Do you have a “million dollar mindset”? That’s great! But – Are you working in a million dollar market?
You may have the right attitude and work ethic to make 100 sales a year and reach a million dollars in sales – but your market may not be big enough to accommodate you, even if you had no competition. There is a way to reach your goals, though, through planning for scalable growth. But first you have to know the numbers for your market before you can expand beyond them. We call this the “size of the pie.” A lot of agents base their projections on a farm area of around 1000 homes. You have to look deeper, though, and see what percentage of those homes actually sell per year. It’s the number of sales that actually defines your marketplace. And your expectations must be based on calculations of how many properties are in your area, how many of those sell every year, what is the average sale price, and how much of a fee you will earn per sale.
In order to work towards producing a million dollars in fees you will begin with a 10-month calendar, because that allows for 2 months of holiday per year – for you and for the market. Within that 10-month framework you will build your plan for systematic scalable growth. This will take you to your goal in manageable increments that work with your real market situation. You can’t start out aiming for 100 sales a year if your market only supports 50 to 60. So you start out aiming for a milestone of 30 sales. Once you reach that and maintain it you will need to hire an assistant to do all the basic administrative tasks so that you can focus on prospecting, listing and clearance. Now you can stretch up to 60 transactions a year. When you reach that milestone, hire another assistant so you can continue to work your way to 100 sales per year. With a good system in place, you can teach that to your assistants so they can reliably and consistently provide the support you need from them.
Successfully reaching your incremental goals through planning and following through on this scalable growth plan will build your reputation as a go-to real estate agent, and that will bring in more business for you.
I hope you’ve enjoyed today’s coaching tip. We look forward to seeing you again next week.