Knowing Where to Spend and When to Save.
REALTORS® get caught up with how to decrease expenses instead of how to increase revenue. Instead, look at your ROI (return on investment) which depends on your market and your strengths. Also, look at your opportunity costs (are you spending money in the right places). Perhaps reinvest your money somewhere that will have higher conversions. Just because something is working for you right now, it doesn’t mean that it’s going to continue working forever (think Blockbuster versus Netflix).
Ask yourself this question: Where can I invest more money to make more money?
“Although profits are required for business just like eating is required for living, profit is not the purpose of business any more than eating is the purpose of life.” – Theodore
The Budget Methodology:
- Make every dollar work for you.
- Have a reserve account.
- No plan survives.
- Don’t live commission check to commission check.
Do you work 80 hours a week?
“Time is more precious than money. It’s a nonrenewable resource. Once you’ve spent it, and you’ve spent it badly it’s gone forever.” – Neil Fiore
The Key Indicators:
- How much is your time worth?
- How much is a lead worth?
- How much is a “follow up” activity worth?
- What are you willing to spend on marketing a listing?
- How much is repeat & referral business worth to you?
How will you invest your time to get those appointments?
Always scale it back. For example: 96 Appointments/Consultations ☞ 48 Listings Taken/Buyer Contracts ☞ 24 Closings.
Tools to help you budget:
Invest your Time:
- 1 Hour of Content Creation (one hour a day), 2 Hours of Business Development, 1 Face to Face Daily.
- 80/20 Rule
Tools for Time Management:
Remember: Every lead has a cost.
Thank you Darin Persinger for walking us through where to spend and where to save. Good luck making profit!
– Georgia Sapounas, Community Manager