Let’s take a closer look at all three. We can now put Earn a Million 129 together a basic and proven real estate agent Economic Model that you can trust to help you achieve your maximum potential. While a fiduciary is one who not only does the tasks of the job, but is also in a high trust relationship with his client and feels total responsibility for the outcome. Compare homes and make decision. Unfortunately, real estate agents who are in the business of Lead Receiving may find themselves selling very few houses when the market shifts. .47 Myth One: “I can’t do it.” . The Pros and Cons of Hiring a Licensed Assistant THE PROS THE CONS 1. .306 Real-Life Millionaire Real Estate Agents . In a similar way, you’ll be insisting on economic justification for any new lead-generation ideas, equipment or furniture purchases, or staff hirings. Yet they all seem to be able instantly to recognize the moment their standards have been breached. This simply makes it much easier to say, “Did you receive the ______ I sent you?” and break the ice. . . Thanks so much to Gary and Dave for all the research and development they’ve done.” Sherrie Puffer Asheville, NC “I feel as though my windshield had been dirty for the past several years and it was unclear as to what direction I was going in the real estate industry. And your plan will always be about taking action. 5. . We hope that, by learning about and understanding the four issues of Receive a Million, you will be able to make this transition as painlessly as possible. If you step back and look at your Economic Model, something should stand out big and bold to you. If they are really smart and want an even greater measure of readiness, they’ve also studied the experiences of others and, using that knowledge, have properly prepared themselves for a most challenging adventure. On Thursday nights, you are a housekeeper. . . We have discovered that there are almost as many agents with assistants who have real estate licenses as there are those who don’t. Snapshot of a Millionaire 335 SNAPSHOT OF A MILLIONAIRE JOE ROTHCHILD Katy, TX Experience—21 years Before Real Estate—Phone sales and apartment locating 2001 Production Transactions—597 Sales Volume—$106.9 million Gross Commission Income—$2.6 million The Team Sales—Three buyer agents plus a team leader (brother) Support—Financial manager (wife), a listing manager, a marketing director, a customer feedback coordinator, two closing coordinators, two receptionists, and a courier Quick Takes The Beginning—I went directly from college into sales—phone sales. They were also very curious about what we’d find. If you have higher fixed costs and face a shortfall in revenue, you might be tempted to cut back on variable or unfixed expenses (like lead generation), which Earn a Million 155 drive your business. Values—What is important to us? 3. 7. We give back to the community by sitting on advisory boards for developers and builders and boards of directors for Sky Ranch Christian Camp, and raising funds for Habitat for Humanity, Leukemia, and the Dallas Symphony. He can “plus” it. The ones who look like marketing and prospecting geniuses do it consistently over time and meticulously track and source their leads. It either builds you up and supports you, or it tears you down and fights you. . I’m certain that given a long enough time line, everyone would reach the million-dollar-income mark. Because you’re tracking your growth in specific areas, you’ll also have a head start on creating a job description that fits your current and future needs. . . And, frankly, for Millionaire Real Estate Agents, life can seesaw quite dramatically from balance to imbalance, so it is very important to acknowledge this so you can then deal with it. . . . . Dollar for dollar isn’t enough. Have you had a chance to look at it? I saw my success. . Why? The belief is that customer satisfaction is most effectively achieved by personal contact and lots of time spent doing it. Without either, all you’re left with is a group. Do you go on buying appointments? However, we knew that for the purposes of The Millionaire Real Estate Agent we would also have to draw on the experiences of top producers with whom we had not yet worked personally. Service all the leads that come your way! It’s quite possible that the most important contributor to your ultimate success will be your ability to keep moving, to make progress, and to learn as you go. Many agents approach compensation with the worst possible “You must surround yourself with talent—loyal, strong people who want to work, like to work, and are productive.” Allan Domb Millionaire Real Estate Agent Philadelphia, PA Sales Volume—$135 million point of view. You can con- “It is a mistake not to delegate as much as you should. It will increasingly become a chal- Cristina Martinez Millionaire Real Estate Agent San Jose, CA Sales volume—$136.3 million lenge to stay focused on the cornerstones of your business—Leads, Listings, and Leverage. We do this every week. 14. Listings are the second L in the Three L’s of the Millionaire Real Estate Agent. When you can’t see the possibilities for and the potential rewards of success because the fear of fail- “There is no failure. b. . They are transaction coordinators, contract managers, marketing specialists, and bookkeepers, and sometimes they are all those things rolled into one. . And we