An Agent’s Greatest Weakness
What frustrates most Real Estate Agents?
“Not knowing where the next deal will come from or if it will come;” “The roller coaster, feast or famine nature of the business;” “The constant pressure.”
There is a solution.
Most Agents Are Lost in Their Business
If you were lost in a strange city, in a neighborhood that made you uncomfortable, how would you feel? Frightened, uneasy, confused?
How do you prevent that from happening? That’s easy. You have a map or a GPS that guides you; that prevents you from being lost in the first place.
Most Agents are lost in their business. They “drive” their business with all the actions it takes to prospect, market; and then list and sell property. But there are points when Agents don’t know what to do next or where they are. Are they ahead of goals or behind; ahead of last year or behind; winning or losing? They just don’t know.
Is there a “map” or a “GPS” for a Real Estate Agent’s career?
Yes, There is a Solution
How does a GPS work? You put in your destination and it guides you in three ways. First it leads you turn by turn. Second, it tells you the distance to reach the next turn. Third it continuously adjusts your arrival time.
In a Real Estate career your GPS is an equally simple set of “Success Charts” that guides you in precisely the same ways. There are four very simple parts to the charts.
1. Sales Volume: You “put in” your destination by choosing your annual sales volume goal. (There is a trick to this, see the heading ‘The Trick’ below.)
You set monthly goals which are the benchmarks along the way so that you can tell the “distance” to your next turn. (“The Trick” below applies to this also.)
You record your sales as you put them under contract. You are never lost again. The only solution to being lost in your business is to know what is occurring, to have accurate and current information.
The trick is to set your annual goal and monthly sales volume goals by contract date, not closing date. There is a very sound business reason for tracking by contract date that becomes obvious as you do it.
As you record your sales volume also record the total number of sales and whether the sale is to a Buyer or one of your listings that sells. If it is both, then regard it as two sales.
2. Listings: Set monthly listing goals and record listing progress the same way as your sales; that is monthly and year to date. The secret here is to use your sales goals to determine the number of listings required to reach your goals. As a rule of thumb figure that half of your sales will be listings sold.
3. Income: Just record it in the month that you are scheduled to receive it. It is best to record it as soon as the contract is accepted and initial contingencies removed.
4. The Most Important and Yet Simplest Measure: Returning to the GPS analogy, the measure that really tells you where you are at the moment is not sales, listings, or income. Using a GPS if you make a wrong turn it alerts you immediately. The measure that provides this “wrong turn” alert in your business is new (initial) appointments per week.
You determine the number of initial appointments per week that you need by using a success rate of initial appointments per sale. For example, most Agents have two initial appointments with either Buyers or Sellers for each sale they make. (Higher producers do much better. Newer Agents may be three or four for each sale.) For most Agents if you want to make 20 sales you need 40 initial appointments throughout the year.
Then you record your initial appointments each week and you know exactly where you are in relation to your goals. You have your “wrong turn alert.”
The Solution to an Agent’s Greatest Weakness is Simple Awareness of Measures
Most Agents won’t succeed without knowing these numbers. Most of those who do succeed without knowing these numbers are fraught with fear, frustration, and insecurity. You can see it in their mood and behavior.
Implement the simple habit of recording and reviewing your numbers every week (every day is better). It will take you less than 10 minutes a week.
The rewards in higher production and income are wonderful. The rewards in confidence and self esteem ensure that the production and income numbers will sustain and grow forevermore.
For information on the “Success Charts” mentioned in this article, contact Rich@RichLevin.com, call me at 585-244-2700 or visit www.RichLevin.com.
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