Promoted by Eview Group.
One of the first questions I ask an established agent of two or more years who wants to grow their business is, ‘Have you had your first year in real estate?
It’s not a trick question, but one to identify whether or not the agent has completely understood and implemented all the necessary activities for long term and continual growth.
Many agents hit a plateau in their career. It’s usually at the 24 sales a year transaction level. In GCI (Gross Commission Income) terms, it’s around the $300k to $400k mark. Many remain at this level from one year to another, simply repeating the last, perplexed as to why they haven’t grown further.
Hence the tongue and cheek question of have they had their first year in real estate.
I refer to agents who are hovering at this level as stuck in the ‘apprentice’ stage. They haven’t understood, mastered, or grown the courage or self-belief that they can move to a higher performing level let alone million-dollar status.
Luckily, it is possible and it’s not as difficult as one may assume.
There is a very simple formula one needs to follow.
It starts with reverse engineering current results and taking measures of some significant key performance indicators. In simple terms, reverse engineering is the process of measuring and documenting your key activities that generated your past years results.
They are as follows.
- Average Sales Commission.
- Number of appraisals before a listing was secured.
- Of those listed, what percentage sold.
- Lead source of every appraisal.
The above KPI’s when measured provide you with the clarity of how your sales results were achieved. They are the foundations used to build a business plan to reach any level.
For example, if you want to reach for that $1million GCI mark in 2022, and say your average commission per sale is $15,000, your appraisal to list ratio is 3:1 and your listing to sales success ratio is 90%, your business plan for next year would look like this:
= 75 Listings
= 67 Sales
@ $15,000 Average Commission
= $ 1 million GCI
That’s it. You start your year at zero appraisals with a target to get to 225. Everything else will be pretty much automatic.
Understandably, there’s a bit more to it and you need a prospecting plan to accompany the activities and attract great talent to help you achieve those results.
We can help you with that.
On the 7th December at 2pm, in conjunction with REB and co-host Grace Ormsby, together with partner in crime Maria Findikakis and REB top 50 agent and Eview Group QLD Director Joel Hood, we will be holding a complimentary webinar on ‘How to make 2022 your absolute best year ever.’
In this insightful masterclass, we will share:
How to make the leap from apprentice to million-dollar agent in 12 months.
Bulletproofing your prospecting plan.
Becoming a lead generation machine & much more.
As we look towards a new year, there’s never been a better time for agents and business owners to up their game.
I’ll leave you with this last comment which I’m sure will resonate with many.
“My goal in 2022 is to complete my goals for 2021, which I should have completed in 2020 because I promised myself I would achieve them in 2019, which I had written down to do in 2018!”
Wishing you every success in your real estate career.
To register for the webinar, click HERE