What are the 3 main principles of a successful real estate career? This is the question that is continually asked, in one form or another, by many of the agents that come through our doors. After hundreds of conversations with successful real estate agents around this topic, we believe it boils down to 3 simple, but not easy, principles:
1) Realize this is not a job, you are building a business…your business.
2) Understand that you ARE a salesperson, which means you need to learn and master the sales process.
3) Realize you can not grow your business without systems. These principles are the foundation to having a successful real estate career. Let’s break down each principle one at a time…
Real Estate Sales Is Not A Job, It Is Your Business
This is a mindset principle, first and foremost. It is one of the most important principles in creating a successful career in real estate sales. As an agent, you must realize that you are running a business. You are your own boss, and that is a double-edged sword for some people. When you start out, you realize you don’t have to answer to anyone. You can set up your schedule as you see fit. However you must also realize there is no one to give you a paycheck at the end of the week. If you don’t put in the work, you will not bring home any money.
Also, if you don’t keep a keen eye on your expenses, and regularly review your profit and loss statements (P&L), you may generate a lot of income, but not show much profit, or worse, incur a loss. The P&L statement is very important to your business, and something we will dig into deeper in future posts. For now, drive the thought home that you own a business, not a job. I’ve found this concept to be very difficult for some people who have always had a job, and hence, a steady paycheck.
The paychecks are not steady in real estate when you are first starting out, just like any other business. With the right skills and discipline, you absolutely can create a steady and predictable income. It just takes time, and most give up before they even start because of the inability to wrap their head around the fact that this is a business, not a job.
You ARE A Salesperson, Learn and Master The Sales Process
Too many agents fight the fact that real estate is a sales business. Many have the notion that “sales” is beneath them. They don’t want to be viewed as a salesperson by friends and family, as if “sales” has a stigma about it. The truth is real estate is a relationship based, sales business, and the best agents know this. In fact, I will go so far as to say if you don’t become a student of sales, and the sales process, you are absolutely doing your clients a disservice. Too many agents just wing it, assuming they can get by on common sense and enthusiasm.
While enthusiasm and common sense is absolutely important, you must be competent when it comes to understanding the sales process so that you can properly consult your clients through the transaction. By doing so, you will not only manage their expectations, but you will be capable of relieving a majority of the stress associated with a sales transaction. Remember, when someone hires you to SELL their home, they are not looking for a new friend, they want someone who is capable of giving them what they desire…the most money, in the shortest amount of time, with the least amount of hassle.
Become a student of sales today, so you can build a strong and profitable real estate career for yourself and your family. Understanding the sales process is so important, we will have plenty of posts on this site focusing on all aspects of sales in the future.
You Can Not Grow Your Real Estate Business Without Systems
As your business begins to develop, you will naturally want to grow it to increase not only your profits, but the one thing money can not buy, and that is your time. Creating a business that allows you to have more freedom and time to be with the people you care about and do the things you love is why many agents get into real estate sales to begin with.
In order to get your business to grow, especially if your ultimate goal is to work “on” your business and not “in” your business, you are going to need systems.
Systems are an absolute necessity if you want to take your business to the next level. Do you want a business where you are always scattered and being pulled in 100 directions? Do you want to waste a ton of time doing repetitive, non-incoming producing tasks? Of course not! That is why you need to start creating systems from the first day you decide that you will build a successful real estate career. Systems will also be a big part of this site moving forward, and we will be sharing different systems for all aspects of your business.
These 3 principles, when properly applied, will build the foundation for your real estate business. In our next post, we will be covering the 5 pillars to a successful real estate career. My intention is for these principles and pillars to be the manifesto in which this site will expand on and build upon. In doing so, I believe you will have the tools and skills necessary to not only succeed in this business, but to “create a career worth having, a business worth owning, and ultimately, a life worth living,” as Gary Keller, cofounder of Keller Williams, has so often stated.
What does your vision for your business look like?