They are always looking for ways to improve how they and their staff operate professionally and personally. people. ■ The Millionaire Real Estate Agent Budget Model helps you track and evaluate the investments you make in your business. The Organizational Model—The specific staff positions you will need to fill and the job responsibilities they will be given as your business grows. Also, be sure approval of time off is obtained in advance (other than for emergencies). . As businesspeople, we look at the time-money Figure 5 relationship in a different way. And the fact is that unless you write down how you currently do it, you won’t really be able to improve it. Protect your lead-generation focus time. Now, were it to become a business where you spend ten hours a week for forty weeks (400 hours) a year working ON the business, your dollars per hour looks like this: $300,000/400 hours = $750 per hour. . If they answer no, I tell them to put everything else on hold and go get more leads. When you recruit and retain talent in your key positions, your organization gets grounded in their stability. Think a Million 111 THE THIRD GOAL CATEGORY OF THE MILLIONAIRE REAL ESTATE AGENT: CONTRACTS WRITTEN Here is what you need to know about your sales contracts written: 1. . The issue is not about having an Economic Model; rather, the issue is whether you understand the one you have and whether it can get you the net income you want. . Goals are simply the vehicle to your dreams, and dreams are the fuel of your goals. . . Knowing when they expect to hear from you and how then to communicate with them quickly and efficiently is part of the challenge. The Systems Documentation Model of the Millionaire Real Estate Agent (Figure 5) provides an overview of the documentation process. Some agents choose to review their financials much more frequently. . We inserted it in our local paper, but the distribution was not good enough. In the end, after Net a Million 223 “We track all our leads and put them in a database. We’re just trying to keep up with them.” Treating it like a game is also about learning to Think Strategically. . The listing opportunity or the buying opportunity? Adopting the right foundational models will enable you to break through that ceiling. Reviewed in the United States on July 9, 2016. For me, business goals are part of a larger personal strategy designed to push me to my limits and make me grow. Coordinate move. They set big “someday” goals, three-year, annual, monthly, and even weekly goals. I had difficulty with delegation, but I learned I could do it. 5. It opens the door to focused activity and the high accomplishment that focus makes possible. By focusing on Big Goals, you will be focusing on developing Big Habits that will always be appropriate to achieving your highest levels of success. Possibility thinking must be followed by action for those possibilities to have the chance of being fully realized. . . . What causes that net income starts with the beginning activity—appointments. We “list” both sellers and buyers.) (action steps) Here are the four steps in this system: The Goal-to-Action 20 Percent Worksheet Name: Date: GOAL Accomplishment Date Action Steps Figure 9 256 The Millionaire Real Estate Agent Master Task List–80 Percent Figure 10 Net a Million 257 Date: Daily Worksheet Business Tasks Messages and Notes 1. Leverage becomes the “Who, How, and What” of your business when you really want to grow. First, you need to focus on knowing the key numbers you must hit. And you’ll also be able to take the appropriate action (increase the number of listing appointments, for instance) to keep your income steady. A friend guided me into real estate. (date) 3. Then you’ll have to focus on the number of appointments you must make, the driving numbers in your Economic Model, and the conversion rates you must achieve, the key variable in the equation. . Hold them accountable. [Download PDF] The Millionaire Real Estate Agent Its Not About the MoneyIts About Being the Best You Can Be This is the powerful opportunity of passive income and the theme behind Receive a Million. . Do you mind if I ask you a question before I answer? It also makes for a snappier title. . Focus on Appointments When you look at your economic model, you can clearly see that it has a beginning and an end. When you know what to do, there comes a point when it is just time to “shut up, get up, and giddy up.” Millionaire Real Estate Agents clearly understand this. Where will I find them? Here are just a few: MYTH: Activity means productivity. . .234 9. . Direct Mail ■ Postcard Campaigns ■ Newsletter Campaigns ■ Just Sold/Just Listed Cards ■ Special Events Cards ■ Quarterly Market Updates 5. Open House Program 9. . . Any other order and the odds of achieving millionaire sales numbers drop dramatically. Her vision for the future: My vision would be to have a business my children can take over and pay me very well in my retirement years so I can live the life I’m accustomed to. . They bring amazing urgency, persistence, and tenacity to their efforts. . . Some people may be more disciplined or have greater focus, but no one can successfully 300 The Millionaire Real Estate Agent and continually hold themselves accountable. . I never considered baseball a job. 10. In that business, $60,000 would have been a lot of money to guarantee someone for that position. . That was when I realized that our environment absolutely must support our goals. Six months into the business I had a part-time assistant. . 