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The FORMULA to Earn $500k Every Year as a Real Estate Agent · Massive Agent Podcast

0:00
SPEAKER_01: On this episode, I'm going to share with you one of the big reasons why you're not hitting these goals that you set every single year and how to fix it.
0:07
SPEAKER_01: And we're going to break it down into incremental bite-sized little chunks, and I'm going to show you exactly how to do that with your real estate goals.
0:15
SPEAKER_01: Let's go.
0:16
SPEAKER_00: The massive agent podcast.
0:19
SPEAKER_00: We need generation tips and strategies to get you more leads and sell more goals.
0:24
SPEAKER_01: I love to buy houses.
0:25
SPEAKER_01: I like to sell houses.
0:26
SPEAKER_00: It takes brass balls.
0:29
SPEAKER_00: Wait a minute.
0:31
SPEAKER_00: Leads a week.
0:33
SPEAKER_00: I've had better.
0:35
SPEAKER_00: Oh have I got your attention now?
0:38
SPEAKER_00: Here's your host, Dustin Brome.
0:43
SPEAKER_01: What is up, everybody?
0:44
SPEAKER_01: Welcome to 2024.
0:46
SPEAKER_01: This is the Massive Agent Podcast, episode 315.
0:50
SPEAKER_01: I am super fired up today because it's a new year.
0:54
SPEAKER_01: It's a new year.
0:54
SPEAKER_01: I feel good.
0:55
SPEAKER_01: My voice is back.
0:56
SPEAKER_01: I mean, at least like 85%, I think, but you can't tell.
1:00
SPEAKER_01: Um, I don't know what I think I had COVID maybe and it it fucked with my throat or voice.
1:05
SPEAKER_01: I don't know.
1:05
SPEAKER_01: I don't know, but it's been a weird couple weeks, but I'm back and I'm fired up because 2024 is supposed to be a much better year as far as real estate sales.
1:15
SPEAKER_01: And what's super exciting about that is not just more sales, but you are in a much better position than you were going into last year.
1:23
SPEAKER_01: You're stronger, you're more resilient, you've buttoned some things up, you've learned some new things, you've built some confidence, you've your communication skills, the way that you communicate and sell your value to others has gotten better because it's had to.
1:38
SPEAKER_01: If you're still listening to this, you're still in this industry.
1:41
SPEAKER_01: Okay, you haven't quit yet.
1:42
SPEAKER_01: Uh congratulations.
1:44
SPEAKER_01: You just survived one of the hardest years in real estate ever.
1:48
SPEAKER_01: Sales were so low, and it was just a rough year.
1:52
SPEAKER_01: Now, you survived one of the hardest years ever for our profession.
1:57
SPEAKER_01: This year's gonna be so much better.
1:59
SPEAKER_01: And not just if everything else stayed the same, but just like more sales happened, great, and interest rates came down, right?
2:06
SPEAKER_01: Awesome.
2:07
SPEAKER_01: But you're stronger and better and in a better position than before.
2:11
SPEAKER_01: So I'm extremely excited to see what happens to this community over the next year.
2:17
SPEAKER_01: And we're gonna start today with breaking down your goals into incremental bite-sized chunks.
2:24
SPEAKER_01: Now, what does that mean exactly?
2:26
SPEAKER_01: I'm gonna get into it.
2:26
SPEAKER_01: I'm gonna give you some specific examples of how to do it.
2:29
SPEAKER_01: And then I'm gonna tell you a story about an agent that I coach one-on-one and how we with a little bit of math, with crunching a couple numbers, we completely changed how uh how he approaches a certain very common situation that agents deal with that he used to dread, but now looks forward to.
2:48
SPEAKER_01: And I'm gonna share with you exactly how to do that.
2:51
SPEAKER_01: This is gonna be a great episode, very actionable.
2:54
SPEAKER_01: You're gonna probably want to take some notes, you're gonna want to you know go back and re-listen a couple times, which is which is great.
3:00
SPEAKER_01: Uh, this, if you get this right, okay, let me repeat this.
3:04
SPEAKER_01: If you get this right today, if you nail this concept and you actually do it, this could be the exact thing that you've been waiting for.
3:14
SPEAKER_01: Like, and it's gonna be so subtle.
3:16
SPEAKER_01: The changes that happen are just going to seem so natural and effortless, but it makes all the difference in the world speak all the difference in the world because you'll be finally focusing on the right things that's right in front of your face.
3:29
SPEAKER_01: And I'm I'll explain more here in a second.
3:31
SPEAKER_01: I've got to do the intro.
