There is an old principle in business that is referred to as the 80/20 principle.
This principle says that 80% of revenue is generated from just 20% of the product or the services.
20% of the revenue is generated from 80% of the products and services.
20% of the revenue costs 80% of the expenses.
Most of the money you make in real estate will come from just a few activities.
I think the real estate industry has a different principle…90/10 principle.
90% of your income will come from 10% of the activities you do each day.
The most profitable agents in the world are the ones that understand that 10% of what they do will generate 90% of their revenue.
Once they discover what these activities are, these agents repeat these activities over and over.
These activities are your Real Estate Money Tree
Let me share a list of the things that real-estate agents do that generates 90% of their losses.
- Lack of time blocking – agents work without a schedule. They schedule their appointments with everyone but themselves.
- Co-mingling of activities – agents mix their generating of new business with their following up on old business.
- Slow lead follow up – agents take too long to call their leads back.
- Buy into a prospects logic – agents start to believe the stories of their prospects…the problem is the prospects dont even believe their own story.
- Prospect only once per day – agents have people in their files that want to do business yet can’t talk when the agent calls. Need to call again.
- Don’t work COI referral business – agents watch their friends send referrals to others.
- Don’t Close – research tells us that agents do not close for the sale. Studies say they close less than .5 times on every appointment. And, when they do close, they don’t close.
- Invite distractions – due to the boring nature if what we do, agents tend to attract distractions. They want to be distracted to keep things more interesting.
- Accept ‘No’ when a ‘Yes’ was still possible – most people use ‘no’ as a smoke screen. Too many agents run when they see smoke.
- Daily goals are not reached – many agents create a goal for the day and by 9am, they have already forgot what the goal was.
In order for the title, “90% of what you do creates 90% of your losses to exist., you would have to be working very inefficiently. Think about it, 90% of your energy is working against you. It’s like you are swimming up stream when all you have to do is change directions and you will start to flow with the current.
So, we know what 90% of what you are doing is giving you. What is the other 10%?
10% of what you do gives you 90% of your income…
Your profit comes from the following activities…
- Lead follow up