Want Three Ways You Can Double Your Business in the Next 12 Months?
In every business, there are a few key items that must be perfected for that business to grow and thrive. This is no different for real estate agents, even though most agents don’t think of themselves as business people. Unfortunately, that is why nearly 80% of all agents quit within the first couple years as an agent- they simply look at their career as another job. That is the exactly wrong mindset, and will get you
The Key: Create Systems Around Your Goals & Objectives!
By implementing systems and creating a structure for your business, and attracting the right clients and leads, you could double or triple your income while working fewer hours. When it comes down to business, there are only three ways to increase revenue. This is done in a few ways, and on the next page there is a basic diagram that illustrates this. You simply need to either get more clients, or increase what is called the “Customer Lifetime Value” of each of your clients. Doing this will result in huge increases in your business in record time. The challenge most agents and small business owners have is finding the time and resources to conduct this process, and of course that is why you are still reading this quick guide. I am going to show you a few ways you can do this. For now, let’s look at the three ways to increase your business revenue immediately. You can:
- Increase the number of clients you have each month or year
- Increase the transaction size of each client
- Increase the number of transactions for each client
How does this apply to you?
Let’s take a look:
You can see here that in the first block we have a certain number of prospects that we reach out to each month. If you are a typical agent selling a typical house, you might get one closing per month at an average profit of $3,000. Simply by doubling your efforts, working harder, getting more leads, listings, and closings, you can double or triple that amount, but at what cost? Instead of working 40 hours each week, you are now working 60 or 80 hours. Not a good quality of life, wouldn’t you agree?
In the next set, we increase the transaction size by selling more expensive homes. This might be possible if you step up your game, position yourself better, and only focus on that market. The saying “Riches in Niches” comes to mind. You can again increase the number of listings and closings you get, which might result in working more, and therefore increase your income dramatically. Remember that positioning for a higher value client does cost more, so your expenses will increase, but they are also better at referring more clients, so you may end up working less on prospecting, and more on cultivating relationships here.
The final block illustrates what happens when you laser-focus on your ideal client who wants to buy more properties per month or year, which allows you to provide them with better care and service. These are your investors, banks, developers, etc. who have a need for high volume. Their transaction sizes can vary, but they generally need a better deal than your retail buyer. You won’t need to increase the amount of time worked here in the long run, but you will need to produce results. You need to be positioned for that as well, and provide a great service, but this means you get more closings per client, thus increasing your revenue dramatically.
Hopefully this gives you a great idea on how you can start increasing your yearly income and position yourself for greater business success and prosperity. By focusing on the right markets, and the right clients, you can then produce greater results. Further, if you create the right type of systems that allow you to automate or delegate more, you can accomplish all of this in half the time! Imagine someone coming to you, finding out about you, raising their hand and saying they want to be a client, and only after doing all of their research and pre-qualifying themselves, speak with you!