What is more expensive, money spent or time lost?
Time is money. Plain and simple. How we spend our time will equate to how financially successful we are as agents. Driving around with buyers all day is great if they eventually buy, but the time spent in the car driving from house to house can probably be better spent at the office in other ways to build or close more business.
When I first got into the business, I had hired a Realtor coach to help me improve my skills and one of the first things he told me is your priority is not to sell real estate, but to generate leads. What I learned that day was that 80% of our time needs to be spent on lead generation, while the other 20% will be focused on Real estate activities (Open houses, showing houses, listing houses, negotiating deals, paperwork, etc.) It might be hard to rationalize at first, but it’s true. After all, most of the real estate activities cannot be completed without leads or clients. Once this is realized, the next step is determining how the 80% of your lead generation time is spent.
Without question, most of it, if not all of it will be working, nurturing, buying, selling cold leads. As an agent, we might spend somewhere between $2,500-$10,000 or more per year on cold lead generation (the average agent does spend around $4,500 on their business per year). Outside of the monetary amount, the real thing spent is the amount time and energy it takes trying to convert all these leads into clients. After collecting dozens or hundreds of leads, eventually some will convert to clients, and a few clients will turn into deals. Overall, it’s almost like working backward – not very efficient.
The best agents of course do all of this, (as it would be foolish not to) but the biggest difference between them and average is they also spend some of that time to generate leads off their past business. It is their friends, family, and most of all past clients who refer them again, buy or sell with them again, and all at minimal cost/time/energy put into it. It is staying engaged with your relationship sphere – so when someone in their lives is thinking about buying or selling, your name comes to mind and they immediately promote your business.
It is the retention and client referrals that drive their business, the 80%, and in result sets up their pipeline every year. Sometimes, it can be easy to forget this. This method takes patience and a recognition of long term planning and success. I was once told, “Don’t settle on a job, find a career.” It is the same ideal, a long term vision builds a long term career.
Time is not something to take for granted. It is the most important tool you have within your day and only you have full control with how you use it. There are systems, technology, and certainly methods out there to make your life more efficient, so more can be done in less time spent.
Reflect on your business and stop wasting time.