A plan implies that you have an objective that you are working towards and a method to measure success. Additionally, it helps you assess and evaluate your past actions so that you can act accordingly in the future to reach your goals. Without one, you may notice inefficiency, a lack of progress, or the inability to meet targets.
Step 1: Review and assess the previous year.
- How many transactions took place?
- Were there more buyers or sellers?
- Why did they choose you?
- What were your gross commissions and average commission per sale?
- What were your marketing costs?
- What kind of properties did you encounter? Condos, townhouses, etc?
- How many prospects led to sales?
Step 2: Evaluate your database of clients and potential clients in your sphere of influence
- Has it been updated recently?
- Is it categorized effectively to reflect the best source of referrals?
- Do you have a method or plan in place to get in touch with your clients and potential clients in the future?
Step 3: Honestly evaluate yourself and ask the following questions.
- What obstacles or roadblocks hindered you from performing to your best ability?
- Were there any specific actions that you took that positively impacted your success?
- Which lead generation activity provided the most success?
Step 4: Set your financial goals.
- What is your income goal?
- Calculate the number of transactions you need to achieve your goal by dividing your commission per transaction by your income goal.
- Calculate the number of listings needed to achieve your goal by multiplying your percentage of closed sales that were listings to the number of transactions.
- Subtract listings from total transactions in order to find the amount of buyer closings needed to achieve your goal.
Many financial goals are met by retaining existing clients through repeat transactions and referrals. However, in order to reach your potential as a realtor, it is important to understand the role that prospecting plays in increasing your sphere of influence and acquiring new clients.
Prospecting is when you reach out to potential clients rather than having them make contact with you. After establishing the amount of prospects you will need to achieve your goals for the year, create a plan indicating what prospecting activities you should organize. Be wary of the costs associated with each activity and focus on the following two areas:
Find the sources for leads and establish which markets you want to target.
Examples of sources include:
- Open houses
- Direct mail
- Door knocking
- Expired listings
- Past clients
- Buyer/seller seminars
- Current trades and suppliers you work with
Examples of target markets include:
- Specific neighborhoods
- Renters to first-time homebuyers
- Other first-time home buyers
- Relocation companies
- Out of area agent referrals
There are six communication channels that realtors focus on: social media, telephone, print, face-to-face meetings, email, and mail. However, rather than randomly choosing which channel to use, consider which will be the most effective and efficient given your goals.
For instance, communication with your past clients should be more personal and will most likely be more effective if you sent them mail or gave them a phone call. Conversely, prospective clients may be best reached through social media or face-to-face meetings where you can be sure to highlight what benefits you can provide them in your message.
Prior to acting on your prospecting activities, ensure that you are prepared. Preparation can mean a lot of things, whether it is providing physical items of value like a memo pad or presenting relevant statistical evidence that can easily be interpreted such as graphs.
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