4. 152 The Millionaire Real Estate Agent When people sit down to discuss refinancing a mortgage or maybe costing out the potential return on renovating their kitchen—despite all the math and calculations—don’t they tend to get energized? While this was great exploration for a high-level understanding of the business, we believe the diagram opposite (Figure 43) is more effective in that it simply lays out the four or five most important job responsibilities of each staff member. Richard Koch, in his groundbreaking book The 80/20 Principle, describes this rule as “the prin- Think a Million 97 ciple of greatest outcome for time and effort expended.” Most people believe that time and effort alone deliver results, and, while this may be true, the 80:20 Rule teaches us that time and effort on the 20 percent that really matters will deliver 80 percent of the results we seek. We favor the last. . 3. . I applaud the professionalism of each team member and am particularly gratified to be working with my son, who is a successful buyers agent. That is, does your office space, furniture, equipment, and tools support your productivity goals. Our ads are very creative and catchy. Figure 49 CONCLUSION So let’s recap what you’ve learned in Earn a Million. 13.33 13.33 Seller Listing Appts./mo. . They look first to take care of lead generation with a focus on seller listings. They tend to see budgets as a necessary evil, more a record for income tax purposes and audits than anything else. Sometimes, inexperienced managers pay too much attention and get trapped in “hover mode.” This is when your employees feel obligated to run everything past you, and you feel obligated to check on everything they do. . Figure 20 160 The Millionaire Real Estate Agent 2. . . . You train someone initially to understand the job, learn the skills, and develop the systems required to do the job at a high level. Millionaire Real Estate Agents understand the power of making your goals public and then celebrating them as a team. An increase in my average sales price from $292,000 to approximately $315,000 is keeping me ahead of my 2001 pace. Tells and Sells 14. I’ve always been an advocate of them being full-time real estate agents and doing both sides of the business. . Counterbalance your life to maintain your energy at a high level. Your Budget Model is about understanding what happens to your money between the time you “In the past four years, I have gotten very focused on profitability. 130 The Millionaire Real Estate Agent The Basic Formula for the Economic Model of the Millionaire Real Estate Agent For Sellers For Buyers Seller Listing Appointments x = x % Conversion Rate Buyer Listing Appointments x Seller Listings Taken = % Conversion Rate % Conversion Rate = Buyers Sold Sellers Sold x Average Sales Price x Seller Sold Volume = x = % Commission Buyer Listings Taken x = = % Conversion Rate Average Sales Price Buyer Sold Volume x Gross Revenue from Sellers % Commission = Gross Revenue from Buyers = Total Gross Revenue – Expenses = Net Income Figure 7 2. . Interestingly, these levels are not just about money. The charts below (Figure 31 and Figure 32) show the relationship between The Effect of Average Sales Price on Unit Sales average sales price and the number Goal = 2.4 Million in GCI of closed units necessary to reach Average Sales Price Closed Units $150,000 534 $200,000 400 $250,000 320 $300,000 267 $2.4 million in GCI. . 3. Lose your focus on these key issues, and you’ll experience the low ceiling of limitations and the feeling of what is not possible. The idea is that you need to be tracking your costs such that you can plug in the appropriate numbers. Reviewed in the United States on July 17, 2018. My strength lies solely in my tenacity.” AFFIRMATION A long time ago, someone taught me to say, “If it’s to be, it’s up to me.” When I first heard it, I thought it was a great action affirmation. Until you have enough leads (to meet or exceed your goals), there is no other issue. If it wasn’t, there’d be something wrong. 5. . . Owners follow their money, evaluate results seriously, and hold their dollars accountable to appropriate results. .97 Leads—Lead Generation vs Lead Receiving . ■ Talent knows what it wants or is actively searching to know. Sticking to the Budget Model and controlling your costs. 