Real Estate Success by Sonny

 

The Law of the Few in Real Estate: 

The Steve Willis Story

In the early 2000s, I received a call that would mark the beginning of a compelling client relationship. Steve Willis reached out to our office, explaining that he and his family were relocating to the DFW area and needed assistance finding a home. Steve, his wife Channing, and their four children, all under ten, were primarily concerned about securing a residence in an excellent school district. They were particularly interested in Frisco and Plano, given Steve's work in the financial services sector in downtown Dallas.

Despite my curiosity, Steve kept private who had referred him to us. However, during our lengthy phone conversation, we scheduled a meeting at our office. I learned that Steve was deeply religious and knew I was a graduate of Abilene Christian University (ACU) in Abilene, TX. Steve and Channing's story is a prime example of how “The Law of the Few” operates in real estate.

Understanding "The Law of the Few"

The concept of "The Law of the Few," popularized by Malcolm Gladwell in his book The Tipping Point, is a crucial principle in real estate. Here's an excerpt from my book, The Architecture of the Real Estate Practice, that delves into this concept:

“Our experience over a twenty-year period has been that client accounts and their sphere of influence could represent as much as 80% of the total Practice INCOME. This is especially true when a Client Account is defined as the client, their extended family, and their sphere of influence.

This concentration of potential revenue is the primary reason that each client and their sphere represent a significant opportunity for the agent. Losing one of these accounts is a major loss to the agent and the Practice. The need for Client Account Management is emphasized in the book Sales Force Management by Churchill, Ford, and Walker. They write:

“In response to the growing importance of major accounts—those very large customers who represent a disproportionate share of a firm’s total sales volume—many firms are also developing explicit policies regarding how such customers should be handled.” (1981, p. 84)”

The Willis Family: A Perfect Example

Steve and Channing Willis were the ideal clients. They were thoughtful and appreciative, and their children were delightful. After showing them several properties, we found the perfect home in Frisco, TX. The closing was quickly accomplished, and we celebrated with a prayer and a housewarming gift.

Maintaining a relationship with the Willis family was easy. We frequently provided resources for their home projects and kept in touch. They were categorized as P1 in our Client Relationship Management program, ensuring we stayed involved in their lives.

A few months after their closing, Steve reached out again. This time, he needed assistance for a new team member he was hiring. This introduction led us to meet Zeke and Jasmine Martin.

Stay tuned for the next blog, where I'll share the story of Steve, Channing, Zeke, and Jasmine and how they found a trusted advocate and REALTOR® in us.

The blog will continue next Monday, July 29th, 2024. Visit me at my channel on YouTube @AREP2023. For more information about my book, See Architecture of the Real Estate Practice (AREP) | educational material to create a thriving business (thearchitectureoftherealestatepractice.com)