A Sure-Fire Way to Convert a Lead: The Nutshell Speech

Posted by: Joseph Ferrara on September 28th, 2008

A teacher is better than two books. (German proverb)

An extremely effective way to convert a lead is with the “Nutshell Speech”. I used it with great success in the practice of real estate law. It is almost 100% effective with first time home buyers.

What is the Nutshell Speech?

The Nutshell Speech is a summary of the real estate transaction, from start to finish. It explains each step of the process. And I mean step by step. You inform, ask questions (do you know the difference between a condo and a co-op?), answer questions, give away some inside tips (condos are easier to sublet than co-ops). You do not explicitly sell yourself. The goal is to educate.

Why Is It So Effective?

The reason for its success is at least four-fold.

1. First, it’s not a sales pitch. People immediately tune out the sales pitch. But they will listen to information that can help them. I always prefaced the speech by telling prospective clients, “Whether or not you hire me, I want you to understand the process”. I took the sales pressure off them to hire me. And this helped them listen… and then hire me.

2. It shows your understanding and expertise in real estate. People want to hire experts. It’s a fact. Knowing that you know makes people comfortable. They will trust you.

3. It shows you care. A great way to reveal yourself & create rapport is by giving a seminar. And that’s what the Nutshell Speech is, in a nutshell—a mini-seminar. People will not hesitate to hire someone they feel they know is looking out for them. After the speech, you are no longer a stranger selling a service. You’re a caring human being helping another human being understand this complicated thing called real estate. And heck, if you didn’t have a caring personality, what the hell are you doing in the business?

4. Most importantly, knowledge reduces anxiety and fear. Anxiety and fear, bread of ignorance, are the main obstacles to taking action. And the decision to buy a home is fraught with both anxiety and fear—not only of the process but of hiring an agent. If you reduce this anxiety and remove fear, people will act. And often act immediately. I was usually hired on the spot

The Nutshell Speech Overcomes Price Concerns

Yes, it’s true. People have told me the reason they hired me was because of the Nutshell Speech. They felt confident in my ability to get the job done and look out for their interest, even though I was not the cheapest. I was able to communicate my value to them. Folks will pay for value. Not only did they hire me, they never tried to bargain down my fee.

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Comments

5 Comments on “A Sure-Fire Way to Convert a Lead: The Nutshell Speech”

Missy Caulk

Joe, this is very true, this why some agents convert better, they know how to make an person very comfortable and not a salesperson approach.

Brian Kinkade

Thank you for sharing such a succinct articulation of the inherent value of educating the consumer.

Heather Tawes Nelson

Buyer education is a key component of working with your clients – Even more so when you are working with a first-time homebuyer. Plus, it also helps you understand how much the client already knows about the process and you can tailor your information from there. Great post – I look forward to more.

Joseph Ferrara

Right, Missy. At the end of the day, it is all about conversion. And I have found that a conversion based on personal rapport has greater referral power than one that might be based solely on price.

Absolutely true, Heather.

Real Estate Taxi

I love it. It is always important to be able to summarize yourself to any potential client. Sometime you may only have a brief window, so preparing a nutshell speech is important.

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