Success Tips #4: Design your unit goal and your business sources with Jackie Leavenworth
By “Coach” Jackie Leavenworth
If you’ve been reading along and coaching yourself to success, you have now:
- Written down your life and business priorities
- Set your goals
- Created a budget to know where your money is going and how much you need to earn to fund your life and business
It’s now time to make your business work for you. The step that most agents just don’t think about or know how to do is to plan where your business will come from. Let’s say you find that you need to earn $150,000 to cover your personal life goals, pay for your business expenses and pay your taxes. The next step is to figure out how many units you need to sell to achieve that $150,000 income. Look at last year’s stats and divide your total income (before taxes) by your number of closed sides. We will use the following example: Last year your income (before taxes) was $120,000 and you closed 37 sides. $120,000 divided by 37 = $3,243 (average income per side). $150,000 needed income divided by $3,243 (average income per side) means you will need to close 47 sides.
The million dollar question is “What sources will bring me the 47 sides?” Most agents use what I call the “shotgun approach” which means that they throw money at any marketing idea that sounds good or someone else likes, and then hope it brings the business. A much more effective business approach would be to figure out where you want those 47 units to come from and then create your marketing efforts around attracting that business. This is much more of a “rifle approach,” and it works! Take a look at your last few years and figure out what percentage of your business came from your sphere of influence, open houses, opportunity time at the office, websites, referrals from other agents or your company, expired listings, etc. Let’s say that 70 percent of your business usually comes from your database (sphere of influence). In that case, 70 percent of 47 units is 33 units. That basically means that you should be able to count on your database for about 70 percent of your goal or 33 units…assuming you work your database and connect with the people. If you need 47 and your database will provide you with 33, you still need to figure out where the other 14 (47 – 33) are going to come from. Take a look at the following plan as an example:
47 Total Units Needed
33 — Sphere of Influence
2 — Open Houses
2 — Agent or Company Referrals
4 — Geographic Farm
4 — Web Leads
2 — Expired Listings
If you add those together, they should total your 47 needed closings. Now you have a plan! Our next step will be to create a marketing plan for each of the sources. This was an example, please get creative…what are the proven sources from your past business? What are your strengths…open houses, converting call-in leads, expired listings, etc?
Create that plan and we will tackle some thoughts on marketing to the various sources in future success tips. Stay tuned for your future tips and enjoy the journey.
Coach Jackie Leavenworth ABR, CRB, CRS, GRI, SFR, born, raised and still living in Ohio is the owner of Jackie Leavenworth Seminars. Licensed in 1984, her real estate business includes being a top producer, manager and education director for a large real estate company in Cleveland. Currently, Coach Jackie is a REALTOR, international speaker/trainer, Certified CRS Instructor and a coach to real estate agents around the country. Developing and delivering quality programs that are not the “same old thing” is Jackie’s specialty. Real estate is Jackie’s passion and making a positive difference in the lives of others is her purpose. Coach Jackie has programs, CD’s, videos and forms to help you grow. If you want to learn more, grow more or have her speak for your brokerage or board, please visit her at www.CoachJackie.com or email her at Jackie@CoachJackie.com. She thrives on helping others.
– See more at: http://ohiorealtors.org/2014/11/12/success-tips-4-design-your-unit-goal-and-your-business-sources/#sthash.nzMWK5EA.dpuf