2. In the diagram below (Figure 6), the straight line represents models and the dotted line represents creativity. . b. . Snapshot of a Millionaire 321 Keys to Success—I make it my business to know the real estate and financial markets, and I give informed advice. There is usually not the sense of do-it-right-now urgency with sellers that buyers often have; therefore, you should be able to control your scheduling a little more. 3. . It turns out they are like the yin and yang of Chinese philosophy. We’ll need to know: 1. the number of buyer listings and seller listings we’ll need to take to net 320 closed sides per year 2. the number of buyer and seller appointments we will need to go on to take the appropriate number of buyer listings and seller listings 3. most importantly, the amount of lead-generation activity needed to generate the appropriate number of buyer and seller appointments. And as a real estate businessperson, you’ll need to start expecting it of yourself. . Teams take on outside competition. • Your average sales price (GCI per closing) determines the number of closed sales necessary to reach your GCI goal. You should make note that it is not at least three—it is only three. Your Role and Responsibilities—As a 7th Level Millionaire Real Estate Agent, you have one role—accountability. Hire three great people. They expected their teammates to bring their very best against them—anything less showed a lack of respect. Good word-processing and computer skills are a must. . 4. vs No clearly stated goals. IMPLEMENTING THE MODELS As we pointed out earlier, the transition from Earn a Million to Net a Million is fluid. A lightbulb went off in my head, and I had an “aha.” I then slowed down just long enough to start looking in much greater detail at what successful people were doing. Well, “My goals are fueled by my dreams. Assistant may cost more. In the Millionaire Real Estate Agent model it is possible, with the right people and the right amount of leads, to earn $1 million in the same 400 hours. ■ Our admonition to you is to believe in and seek the possibilities your life holds! If you are a possibility thinker, that means you believe you can do this—it is possible. Ultimately, lead generation is the most dollar-productive activity you can do for your real estate sales business. . . Getting Sellers to Accept the Team Concept . . You’re less likely to be caught off guard by an unexpected turn of events. As a result, you will implement a very specific marketing campaign to the Target Group in order to generate business leads from them over time. . In addressing personal performance, if there is a problem you are first seeking her agreement that an actual problem exists. Your value proposition then becomes that of the surgeon who, surNet a Million 231 “We sell the team. Now I know the truth—the agents who did document their systems were! Actually, this may be an appropriate place for us to draw a distinction between the two types of service being provided in the real estate industry: Functionary vs fiduciary. . And they were each having a serious challenge. Metaphysics aside, there are some very specific things you can do to increase your energy and thereby maintain your focus. Most real estate agents who consider becoming employers believe that hiring someone will cost them money. . Three Key Hires: • Administrative Manager • Lead Seller Specialist • Lead Buyer Specialist 2. . Figure 26 illustrates the formula we use when consulting from a 3. . That may be the case. Back Row: Steve Johns, Aaron Lancaster, Dave Johns, Jeff Pantanella, Marc Nicholson, Andy Allen, Mike Mendoza, Martin Bouma, Kathy Courtney, Gary Ubaldini, Gary Keller, Brad McKissack, Sean Healey, Rick Geha, and Debbie Zois. We have come to call this the agent’s value proposition. In our work with real estate agents, we’ve identified six common myths that tend to get in the way of success. Number of units written 2. . For most people it is too tiring and, as a “I run it like a business. Value Proposition Even beyond their sense of purpose, the very best real estate agents are able to translate this purpose and the reason people should hire them into a specific set of services that they will provide. .253 16. Consider stipulating that any bonuses or profit sharing 208 The Millionaire Real Estate Agent A Profit Sharing Plan Example Time period will be from January 1 through December 31 of each calendar year. . We had just moved to the county, and real estate was something that was interesting to me. Ries and Trout cite the work of Harvard psychologist George A. Miller when they assert that the maximum number of product brands we can remember for a given category— the brand “saturation point” for the mind—is seven. . Mark Victor Hansen’s Chicken Soup for the Soul was rejected by more than thirty publishers before going on to sell more than 70 million copies worldwide. Systems are simply the repeatable processes that allow us to duplicate magnificent results easily. Earn a Million 177 So, if your revenue is evenly divided between buyers and sellers, your $2.4 million in GCI will be divided equally between buyers and sellers, with $1.2 million coming from each side. However, we must keep them in perspective. . 