Business Management – Focus on Money Projects
Nationally, 90% of all of the income earned in real estate is earned by less than 10% of the agents. Conversely, 90% of the Agents fight for just 10% of the commissions.
So what keeps 90% of agents from being successful? It’s simple. They focus on unproductive activities over and over again, until they perfect doing things that don’t make them money.
By focusing on The Pareto Principle, you can be one of the few agents that shares 90% of the commissions. The Pareto Principle states that: 80% of all of your success (or money), comes from 20% of your time (or activities). Let’s apply this principle to an agent that is working 40 hours per week and earning $100,000 per year.
$100,000 40 Hours
x 80% x 20%
$80,000 8 Hours
In other words, you work 8 hours every week to earn $80,000/year, and you work the remaining 32 hours of each week to earn the other $20,000.
Ask yourself these questions in preparation for the coming week, then pick the top 10 activities:
- What can I do to help sell my listings?
- What are my next steps with my Hot Buyers?
- What are my next steps with my Hot Listing Prospects?
- What do I need to do with my Pending Contracts to be sure they close?
- What should I send to my past clients, advocates and sphere of influence?
- What should I do to get more Hot Buyers?
- What should I do to get more Listing Prospects?
There is no way you will get to all the tasks you identify for the week. Instead, practice picking the top 10 activities. The more you practice, the easier it will be to pick the “Right Activities”.
Unfortunately, the reverse is also true. The more you focus on 80% activities, the better you will get at “not doing” the right things that make you money. So, start today. Answer the questions above, then take the top 10 list and each day during the week, identify which ones you can get done. You’ll be surprised at how quickly your income will increase.