Look at this reality.
- The average conversion rate for contacts to appointment for an agent 1 year or less in the business is 125 contacts =1 appt.
- If you make 5 contacts a day it will take you 25 days to get an appointment.
- The average conversion rate for a new agent appointment is 4 appointments to a sale.
- That means that it will take 100 days to get 4 appointments to get 1 sale.
- in a year there are 14.6 25 day periods.
- Divided by 4 = 3.65 deals a year.
- With an average sales price of 200k and 3% commission. That looks like $21,900 GROSS commission…
- then the split at 70% (this doesn’t include royalty and coaching fees) leaves you with $15,330. Oh and then take off 20% for taxes.
- That is a WHOPPING $12,264 net earnings on 5 contacts a day.
NO wonder people get out of real estate so fast.
Asking 5 people a day simply won’t cut it.
Lets do the same formula with the average agent 1-5 years in the business.
62 appointments to a contact.
- That is an appointment every 12.4 days of prospecting.
- = 49.6 days of prospecting for a sale.
- = 7.36 deals a year.
- = $44,160 in GCI,
- =$30,912 after a 70% split (not including royalty and coaching fees)
- =$24,729 after 20% taxes are paid.
- HELLO…..You might as well get a job at a retail store for 40 hours a week—would be a lot less stressful and pay the same amount, right?
In the SHIFT…Gary Keller’s 1st tactic is GET REAL GET RIGHT.
People….get real. and how you get right is get APPOINTEMNTS every day.
If you aren’t getting appointments weekly then you aren’t doing your job and so no wonder you aren’t getting paid. Quit getting ready to get ready. Get your mindset right, and go get the business with massive action. The systems will come…and besides, when you have massive business due to your massive action, you can pay someone to do the grunt work for you.
Going Mental
About two months ago, my next door neighbor convinced me to sign up to take an exercise class with her at our local Goodman Community Center. I agreed—and wondered if I was crazy at the time. The class is titled 20-20-20 and is a mixture of aerobics, strength training, and core work. All good, right? Here’s the catch: it’s every Tuesday at 6 am! But, seeing as I’ve become a morning exerciser, this is fine with me (theoretically).
Our first class was this past Tuesday. My muscles are still burning. I don’t think I’ve done THAT many squats since I was in labor, that many push-ups since I was 12, or that many high-intensity movements that early in the morning since, well—ever!
At one point, our instructor Johanna had us lean up against the wall, put our feet about 2 feet from the wall, firmly planted on the ground (back fully flush on wall), and then s-l-o-w-l-y lower our bodies so our thighs were parallel to the ground…and HOLD it. Seeing us all wincing in pain after about 30 seconds, our legs starting to shake under our weight, she shouted “keep holding…your body can do this…it’s all mental with this one!”
And here’s what I keep rolling around in my head: how much of our life is ALL MENTAL? I’d venture to say most of it, if not all of it. We can stretch to great lengths when we just stay focused and refuse to give up, give in, or plain stop. When we accept this idea as TRUTH, it’s amazing what can be accomplished, what can be felt, and what can be realized that is simply EXTRAORDINARY about ourselves.
As I was out for my walk/jog this morning, I decided to test this idea once again. I told myself “run to the corner of Fair Oaks and Milwaukee Street without stopping.” I focused in, zoned out, and tuned into my mind…my burning calves were talking to me, my hamstrings were strung, and my body (overall) was resisting…but my MIND was engaged and sharp and focused on the goal…and I did it! I was huffing and puffing, sweating like a pig, and feeling absolutely high. I now have the knowledge that I CAN do this and I will likely try to go a little farther next time.
So, I leave you with this thought: how might it transform your business—and your life in general, more importantly—if you just GO MENTAL on a regular basis?
It’s Time to be BOLD!
Okay, okay…I know what a lot of you are thinking. Is this another one of those sales training deals where we show up, get pushed outside our comfort zone, confront our fears, and meet with more success…? YES! YES! YES it is! And it’s also much, much MORE than that…
BOLD is all about the power of mindset, about believing in YOURSELF and YOUR ABILITIES and then taking ACTION to make things happen for you. You can create the life you want through the thoughts you think and the actions you undertake. BOLD helps to keep you focused on that…plus, you get to do it with 39 of your closest colleagues, which is always fun and creates a great sense of camaraderie.
Here’s my thought: the first class is being held on June 29th from 9-1 at the Crowne Plaza in Madison (East Wash Ave). It’s free. I’m told that participants are not going to be given a sales-pitch, that they will ACTUALLY be given 7 stunning and juicy ideas that they can implement right away to increase their business! So why not at least go check it out? If you’re still not convinced after attending this seminar then, okay…maybe it’s not for you. But why not at least GO CHECK IT OUT! Until you know what you are saying “no” to, it’s hard to say “no,” isn’t it? Besides, what if—just WHAT IF—you actually end up LIKING what you hear and believe it can help you TREMENDOUSLY to not only grow your little pocketbook but, more importantly, your MIND? That would be terrible, wouldn’t it?
See you there!!!
Are you working from your power place? What the heck is a power place, you ask?