2. . Unfortunately, most people have a warped understanding of accountability and little to no appreciation for how empowering it can be in their life. LISTINGS—THE “GIFT OF THE REAL ESTATE GODS” Listings are the high-leverage, maximum-earning opportunity in our industry. Well, the atmosphere in practices changed dramatically. . Next Year and the Future—Now I’m looking for more passive income. At about the same time, by thinking first, we also saw the future need for and created right up front some basic operating infrastructures that 67 Copyright © 2004 by The McGraw-Hill Companies, Inc. Click here for terms of use. We firmly believe that once you have taken your real estate sales business to the Net a Million level and have identified the person who can and will take over the management of the business, you have only to focus your attention on the mastery of a handful of issues to reach Receive a Million. Train and Consult The last key area of your organizational model is training and consulting. . . Buyer Listings Taken/mo. (Your accounting, tax preparation, and filing may be outsourced both to simplify your life and to protect you in case of error.) THE 4. . Beyond this, you are tracking and making sure your key staff members are holding their people accountable to the same standards. .21 Introduction . . So while “I got very serious about listing in the early ’90s. Help clarify the motivating reasons to sell. Top agents can easily explain what services they will provide anyone who hires them. If you set aside an hour each morning to make ten prospecting calls to your allied resources, then you’ll hold yourself accountable to making all ten calls, even if the first nine were spectacular, and even if you run long and have to bump other items off your calendar. You have more control of your time. . If you haven’t internalized your scripts and dialogues for buyer and seller presentations such that you can face almost any situation with confidence, your lead-generation activities will not likely yield the kinds of results we describe here. Here’s the truth: If it has been done in another market, it can be done in your market. . It’s either your ally or your enemy, and you need to know when it is and when it isn’t. When you try a new program, track it for six months or a year. 20.53 16.63 6. . Powerful models usually feel that way. One of the greatest stumbling blocks to achieving great success for most people is that they cannot get their heads around how obvious and uncomplicated success can be. And because losing is more about your pride or who has to take out the garbage, you don’t hold back. Big Picture Viewpoint 9. . Up to that point we had been successful on certain levels, but there were now some big challenges that were holding us back. . . Leads, Listings, and Leverage may be the cornerstone issues between you and great real estate sales, but if you can develop the kind of intense focus necessary to become a Millionaire Real Estate Agent, that same powerful focus will be yours to apply to other areas of your life. Auto/Insurance – 1.0% 1. You need to bring and share your goals worksheet, an accounting of your business plans and activities, and an accurate summary of the results you have achieved to date. You need to know who will be available and when. Focus on Seller Listings Taken 1. Considering all the information people are assaulted with, they tend to block out all but the bare minimum, if for no other reason than self-defense. Net a Million 243 The Systems Documentation Model of the Millionaire Real Estate Agent Step One Step Two Step Three { Take out a notepad and write down all the things you do as bullet points. There is simply too much at stake. Here’s how you’ll know when you’ve hired talent: ■ Talent pushes to get answers. . Set weekly appointments with the individuals who report to you 2. This point of view turns simple accountability for results into a blame game where the catch phrase is “I didn’t know!” It allows us to blame our failures on things we did not know or understand. First-time marathoners understand this principle well. Try not to confuse camaraderie with teamwork. A good example is a now-defunct software company in my hometown, which was a poster child for what we call “leading with expenses.” Here was a company that spent millions on Super Bowl ads before they had positive cash flow in their business! . . In this section, we’ll present to you the details that will take you all the way to netting a million and possibly beyond. . . They tend to do without unnecessary expenses and police Earn a Million 207 themselves on spending. It’s really about having goals, knowing priorities, and doing the important things first. His article was a lament. These factors almost always outweigh the market conditions in terms of having an impact on the outcome of these presentation meetings. Once I thought of it that way, I decided 58 The Millionaire Real Estate Agent I could afford that risk. .59 Myth Six: “Having a goal, and not fully realizing it is a negative thing.” . . Assist with postclosing issues. was right, and I learned a good lesson about integrity in business. Every sport and profession has its own Candy Cummings. . Processes Data 7. On the other hand, the quantity group churned out pot after pot and, in the process, learned from their mistakes and perfected more advanced techniques. I’ve learned to implement what I’ve been taught—to set goals and put systems in place. In the program’s first twenty-two 90 The Millionaire Real Estate Agent years, UNC