have powerful tools to do this with: yard signs, advertisements, just listed postcards, etc. . Lead-Generation Advantage: Properly marketing seller listings not only begets a 2 for 1 (1 seller = 1 buyer) but also begets Earn a Million 191 more seller listings. It is hard to justify sharing annual profits with a staff member who has been with you for only a couple of months. . . . No matter what route you go on insurance, we recommend a ninetyday period before employees can take advantage of this benefit. However, it will take some focused effort and time devoted to getting the names, moving them into the database, and planning out your 12 Direct marketing campaigns each year. . . . As your business grows, you will begin to sense that you have become its CEO. The more you try to achieve or the greater the personal growth you seek, the more frequent your accountability will need to be. Making and earning a million dollars—most people make it much more complicated that it really is. .130 1. And I was immensely rewarded. Working under those agreements can then efficiently lead you to written purchase contracts that close. Where will I find them? . Depending on the market, talent for this position will demand between $65,000 and $100,000 a year. TRUTH: HAVING A GOAL AND NOT TRYING TO ACHIEVE IT IS A NEGATIVE THING. . I applaud the professionalism of each team member and am particularly gratified to be working with my son, who is a successful buyers agent. . As you can see, there is a direct relationship between average sales price and the number of units you Figure 31 Percentage Decrease in Closed Units Per 10% Price Increase to Reach $2.4 Million in GCI Goal % Increase in Price 10% } Average Sales Price Commission 150,000 165,000 181,500 199,650 219,615 240,990 264,990 291,489 Closed Units/Yr. . They are always looking for ways to improve how they and their staff operate professionally and personally. Equity Opportunities When we talk about equity opportunities, we’re rarely talking about sharing equity in your main real estate sales business. . Until a way is invented to effectively market buyers so sellers will contact us, marketing the seller has a huge leverage advantage for the real estate agent. When I taught new agent sales training classes, I would sometimes start my class discussion on leads by asking the audience, “If I told you there was an out-of-town buyer who just got in this morning and who will be paying cash and needs to purchase a home by the end of the week, could any of you help him out?” Everyone would raise their hand. Think Competitively and Strategically 8. I just tell them that if they had been watching me hit hundreds of golf balls every day for all those years, they wouldn’t be so amazed.” My point here is this, if you are committed to achieving Big Goals, you must be committed to learning-based living. . . I bet you have a support staff to help with marketing, bookkeeping, and paperwork, right? Sticking to the Budget Model and Controlling Your Costs . Honestly, I don’t know. Once the right amount of innovation is added, you will more than likely experience another breakthrough and move forward. . 12. If it is to change, improve, and grow, you will have to, too. I handle all the listings and go on three to five listing appointments six days a week. . The failure to see this much potential from the beginning can lead to the inevitable and devastating work of reinventions, take backs and do overs. . . b. Keys to Success—At first I was an idiot at hiring. I realize this may sound crazy. As the leads come in, you’ll need a lead-tracking process in place that is consistently used and accurate. You simply have to run down the list and fill in the blanks: 1. . 1. But they are doing it. In the end, people accountability is how you help them take your business to the highest level possible. . . . . . LEAD GENERATION Buyer Appointments 306.96/yr. Dave has been in the real estate industry since 1981, has taught for the Dale Carnegie Institute, and owned his own training company, the Leadership Connection, Inc. . To build that business, you’ll have to focus primarily on four models that become the main drivers for the Three L’s: Leads, Listings, and Leverage. Advise on repairs and improvements. The catch is that lead generation is not something that can just be turned on and off. . The Millionaire Real Estate Agents we know read books, listen to tapes, watch videos, and attend seminars and classes regularly. Lead-generating success is not purely creative. The model serves as a reference point that allows you always to know why you made the creative decision you made and where to return if your creativity proves unsuccessful. Think a Million 105 I’m convinced that one of the greatest Realtors of our time is Ebby Halliday in Dallas, Texas. . McGraw-Hill has no responsibility for the content of any information accessed through the work. . If you or your team doesn’t yet know your numbers, then your immediate mission should be to start tracking them in detail. Meditate and Pray—Spiritual Energy 2. . . None of the Millionaire Real Estate Agents we have worked with or interviewed claimed to have reached their current level of success alone. No one else can determine how neglecting or overemphasizing an area will impact your enthusiasm and your drive. . . . This is a very interesting question! . They will see