Welcome back to Real Estate Sales TV. We’ve knocked out four of the seven steps of success and today we are going to tackle number five, knowing the numbers necessary to build your real estate business. As a quick review, the first four steps of success are living by faith versus fear, decide what you want, put a plan into place and take massive inspired action.
To start step five, I want to share a story about my life and career in business. I had spent three years selling real estate and at the time I was stuck at 40 sales a year. The problem was that I was working seven days a week and I decided that I needed help. When I went out and found a coach, I found that I was working 80% of my time and my business was coming from buyer sales and 20% coming from listing sales.
Something that dawned on me quickly was that if I needed to make a change in my life. Buyers are easy to work with for the most part, but listings are a whole different ball game (we will have more videos to follow with some tips and techniques to acquire more listings). What I learned to create a more profitable, duplicable and long lasting business is that there are two types of people you need to choose from that practice this business.
Like my great coach Mike Ferry says, the “employer and the employee.” In real estate, the listing agent is the employer and the buyer’s agent is the employee. If you’re familiar with the corporate world, the employer has more leverage, thus introducing the idea of you selling more houses in less time. When you acquire listings, you acquire leverage.
The first set of numbers is hours prospected. This is a hot and controversial topic. I would wake up and be in the office by 7:00am, get my leads ready, be on the phones by 8-8:15am and not stop until noon. By the time I took my first break, people just started showing up in the office. By doing so, I out produced everyone in my office 10 to 1. My company has about 60-70 agents in the office and they are out producing local competitors because we focus our training on how to take listings. It’s easy to post ads online and pray you get something or you can make something happen. You have to prospect if you want to do great in this business.
Secondly, the second factor is your contacts made. You need to know how many people you are speaking to on average on an hourly, daily, monthly and quarterly basis. The third factor is how many listing appointments you have fulfilled which correlates with the fourth factor, listings taken. When I first began to take listings, I became frustrated because I quickly understood that it truly does take the ability to communicate effectively and be a great sales person to take listings. This prompted me to pick up role playing, script work, linguistic programming. By doing so, I began taking 80-90% of the listings I went on. If you want a long term and sustainable business, every listing you take should result in a deal. By mastering this, you can move onto step number six. Step six deals with making adjustments based on the numbers. Many of you may be taking a lot of appointments, but you may not be affective during those appointments.
If you can master these numbers and make adjustments based off them, you will become a business person. Most people are going about this business like it’s a hobby –and I want to make sure that doesn’t happen to you. Thank you for watching and I will see you Wednesday at 1pm.
