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This article was last updated May 22, 2023.
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Adam Hergenrother is the founder and CEO of Livian. He believes that business is nothing but a conduit for personal growth and embraces the company’s vision to Love How You Live. When he’s not leading and growing his organizations, you can find Adam either in the mountains or out in nature with his wife and three children.
The Four Agreements: A Practical Guide to Personal Freedom by Don Miguel Ruiz is a wonderfully easy-to-read and understand book. The Four Agreements are simple guideposts for how to live your life to experience true freedom and joy.
The Four Agreements are as follows:
- Be impeccable with your word
- Don’t take anything personally
- Don’t make assumptions
- Always do your best
These agreements can really apply to any area of your life. I won’t get into the specifics here, but I do highly recommend you grab a copy of the book. But, it did get me thinking: Are there agreements we can live by in our real estate businesses that will enable us to have the freedom (financial, with our time, energy, etc.) and fulfillment that we’re looking for?
I think so. This is why we at Livian created our own four agreements – the four metrics that truly matter to increase agent productivity. And we know that agent productivity is just the leading indicator. If real estate agents stay focused on these four activities, the results (of increased income and more freedom) will follow.
Here are the four daily tasks that truly matter for an agent’s real estate business. These are the four questions we ask our agents every day.
- Did you sign something?
- Did you sell something?
- Did you set an appointment?
- Did you add a new contact to your database?
Let’s break these down.
Did you sign something?
This agreement is a bit clearer. Did you sign a listing agreement? Did you sign a buyer-broker agreement? Did you sign a lease agreement? Did you get something in writing with signatures that move your business forward? It’s a simple yes or no answer.
Did you sell something?
A contract is a contract. Did your buyer make an offer that was accepted? Did your seller accept an offer? Did you put a property under contract and send it to your closing department or transaction coordinator?
In our world, a pending contract counts as one of the four agreements. That is something that our agents can help control. Getting to the closing table has many other variables that are often outside your control.
Remember, we’re focused on the activities that, if done consistently, move the needle of your real estate business. And when you have enough pendings in your pipeline, if one or two don’t close, it makes a minor impact to your overall business. Focus on the activities.
Did you set an appointment?
We all know that an “appointment” can get pretty subjective if you don’t define what that means for your agents. We do not consider meeting an old college friend for coffee or attending an open house appointment. An appointment is when you are meeting with a customer or client where the opportunity to sign something (e.g. a listing agreement or buyer-broker agreement) exists.
Did you add a new contact to your database?
Your database and how you serve the people in our database matter. Studies show that for every 12 met people in your database, it should produce one closing (if serviced correctly).
Whether you actually add one new contact a day or not, the real focus here is adding five new contacts per week. Despite all the new technology and frictionless ways of doing business, real estate is still a relationship game. Contacts are key to building your business. And your met database is your business.
Now, you don’t have to do all four of these things every day. But, if you focus on completing one of the first 3 (sign something, sell something, set an appointment) each day and then adding five new contacts to your database each week, you’ll be well on your way to building a successful real estate career. Daily activities are the name of the game. Trust the process, focus on what you can control, and the results will come.
If you are no longer in production but rather leading a team or brokerage, these metrics can generally apply to you too. Did you set an appointment with a recruit? Not just meeting someone at a broker open, but rather set a meeting to talk about their goals and share your team’s value?
Did you “sell” the opportunity to join your team and sign a new independent agent contract? Did you add a new potential recruit, business partner, or vendor to your database?
These four metrics, agents’ four agreements, are clear, simple, and proven. Did you sign something, sell something, or set an appointment today? Did you add a contact to your database? Focus on these four activities day after day, and you will experience true freedom and joy through your real estate business.
Adam Hergenrother is the founder and CEO of Livian, the author of The Founder & The Force Multiplier, and the host of the podcast, Business Meets Spirituality. Learn more about Adam’s companies and culture here.