Developing Practices to Drive Growth in Your Real Estate Business
September 10, 2018
September 10, 2018
As a Realtor, it’s only natural to want to dedicate most of your time on income-generating tasks instead of being a slave to the aspects of your business that don’t get you the commissions you need. In reality, however, the average real estate agent spends only about 25% of his time interacting with clients, either listing or showing properties. This means that for 75% percent of their time at work, revenues are not being earned.
It should be the goal of every realtor to flip this ratio around. Instead of spending just a quarter of your time with clients, you should be spending 75% of your time on business-developing practices.
To help you improve your performance as a Realtor, we at Datz Solutions have identified five (5) of these business-developing practices which you need to implement in your real estate practice.
1. Spending time on your marketing and prospecting.
Many real estate agents will tell you how prospecting is their least favourite part of their job. It’s probably because diligently pursuing potential customers doesn’t guarantee that you can successfully convert them into actual and revenue-generating clients. Nonetheless, taking the time to work on the marketing and prospecting aspect of your real estate business is necessary if you want to continuously generate more sales opportunities and eventually earn more commissions.
However, creating a steady flow of new and qualified prospects is not easy for most agents, which is why many of them find themselves constantly prospecting and having little time left to work on their other income-generating responsibilities. Instead of blindly dedicating hours and hours of your precious time searching for leads or potential clients, you must determine:
- Which of your prospecting and marketing methods are generating the leads you find worth pursuing,
- Which ones are generating the most revenues for your business,
- Which ones take the least amount of your time, energy, and money to do, and
- Whether they are already working at maximum capacity or can be improved further.
Once you have found the answers to these questions, you can finally devise an efficient process to generate leads on a consistent basis but in less time, freeing you up to handle other money-generating activities like listing properties and showing them to interested buyers.
2. Training your staff and/or members of your team.
If you’re currently handling your real estate practice all on your own, then perhaps one of the main goals that you should have is to earn enough income that you can afford to hire your staff or recruit other agents to join your team. But if you already have people working in your team, then your objective should be to relegate more important tasks and duties to your subordinates. This way, you can lighten your load and allot more of your time interacting with clients and closing more deals.
However, before you pass on your day-to-day tasks to a member of your staff or team, you must make sure that they are equipped to take them on. That means you need to take the time to train them. Investing in your people now will mostly likely result in generating more revenues for your business in the future.
3. Improving your current processes and creating new ones.
The ability to adapt and evolve is known to be the key to the success of any business. For realtors and brokers, growing your business entails working efficiently to yield better results. To make this possible, you need to master your current business processes and improve them. When necessary, you can even establish new ones if your old ways impede your rise to the next level.
But what happens when you refuse to continually change or improve the way you run your business? Well, don’t be surprised if your real estate practice is no better off today than it was before. Don’t expect to generate better results and see an increase in your revenue stream in the future either. Your chances of surviving as a realtor or a broker in this competitive industry get slimmer and slimmer if you continually refuse to evolve.
4. Tracking your results and improving them.
The only way to know how to improve your business is to know what is working and what isn’t. And the only way to know what is and isn’t working is by tracking your results. Now you may think that this will be a time-consuming and cumbersome process, but it doesn’t have to be, especially if you have a digital solution. We initially built an internal program for our brokerage and expanded it’s functionality over several years to track our processes and monitor their results easily and quickly. We were able to identify which areas of our sales process we already excel in, and which need more attention and further improvement.
5. Managing your current and past clients.
As a Realtor, you are not just in the business of selling properties but in building relationships as well. While it’s true that an average person buys or sells property every 13 years, that doesn’t mean they can no longer be a great source of business after closing one transaction with them. Some of them might decide to buy a property within the next few years. Others might refer you to potential and interested clients if they are satisfied with your performance. You cannot afford to miss out on easy opportunities like these, Otherwise, they might cause you to lose thousands of dollars in commissions.
Each of these business-developing practices requires your serious attention. To cover all your bases, you need to create a steady and systematic approach to handling each one. We developed Datz RMS for this very purpose. If you give it a chance, our program will help you automate your operations so that you can spend the majority of your time with clients without sacrificing your other important duties.