How Much and How Do Real Estate Agents Make Money? (VIDEO)
It is clear that the good agents and the profitable agents know something that the others don’t know. After analyzing the conversations let me share with you want I found.
Here are secrets to being a profitable real estate agent
- It’s a numbers game.
- Follow-up creates Winners
- Busy kills sales and momentum
Yes, these three secrets may sound simple but that’s where you are wrong. “The greatest leverage comes from the smallest pivot point.” You might say you have heard these secrets before or you know this stuff already. Or you might be thinking where is the new stuff? But let me address the biggest reason why real estate agents fail first. Based on hundreds of conversations with those agents who are stuck under the $ 30,000-a-year level. That means they are losing the game of being a real estate agent and are trapped in a business cycle that resembles depressing chaos.
Agents fail to become Awesome because they fail to execute systems and implement them. They are afraid of the telephone and can’t control their lead guilt. Lead guilt is that lousy feeling or knot in your stomach when you are getting leads but not following up with them. Allowing them to go cold because you are “busy” and not responding in a timely manner. Failing agents are busy but not profitable. These agents don’t understand busy is not profitable. They don’t know how to focus their energy on dollar-productive tasks rather than busy tasks.
Realtors Marketing Strategies
Failing agents spend their time bouncing from the new widget, or secret marketing strategy to the next secret marketing strategy. Without implementing or giving the strategy time to work.
Profitable and successful agents understand nothing works the first time and that everything takes time. You need to have the time and systems inlace to follow up with your leads. Why?
Only 3% of your leads are ready to buy right now. That’s right 3%! That means 97% of leads are displaying buying intent, however, are not ready to take action. This could be buying or selling or renting. There is a customer journey for every lead. This means the time it will take for that lead to Act. Just because you are browsing properties does mean, you’re qualified and ready to sign a contract.
Leads
Tip: If you would like to know how you can increase the quality of your leads with better list (audience) segmentation. Contact our team, and we will be happy to show you how you can increase conversions and reduce CPA by up to 70%. Targeting those leads in-market with buying intent can save you a lot of time and money.
If you are part of the agents that are stuck you move on to the next lead or lead source. Bad agents say “… leads suck” or “… Leads are bad.” However, this is far from the truth. The best agents know that follow-up matters. Follow-up is all about creating touch points to continually engage all your leads in conversation. The great news is this conversation can happen online, in their head, or with your assistant or chatbot.
Profitable agents know that it’s a numbers game to win. You work the numbers, and you will win the game of being an awesome agent. Profitable agents understand the 3% rule and work the 3% rule. This means continually making a connection with your lead to find today’s 3%.
Tips: Profitable agents know their numbers. They know their new leads, postcards, and follow-up campaign sequence, whether is it 3 days, 30 days, 90 days, newsletters, Facebook Ads, Google Ads, Lead Referrals, and the average time to convert based on lead source.
For example, generating over $100,000 in Commissions takes 200 telephone calls per week. We call this the March to Awesome 100k Additional, where we have created the complete blueprint of how to generate $100,000 in commissions. The formula has not changed, and it is the foundation of sales. However, bad agents want to skip the foundational basics or have a belief that it does not apply to them.
Real Estate Agent Success Formula
The success formula is all numbers. 1,000 touches a week, 200 outbound phone calls result in 40 conversations. Which will be 4 appointments and 2 listings. Why 1,000 touches? Touches are everything that is not a conversation. This includes Facebook messages or social media posts, postcards, newsletters, letter mailings geo-farming to generate your 3%. Touches are reasons for you to engage with your list on video channels. A touch can cause an inbound buying intent action. This means that your lead has the intent to do something with you or refer you.
Winning agents are continually looking for systems and ways to engage. There is nothing better than an inbound phone call or conversation request via SMS, FB, or Web chat. However, this is further stimulated by outbound calls. There is a difference between buying systems to use and implementing them into your business. Implementing even the simplest of simple beats complicated or fancy systems.
Yes, that’s right outbound calls, the telephone is still the best way to do business. Yes, there are other channels like FB, Text Message, or WeChat but it is all related to the telephone. The more you call and have active conversations rather than passive the more deals you will close. Active conversations are moving people toward contracts. Passive conversations talk about social topics and don’t have any commitment or obligation to act.