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Newspaper headlines portend a recession in the U.S., but now’s the time for agents and brokers to create their own headlines, according to Dermot Buffini, CEO of real estate coaching firm Buffini & Company.
Buffini spoke Wednesday at Inman Connect Las Vegas in a session called, “There is a Recession Coming, But We’re Not Participating.”
“There’s an opportunity to grow through this next season,” Buffini told attendees.
Instead of getting caught up in the latest drama that doesn’t apply to your business,”I want to encourage you to create your own headline,” he added.
Agents and brokers should pause and think about their next 12 to 18 weeks when it comes to their business, their finances, their home life with their kids.
“What do you want to see your headline be in the next 100 days?” he said, showing a slide with headlines such as “Realtor Generates Record Number of Referrals in 100 Days,” Realtor earns $370,000 and takes 5 weeks off a year,” and “Realtor swims in a surplus of cash.”
Buffini & Company looks for four outcomes for their clients: more referrals, more sales, more net income, and more time off, according to Buffini. The firm has developed a formula for a referral-to-close ratio: contact 20 people and get three referrals to generate one closed transaction.
Regarding net income, Buffini pointed out that during hot markets, habits can get “a little bit sloppy.”
Now that the market is shifting, “this is a great opportunity for you to reevaluate all of your expenditures,” he said. “It’s really important to evaluate if that money is getting a return on your investment.”
“You want to make sure there’s enough fuel to continue to run your business,” he added.
He recommended the 70-10-10-10 formula: Live on 70 percent of what you earn, save 10 percent, give 10 percent, and re-invest 10 percent.
Buffini also encouraged attendees to invest in themselves, citing a quote from Jim Rohn: “Investing in yourself is the best investment you can make. It will not only improve your life; it will improve the lives of those around you.”
In that vein, he advised attendees to take time off, noting that his firm has “Good Life Fridays” where employees can take the day to “take a long weekend. Do something you love. Do something with someone you love.”
“A recession is too good an opportunity to waste,” Buffini continued. “What book do you need to read? What training class do you need to take? I highly recommend you consider coaching. We’re not the only ones out there. There’s plenty of options.”
Lastly, he recommended episodes of his brother’s podcast — “It’s a good life,” formerly The Brian Buffini Show — in which he talks about how to recession-proof your business.
“I don’t listen to him because he’s my brother,” Buffini said, prompting chuckling from attendees. “But highly recommend you listen to that.”
He finished by reminding attendees to be “very wary of today’s headlines” and to create their own.
“You’re the no. 1 asset in your business,” he said.