themselves staying for a long time. We call this the Three Foot Rule, which demands that we make sure everything within our reach (usually three feet) is magnificent. . Possibly someone looking for: 1. Later, after getting some professional investing experience, Buffett vowed not to make another investment until he had read Security Analysis twelve more times. Most real estate agents who consider becoming employers believe that hiring someone will cost them money. . . . It’s a numbers game—always has been, always will be. . Gross income closed As with contracts written, you’ll also want to keep track of how many of your contracts closed were listings and how many were buyers. . . The moral: You probably already have or know everything you need to be successful. ■ Week Eight—Make another telephone call: “Hello, this is _______ from ______ Realty. The point is to put these models in place quickly and efficiently. . Metaphysics aside, there are some very specific things you can do to increase your energy and thereby maintain your focus. . . . It turns out they are like the yin and yang of Chinese philosophy. You have to give it a chance. No. or $3.33M/mo. Sometimes they object. . Staying focused on the 20 percent. It is one of the final steps. 2. The quantity group would have all their pots weighed. This is a fairly common situation. . . For example, even dividends from a stock you purchased required your attention at some point when you selected and purchased the stock. We say someone is talent when she is a superb match for the criteria you have established for a particular position. No life ever grows great until it is focused, dedicated, disciplined.” These words were written by Harry Emerson Fosdick, and ever since I heard them, I can’t get them out of my mind. I’m here to tell you this is wrongful thinking and, I hope, to change your paradigm, your way of thinking about budgets. Each improvement will have its limitations, and, sooner or later, you’ll have to tweak your model to ensure continued progress. . This graphic illustrates that, as an agent’s business grows, her percentage of listings grows as well. Why? For high achievers, the counterbalancing challenge lies between the work and nonwork aspects of your life. . . How many agents do you know who truly study the business of real estate before they enter it? . In our experience, there are sixteen issues that must be addressed to successfully make the transition. . . 4. vs No clearly stated goals. . This material offered me an essential key to bridge my ‘Work Life’ to my ‘Life’s Work.’” Michael Hodson Tacoma, WA “Somewhere along my path I was taught not to dream too large lest I face the certain pain of disillusionment. The older person will just get to the point faster and much more succinctly. . . . You must take on the actions of a successful business in order to have one. If something has an out- “You never know what you can achieve until you try. Page size 477.75 x 637.5 pts Sometimes we get frustrated and complain about it. Disabling it will result in some disabled or missing features. The key word is virtually—you still had to do some work to get it. . Responds to Needs 6. Preclose Preparation a. Just don’t forget it no matter where you are in your real estate journey—it will keep you focused. Budget—How much money did we spend? . WHAT I DO: • Answer phone •Show homes •Create ads •CMAs •Open houses break that list into six { Then to twelve key categories. Their time is not focused on what really must be done to drive their business at a big level. . (date) 3. Articulate the details of your value proposition and deliver on it with fiduciary commitment. Breaking Through to Higher Achievement “New Achievement Ceiling” Breakthrough! I believe in sharing goals because when your team shares your goals, synergy and teamwork begin to show up. Every year since, I was either top producer in the county, tops in sales, or tops in listings. . When you look at your child slouching at the dinner table and 78 The Millionaire Real Estate Agent think, “If he keeps that up, he won’t be able to swing a golf club when he’s fifty, much less pick up a bag of groceries without clutching his back” . In Earn a Million, we will prescribe a certain number of seller listings you should strive to get each month and year. We’re averaging the cost of a touch (considering that in addition to mailings, you will also be using the phone and cost-effective e-mails) at $0.50 per touch. The formula shown in Figure 7 is simpler than you might have thought. So which comes first, the energy or the achievement? . . I don’t have enough days left in my life to have a bad one.” She was right, she didn’t. . . It goes without saying that the better you are at people accountability, the better your key three will be at hiring talent and upholding standards, and the higher the success of your business. . Vendor Coordination a. And also, let me just give you a quick reminder that if you happen to know of anyone who might be buying or selling their home, could you please share their name with me or my name with them. Take your real estate career to the highest level! . Create a personal plan and make process your focus. $24.00. It is natural to have goals in other areas, but always work backward from your net income. But, most important, I am talking and being in front of people all the time. 6. In my experience, they are no different than anyone else—they are real people. You may already be attending social and community events, but not focusing on lead generation while you are there. . And they set them using a consistent set of goal categories. . The multiple methods and sources will not only bring you more business in prosperous times but will also diversify and help protect you during uncertain times. The Big Models and Big Goals will pull you up through smaller goals to your highest achievements possible. The 80:20 Rule 20% 80% 80% 20% ACTION RESULTS Figure 8 As Figure 8 above reveals, the opposite also appears to be true. . Invest in yourself. 