Here’s how I think of it:
Think of a time when you were at your absolute best—you were not only soaring and doing well professionally and/or financially, but you were also feeling TOP of your game, smiling a lot, and knowing that you had found your rhythm, your flow in life. No matter what anyone did or said, you were unbeatable, unstoppable, and unflappable. You were living in the moment, savoring every last juicy drop of life for all it sweetness.
Never been there before? Perhaps it’s time for you take a visit.
If you’ve never done so before, make a list/inventory of all of the ways in which you SHINE…that is, think of those things that come to you easily, effortlessly, and without much thought or difficulty. Think about the essence of who you are and what talents and gifts you naturally have. If you find this challenging, you’re not alone. Most people tell themselves that they “really aren’t good at anything” and that “there’s not much that’s my specialty.” What if you told yourself a different story? What if you actually BELIEVED in your strengths to such a degree that you began capitalizing on them on a DAILY basis? Read on.
For example, what if you used your talents as an artist to volunteer to help paint a mural on a worn wall in your community? What if you used your gift as a great chef to make delicious meals for a sick or infirm neighbor? What if you accessed your inner entrepreneur to help a non-profit raise more funds? What would happen to your BUSINESS and YOUR LIFE and the way you live it if you simply focused on what you are really GOOD at? What would that feel like? What would your impact on the world look like? What would your business partners and acquaintances say? What if you created your identity and your reputation from that starting point of strength? Powerful? Absolutely. But too often, we focus on our weaknesses and ways to shore them up. And what’s insane about the human creature is that when we, as individuals, work from our strengths, we are much more likely to achieve greatness and, more importantly, live happy and fulfilling lives.
I call you forth with all of your gifts and talents this week to step into your life, embrace your strengths, and let your light SHINE. The world needs you…and you need to do this for yourself.
Making a Change
I attended the monthly International Coaches Federation of Madison luncheon today. The guest speaker was Miri McDonald, an Organization Change Specialist. She shared some insights with us about CHANGE—how difficult it is, how most people may “say” that they want to change themselves or some aspect of their lives and can’t/don’t/won’t, and how companies struggle to bring change about and make it really “work.” As business owners, we are faced on a daily basis with the task of making decisions—sometimes BIG ones—that will change the face of our business overnight. And, when faced with change, we get that “pit in the stomach” feeling that makes us want to vomit at times. That’s natural. So I often wonder, given all of the pain that change can cause, what really makes people change and, more importantly, how to do you make the changes LASTING?
I thought I would share with you some of the nuggets I took away regarding KEYS to change—either personally, professionally, or organizationally.
- You must have a good case for change. What inspires you when it gets hard (and it always does)? It’s important to define this for yourself.
- Commitment vs. compliance. Are you really committed to the changes you say you want to make? You have choices—make them wisely.
- Change has to come from within—it cannot be prescribed on an individual. The person making the change has to WANT it; someone else can’t want it for you.
- Connecting with a group of people or an individual that inspires and supports the change is critical. Get support systems to assist you in your change efforts.
- Do the hard work. Consistently do what you say you’re going to do—OVER and OVER again. Just do it.
- Re-frame your thoughts about the change you’re making—spin it into something positive that your mind and ego can get behind and believe in.
- Measurement, accountability, and feedback. Without honest assessments, you’ll never realize the change you’re truly working toward.
- Celebrate successes! Little wins along the way to the big goal are incredibly important to continue the climb and manifest the energy necessary to make the change LASTING.
- (This one is my favorite, folks)—You must go and MEET yourself, really learn who you are and what you value. In other words—get to know yourself, in order to make REAL change.
It’s not always easy, but it’s always worth it!
Meet some of our friends…
“Talk to Me, Friends: Using Facebook For Generating Leads”
So many of us wonder if the time we spend on social media really gives us a return. The answer? See below. And take heed—make sure you’re utilizing your Facebook account in a way that really engages and PULLS IN your people!
Max Pigman, vice president at Realtor.com, who teaches social-media classes and shares tips on the Realtor.com Facebook page, said there are a lot of Realtors on Facebook, but a small percentage of them are actually making money from it.
He said that’s because a lot of them think they need to be on social-networking sites because everyone else is, but they aren’t creating a business strategy. That’s what he teaches them to do.
He encourages agents not to use Facebook just to talk about open houses and new listings.
“I have a friend who is a dentist and he doesn’t write, ‘I did another root canal,’ every day,” Pigman said. “You have to get strategic about what you are sharing.”
Instead, Pigman encourages agents to start conversations on Facebook about the state of the real estate market or even create neighborhood pages where they specialize that could come up in Google searches.
“It’s all about creating some sort of relevant information,” he said.
Besides Facebook, Pigman suggests agents share video tours of homes on YouTube, create a professional profile on LinkedIn, and search Twitter for tweets about real estate where they might find leads.
“I think social media itself is here to stay forever,” Pigman said. “What the Realtors really have to do is learn how to get people talking about them.”
Source
This is a partial re-print from the online Detroit Free Press:
http://www.freep.com/article/20100423/BUSINESS06/4230346/Realtors-open-to-social-media-more-agents-market-on-Web