3:33
SPEAKER_01: Uh, so let's get that out of the way here.
3:36
SPEAKER_01: Uh, if you are new to the Massive Agent Podcast, welcome.
3:39
SPEAKER_01: My name is Dustin Brome, your host here in Salt Lake City, Utah.
3:42
SPEAKER_01: I've been an agent for going on 13 years now.
3:45
SPEAKER_01: Going on 13 or 14?
3:47
SPEAKER_01: Yeah, going on 13 years.
3:48
SPEAKER_01: 14's way too damn many.
3:49
SPEAKER_01: Going on 13 years in Salt Lake City, Utah.
3:52
SPEAKER_01: And uh this month, January 2024, will be the six-year anniversary of this podcast.
3:58
SPEAKER_01: And we're like uh we're like 1,500 downloads away from hitting a million.
4:04
SPEAKER_01: And just incredible things have happened in uh since we launched this show almost six years ago.
4:09
SPEAKER_01: So this this month, January, is a big month for me personally for this podcast, and and hopefully for you as we build this launch pad moving into the next year.
4:19
SPEAKER_01: Um, if you are, if you have not yet heard, we we just launched a referral network that's very exclusive.
4:26
SPEAKER_01: We vet the members of it because we want agents who are actually selling houses, actually able to bring referrals to the group, actually going to provide a great service for any referrals that they get.
4:37
SPEAKER_01: You know, we we there's so many referral networks out there that uh they just suck because there's agents that don't sell any houses, they don't contribute anything, or they're they're just not any good at what they do, or they don't even live in the area that they're like, oh yeah, I'll drive three hours to service that client.
4:53
SPEAKER_01: Absolutely, send it over.
4:54
SPEAKER_01: And that's not good for anybody.
4:56
SPEAKER_01: So we created a place.
4:58
SPEAKER_01: We were we built a referral network where you must qualify in order to represent your market.
5:04
SPEAKER_01: And there are monthly dues to weed out those who are not so serious.
5:07
SPEAKER_01: If you are serious about contributing to the group, then go to MassiveAgent Podcast.com/slash referral, because when you contribute, you also get back in return, of course.
5:18
SPEAKER_01: Now we're we are reinvesting back into this group and we're gonna be building a public-facing website.
5:23
SPEAKER_01: We're rebuilding the Massive Agent Podcast website, and on that, we're gonna have the referral network uh search engine, if you will.
5:30
SPEAKER_01: So anyone anywhere on the internet can find agents.
5:33
SPEAKER_01: And if you are representing your market in the Massive Agent Referral Network, you're gonna be found.
5:38
SPEAKER_01: And uh just huge opportunity there that I'm really excited about.
5:41
SPEAKER_01: Um, but it takes a takes a minute to build a website.
5:44
SPEAKER_01: If you've never built a website, especially a custom one, uh, it takes a minute and it takes uh a few thousand dollars for sure, uh at least.
5:52
SPEAKER_01: So uh that's being built out right now.
5:55
SPEAKER_01: There are still some major markets unrepresented, some some major markets in the country unrepresented.
6:01
SPEAKER_01: If you go to massive agentpodcast.com slash referral, there is a link to the map.
6:06
SPEAKER_01: You can visually see on the map, you can zoom in and see if your market is taken or not.
6:11
SPEAKER_01: And if it's not taken, you should probably take it.
6:14
SPEAKER_01: As long as you sell a house a month on average and and actually can bring some referrals to the group and live in the area, go check it out.
6:22
SPEAKER_01: And also, uh, I cannot going into this year, you have to be equipped with the right tools.
6:28
SPEAKER_01: Keeping current matters is one of those tools that I believe every agent needs because it's information.
6:36
SPEAKER_01: It's not just information, okay?
6:37
SPEAKER_01: Just more information is not really helpful.
6:40
SPEAKER_01: But having actual, actionable information that you you know what it means, and then you know what to do with it.
6:47
SPEAKER_01: And and more importantly, you know how to direct your buyer and seller clients and investor clients on what to do with it as well.
6:55
SPEAKER_01: Keeping current matters is like having a team of brilliant economists in your back pocket telling you exactly what to do and how to advise your clients, and they give you a heads up before anyone else in the industry knows.
7:06
SPEAKER_01: So go to trikcm.com/slash bam and check out the Keeping Current Matters platform.
7:12
SPEAKER_01: I follow one of their founders on Twitter.
7:15
SPEAKER_01: Every day he's tweeting some of the most amazing stuff.
7:18
SPEAKER_01: Steve Harney is his name.
