They Fail To Complete Market Research and Craft a Business Plan.
In any business, taking the time to create a plan is absolutely a necessity. Some agents do not lay out specific ideas and protocols for their business from the beginning. This will become frustrating during the busy season as you begin to juggle paperwork and client meetings.
Without a detailed plan, you are basically someone wandering through Lower Wacker Drive in Chicago with no GPS: a terrible scenario.
A set of clear and attainable goals backed by market research in real estate will aid your budding business. A business plan or goals can build enthusiasm, add tremendous value and prevent you from wasting time focusing on things that will not increase your income.
After all, seeing a profit is the ultimate goal.
How Do I Fix This?
Before you begin the process of writing your business plan, conduct thorough market research to understand your clientele. Check out our recent post that outlines how to make a comprehensive real estate business plan that will bring you positive results. Within an industry specific business plan, you’ll see several main components:
- Income and Expense Projections
- Market Research and Analysis
- Sources of Business
- Action Plans
- Marketing Strategy
You may add other sections including a list of goals that have clear start and end dates. It is important that your efforts are trackable so that you can adjust along the way for the best results. Having a plan and sticking to it is one of the best uses of your energy and time in real estate.
They Fail To Utilize a Clear Budget and Set Daily Goals.
I get it, you’re excited to get going in the process of building your real estate business. Or, you may already have an established market presence. In either instance, I will caution you: not having a set budget will cause you to waste money in the long run.
From Facebook and Google Ads to printed marketing materials, these expenses quickly add up. Through whichever medium you choose to market your business, the overall budget is of grave importance. It is critical for agents to make each dollar count with realistic daily, monthly and yearly goals that can be used to meet your goals. Daily goals are directly tied to your overall budget. Sifting through prospect contact information, brainstorming real estate marketing ideas, following up on emails and making phone calls should be a daily occurrence for those who wish to create a real estate presence. Those are just a few of the tasks that will help lead you toward success. Real Estate Goals should be attainable and realistic for you to create and reach. Goal Setting is an important skill that can be used both for client interactions and in your quest to build your business.
How Do I Fix This?
Build a spreadsheet that itemizes each business expense with categories including travel, advertising, digital marketing and anything else you spend your dollars on for your business. The creation of your budget goes hand in hand with your Marketing Plan, outlining exactly when and where each dollar will be spent.
Map out a goal chart that includes prospect hunting, lead nurturing and social media interaction as key tasks to complete daily.
They Fail to Realize Success Takes Time.
One of the mistakes repeatedly seen within the real estate field is eager agents who dive in fresh out of training courses expecting immediate results from their efforts. Even if you invest in high quality real estate training, it will take time to master the topics that were presented to you. Spending time studying new real estate strategy, attending seminars and bouncing ideas off of fellow agents will quicken your path toward success. Remember, it’s a journey and you will always be improving.
If you are a seasoned agent, supplemental education will keep your skill set polished and allow you to remain up-to-date on the latest and greatest real estate trends, laws and technologies. It is easy to fall behind or allow your sales and marketing techniques to become monotonous. Shake it up a bit and see if you get a positive response.
How Much Time Does it Really Take to Level Up?
If only this were a round of poker and you could bluff your way to winning…in this industry, you simply cannot. In theory, it could take up to 6 months to sell your first house. As with any other career, you will have to continue training and learning along the way. A great avenue of building your skill set includes finding a Brokerage who is willing to support your journey to becoming a successful agent. The right Brokerage will often provide you with staff and veteran Managers who are willing to help you.
They Fail To Choose the Right Brokerage and Take Advantage of Real Estate Technology.
You received your license and now you are flooded with options on which Brokerage to join. It is fairly easy to become overwhelmed and feel pressured to choose quickly. I am here to urge you to consider every option. Not all Brokerages are created equal to set you up for success in real estate. Some brokerages offer comprehensive technology that automatically provide you a real estate website. Additionally, some CRM platforms automatically email leads and keep you in the loop with your clients easily. Not using these tools can be a waste of time, money and a detriment to your efforts to grow.
Which Brokerage should I choose?
Head over to our recent article outlining the differences between popular commission structures in real estate. There are many options to choose from, you can go the route that suits your needs best. More importantly: Research, Research, Research. Choosing a Brokerage is as important as deciding upon a new home or which college to attend. Take every measure to decide which real estate commission model fits your style and expectations. Here are some key questions to consider when deciding on a brokerage to join:
- What is the reputation of the Brokerage like?
- What Commission Structure(s) are offered at the Brokerage?
- How much agent support does the Brokerage offer you?
- What types of Technology and Training do they offer?
Choose wisely and do everything in your power to support the Brokerage that you choose. Their training and technology will contribute to your personal success as an agent.
They Fail to Properly Use Marketing Dollars alongside Networking.
Real estate professionals ‘round the globe will emphasize that in order to attract potential buyers, you should aim to launch solid marketing campaigns through diverse channels. For agents who have little experience with Digital Marketing and even Traditional Marketing techniques, it is fairly easy to waste money on a campaign. A specific area where agents lose money, is through social media marketing. There is a learning curve to understanding how to properly target your audience and build an attractive ad.
How Do I Fix This?
This is where your choice of Brokerage will come heavily into play. A 100 Commission Real Estate Brokerage allows agents and brokers the flexibility to invest their extra commission dollars back into their own business in any way they choose. Frequently, agents choose to use the extra commission money to bolster their real estate marketing strategy. More potential clients can be reached with the additional dollars being allocated for Marketing.
Networking in real estate is your lifeline to meeting local leaders, attracting new leads and building your market presence. Check out your local chamber of commerce as well as other groups and events where you might be able to meet potential sellers and home buyers.
Now that you know what not to do, get out there and crush it!