It is Christmas Eve Day. For those that celebrate Christmas, Merry Christmas. Here we are facing 2019, a new year. It should be exciting, it’s going to be a little more challenging than what we’ve experienced in the past, but I’ve committed virtually 44 years to try to figure out how to help a young person (or maybe an experienced veteran, or maybe a long time real estate agent) become more productive, do more deals, make more money and enjoy the experience of real estate a little more than they have in the past.
Let’s face it, it’s a tough business if you’re not doing anything productive. It’s a tough business to do something productive, because there’s so much to learn. I pulled up this morning the table of contents from one of our productions, and it has a list of 21 different skills that you as an agent probably should learn if you’re going to increase your productivity: time management, prospecting, working your database, lead follow up, prequalifying, listing presentation, pricing property. You’ve heard the list. It’s pretty intense, it’s pretty long and it’s pretty strong.
My belief has always been any agent that would take the time—and it takes months, years if not sometimes many, many years, to really master all those skills—is going to have a better career, a better life, and extend the life of their business dramatically! Probably make a lot more money than they thought they could.
So this message today is a little shorter than most. It’s pretty hard, if not difficult or maybe in some cases impossible, to really improve your 2019 production without looking at three issues carefully.
Be Honest with Yourself
That’s a hard one if you’re working with buyers all the time, and a lot of you do. You get a buyer that’s been prequalified by the lender. You’ve chatted with the buyer about what they want to buy. You take that buyer to a house and open the door. They fall in love with the house. As you know, there’s not a lot of skills involved in putting that transaction together, so it’s being honest with yourself if you’re going to be a listing agent. There’s a lot more skills involved I would really like to think between now and the first week of the year that you do a little honest evaluation as to your skillset, as to what you can do.
You really have to figure out what that trigger point is within yourself to create that desire to go out and learn the skills and then also to improve production and income simultaneously. What is it that you want, what are you trying to accomplish and what do you want that you don’t have? Paying off your bills. Preparing yourself to pay your taxes. Improving the quality of the life for the family and children. Having a new home. Better car, vacations, investments, retirement! If there’s not something out in front of you, it’s very hard to commit to learning the skills to improve.
Figure out what I call the money problem, and I’ve talked about this for years to real estate people, the money problem.
Total Cost of Living
I want you to be honest. What does it cost you and your family unit to live per month? Everyone has a cost of living. You can say, “I don’t get involved with that my spouse takes care of that”. I understand, but I want you to take a few minutes and say to your spouse, “What does it cost us a month to live?” Rent, a house payment, car payment, food expenses, children, whatever that cost is. It’s not going to be exact. Let’s take an example, let’s say it takes you and your family $6,000 a month to live.
Outside Income
Obviously, your spouse could have a job, revenue. Possibly you’re getting child support or alimony from a previous experience, revenue. Maybe you have a couple rental incomes, revenue. Maybe you have retirement or social security, revenue. Let’s say that you’re outside income is about $3,500 a month. So you have $6,000 in expenses and $3,500 in income.
The Difference Between 1 and 2
So in this case, the difference is $2,500. That has to be created in this case by you as a real estate agent to make sure your family has the lifestyle at least at this level that you want.
Average Commission Check
Let’s say it is $7,000 per transaction.
How Many Deals to Break Even?
Imagine you need to earn $2,500 and your average commission check is $7,000. You’re not going to have to do a lot of deals to break even for the year! And I think you have to look at that number very carefully because what I want you to think about what you would like to have if you were earning an extra 7, 8, or 10 thousand dollars a year. Or what if you had increased your production, you were doing an extra deal per month, what would you do with the money? What would you try to accomplish for yourself and your family? Because, the truth is Earl Nightingale said it best.
“Ninety-five percent of the American public (and I’m going to include the North American public) never sets a goal. Never has a carrot in front of them to lead them to something. This is why most people never do much of anything!”
It’s easy to succeed in real estate because most of the people you’re working with aren’t trying. They’re trying to break even, they’re trying to make a few bucks, to make the house payment and to maybe buy a new couch. There’s more to like than making the house payment or a new coach to improve your 2019 production, you’re going to have to look carefully at yourself. Look in the mirror, what do you need to know and where are you going to find the information. If we can help, we’re here to help.
Production Retreat in Vegas
For those that are brave, come to our Production Retreat in Vegas in mid-January. We hope that your holiday season is fun and joyful and safe. We hope that your family gets through this holiday season, which is many times emotional and stressful, calmly. Most importantly, we hope 2019 is going to be a great year for you. It can be if you watch what I’m saying. Thanks for watching today.
Mike Ferry is the global leader in real estate coaching and training. Watch Mike each week as he discusses a variety of topics to help real estate agents and brokers. Grow your real estate business by improving your mindset, developing your skills and creating a plan of action to increase your production!
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