and out at the appropriate times. This software is similar to other time monitors, but has the added feature of taking screenshots of the employee s computer. Time

90 86 Doctor takes screenshots at random times, between three and seven minutes. Using these screenshots, you can monitor the productivity of your virtual assistant. Please note that I actually don t use this software for micromanaging people. I just use it to make sure they are clocking in and out regularly, and to try to keep them honest. In rare cases, potential employees have been resistant to using the software, although most people are willing to use it. In my experience, people who resist using the software are people I don t want to work with anyway. I now have a clear rule that, if they won t use Time Doctor, I will not work with them, even if I have already offered them the job. There are a few settings in Time Doctor that you want to use to your advantage. The most important setting is the one that prevents employees from editing their timesheets without your approval. I think this is obvious why. Someone could try to work off the clock, and then log in 40 hours of edited time, with no screenshots provided. This is a way for them to beat the system, and you should not allow it. SHARING DOCUMENTS You must also decide how you are going to share information with your virtual assistant. We use Google Drive in most cases. But if you have some large videos, or other large documents that you need to share, I recommend utilizing Dropbox. Whenever possible, I recommend using Google Drive. It is simple, and convenient, especially if your company utilizes Gmail in any way. INSIST ON REGULAR UPDATES Finally, it is a good idea to have your virtual assistants update you every day about the work they have completed. You can use

91 87 project management software for this. Ask them to sign up on Trello or Basecamp, so you can communicate with them through that program. Ask them to post updates each day before they clock out. You can also use for this. The important thing is that they give you an update each day before they leave their desk. The update does not have to be detailed. In fact, you ll find that it s easier to digest the information in the form of a few bullet points to tell what they worked on that day. Have all your employees do this, regardless of where they are, as it will assist you in effectively managing them. The update also gives them the opportunity to tell you if they need help with anything they re working on. Whenever a problem occurs, they should be able to tell you, so that you know what is happening. Strive to be receptive firm in maintaining your policies without seeming intimidating. If assistants are afraid of you, they re more likely to withhold crucial information. It is especially important to receive daily updates when you have a virtual assistant who does numerous and varied tasks, which require clarification and input from you. You should read these updates every day, and reply, so they can continue with their work. However, assistants who just repeat the same tasks every day might not need to update you as frequently. The reason daily updates are important is because they show that the person you hired is actually doing the work you want them to do. It is difficult to work under conditions in which you are not aware of what your employees are doing on a daily basis. You cannot tell if they are working effectively or if they are working at all. Then, in a bid to find out, you may send them an that sounds offensive. Remember that cultural differences can have an enormous effect on how your assistants perceive your messages. Requiring daily updates helps you avoid all of these problems.

92 88 I want to reiterate that it is important to treat your employees well, and to pay them what they are worth. You know that whatever you pay them will still be less than what it would have cost you to hire someone here in America. Try to pay them well so that they are happy working for you and view themselves as valued, contributing members of your team. Give them some days off work every year, and pay them for those days. Respect their public holidays, and give them a little bonus every now and then when they impress you. If your virtual assistants live in the Philippines, as mine do, be sure to give them the 13th month bonus. It won t affect you much at all, but it will mean a great deal to them. Understand that the people you hire will have feelings. They are not machines. When you treat them nicely, you will be surprised to see the amount of goodwill, productivity, and creativity it inspires. Moreover, they will be loyal to you. Well, that about sums it up. Please feel free to contact us with any questions. You can our support department at support@ smartagents.com. Or call us at (386) Thanks for reading! KEY TAKEAWAYS Online video is an effective way to train assistants located outside the United States. In addition to major tasks, assign fill-in tasks to keep assistants productively busy. Have virtual assistants update you daily regarding completed projects, either via or project management software. Consider using Time Doctor or similar software to track your employees time. ; ; Decide on a method to share documents and videos with your assistants, such as Google Drive or Dropbox.

93 89 Remember to treat your employees well and pay them what they are worth. Reward initiative and good work with occasional bonuses. ; ; When assistants work from remote locations, it is sometimes easy to overlook them. Respect their feelings. Your kindness inspires goodwill, productivity, creativity, and loyalty.

94 90 About the Author Ben Curry is one of 10 children. Ben s dad worked hard to provide a good life for his kids. Consequently, he didn t have a problem getting his kids to help out around the yard. Ben s parents had 16 acres and a plant nursery. Ben spent many afternoons in his childhood pulling weeds, mowing, and working on a never-ending list of projects. He got his start in real estate when he was 19, starting out as a buyer s agent with a large real estate team in Gainesville, Florida. Eventually, Ben moved over to the listings side of the business. It paid the bills, but he never excelled at listings. After the real estate market crashed, Ben got into short sales. He became one of the best short-sale negotiators in the country and successfully negotiated more than 70 short sales during the downturn. Most of them were approved in days. Eventually, Ben found his calling with direct-response copywriting. Once the real estate market picked up, he decided to test his new skills in real estate. At first, he failed miserably. None of his marketing expertise was bringing in listings! Even though he works hard for his customers, he s just not a sell ice to Eskimos type, so he didn t get many listings. Ben went back to his old job and worked on some new marketing strategies specifically, real estate books. On the following page, you can see some of the books that Ben helped develop.

95 91 HERE ARE SOME OF THE LISTING GETTING BOOKS THAT BEN HELPED DEVELOP: Ben developed several listings tools that all work together. Any agent who uses these tools can quickly and easily get a lot of listings. Once he perfected the tools, Ben decided to give real estate another try, and he got back into the business. The results were much different this time around. He listed six homes in his second month in the business. Throughout the next six months, he listed 35 homes. (You can see some of them on the next page.) HERE ARE SOME OF THE 35 HOMES THAT BEN LISTED IN A SIX-MONTH PERIOD, SELLING REAL ESTATE IN JACKSONVILLE, FLORIDA: