Realtors must perform three tasks to make money.
Of course, you have to do other things to make sure you get paid, but those things are not actual money making activities.
What is the difference?
Think of it this way: several essential things must happen to close a deal that you already have under contract, like ordering the home inspections, filling out an addendum, etc, but those things do not actively make money come in the door.
Money making activities are things you do which increase your production, that take you from having four deals under contract to having five.
The Three Real Estate Agent Money Making Activities Are:
#1: Setting Appointments. Includes your lead generation and lead follow-up activities and includes anything you are doing that leads to your setting an appointment for a buyer consultation or a listing consultation.
#2: Appointment Conductions. You were successful with setting an appointment. Now you must deliver a great buyer consultation or listing consultation so you can turn that appointment into a signed/committed client.
#3: Writing/Negotiating Contracts. Once you get the first two items on this list completed successfully, you need to lead the process to getting your clients under contract, which entails writing and/or negotiating contracts that result in an accepted contract for your clients.
These are the only three activities that lead directly to making money.
Some may say things like, “I have to write up this repair request form which is necessary for the closing to move forward, and eventually close to get a commission check”.
But that is still not a money making activity. It is nurturing business you already have. Yes, this action is essential, but it is not increasing the number of properties you have under contract.
Also, I am sure you have heard of the 80/20 rule: most people spend 80% of their time on the items which make them 20% of their income, and only 20% of their time on the things making them 80% of their income.
But top real estate producers understand the 80/20 rule and flip it around. They make sure 80% of their time is spent on what makes them 80% of their income, and 20% of their time on what makes them 20%.
If you want to become a top producer, you must spend 80% of your time, energy, and focus on these three money making activities.
Thanks for reading!
Joshua Smith, Realtor/Mentor/Entrepreneur
-Voted 30th Top Realtor in America by The Wall Street Journal
-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily