When starting as a solo agent we tend not to realize that we are micro-managing ourselves. We tend to see what’s right in front of us regarding the next sale and hardly take the time to see the entirety of our process. So, when we finally break down and hire help, we micro-manage them like we did ourselves and that usually fails. The solution: build a system for all the steps in your business and micro-manage that. Then hire and train on that system and empower people.
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Digital Media is perhaps the most confusing medium for real estate agents. Why do we use it at all? The most obvious problem is that we are not using digital media based on a plan that helps us acquire more business. The obvious primary use was for lead capture, however, in a content marketing world you must create helpful, insightful videos. Well isn’t just thinking about how to do that overwhelming? The ket point is to be intentional about a plan that presents you and your properties in the best light so that prospective clients have an easy time vetting you online so that when you’re physically together it’s easier to win the business.
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When the real estate market crashes downwards most real estate agents become panicked and start idea hopping. In the worst cases, they quit the industry altogether. The truth is that a market crash is an opportunity to find sellers that must sell and buyers who are smart enough to recognize that they can buy real estate at a great discount even early in the crash. The key is to stay focused on building a list of prospects that you are educating in real time so they easily choose you the minute the window of opportunity opens even slightly.
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As real estate agents we have to understand that there are many ways to identify ready, willing, and able home buyers and sellers; there is no scarcity! However, their reality is that even though we are smart enough to understand how a good idea works to produce income opportunities, we just seem to struggle with implementation and fall prey to the Resistance. The simple solution is to focus on one idea that has the highest probability of success and create small time blocks where you make progress moving in the direction of implementation.
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Most real estate agents, whether knowingly or unknowingly, are focusing only on the “now” business which we refer to as scraping the cream. Although this helps cash flow in the now, it does not set up certainty in the future. Therefore, you must also pay attention to building your list of future prospects and spend your time wisely nurturing them. The pro tip here is to focus on sellers before buyers and any business that brings you a sale above the median price in your area. Those factors will drive you time leverage and your gross profit margins.
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Many real estate agents struggle to turn their job into real business, specifically because they are a bad employee and a terribly undisciplined boss of themselves and others. The solution is to document a step-by-step business plan against which you as the boss-manager will be able to hold you and other employees accountable to the work that must get done in a fair and equitable manner.
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Just the thought of expanding a business is enough to scare most real estate agents into running and hiding. It’s very difficult to imagine spending money time and energy expanding when you don’t even feel what you’re doing currently is working. However, expanding is nothing more than moving towards a bigger or better goal and that’s a necessary movement in any business. Furthermore, if you doubt your capacity to spend the energy expanding, then start by measuring how much energy you’re wasting procrastinating.
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One of the greatest mistakes that real estate agents make is trying to build their business upon what they perceive to be the way things work, or even worse, how they feel things work. The best way to build a real estate agent business is to stay focused on the facts that are easily found. Facts about the market are found in the Multiple Listing Service and facts about how your business works are found in your accounting for your income and expenses. You must be a realistic and confront the facts to know the truth about how things work and that will help you always be profitable in spite of external forces.
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The worst thing to hear from a consumer is that real estate agents are all the same. Although there could be nothing further from the truth, if agents are all saying the same thing and following the same techniques to take the next transaction, the consumer may be right. You can break free from this condemnation by simply productizing your service and giving it away for free. This action has a deep and empowering effect on the consumer who will then see you as truly unique.
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Too many real estate agents start off a professional discussion with the words, “I feel.” There are certainly many veteran agents who have developed an intuitive feeling about how the market is behaving or how an outcome will be achieved; however, intuition is no match for solid data. Data simply doesn’t lie and is there for you to study and make educated statements about how the market “facts” are behaving. So, you must not ignore the data or you’ll sound less than professional against the competition that has a firm understanding of the facts.
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In the real estate agent business it’s very easy to start sounding like everyone else and whe you sound like the rest you’re nothing more than a commodity that becomes reduced to competing on price. The way out is to develop a unique selling proposition that is built upon mastering the obvious and giving away your best what-to-do information for free because that empowers the consumer. When you empower the consumer instead of taking from them, you become much more valuable than the competition and will command a greater price.
