Track and Improve Your Brokerage’s Performance

January 9, 2019

January 9, 2019

The secret to becoming a top agent in any market is to keep improving. It is no different from athletes who strive to master their sport. To be the best at what they do, they need to dedicate hours of their time working on their craft on a daily basis. They must carefully plan how to go about their training before they even start practicing. After that, they need to take the time to evaluate their performance, and if they don’t achieve the goal they have established for themselves, they have to start the entire process all over again until they get it right.

Just like these athletes, you need to go through the same process of planning, practicing, and analyzing if you want to be successful every time you explore a lead or handle a deal. Or, at the very least, there must be a significant improvement in your performance as a realtor.

To achieve this, you need a consistent and strategic business workout. And using our Datz RMS software, you’ll be able to do it in less than 20 minutes a week. I wanted to introduce a glimpse into the methodologies that I have applied to my own brokerage and the some of the systems and processes that I have automated. These automations first began as an in-house attempt to bring structure and performance improvements to my team and soon developed into a full-fledge real estate management software solution that other brokerages have adopted and many other agents either as part of their brokerage or independently.

Step #1: Enter your sales ratios in the RMS regularly.

Why It Matters

Your own sales ratios serve as your road map to running your business. They put a number on your overall efficiency – how you function, how you think, and how you perform. They will tell you which parts of the sales process you excel at, and which parts you need to improve on. In having this valuable information, you’ll be more equipped to devise better ways to help you secure more deals and earn more commissions.

You might not realize it now, but a small improvement in one aspect of your sales process could mean an additional $10,000 in commissions for you.

How to Do It

Entering your ratios into your RMS program is a simple and straightforward process. All you have to do is to report to work regularly and spend a few minutes inputting what you’ve done for the day. This includes how many people you talked to during the day, and how many listings you closed. If nothing was accomplished on certain days (for example, if they were holidays), then enter the applicable zeros as well.

As time passes, you’ll have sufficient data to analyze on a daily, weekly, monthly, and quarterly basis. Soon, you’ll start to notice trends or patterns in your business. It is the RMS’s goal to help you gain a better understanding of how you operate, allowing you to identify which of your efforts are worthwhile, and which are not working for you.

Step #2: Track the results of your marketing activities using the RMS regularly.

Why It Matters

As a real estate agent, your marketing should work for you and not to your disadvantage. You need to be able to trust that it’s doing its job of generating closable leads for you, especially since these marketing strategies are usually expensive undertakings. Just like in knowing your sales ratios, knowing the performance of your marketing activities helps you identify what works and what doesn’t. Therefore, you can decide which lead sources are worth investing more on, and which ones need to be improved further or must take the back seat in the meantime.

How to Do It

The marketing field on your RMS dashboard was designed in a way that makes it easy for you to monitor how much time and money you’re spending to generate prospects. The program also allows you to track the results of all your marketing efforts, including the revenues generated from each one. For example, you’ll be able to track your lunches with prospects, how many flyers you release every month, how successful your door-knocking activities are, and how much income you’re generating from handling referrals alone.

Along with the information you gathered from your sales ratios, you can analyze and use the data you get from tracking your marketing activities to help improve your business.

Step #3: Update your sales deals in the RMS regularly.

Why It Matters

Your goal as a realtor is to earn commissions from the sales deals you close. Hence, it is imperative that you also track your deals regularly. You can set aggressive but achievable goals for yourself, and you can even outline the methods through which you plan to meet your targets, but all of those are pointless if you don’t religiously enter the relevant data about your sales deals. If you don’t monitor the deals you close and how much you earned from them, how will you know if you’re on your way to achieving your income goal for the year?

How to Do It

The RMS breaks your sales deals into three categories: (1) pending deals, (2) firm deals, and (3) closed deals. A pending deal means a property has an offer but has yet to close officially, and therefore, your commission is also not guaranteed yet. A firm deal means the offer has been accepted, and your commission is guaranteed though still unpaid. Lastly, a closed deal means the sales transaction is completed, and your commission has been paid.

On your RMS dashboard, you’ll be able to track all three types of deals. You’ll start by adding your pending deals, and then, you’ll regularly update them until they transition into firm and closed deals. The RMS will also show you how many deals and commission you’ve earned at each level. In time, the software will be able to show you whether you are on your way to hitting your sales targets and income goals or not.

The great thing about having a business plan and a real estate management system you can rely on is that you don’t have to spend additional and more grueling hours to be successful. The Datz RMS and our 20-minute business workout have made growing your business so much easier for you.