Are You in the 80%?

Do you have a business plan you’re putting into action right now? If you answered “no,” then you’re in the 80% of agents – new and veteran alike – who go into a new year with no business plan. This is a recipe for failure, according to legendary real estate coach Tom Ferry. 

Ferry recently gave a presentation at C.A.R.’s REimagine Real Estate Virtual Conference & Expo where he provided bite-sized, actionable steps REALTORS® can take TODAY to help them achieve success. The complete session recording is available to watch on demand. 

According to Ferry, the next 12 months are going to be extraordinary for residential real estate agents who are doing the work and keeping their clients informed. 

One of the points Ferry kept driving is that you have to know exactly what you want.  You can’t just say you want to do more sales than last year.  You have to define it. 

To put it into perspective, Ferry shared a quote from one of his friends “People who are vague get punished. People who are clear and specific get rewarded.”

Setting Appointments

For starters, Ferry recommends figuring out how many appointments you need to go on to achieve your transaction goal. According to his research, you’ll get one buyer for every four buyer consultations and one out of every two listing appointments. This does not imply listings aren’t selling – on the contrary. What it means is you’re getting outpriced, out-commissioned or you’re choosing not to work with sellers due to their unrealistic expectations. 

For example, if you want to secure 50 buyer clients and you know you’re likely to get one out of every four, then you’ll need to go on 200 buyer consultations to achieve your goal. As Ferry says, “it’s about reverse engineering the math.”

Set a Budget and Measure

Don’t be a nonprofit. Set a profit goal, after taxes, so you can be profitable. According to Ferry, your business operating expenses should look something like the one on page 9.

Bottom line: Are you selling houses just to sell houses or are you doing it to alter your family’s future and finances forever? 

The Ultimate Success Formula

During REimagine, Ferry asked attendees to think about their “why.” He says the best way to do this is to make a list of 20 reasons WHY achieving your goals are a MUST for you. 

“If you don’t get your goals and behaviors aligned, you just failed to follow through because you think you have time,” Ferry told the REimagine attendees.

Next, Ferry recommends writing vision letters. Look at your life 5, 10, 20 years from now. If everything was aligned, what would your life look like? Your letters should include EVERYTHING … professionally, your relationships with loved ones, your emotional growth, mental growth and the relationship you have with yourself. Sprinkle in some feelings and really take the time to write it all down.

He explains that when COVID hit he didn’t get as emotionally attached to the now and the “day-to-day drama” because he knows what his 20-year vision is and how he’s going to get there.

Lastly, decide WHO you’re willing to do it for. Want to buy a house for your mom? Want to pay for your kid’s college? Ferry says if you find that motivation, it’ll change your life forever.

Track Your Results

Writing down your goals is essential because whatever you track and measure visually improves. Ferry suggests reporting your results back to somebody – a coach, your spouse, your mom, etc. Do that and you’ll see an improvement. 

“If you don’t track and measure you don’t know,” he says.

Ferry likened this to watching a football game without a clock or scoreboard. He said the clock is really important, but the scoreboard tells me if I’m winning or losing. 

Don’t be part of the 80 percent of agents who don’t have goals or a plan. Be a part of the elite group that does.  It doesn’t matter if you’re brand new or a veteran.

More from the January 2021 Issue:

Getting Clients: No Open Houses? No Problem

Marketing You: Level Up Your Video Presence

Success Story: How I Became Rookie of the Year at My Firm One Year Into a Career Switch