VanEd Newslog

Finance Friday: The History of the Federal Reserve

Originally aired live in March, we are re-running the four-part lecture series presented at George Washington University by Federal Reserve Chairman Ben S. Bernanke. Today we revisit all four parts of the series.

In March 2012, Chairman Ben S. Bernanke delivered a four-part lecture series about the Federal Reserve and the financial crisis that emerged in 2007. The series began with a lecture on the origins and missions of central banks, followed by a lecture that discussed the role and actions of the Federal Reserve in the period after World War II. In the final two lectures, the Chairman reviewed some of the causes of, and policy responses to, the recent financial crisis, focusing specifically on the actions of the Federal Reserve.

The lectures were offered as part of an undergraduate course at the George Washington University School of Business.

On-demand video, transcripts, and presentation slides are available for each lecture.

Related reading list (PDF)

Lecture 1: Origins and Mission of the Federal Reserve 

Lecture 2: The Federal Reserve after World War II

Lecture 3: The Federal Reserve's Response to the Financial Crisis

Lecture 4: The Aftermath of the Crisis

Use the links below to view the series videos, find lecture handouts and watch the student Q&A sessions.

Origins and Mission of the Federal Reserve

The Federal Reserve after World War II

The Federal Reserve's Response to the Financial Crisis

The Aftermath of the Crisis

SOI 104: The Four Branches of Your Sphere of Influence

I recently got a question from an agent I've been consulting with. She asked "So, my goal is to expand my Sphere of Influence database to a certain number by the end of the year?"

Well, sort of. At least, that's probably one of her goals. But as I answered her question I realized that there are really four different branches of a Sphere of Influence thus four different "goals" to shoot for as you build your Sphere of Influence business. 

Here are the four branches:

1. Your Direct SOI - that is - the people you know
2. Your Indirect SOI - that is - the people your SOI knows (i.e. referrals)
3. Your Third Generation SOI - that is - the people you meet via your SOI
4. Everyone Else - that is - every single person you encounter in your day-to-day wanderings

Your Direct SOI
These are the people who know you and know you sell real estate. It's made up of your Group One (your social network) and your Group Two (those people you know that you don't socialize with). You should try to have at least 200 warm bodies there; of course, more is better, but they don't "count" if the person wouldn't recognize your name off the bat. These are people who KNOW you, even if they aren't your best friends.

You'll get business from your Direct SOI, but it probably won't be your primary source of closings. Most of aren't blessed with an SOI who buys and sells houses on a regular basis!

Your Indirect SOI
These are the people your Direct SOI refers to you, who, of course, will be added to your Direct SOI once you've met. Your Indirect SOI should be a fairly consistent source of business for you, assuming your Direct SOI thinks a lot of you, and they know how to find you.

Your Third Generation SOI
These are the people you serendipitously meet as a result of your existing personal relationships. For example, back in 1996, I met my second and third clients ever at the wedding of a mutual friend. I met another client at a Pride parade I attended with my GLBT friends. Another at a Super Bowl party. Stuff like that. This can be an enormous source of business for you, if you're often out there in the world with a smile on your face and your antenna up, and can speak intelligently about your local real estate market to anyone who's interested (and please don't bore those who aren't!)

Everyone Else
These are the people you run into during your daily travels. Every single person you meet, every day, has the potential to be the newest member of your Direct SOI. Not all will, of course, but you never know who will end up being your biggest fan. It might be that young couple who stumbled into your Open House who had a child the same age as yours. Or that woman standing next to you at Ace Hardware getting a key made, who casually mentions she just moved to town. That guy you meet at the dog park. Your neighbor three doors down who is looking for his lost cat. The woman who calls you off your Craigslist ad to purchase your roller blades.

Again, HUGE potential with this category - if not today, then next month or next year.

So, those are the four branches of your Sphere of Influence. How might you adjust your goals to incorporate all four?

Guest Author Jennifer Allan-Hagedorn has authored multiple books and courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.

Finance Friday (Rewind): Fed Chairman Bernanke delivers Part Four of a four-part series on the Federal Reserve

Originally aired live in March, we are re-running the four-part lecture series presented at George Washington University by Federal Reserve Chairman Ben S. Bernanke. Today we will revisit part four of the series, "The Aftermath of the Crisis".

In March 2012, Chairman Ben S. Bernanke delivered a four-part lecture series about the Federal Reserve and the financial crisis that emerged in 2007. The series began with a lecture on the origins and missions of central banks, followed by a lecture that discussed the role and actions of the Federal Reserve in the period after World War II. In the final two lectures, the Chairman reviewed some of the causes of, and policy responses to, the recent financial crisis, focusing specifically on the actions of the Federal Reserve.

The lectures were offered as part of an undergraduate course at the George Washington University School of Business.

On-demand video, transcripts, and presentation slides are available for each lecture.

Related reading list (PDF)

Lecture 1: Origins and Mission of the Federal Reserve 

Lecture 2: The Federal Reserve after World War II

Lecture 3: The Federal Reserve's Response to the Financial Crisis

Lecture 4: The Aftermath of the Crisis

In the fourth lecture, the Chairman discusses the monetary policy responses to the recession, the sluggish recovery from it, the changes in financial regulation that followed the crisis, and the implications of the crisis for central bank practice in the future.

 

Lecture Materials

 

The Aftermath of the Crisis (PDF)

SOI 103: "I Think I've Blown it with My Sphere of Influence!"

"Dear Jennifer,

I've been reading your articles about SOI and my heart is sinking. I think I've blown it with my Sphere of Influence by constantly asking them for business and referrals. Is there a way I can redeem myself with my friends, or do I have to go make all new ones?

Bill"

I get this question a lot! Mostly from new or newer agents who have been brainwashed into believing that an SOI (Sphere of Influence) business model means that they're supposed to drive their friends nutso with constant reminders of their love for referrals. Most tell me that:

1) they felt it was wrong, but were convinced to do it anyway, and/or
2) they've felt their friends pull away and suspect they're avoiding the agent's calls.

Oops. Not at all good for business OR your social life!

Here's what I tell these distressed agents.

There are a couple of things they can do. If it suits their personality, they can address it head-on with an apology letter - very sincere, not too sappy, but friendly & apologetic, with a "let's move on" tone. I'm not convinced this is the best line of attack, but it might be effective if done well.

Of course, then the agent needs to follow it up with action - he needs to BE a non-referral-begging friend who happens to be a real estate agent. Coffee dates, casual emails, dinner parties - whatever socializing feels comfortable with the various members of his SOI. Oh, and he doesn't mention his real estate career unless it's appropriate, but strives to come across as a happy, enthusiastic, reliable, dependable, generally cool person who is probably a fabulous real estate agent, as well.

If the apology letter doesn't feel right, then he can just make a concerted effort to reconnect with his SOI, as above, and if the opportunity arises and it feels appropriate, give a little apology in person.

The other thing he can do is strive to beef up his Sphere of Influence by meeting new people and NEVER breathing a hint of referral-begging with them. He can meet new people thru his existing friends and by being out there in the world with his antenna up. An effective Sphere of Influence strategy is more about meeting people THRU one's Sphere, not necessarily generating business directly from the people in one's Sphere. It's a subtle distinction, but it's there.

Of course, the best approach is to not annoy one's friends in the first place, so that there's no need for apologies or redeeming one's dignity after the fact!

Guest Author Jennifer Allan-Hagedorn has authored multiple books and courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.

Finance Friday (Rewind): Fed Chairman Bernanke delivers Part Three of a four-part series on the Federal Reserve

Originally aired live in March, we are re-running the four-part lecture series presented at George Washington University by Federal Reserve Chairman Ben S. Bernanke. Today we will revisit part three of the series, "The Federal Reserve's response to the financial crisis".

In March 2012, Chairman Ben S. Bernanke delivered a four-part lecture series about the Federal Reserve and the financial crisis that emerged in 2007. The series began with a lecture on the origins and missions of central banks, followed by a lecture that discussed the role and actions of the Federal Reserve in the period after World War II. In the final two lectures, the Chairman reviewed some of the causes of, and policy responses to, the recent financial crisis, focusing specifically on the actions of the Federal Reserve.

The lectures were offered as part of an undergraduate course at the George Washington University School of Business.

On-demand video, transcripts, and presentation slides are available for each lecture.

Related reading list (PDF)

Lecture 1: Origins and Mission of the Federal Reserve 

Lecture 2: The Federal Reserve after World War II

Lecture 3: The Federal Reserve's Response to the Financial Crisis

Lecture 4: The Aftermath of the Crisis

In the third lecture,the Chairman describes the financial stability policy responses taken by the Federal Reserve and others in the wake of the crisis and recession.

Lecture Materials

 

The Federal Reserve's Response to the Financial Crisis (PDF)

SOI 102: The SECRET to a Successful Sphere of Influence Business

Sphere of Influence = The People Who Know You

Wanna know the SECRET to running an effective Sphere of Influence business?

The secret to running a successful SOI-based business is to be a great real estate agent who loves her job and knows her market and stays in touch with the people she knows, without ever pestering them for business or referrals.

That's it! That's the secret! To be a great real estate agent who loves her job and knows her market and stays in touch with the people she knows, without ever pestering them for business or referrals.

Let's take these items one by one.

