If it's not working, axe it

Make a New Year's resolution to identify money-losing activities

What are your New Year’s resolutions for 2011? If one of your resolutions is to make more money, a great place to begin is by expanding what is working and by dumping any activity that is losing money.

There are two ways to make money: You can earn more or you can spend less. The easiest way to earn more is to expand your existing profit centers. For example, if you have a successful farm area, expand into a neighboring area. If you regularly convert Internet leads, expand the scope of your website or drive more traffic using pay-per-clicks. If you like representing first-time buyers, spend more time prospecting rental housing. The key point is to build on your strengths.

While many agents focus on earning more, few focus on eliminating non-revenue-producing activities. In some cases, market conditions change. What was profitable yesterday may be a money-waster today.

A major part of the challenge is that most agents fail to track where their leads originate. Unless you track how much money each of your prospecting activities generates, you will find it difficult to recognize what really works and what is a waste of money.