5 Steps to Effective Goal Setting for Real Estate Agents
Post by Guest Blogger and EXPO Keynote Speaker, Josh Flagg
I’m not going to bore you with a bunch of stupid goal-setting acronyms, like S.M.A.R.T. goals or D.U.M.B. goals. You don’t need cutesy phrases – you need a goal setting strategy that’ll actually take you where you want to go as a real estate agent.
Step #1 – Know your average income per property
The very first step to setting good goals is to know where you currently stand. To get a rough estimate of your average income per property, take your total income last year and divide it by the number of properties you sold (whether as a buyer’s agent or a seller’s agent).
Say you made $10 million last year and you received a commission on the sale of 20 different properties. That puts your average income per property at roughly $500,000. If you want to, you can break things down further by looking at your income per property based on whether you represented the buyer or the seller, or by averaging your income based on the number of properties sold at different commission levels.
Really, the exact metrics don’t matter that much. All you really need to know is roughly how much every deal you do is worth to you.
Step #2 – Define your lifestyle requirements
Next, take a look at the lifestyle you want to live. How much is the monthly mortgage payment on your dream house? How much will you need to be able to afford the luxury car you’ve always wanted to own? How much do you want to set aside each month for your retirement, for your children’s college accounts or for your own “travel the world” savings fund?
Have some fun with this step! I have pretty expensive tastes, so my lifestyle requirements are very high. In your case, it might be unrealistic to go from earning $100,000 a year to $10 million, but you’ve got to know what you want to get out of life if you’re going to set the goals that’ll get you there.
Step #3 – Compare needed sales to existing sales
Once you’ve figured out what you’re currently making and what you want to make, look at the difference between these two figures. I was never great at math, but I can tell you that if you want to live a $1 million lifestyle and you’re currently only making 20 sales a year at an average $25,000 in commission, something’s gotta change!
In real estate, you have two options for increasing your income – you can either sell more properties or you can sell higher-dollar listings. Obviously, I’m a big fan of the second option. I typically only take on 10-15 sales a year because I’ve built my career on dealing in high-end properties in one of the country’s wealthiest areas.
If you live in a rural community or one without much expensive inventory, you may not have this option. However, by looking at what you want to earn and what your options are for getting there, you should be able to figure out a plan that’ll get you to the lifestyle you want to live.
Step #4 – Conquer your weaknesses
Now, look at your plan of action and figure out what’s holding you back…
Suppose you want to get involved in the higher-dollar transactions in your area. What’s stopping you from doing so? Do you need better marketing systems? Do you need to be more active about networking in order to get in touch with the right people?
Or, let’s say you want to do a higher volume of sales to reach your lifestyle goals. What do you need to do to get more customers? Do you need to spend more time prospecting every day? Do you need to invest in technology to automate certain aspects of your business and free up more time to work with customers?
Be realistic with yourself about your skills and your limitations. If you’re already tearing your hair out cold calling as many people as possible, you need to either refine your techniques or choose a different approach altogether!
Step #5 – Use good measurement systems
Finally, once you’ve figured out how you’ll implement your plan and address the things that are holding you back, make sure you have measurement systems in place that’ll hold you accountable.
In my case, I have a group of close friends – a “mastermind group” of sorts – that I rely on to keep me on track. I can go to these people and they’ll tell me if I’m doing the right things or if I need to give up on something that isn’t working.
You need to find these people in your life. Pair them with written records of the goals you want to achieve (along with milestone rewards you’ll give yourself for progress along your path) and you’ll find it easy to meet the real estate goals you’ve set for yourself.
Do you actively set and monitor goals as a realtor? Share your own recommendations for staying accountable in the comments section below!
Or read more by visiting http://www.joshflagg.com