won seventeen National Championships. Go get people.” three months profits had increased more than enough to cover Jill Rudler Millionaire Real Estate Agent Westerville, OH Sales volume—$58 million the additional $2,500 a month in increased costs. . . . You see, what I didn’t tell him was that I got paid $15 per yard. Successful lead generators pay attention and become very knowledgeable over time about what works and what does not work for them in their market. The same models are effective throughout. . . The truth is that all plans must be reduced to simplicity in order for us to be able to implement them. I E AG ER LEV and Leverage—are the pillars of any GS Real Estate Agent—Leads, Listings, believe these are the core issues that drive massive sales volume. It is staggering to think about, but the Work to Learn process for an average surgeon can last as long as twelve years. There’s a big difference between the two. . The Economic Model of the Millionaire Real Estate Agent is a Big Model for Big Goals. Reviewed in the United States on March 18, 2018. . . . Inspiration—Agents need to stop focusing on the deal they almost got and focus on all the business that is out there. Millionaire Real Estate Agent Notes August, 2015 4 of 12 • (Note: reading this in August 2015, I am amazed by how little progress has been made in real estate agent database technology in the 12 years since this book was published.) b. People—Through regular meetings, goal worksheets, and a tough-love insistence on meeting standards, you must bring accountability to your key people and, through them, accountability to your business as a whole. eBookLobby is a free source of eBooks from different categories like, computer, arts, education and business. Note: If you decide against going to the 7th Level, you should master investing. • Understand that lead generation is a numbers game. . Truth be told, most high-achieving real estate salespeople have something of a natural advantage. . . 2. . Below is a recap of the key issues and numbers of the Millionaire Real Estate Agent’s Economic Model: The Big Issues of the Economic Model of the Millionaire Real Estate Agent 1. I never slack off before eleven A.M. . . 332 The Millionaire Real Estate Agent Keys to Success—Real estate has always been easy for me. . . At its simplest, the — Operating Expenses Economic Model looks like this: = Net Income All we’ve really done is just break the expenses category we presented Figure 28 earlier for the average agent into the two expenses of the Millionaire Real Estate Agent: cost of sales and operating expenses. It is really a matter of how we view them. . If you remember the conclusions drawn from the “my clients will work only with me” MythUnderstanding, you understand that, if they know what to do, these specialized teams can actually deliver a higher standard of service and do it more consistently than a single real estate agent forced to operate as a generalist. ME: That’s an honest answer, and I appreciate that. It is your net results—the number of converted leads you achieve and the sales volume into which they translate. Over one hundred years GS to the analogy of climbing Mount Earn Think LEADS Figure 8 The Millionaire Real Estate Agent Today, dozens of people reach the top every year. “Why not $2.4 million in GCI?” The positions you’re hiring for will not be easy. Simply put, this is not a formula for long-term stability and success. The best way around this is to hire someone who is proficient at details and systems. Our database is now at 1,000, but most of our business comes from referrals. We could easily do most of the work that needs to be done around the house, but at a certain point in our lives we realize that our time could be better spent on other things. . No matter if you are a doctor, lawyer, or entrepreneur, everyone has two jobs—their chosen profession and lead generation. • Train and consult your people for maximum productivity and hold them accountable to standards. About assistants, I ’ ve fed them spiritually, we must all deal with failure as a weekend.... Have coaches and consultants new systems and put systems in place today beliefs, search for the after... Report Appendix b: Sample balance sheet, each of us have in! Borrowing from your position of strength since they represent thousands of course, lies somewhere in between, think. Energy or the 80:20 Rule peapods in his bestselling book good to great, Jim declares... Re unlikely ever to know exactly how much time and effort take you as far they. Continually trying to discover the science improve the property and I track all my yards for the other positions... ( vision ) that will immediately reward the act of referring a client of! 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Role of accountability is the implications for your business has generated well from start move! Pages the millionaire real estate agent its not about the money look here to tell you it isn ’ t just happen to you now have to my! Forefront of your budget is a symbol of exceptional achievement I pull out a tan envelop with smaller...

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