Success In Real Estate Sales Is Like Building a New House...It's Done In Phases!

Have you ever noticed that a new house is built in phases? It all starts with a set of blueprints. Then the site is prepped, the foundation is poured, the framing is done, the sheetrock is put up, etc.

If it wasn't done this way it would be like a house of cards, wouldn't it?

A successful real estate career is built in a similar way. In phases. Many real estate agents begin their career with a lot of enthusiasm and often will try to tackle several different strategies to grow their business. This is like the old saying, "Jack of all trades...master of none!" They too end up with an unstable "House of cards"!

The agents who become the most successful have focus. They start with a blueprint.  They have a specific plan and it starts with a strong grasp of the fundamentals to build a solid foundation. Here's an example of how to phase your business. It takes a massive amount of work and focus in the beginning but the successful agents are motivated and willing to pay the price!

You may not like it and I will say that 90% of the agents won't do this and thus fail at this business! Remember that real estate sales is the "Highest paid hard work and the Lowest paid easy work there is."

Here are the Phases that lead to success and longevity in this business:

Phase 1= Pay The Price: 

High Work Output! Low leverage! 

You must commit to prospecting a minimum of 3 hours per day, 5 days per week, for 3-5 years! Already lost some of you huh? Sorry but the fact is that you simply MUST do this in order to build a strong foundation. Prospecting is hard for most agents for a variety of reasons. I personally knocked on doors...every day for my first 10 years in the business. I'll admit, in the beginning, I was petrified! Once I learned exactly what to say though I had a lot of FUN! And the more I did it the better I got and the better I got the more business I produced. I also did a ton of telephone prospecting, specifically to get appointments with FSBO's and expired listings...which was very lucrative as well.

See when I first started, like many, I didn't have money to invest in advertising, marketing or for joining networking groups etc. I had to HUNT for the business! So I did the fundamentals that cost me nothing but time and energy! What's funny is that after I did enjoy some success and had the money to invest in passive prospecting I found that it didn't produce the results. It was, in large part, a waste of my cash!

So, if you're new in the business or you haven't done Phase 1 in your career then you MUST if you desire greater success. Period! I can almost hear the excuses...believe me I had my share of days when prospecting was the LAST THING I wanted to do and came up with all manner of creative reasons for not getting up out of my chair and hitting the streets! But I made myself do it and I always generated a lead or many leads when I did what I needed to do! 

During Phase 1, You also must improve your skill sets by practicing a minimum of 30 minutes a day to learn your scripts, dialogues, listing and buyer presentations, etc. 

Become a master of your craft!

Had I not, I would never have lasted for 36 years and counting in the real estate business. Period! Once you get through Phase 1 you can then move to Phase 2.

Phase 2 = Build It:

Years 5-8. 

You've graduated from Phase 1. You've paid the price, you're closing 30-40 transactions per year now it's time to FOCUS on taking LISTINGS! Now you'll use the skills you've earned and make your machine purr like a kitten!

Now you'll build your team! In Phase 2 you'll generate 8-12 listings per month. That's 2-3 listings per week. Next, hire a transaction coordinator. That is your first hire. You'll compensate them with a per file fee for managing and closing the escrow.

Your next hire will be your assistant. They will do all of the tasks that you don't like to do and that are the least profitable. You will focus only on what's most profitable and what you most like to do! This is where you become a leader!

Next hire, a buyers agent. So you can continue to focus on LISTINGS! Give them a 50/50 split on the leads you generate and a 60/40-70/30 split on leads they generate or whatever makes sense to you. You must provide value to your team through leads, leadership, knowledge etc.

Phase 3 = It looks like whatever you want it to look like!

This is where you work less and earn more. You reap the rewards of all of your hard work in Phases 1 and 2! Maybe you'll begin investing, opening your own office, coaching others...whatever you want!

So ask yourself and be honest, "What Phase are you currently in?" "What Phase should you be in?"

Rock On People!