You're a great real estate agent
This is huge. Being a great real estate agent is not the same thing as being a great real estate prospector, even though that's what most of our training tends to imply. Being great means that you take  care of your clients as your first priority, not as an afterthought when your prospecting is done. Doing business this way helps you on so many levels. First, obviously, you'll have happy clients who will be delighted to refer you to everyone they know. Second and third, you'll be proud of the work you do and confident in the work you do, which will lead to the second requirement -

You love your job
When you're good at what you do and you know it, you'll probably absolutely love your job. And that excitement and enthusiasm is contagious to those around you.

When you're able to hold your head up high and announce that "I'm a Real Estate Agent and it's the Coolest Job in the World!" people will be drawn to you - as one agent I know puts it - they want some of what you're smoking! When the topic of real estate comes up in a social setting and you're able to say those magic words "I'm a real estate agent and it's the coolest job in the world!" people will ask YOU for your business card. It's beautiful.

Which leads to the third requirement:

You know your market
The best way to build rapport with strangers is be master of your market. If you know your local real estate market, and you KNOW you know your local real estate market, you'll find opportunities to share that knowledge all over the place.

It's amazing how much confidence this gives you and it's pretty easy, to strike up a conversation with a total stranger about real estate... if you know what you're talking about. You'd be surprised how many people will ask YOU for your business card if you sound like an expert.

So, for someone who needs to build a Sphere of Influence database from scratch, they should spend some quality time learning their market and putting themselves in social situations where they can share their knowledge with people who are interested.

You stay in touch with the people you know
This, of course, is really important. If you know a whole bunch of people, but you never make any effort to have a personal interaction with any of them (above and beyond drip campaigns), your sphere of influence efforts will crash and burn. To be someone's favorite real estate agent, you either need to have done a fantastic job for them in the past (and stayed in touch) or make an effort to be in touch with them on a somewhat regular basis. Especially if someone hasn't used your services before, it's really easy for another agent to swoop in and take your place!  

Just know that yes, if you intend to generate business and referrals from the people you know, you will need to take time to talk to them.

You never pester anyone for business or referrals
The last requirement is that you never pester the people you know or the people you meet for business or referrals. This is a tough pill to swallow for many agents. We're trained to ask for business and to make sure that everyone we know and meet is aware that we are desperate for business. I know, that's not what we say - but it's how it comes across. When we constantly or even sporadically remind the people we know that We Love Referrals, we send a message that is counterproductive to our goal of actually generating referrals.

Sooooooo.... Are you a great agent... who loves your job.... And knows your market.... And stays in touch with the people you know without ever pestering them for business or referrals? Excellent!

Guest Author Jennifer Allan-Hagedorn has authored multiple books and courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.

Finance Friday (Rewind): Fed Chairman Bernanke delivers Part Two of a four-part series on the Federal Reserve

Originally aired live in March, we are re-running the four-part lecture series presented at George Washington University by Federal Reserve Chairman Ben S. Bernanke. Today we will revisit part two of the series, "The Federal Reserve after World War II".

In March 2012, Chairman Ben S. Bernanke delivered a four-part lecture series about the Federal Reserve and the financial crisis that emerged in 2007. The series began with a lecture on the origins and missions of central banks, followed by a lecture that discussed the role and actions of the Federal Reserve in the period after World War II. In the final two lectures, the Chairman reviewed some of the causes of, and policy responses to, the recent financial crisis, focusing specifically on the actions of the Federal Reserve.

The lectures were offered as part of an undergraduate course at the George Washington University School of Business.

On-demand video, transcripts, and presentation slides are available for each lecture.

Related reading list (PDF)

Lecture 1: Origins and Mission of the Federal Reserve 

Lecture 2: The Federal Reserve after World War II

Lecture 3: The Federal Reserve's Response to the Financial Crisis

Lecture 4: The Aftermath of the Crisis

In the second lecture, the Chairman reviews developments in central banking since World War II and leading up to the recent financial crisis.

Lecture Materials

 

The Federal Reserve after World War II presentation (PDF) 

SOI 101: What Exactly is a Sphere of Influence (SOI) Business Model?

A Sphere of Influence business model is a strategy that focuses on attracting business to you from the people you know and the people you meet socially, as opposed to pursuing business from strangers. It's possible to run a nearly 100% SOI business and never have to make one cold call, memorize a prospecting script or knock on a strangers' door!

There are three primary activities in an effective SOI business model.

1. Nurturing the personal relationships you already have within your social network (that is, your friends - I call this group my "Group One." Clever, eh?)
   
   
2. Staying in touch with "everyone else" (that is, the people you know who aren't your friends - I call them my Group Two)
   
   
3. Meeting new people.

Before you panic and say that you don't have the time, money or energy to do all this socializing, don't! Running an SOI business is much less time-consuming and less expensive than just about any other systematized prospecting method, and can be far more effective, more quickly. 

