Principles for Success
It has been proven that those who are most successful have a system for success. They have a plan, set goals, and write them down. When it comes to real estate success, it is important to have:
This section is designed to help you develop a marketing plan and set goals for yourself. Track your plan for a given time period, such as one or three months. At the end of the time period, review the results of your plan and make adjustments as needed. Consider cutting out areas that were not very successful for you and increase aspects of the plan that were highly successful. Whatever your plan is, remember to MAKE the plan, set goals, and write them down!
The Real Estate Business cycle
The following explains the real estate business cycle and the five principles for success that will help you reach your goals.
Principle One – Start the Business Cycle
The most important principle in the business cycle is this: business starts when you start talking to people. To be successful quickly, spend at least four hours a day talking to people to obtain leads. This is the activity that starts the business cycle. The more people you talk to, the greater your chances to continue the business cycle, and to work with someone to buy or sell a property.
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Principle Two – Stay on the Path
If you don’t prospect, your potential for failure in this business greatly increases. Your objective in real estate is to get on the business cycle path and stay on it until you reach the end of the road – a sale or a listing sold. Even when you have transactions in escrow, you must continuously prospect and add to your “pipeline” of potential clients!
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Principle Three – Prioritize Your Activities
First and foremost, spend at least four hours a day starting the business cycle. Around this “Business Development” time, you will schedule “Business Support” time to follow up on transactions, make flyers, send out mailings, attend meetings, training, etc.
As you plan each day, your activities will fall under 2 main categories:
Business Development (activities in the sales cycle)
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Contacting prospects
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Following up on leads
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Qualifying buyers
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Showing homes to qualified prospects
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Writing and presenting offers to purchase
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Giving listing presentations to qualified sellers
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Listing marketable properties
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Attending to offers on your listings
Business Support (activities that support the sales activities)
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Follow  ing up on transactions
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Previewing properties
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Making flyers, marketing materials
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Developing your database
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Sending out mailings, emails, etc.
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Talking to loan officers
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Attending meetings
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Principle Four – Prospect Like a Pro
To create high-number, highly profitable careers, real estate superstars typically rely on proven prospecting principles.
- Work your best sources of prospects. Superstars secure at least 50 percent of their business from people they know (referrals). If you are near the beginning of your career and have not yet built up a database of past customers, concentrate on your sphere of influence. Relationship marketing has always been the method great salespeople use to create long-term business with the least amount of cost.
- Promote Success. Successful Realtors create more business by promoting themselves and their current successes. Examples include a new listing taken, a purchase, a listing sold, an open house, etc.
- Devise a particular prospecting method that matches your style. Superstars create their own unique methods of prospecting based on their personality style and relationships. You can do the same thing!
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Secure the majority of your business through proactive prospecting. Successful Realtors find people – they don’t wait for people to come to them!
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Principle Five – Work the Numbers
If you want to have the greatest opportunity for success, you need to make at least 100 prospecting calls (in person or on the phone) each week, for at least the first 4 weeks of your marketing plan.
Is there a formula for success in real estate sales? Yes! It's all about the math!!
How To Make a Consistent Six-Figure Income:
Here are the Statistical Premises:
- An average of 15-20 contacts
= 1 Appointment.
- An Average of 3 Appointments = 1 Listing.
- An Average of 2 Listings
= 1 closed Transaction.
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Therefore...
- IF 1 working day = 15-20 contacts
- THEN 1 working day = 1 appointment
- 3 working days = 1 listing
- 6 working days = 1 closed transaction
- 225 working days / 6 = 38 closings/year
- That would be an average of $8000 x 38 = $304,000 per year Income!
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You should set a goal of a minimum of one sale and one listing, or two total transactions during the first 4 weeks of your marketing plan. You may be above average and it won’t take you as many calls to accomplish your goals, but these are the general numbers you should use to get successfully started.
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All rights reserved. Property of Watkins Realty Group. No part of this website may be reproduced by any means, electronic or mechanical, without advance written permission from Watkins Realty Group.
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