Your Most Important jobDec 29, 2020
Real estate is a contact sport. The person who talks to the most persons wins - plain and simple.
Most agents fail at real estate because they fail to consistently have conversations with people on a daily basis. Enough people, that is. This is not a hit or miss activity, it is the "apple a day" discipline that keeps the bill collectors away. Jim Rohn, the late, great business philosopher said it best, "You can't eat eight apples on Sunday and think that'll work!"
Let's look at the power of the simple discipline of daily having five real estate conversations, five days a week. Assuming an agent will work 48 weeks a year (two weeks off for vacation, one week off for education, one week off for life) and they have five conversations daily for five days a week. Twenty-five weekly conversations multiplied by forty-eight weeks equals twelve hundred conversations in a year!
With a simple 2% conversion, an agent would sell 24 homes as a result of all those conversations. With an average commission of $8,160 (Destin, FL market), an agent would gross $195,840 in real estate commissions. Take out broker fees, expenses, coaching fees, taxes, and even the cost of a transaction coordinator to handle your contract-to-close paperwork and you will easily net over $100,000 a year!
Let's take this a little further. If an average conversation is ten minutes (that's generous), you would spend a whopping 200 hours a year having real estate conversations to net $100K. Yes, the appointments, negotiations, showings, follow-ups will make for additional hours but you would hardly work crazy hours.
You want to make more money! Ten conversations a day would take 400 hours a year. Keep in mind, a 40-hour workweek leads to 2,000 hours a year of work. Believe it or not, you can have fifty conversations a week, manage all the transactions, and still put in reasonable hours and have a life!
One more thing, the more conversations you have the better you will get at it. Just run the numbers when you are getting a 5% conversion...
- 1,200 conversations (5 a day/ 5 days a week) x 5% = 60 home sales x $8,160 = $489,600 Gross Commission Income.
- 2,400 conversations (10 a day/ 10 days a week) x 5% = 120 home sales x $8,160 = $979,200 Gross Commission Income.
What is your most important job as a real estate agent? Talk to people!
Good News... there are a lot of people to talk to!