Lets face it as a real estate agent at the end of the day the paycheck is all that matters.
You can’t keep the lights on or buy groceries with a commission check you didn’t get this month because you didn’t close a deal, again.
This is why turn over is so high with real estate agents and even Realtors.
MOST never get to the point where they are closing deals consistently enough to actually provide for their family.
The bad news is not only do they end up quitting but also they bad mouth the entire industry saying “you can’t make money in real estate,” just because they couldn’t.
The good news is their failure does not interfere with your success.
Here’s the most important concept that you need to master in order to make sure your ends meet:
As a professional it is your job to analyze the market and know the tools to use and how to use them.
For example a modern real estate agent knows they must have a dynamic interactive website that captures leads and is integrated with social media in order to approach today’s buyers and sellers.
It’s a numbers game as to how many website visitors it will take to result in a new listing.
For example. You launch an advertisement campaign in order to attract listings. As a result 100 leads are generated on your website. You follow up with these leads and get two new listings. You then eventually close one of your listings as the other cancels.
You can now take these ratios and use them to drive results for your business objectively.
- You spent X amount of money on your advertising campaign which resulted in 100 leads.
- You spent X amount of time screening and qualifying leads which resulted in 2 listings.
- You spent X amount of time managing and promoting 2 listings which resulted in 1 commission check.
With this very valuable information about your business process you can now take action to increase your net income by decreasing the costs of your advertising and prospect screening.
A dynamic and interactive website that makes managing your listings easy is a great place to start.
Additionally focusing your advertising budget to more specific audiences will go a long way on saving you money.
The more random people see your advertisement the higher the chances are they are not interested in buying.
Focus your advertisements regarding a house for sale in the immediate area of where the property is located.
There’s nothing more frustrating than having someone love your property only to find out it’s in the wrong part of town for them.
Focus on understanding where these important ratios are today and take action to improve them and you’ll do more than keeping your ends meeting, you’ll prosper and thrive.