So you want to start a geographic (geo) farm as an additional lead stream for your business. Maybe you already have a location in mind, or perhaps you’re still trying to figure that out. Before you start sending out those flyers, door knocking, and utilizing Facebook ads, make sure you look at these four criteria for a successful farming area:
Choose an area you love, preferably one you live in and know well. If you don’t live there, consider choosing a community you might like to live in in the future.
How many homes are in this location? If you’re just getting started with geo farming, it’s best to choose a location with 500 to 1,000 doors to start. Keep it small and grow from there if it’s working.
3. Turnover rate
What percentage of residents are moving in this location every year? As a rule of thumb, you’ll want to stay away from anything below 3% — that’s not enough people moving for it to be worth your while. Instead, look for turnover rates over 5%.
4. Assess the competition
If there’s already an agent dominating this location (i.e., who has a market share of over 10%), you’re going to have difficulty carving room for yourself. Best to choose an area without as much competition. A great place to start is in a newer development — one where other agents have yet to establish themselves as the area expert.
Interested in geo farming? Test out your potential with the Micro Farm Income Potential Worksheet.
Remember, life is beautiful. Make it count!