I admire the organizational skills of one of my team members, Matt. He has systems that constantly show him throughout the year how many sales he has had and how much more he needs to do in order to reach his goals. He’s pretty amazing at it. But, he represents a small percentage of Realtors that keep such good track of their numbers – let’s be generous and go with the 80/20 rule and say only about 20% of us are as organized as Matt.
For the rest of us (yes, me included), I’ve put together some useful tips for getting your goals onto paper and into action for the New Year. Use these goal-setting tips in conjunction with the Four Tips to Jump Start Your Real Estate Career in 2016 from my previous post to really position yourself for a successful year!
I urge you to take action now, today, pronto with these tips! If you don’t start right at the New Year, it will be spring before you know it, then the “busy” season will leave you with no extra time – you’ll find yourself halfway through the year and still no measurable plan of action to show you if you are hitting your goals or not.
Goal Setting Tip #1: Gather
Print out your 2015 activity. If you don’t already have them in a spreadsheet, you can either email your MLS board or your office manager. They usually send you your stats in an excel spreadsheet, which is perfect. If not, transfer the data to excel. Next, organize the data into categories by closing types: listings, buyers and leases. Then, go through each category and determine two things: a) how much money you made in each category and the sales volume; and b) the lead source for each transaction.
Goal Setting Tip #2: Evaluate
Which categories did you make your most money in? Did you represent tons of buyers but only have one listing? Do your transactions consist mostly of leases when your desire is to move strictly to sales? Where do you see most of your leads coming from? Make the following categories and count up your lead sources for each:
- Personal Database/Past Clients/Referrals
- Open Houses
- Web Leads (include other online sources such as leads from Facebook ads)
- Office Leads
- Phone Duty
Goal Setting Tip #3: Identify
Now that you have evaluated your data from the previous year, identify your strengths, weaknesses and income goals. If a large majority of your closed transactions came from your database, that is where your strength resides. Now, you can see you have a weakness when it comes from growing your business with open house and farming leads, etc. Next, decide on your income goal for the coming year based on what you made this year – hopefully you choose a larger number!
Let’s look at the chart below for an example. If you made $90,000 in 2015 and evaluated that 80% of that income came from database leads, and you know you have a rockin’ and rollin’ database system in place, you can now determine that you could earn the same amount of money from your database if you kept up what you have been doing, while making room to add focus on other areas of your business, such as open houses and farming.
|2015:||$90,000||80% = database, 10% web leads, 5% = open houses, 5% = phone duty|
|2016 Goal:||$180,000||40% = database, 20% = open houses, 20% = farming, 15% = web leads, 5% = phone duty|
In both years, your database earns you $72,000 in income. But through identifying and evaluating your weaknesses, now you know that you need to set goals to increase your income through using other avenues of your business. By adding open houses, you can increase your business by $36,000 in 2016, and so on, helping you to reach your goal of $180,000.
Goal Setting Tip #4: Set
You now know which of your weak areas you need to nurture so you can grow your income in 2016. Now, it’s time to set measurable goals so that you know how to better implement those sources of income. For example:
“In order to hit my goal of $180,000 in 2016, I need to do 40 open houses so that I can increase my database by 160 people and earn $36,000 more in sales this year from open houses.”
Pick up a copy of Your Key to Open House Success to learn more about the 4 X 40 = 160 Principle. For our example today, you’d only need to close 4 transaction at $300,000 each from the 160 people you should be meeting at open houses to achieve your goal!
“In order to hit my goal of $180,000 in 2016, I also need to diligently farm my neighborhood so that I can close $36,000 in transactions from my farm.”
And lastly, “In order to hit my goal of $180,000 in 2016, I only need to slightly ramp up my web lead program, so that I can increase my sales due to web leads from $9000 to $27,000. This could mean two more sales of $300,000 homes. Also, if I double my phone duty shifts from two a month to four a month, I can double my income earned from phone duties, so that my time spent is only 5% of my time monthly, but I increase my income in order to hit my $180,000 goal.”
(Typical work week is 40 hours…5% of 40 hours is 2 hours. 2 hours is the typical phone duty shift.)
Goal Setting Tip #5: Measure
Set alerts in your phone’s calendar on the first of every month so you can measure your progress. Evaluate areas of your business that you need to strengthen in order to hit your goals. Use a tool that resonates with you – whether it is a chart you shade from the bottom up as you earn income, or another spreadsheet. Either way, keep tabs of how you are progressing throughout the year. If you see yourself falling short, talk with a mentor about what you can do to get better in your weak spots.
The benefits for setting goals as a real estate agent are innumerable. They will keep you on track and motivate you, show you your weak spots in your business, and, if you’re hitting your goals, let you pat yourself on the back for a job well done – and let you know to set your sights higher next year.
Best of luck with setting your goals and hitting every single one of them!
Have you ordered your copy of Your Key to Open House Success? Filled with tips and strategies, it is sure to help you reach your goals in 2016!