It’s that time of year again—the New Year is fast approaching and along with making New Year’s resolutions, we all start thinking about our career goals for the coming year.
While I believe there is no special starting time for your goals—TODAY is always a good day to get started—the renewing spirit of a new year is a good prompt. This is especially true for REALTORS® who, aside from the obvious tax reasons, are driven by annual numbers when it comes to production goals and accolades.
All the best goal touting gurus will tell you that you can’t simply set a goal and wish for it to happen. You must also define how you are going to hit your goal. In other words, follow, “I want to make $150,000 in 2017” with “by selling ___ homes per month.” (The number that goes in this field will be determined by your commission split and by your average listing price for the homes you list and sell in your market.)
But, as real estate professionals, we need to take goal-setting to another level. We need to identify how we are going to sell those goal-hitting amounts of homes each month.
To do this, you will first need to identify the source of each closing you had in 2016. If you don’t have one already, make a spreadsheet where you label each closed address along with the price and the source of the lead. Possible lead sources include: database, referral from past client, open house, farm, Internet, phone duty, and listings that came from a FSBO or an expired listing. Gather your data and calculate how much each lead source individually attributed to your income.
If your goal is to make $150,000 next year and last year you made $100,000, you are expecting a 50% increase in income. Therefore, you need to realize a 50% increase in your efforts applied to each of the lead sources. For example, if your database has 400 people in it, your new goal is to increase your database to 600 people this year.
In real estate not every buyer or seller turns into a closing, nor does every person you meet at an open house turn into a client. You will need to account for your closing ratio—client to closing—in each category. This means that if 2 of your closings last year came from open houses and you hosted 20 open houses, you should now host 30 open houses to shoot for 3 closings attributed to open houses.
(By the way, did you know that if you host 40 open houses in a 52-week year, you have 3 whole months off from open houses! Plus, think of all the database building you can do through those open houses! Learn more with Your Key to Open House Success.)
Once you know the numbers it will take to hit your goal, you can begin to piece it out month by month. You’ll be able to clearly finish the proper goal-setting sentence, “I want to make $150,000 in 2017 by increasing my database to 600 people and my farm to 250 addresses, doing 3 open houses per month, going on 6 listing appointments per month, meeting with 6 buyers per month, and by talking to 3 FSBOs and expireds each month.”
Having the specifics laid out like above makes it clear for you to see if you are on track to hitting your income goal all throughout the year. More importantly, they are not numbers that you came up with out of thin air; they’re derived from your actual past performance and show you what you can realistically expect when you apply yourself according to your new goal.
To help make this an easier process for you, I’ve made this one-page downloadable sheet of questions. I also go into greater detail in my book Prospecting with Purpose. As always, feel free to reach out to me if you have any questions.
Here’s to a successful 2017 for you!