You would never drive from San Diego to New York without a GPS. Heck, you wouldn’t even drive to your next listing appointment without one. So why do most agents fail to set their business GPS at the start of the year and then monitor and adjust course throughout the year?
Real Estate Agents are often described as the CEOs of their own businesses. Whether running solo or working as a team, they get all the credit (and commissions) when things go right and have no one else to point to if things don’t. The challenge for agents is that they've been trained on the transaction process and some marketing techniques, but usually have no clue how to actually run a business.
No CEO would ever dream of operating their business without quality, timely and detailed data tied to specific goals and targets. But agents go month-after-month, running from one deal to the next and paying little attention to their actual numbers.
Deer in the Headlights
Ask an agent the total number of deals they've closed this year, how many are currently in escrow, how many potential buyers they have and chances are you will get a rough estimate.
But dig a little deeper and ask them how they're doing year to date against their goal, if they are on pace to hit their targets and how it compares to their last year’s numbers on a seasonally adjusted basis and they will quickly become a deer in the headlights.
Top agents don’t leave reaching their goals to chance. They have a very specific strategy, know their numbers, understand exactly what ratio of calls yield an appointment and appointments yield a listing. They know their average deal size and exactly how many deals they need to close in order to achieve their target goal and even hit their dream goal.
So, if an agent wants to become a top producer (as most do), it’s time for them to ask “What are My Numbers?"
What are My Numbers?
An agent’s numbers include:
- Past Deals Count, Sales Volume, Gross Commissions and Net Commissions on a monthly, quarterly and annual basis.
- Seasonality trends on their strong, average and weak months so they can predict the flow in the upcoming year.
- A Minimum, Target and Dream Goal defined as
- Minimum Goal - This is your “Quota”. This is what you need to get by, pay the bills and cover the necessities of life.
- Target Goal - This is your “Stretch Goal”. If you push yourself, leverage what you already know, what can you achieve?
- Dream Goal - This is your “Possibility”. If you applied “10x” and “out of the box” strategies to grow your leads, deals and team, what’s possible?
- Sales Activity Ratios. How many calls it takes to get an appointment? How many appointments to get a listing/deal/close? What percentage of your listings make it through escrow. What percentage of potential buyers end up in a home.
- Monthly activity goals. Based on your key ratios, how many minutes each day and each week should you devote to prospecting calls and how many appointments must you go on in order to hit your annual goal.
- Monitoring activity vs. results vs. goals. On a daily and weekly basis, how much prospecting activity did you actually perform? On a monthly and quarterly basis, what were your deals, gross commissions, net commissions and pending deals?
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Been there, done that?
Many agents keep some of this data in various forms. But does your data look like this?
It's TOO Complicated!!!
Doesn’t this all sound ridiculously complicated? It doesn't have to be.
What if your agents could do all of this in just a few clicks of the mouse? What if they could spot trends early, adjust course or increase activity proactively based on reviewing good quality and timely data?
CoachSimple Real Estate does all of this and more in an easy-to use, self-guided interface that takes the guesswork away and helps agents to stay focused on income producing activities and generating results.
Find out how to empower your agents and help them understand “What are My Numbers?” at https://realestate.coachsimple.net