3. . . . “I really didn’t have management ability. Obviously, the direction you aim determines the targets you can hit. . This process must ensure that the lead is captured (Who is it and how do we contact her? That’s really awesome! At best, your beliefs can lead to great confidence, and, at worst, they can lead to extreme doubt. Once you’ve completed the 8 x 8 program, these new contacts go into the Met portion of your contact database, where they will be included in your ongoing 33 Touch 33 Touch program. How can you ensure that your staff can meet those expectations the way you do? Think back to when you were a kid and set out to singe a leaf or burn lines in a wooden plank by hovering your magnifying glass above it. Then set a business standard (for you and your staff) to avoid exceeding that amount. Many high achievers have reached for their potential simply because they could not tolerate the thought of the alternative. You may know her as Dr. Joyce Brothers. Give them authority equal to their assigned responsibilities. One level is the current job’s tasks and functions. For most real estate agents, trying to put multiple systems in place by yourself will actually reduce productivity. When this happens, one of the first things always to hit the back burner for most agents is lead generation. Like so many others, I had to learn about the importance of documentation the hard way. Time and experience have helped us identify two particular areas of personal development that will have a significant impact on your ability to reach greater success: your ability to maintain your focus on the 20 percent of the business that matters most, and your ability to maintain some sense of balance in your life so you will always have the energy you need to pursue your goals. . It may sound like splitting hairs, but it probably represents a significant shift in your paradigm. . 5. Before long, they have no solid foundation upon which to build and no framework upon which to hang their thinking and actions. Even with all the billion-dollar prognostic equipment available to NASA, their average shuttle mission is not a simple matter of charting the course and then logging the milestones of the journey. The ultimate business goal is to have a successful business run by other people! If you open up your dictionary to the word accountability, you’ll see that it is derived from account, which means “to furnish a justifying explanation.” It means “to answer for.” Accountability is about defending your activities to an objective observer. . I enjoy helping people, so that’s what I did. My business still grew, and I saved more than $40,000 in expenses. She’s doubled her income, and I’ve doubled my business. Seller listings bring exposure, buyer leads, and more seller listing leads. What is it that a doctor or an attorney really sells? So, if you wanted to have fifty sales in one year, you’d really need a lead-generation plan that delivered twenty-five salable and marketable seller listings and then effectively market them. If you will stay diligent and really learn the skills and then really apply what you know. To succeed as a real estate professional, I had to learn to generate client leads. So many agents do spur-of-the-moment, idea-of-the-month marketing and prospecting. 3. He later earned his masters degree in educational administration from Colgate University and his doctoral postgraduate studies in educational psychology at Michigan State University. For some reason, if they are earning $50,000 a year, they think that $5,000 a year in passive income is nothing to get excited about. On the one hand, knowing the minimum income you need to make to live your life the way you desire is important. In the end, after Net a Million 223 “We track all our leads and put them in a database. I thought houses would be it. . You won’t find it looking up and down your street. { CATEGORIES: 1. Most Realtors just don’t understand that. . Figure 25 166 The Millionaire Real Estate Agent Consulting your employees is at the very heart of the empowerment process. . And, in our experience, the way you build that great small business is to build it around three magnificent people. We believe that as you build your sales business, you have another option for generating wealth through passive income—through business ownership. . And you wouldn’t be alone. Those are the two basic prerequisites if you want to achieve the passive income of the Millionaire Real Estate Agent. . It caught on, and we have been pleasantly surprised. . . It may be that the individual does not believe in your models and isn’t following them. . . . How many listings must I take this year? . 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