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One of the greatest eye-openers in life is when we become conscious that we are either expanding or contracting and that there is no in-between in business. The next lesson is to understand that there are 2 ways to accelerate your revenue: 1. Sell higher-priced properties and 2. Sell more units. While both help you expand the easiest way to be profitable is to sell higher-priced properties assuming you maintain a commission rate that brings in more revenue. Once you establish how to acquire better business through testing, understand your cost of acquisition and then hit the accelerator and don’t let up.
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Too many real estate agents worry about algorithms and artificial intelligence rather than realizing they already have the capacity for super-intelligence. However, it’s important to work on and grow your knowledge base about how data is being used in the real estate business. When you begin to learn for yourself, you develop and expertise that should then be given away in the form of your insights to attract people that want to do business with actual humans and not machines.
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In personal service businesses such as real estate, people choose to do business with people. Although company brand might play a role, ultimately people decide to use a real estate agent that they at least know-and-like. The biggest mistake that most agents make is only expecting to do business with people they already know or the people they are referred to. If agents would simply understand that there has never been a better and less expensive time to promote their personal brand in a humble way, they would start attracting more business than they could ever imagine.
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The most powerful marketing plan focuses on giving away your best stuff for free. Although that might send a rush of fear and panic through most real estate agents, they should realize that they are already doing that. However, the process can be formalized into a business model by productizing your “what-to-do information” and then giving your insight until your prospects are so empowered that asking for the business becomes easy and expected.
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As the real estate market begins its latest correction, too many real estate agents will turn a blind eye to the cracks in their business rather than leaning in. The key to patching the cracks are 1. Creating a new business development plan, 2. Having more consistent conversations about real estate that lead to new prospects, 3. Protecting those prospect relationships, and 4. Stop complaining and developing a quitter’s mindset.
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This week I’m reviewing Brendan Kane’s Book 1 Million Followers because I’m in the thick of upgrading my content and social media strategic approach. My key takeaways are that we should all stop criticizing paid media as if we are going to magically grow organically. Also, if content and social media overwhelm you then I suggest you read this book, learn the simplest steps and take easy action steps so you can fully engage in the learning process. I highly recommend reading this book!
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At the core of any successful business is the fundamental truth that there is a best way to do things also known as best practices. Now of course the outer world puts pressure on that truth and forces evolution but there is rarely a massive shift at the core. Therefore, we must respect that truth and build a routine around it and allow our creativity to rest on top of that trustworthy structure. Always remember, your business needs reliable bones or it will collapse!
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Used in moderation as a protective mechanism, cynicism can be a helpful tool that helps us avoid major mistakes. However, recognizing that “we don’t know what we don’t know” we must always be open to learning more and testing new ideas. If we grow our cynicism to the point where it causes willful blindness then we are killing our business growth potential. At that point our inner cynic is now just a lazy bum standing in the way. So put that voice in check by considering if the cynic doesn’t have a better alternative then we need to move on.
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In our real estate agent business, the simple fact is that we are the main problem. Although we want to blame our circumstances, the simple fact is that any challenge can be overcome by thinking, strategizing, and then managing. The key steps are to admit you’re the problem and then figure out why you keep running away from the responsibility of managing yourself and your business better.
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Once you begin to know how the real estate agent business works, you should simultaneously build up your self-image as a successful real estate agent. Realize that all top producers that are successful with a good work-life balance get help from other people. They also continue to scale up so that they don’t easily contract when the market is not in their favor. So always push yourself towards a bigger vision!
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There is nothing more powerful than a simple written goal. However, when building your real estate strategy, you need to write down the basics of how the business really works as well as how the market is actually doing. That will help you more clearly see the plan that you’ll have to write out for sellers and present in a professional manner that will allow you to be many times more successful than doing business without any written strategic plan. Reminder: Keep it simple and stop copying everyone else!
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Most small business owners such as real estate agents rely on their human discretion to run their business and that can turn out to be the kiss of death. The animal brain allows for too much downtime to recover calories and stops the system from moving. So the only way to build up your business resistance is to make sure that your system is always working, with or without you!
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It’s hard to believe that you might only be three people away from transformational success, however, it’s a principle that dates back many years. The key is to first figure out what really grows your business, admit what parts of it you don’t do well, then hire people that are great at doing those things. Then the real secret is to be grateful for those people and treat them like royalty!
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