by Bernice Ross
Inman News Features
Interested in making more money in 2003? If so, it’s time to dump those old money wasters that can cost your business thousands every year.
One of the old adages in business is that if you keep doing the same thing, you’ll keep on getting the same results. We’re starting a brand new year and if you’re truly committed to making more money in 2003, then it’s time to take to “clean house” and throw out all those unproductive things you did in 2002. Where to start? Here’s a list.
1. Taking floor time or opportunity time.
How many transactions did you close in 2002 from sitting on the “up desk?” If you didn’t close a minimum of 6 transactions from taking floor time in 2002, you’re probably wasting valuable time. The problem with floor time is it’s essentially passive in nature. Research has consistently demonstrated proactive business development activities (cold calling, door-knocking, calling on expireds and FSBOs) produce a steady stream of income. When you’re waiting for the phone to ring, you’re at the mercy of others rather than controlling your time and business.
2. Are you
doing too much?
One of the secrets to becoming a highly profitable agent is knowing which activities generate the most money in the shortest amount of time. Virtually all top-earning agents have developed two or three lead generation activities that constitute their primary profit centers. In other words, top producers almost never use a “shot gun” approach. Instead, they work in one or two key areas that are extremely profitable. To incorporate this approach in your business, identify the three primary income-producing areas of your business. Then, for the next 60 days, drop everything else and concentrate on expanding these aspects of your business. This usually yields a definite increase in revenue because you’re working with your strengths rather than your weaknesses.
3. Are you wasting money on farming?
If you have worked your geographical farm for at least 24 months and you did not generate at least two closed transactions last year, it’s time to either do more face-to-face follow-up or to replace this activity with something that is profitable.
4. Are you wasting time networking?
Lots of agents who do virtually no business claim they like to “network.” If you belong to an organization for the specific purpose of generating leads and you closed no transactions from that organization, you need to openly solicit leads (i.e. stop being a “secret” agent) or you need to dump this activity because it’s both a time and money waster.
5. Who needs to be “deleted” from your referral database?
If you have been consistently contacting someone in your referral database at least three times per year via email, telephone or postcards/letters for 18-24 months and have not received a referral, it’s time to stop spending money on them and delete them from your database. Spend your money on the people who refer you business and stop wasting time and money on those who don’t.
6. Are you cold calling because some expert thinks that’s how you should build your business?
How many leads did your cold calling yield as compared to your other business development activities? Did it produce more leads than prospecting your database, mailing and/or calling on expireds or FSBOs? If not, who cares what the experts think—do what works for you.
7. Are you wasting money on a Web site you don’t use?
Has your Web site produced more than one closed transaction in the last year? Is your Web site up to date with your current listings? Can people who are considering listing with you find you easily on the web? If you answered “no” to any of these questions, you need to seriously rethink the money you are spending on marketing via the Web and whether or not this money would be better spent on more profitable activities.
8. Are you wasting time on open house?
Unless you prospect around your open houses by inviting neighbors to attend, open house, like floor time, is a passive activity. Furthermore, the National Association of Realtors says 98 percent of all agents do not follow up on open house leads. If you don’t bother to follow up or if you didn’t generate any closed transactions is 2002 from open house, stop wasting your time doing this activity in 2003.
9. Are you throwing away money because you don’t check your e-mail?
If you don’t have a valid e-mail address that you check daily, then you’re better off redirecting leads to your office or home phone where you will at least receive the message.
Bottom line—find what works for you and concentrate on these activities—as one adage says, “Take the best—dump the rest!”
— Bernice Ross is an
owner of Realestatecoach.com and can be reached at [email protected].