There’s so much noise out there on how to navigate a challenging market. This April, let Inman help you cut through the clutter to make smart business decisions in real time. All month long, we’re taking it Back to Basics and finding out how real estate pros are evolving their systems and investing personally and professionally to drive growth.
The real estate market may change, but focusing on the principles and core strategies of success will always bring business growth. If you’re looking for a spark or a new mindset strategy to focus on, then this article is for you.
John Maxwell’s rule of 5
The rule of five, taught by John Maxwell, is a powerful reminder of what is possible when consistent actions are taken. The rule of five states that if you focus on five specific activities and you do them daily, you will find success.
He uses the example of someone having a tree they want to cut down. His concept is that they will simply pick up an ax, strike the tree five times, and put it down. Then, the next day, pick up the ax, strike the tree five times, and put it down. If you do this every day, the tree will fall sooner or later. Smaller trees will fall sooner than larger trees, but if you hit the tree five times every day, no matter how big the tree might be, every tree you want to cut down will eventually fall.
The rule of five applies to our real estate business as well. If you work daily on your business’s five most important areas, the success you desire will eventually come. So, what are the five things in your business that, if you do them daily, your success is inevitable?
The 5 daily actions might not be the same for everyone, but most agents might include:
1. Lead flow: You must have a system in place to generate new leads daily. These leads might be generated through buying online leads, circle prospecting, door knocking, referral strategies, or any of several other potential strategies. The key is that whatever it is for you, make sure you have a daily activity that is generating leads for your business.
2. Lead nurturing systems: Having systems in place that are consistently nurturing your prospects is critical for consistent business growth. Do you have your leads set up to receive automated property details as new listings meet their criteria? Do you email a weekly or monthly newsletter to your database? To find success, lead nurturing should be a process that is automated.
3. Listing lead generation systems: If you control the inventory, you control the market, and if you have a steady flow of listing leads, you control your business. Systems for generating listing leads might include geographic farming, circle prospecting, or a plan to stay consistently top of mind with your past buyer. Whatever it is for you, consistency of listing lead opportunities is critical for success.
4. Daily real estate-related conversation goal: The foundation of a successful real estate business is the number of quality real estate-related conversations an agent has. If industry averages tell us that the average agent needs 50 real estate-related conversations, then you can easily multiply the number of your desired transactions by 50 to produce your annual goal for conversations.
Dividing that number by 12 (the number of months in a year), you arrive at your monthly goal for conversations. By dividing that number by 4 (the number of weeks in a month), you arrive at your weekly conversation goal. Lastly, you can divide that number by the number of days you will work each week to produce a daily conversation goal.
Having a daily goal for real estate-related conversations is an easy way to ensure you stay on track for your annual goals.
5. Maintain and contact your next 10 list: Keeping a list of the most likely next 10 buyers and the next 10 sellers in your office that you review daily will help you consistently stay in touch with your highest priority prospects. This list should be reviewed daily, and you should maintain a journal of the last time you spoke with each of them.
These are high-priority prospects that you should be speaking with every week at a minimum. You will close more deals by keeping this group front and center of your attention.
‘The Power of One More’ by Ed Mylett
The book The Power of One More by Ed Mylett is built on the premise that an attitude of doing one more something will always lead to success. One more phone call to a past client. One more direct mail piece to your geographical farm. One more buyer consultation. One more listing appointment. One more real estate social media post.
This attitude of doing just one more activity is foundational for future growth.
‘If you can help enough people get what they want, you can have everything you want’: Zig Ziglar
Homebuyers want property information. Homesellers want to know their home’s value and how the market changes are affecting their home’s value. Give homebuyers and homesellers what they want, and the success you want will follow.
‘The Compound Effect’ by Darren Hardy
The Compound Effect is a book based on the principle of reaping huge rewards from a series of small, smart choices, according to author Darren Hardy. The principle states that consistently taking action over time leads to compound growth.
Geographical farming is a perfect example of this principle, if you consistently send out smart messaging via direct mail to a geographical farm, the results you receive in the future will be compounded by the efforts you’ve made consistently. We also see this with consistent social media content providing compounded results over time.
Identify the areas where your efforts will be multiplied over time and stay consistent.
‘Your past does not define you, it prepares you’: Unknown
What may have felt like setbacks in your past were actually set-ups preparing you for future growth. As I look back on times of struggle in my business, it was those times that I learned the most valuable lessons. Perseverance, the ability to identify opportunities, and hard work were all skills I developed in times of difficulty.
If it seems hard to make things happen right now, remember any past struggles you’ve had in your life. My guess is if you’re reading this article, you are undefeated. You’ve overcome everything life has ever thrown at you, and the shift in this market will not be different. You are being prepared for more.
Always remember, the person you are today is a product of your past, and everything you’ve ever overcome has prepared you to build the business of your dreams.
‘The harder I work, the luckier I get’: Gary Player
If you want to grow your business, you must realize there is no easy button. Having good luck is defined as a force that brings good fortune. The “force” mentioned is a product of hard work.
Are you working harder than you ever have? If the answer is yes, trust that your success is inevitable. The harder you work; I can guarantee you the luckier you will be.
‘The path to success is to take massive action’: Tony Robbins
The success you are looking for is right on the other side of taking massive action. So, what areas can you ramp up the level of action you are taking?
If you’re making calls, make more. If you’re holding open houses, hold more. If you’re geographically farming a neighborhood, add more. Whatever it is that works in your business, take massive action if you desire massive results.
Yes, the market has changed, but the pathway to success still runs through the foundational principles discussed in this article. C.S. Lewis has a quote that says, “Most people don’t need to be taught, they need only be reminded.” Let this article be your reminder to return to the basic principles that have helped every successful agent build a business that consistently grows in all market environments.
Jimmy Burgess is the CEO for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Instagram and LinkedIn.