Things are slowing down in this business. I still have a couple of listings and more coming but my buyers are settling in for a long winter’s night it seems. It happens every year and I’ve learned to roll with it but I don’t stop working just because the buyers are quiet.
Quiet times are made for planning and I wanted to share some thoughts about planning for a new year. You need to set some goals and put some systems in place to make them happen. No one else is going to tell you what to do, are they?
Average in this business will kill you. Average is about 5 transactions and while that might get you into the Million Dollar Club (selling a million) it won’t pay many bills if this is your only income. A million in sales will get you a gross commission of about $25,000 to $30,000. Split that with your broker and pay your expenses and taxes and you’re looking at less than minimum wage for the work you did. That is what the average agent earns in this business.
Not to be depressing I want to make sure you don’t end up average. Remember we are working toward a vibrant database of at least 100 people and you can get 20-30 transactions out of that. That is not average but it is achievable, for sure.
So, how many transactions do you want? If it’s 5 that is fine but you need to write down how many. 5? 10? 50? It’s a goal to strive for so you can set up systems to get you there.
Remember how folks say this business is a numbers game? It usually refers to cold calling as in 1 our of 100 will say ‘yes’ but it’s true when you work by referral too. We count different things however.
As a new agent, if you make 20 contacts it will produce a referral. It will take 2 or 3 referrals to turn into a closing and referrals are a lot easier to work with. The numbers get better over time as your database feels cared for. So let’s say you’re looking for 12 transactions this year. That means you need to make 60 contacts a month and if you work 20 days a month you’ll make 3 calls per day. Follow up with notes and make a few lunch dates and you’ll get where you want to be. 1 deal a month and in my market that is about $90,000 GCI. Not your average agent, for sure.
Remember, this is ultimately about systems to get you to your goals. Goals are good but it takes systems to achieve them. Systems are simple if you do them right. It’s a pattern that’s achievable each and every day. A habit that can get you what you want. To make those calls everyday means to sit down in the chair, open your CRM software and dial the phone to 3 people. Have a conversation about them and remind them you work by referral and that’s it. Simple system and it produces the sort of business you wanted when you started out. You can do all that in about an hour and then off to the day and meeting your commitments.
This is a great business and all it takes is a bit of focus and daily activity to make it work. If this sounds good to you then stick around to learn how.
Thanks for listening,
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