Nurturing the personal relationships you already have
From a philosophical perspective, this means to ensure that the people in your social network (AKA Group One) know that you care about them. In a practical sense, it means that you strive to have a personal conversation with everyone in your social network as often as you can, at least once a quarter. A personal conversation can be a face to face lunch or coffee date, a phone call or even an email exchange. What it's not is a concerted effort to abuse your friends with a sales pitch. Always approach your social network as a friend first, and a real estate agent second, or third, or fourth.  Not the other way around.

Staying in touch with Everyone Else
Staying in touch with your "everyone else" group (AKA Group Two) just means that you keep your name in front of this crowd with periodic interesting, relevant, non-salesy written communications, delivered both through snail-mail and email. As long as your mailings are consistent and intelligent, you'll see a significant number of sales from even this minimal effort.

Meeting new people
An important part of an effective SOI model is to add to your Groups One and Two, especially in today's market where there is admittedly less business to go around. The more people you know, who know you, and think you're a generally cool person, the more that telephone will ring.

Running an effective SOI business model isn't nearly as complicated as some would have you believe. Yes, it takes some organization and commitment upfront, and an ongoing effort to stay in touch with the people you know and the people you meet, but once it's rolling and you're in the SOI habit, it won't feel like work at all! In fact, it might even feel suspiciously like FUN! And "the more fun you have selling real estate, the more real estate you will sell!"

Stay tuned for SOI 102: The SECRET to an Effective Sphere of Influence Business Model

 

Guest Author Jennifer Allan-Hagedorn has authored multiple books and courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.

Finance Friday (Rewind): Fed Chairman Bernanke delivers Part One of a four-part series

Originally aired live in March, we are re-running the four-part lecture series presented at George Washington University by Federal Reserve Chairman Ben S. Bernanke. Today we will begin with part one of the series, "Origins and Mission of the Federal Reserve".

In March 2012, Chairman Ben S. Bernanke delivered a four-part lecture series about the Federal Reserve and the financial crisis that emerged in 2007. The series began with a lecture on the origins and missions of central banks, followed by a lecture that discussed the role and actions of the Federal Reserve in the period after World War II. In the final two lectures, the Chairman reviewed some of the causes of, and policy responses to, the recent financial crisis, focusing specifically on the actions of the Federal Reserve.

The lectures were offered as part of an undergraduate course at the George Washington University School of Business.

On-demand video, transcripts, and presentation slides are available for each lecture.

Related reading list (PDF)

Lecture 1: Origins and Mission of the Federal Reserve 

Lecture 2: The Federal Reserve after World War I

Lecture 3: The Federal Reserve's Response to the Financial Crisis

Lecture 4: The Aftermath of the Crisis

In the first lecture, the Chairman explains what central banks do, the origin of central banking in the United States, and the early experience of the Federal Reserve in dealing with a serious financial crisis: the Great Depression.

Lecture Materials

 

Origins and Mission of the Federal Reserve presentation (PDF)

What to Say (or not say) to Gracefully Decline the Monkey

I’m glad you stuck with me through this Monkey Series on the VanEd Newslog! You’ve made it all the way to the punch line. 

  

In the last installment, I promised to share some tips for showing your client the respect of letting him keep his Monkey (i.e. solving his own problem or dilemma). It’s really all in what you say… or don’t say as the case may be.  

  

Don't be an objection-buster. When a client throws out objections, concerns or stumbling blocks, think before you speak. Often these objections, concerns or stumbling blocks will be HIS Monkeys, not yours. Just smile, nod and make an "I hear ya" noise, and let the client continue. If he wants your input, he'll ask for it directly, but until he does, just listen without offering solutions.

 

If, after your moment of golden silence, you realize that this IS your Monkey, go ahead and offer a response or solution. If you aren't sure, just write it down or commit it to memory to ponder later. You can always accept a Monkey after the fact, but it's much tougher to return a Monkey after you've accepted it prematurely.

 

Ask "What's Your Plan B?" as if you are not guaranteeing the desired outcome... which you aren't. You can use this strategy with sellers who are being a little stubborn about pricing, accessibility or condition. Just sweetly ask them what they will do if their home doesn't sell for the price they "need" or, at all. This subtly lets them know that while you’ll do your best, you won't take full responsibility for their home selling - that's not a Monkey you’ll accept.

 

Check for Motivation. If a buyer or seller looks to you to solve a problem that isn't reasonably yours to solve (e.g. you give up some of your commission to put or hold a deal together), you can gently say something like "I've found that when a real estate agent wants to make a deal more than the other parties involved, it's not the right deal to make."

 

So, what IS the punch line?

 

If you know what Monkeys are yours to carry... and which are not... and you respect the other party enough to let him keep his own Monkeys, you'll be a much happier, healthier and RESTED real estate agent!

 

Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  Her first book Sell with Soul is available in the VanEd bookstore. Her new book, Prospect with Soul for Real Estate Agents can be found online at www.sellwithsoul.com.