7:20
SPEAKER_01: Brilliant housing economist.
7:22
SPEAKER_01: Like I learned so much just from his tweets.
7:25
SPEAKER_01: But then the platform they've built for agents is foolproof and idiot proof.
7:30
SPEAKER_01: Try kcm.com/slash bam b-am to check that out.
7:34
SPEAKER_01: And speaking of BAM, please, if you haven't yet, I'm telling you, you're missing out on the BAMX community because every agent that I know that who's part of this community tells me this is incredible, that's such a great group of agents, such a great uh brain trust, if you will.
7:49
SPEAKER_01: And there's so much education and uh and courses, there's online courses being being put into this community all the time.
7:57
SPEAKER_01: Check out BAMX.
7:58
SPEAKER_01: You could just go to nowbam.com and look for the BAMX banner.
8:02
SPEAKER_01: Check that out.
8:03
SPEAKER_01: But if you're gonna join, get your ass a discount.
8:06
SPEAKER_01: Let's make sure you get a discount.
8:08
SPEAKER_01: Use code MASSIVE at checkout and save yourself some money.
8:12
SPEAKER_01: Uh, BAMX and keeping current matters, two incredible tools.
8:16
SPEAKER_01: And then if you can get yourself into the massive agent referral network and claim a market in there, uh you're off to the races.
8:22
SPEAKER_01: Now, what should you be doing this year?
8:26
SPEAKER_01: Okay, now hopefully you have set some big goals.
8:29
SPEAKER_01: Now that's the first step.
8:31
SPEAKER_01: But if you think back to the past, has there ever been a time where maybe you didn't hit certain goals?
8:37
SPEAKER_01: You uh you came up short, or you set the big goal and then you're like, okay, what do I do now?
8:42
SPEAKER_01: Like, what's next?
8:43
SPEAKER_01: I have this big goal, but what do I do today?
8:45
SPEAKER_01: What do I do right now?
8:46
SPEAKER_01: And then what do I do tomorrow?
8:47
SPEAKER_01: If that's you, then we're gonna solve that today.
8:51
SPEAKER_01: Okay, this is a super common issue.
8:53
SPEAKER_01: Now, me personally, I need the big goals, but then I also need to break them down into bite-sized chunks.
8:58
SPEAKER_01: Like, what should I be doing today?
9:00
SPEAKER_01: What should I do this week?
9:01
SPEAKER_01: What do I need to do this month that will lead to hitting that ultimate goal?
9:05
SPEAKER_01: So this just requires some math.
9:07
SPEAKER_01: We're gonna reverse engineer some goals here.
9:10
SPEAKER_01: Now, I can't go through every single one of your goals because I don't know what your goals are, but I'm gonna give you some general examples here and show you how to tweak the numbers on them.
9:21
SPEAKER_01: And then uh it's not ready this week, but I'm building a spreadsheet, a calculator, if you will, that will help you do this automatically.
9:30
SPEAKER_01: You just plug in some numbers, you you can adjust things, and it's gonna it's super freaking cool.
9:35
SPEAKER_01: And I'm gonna make it completely free to everybody, but it's gonna take a week or so to build.
9:40
SPEAKER_01: Um, I thought I would have it ready for this week, but it's not ready yet.
9:43
SPEAKER_01: But hopefully by next week.
9:44
SPEAKER_01: Okay, so stay tuned for that.
9:47
SPEAKER_01: But here's the concept, okay.
9:49
SPEAKER_01: And I I learned this when I was uh in my first year as an agent, my mentor taught me this concept.
9:56
SPEAKER_01: And he had he just had a sheet of paper, and at the top it was how much money do you want to make?
10:01
SPEAKER_01: Pretty simple, right?
10:02
SPEAKER_01: It was pretty straightforward.
10:03
SPEAKER_01: And if we're being honest, that's why you're in this profession, right?
10:07
SPEAKER_01: To earn a living, to make a living, how much do you want to make?
10:11
SPEAKER_01: And then it broke it down.
10:12
SPEAKER_01: Okay, well, if you want to make that, make that much, here's how how many deals does that mean?
10:18
SPEAKER_01: How many closings do you need to reach that?
10:20
SPEAKER_01: Well, that depends on the average price point.
10:22
SPEAKER_01: That depends on how much commission you're earning, it depends on your fees and splits and expenses per deal, right?
10:28
SPEAKER_01: It depends on what your actual take-home check is, what your net is after each deal.
10:34
SPEAKER_01: Well, that can, you know, we can pull a few different levers and change that.
10:38
SPEAKER_01: But ultimately, if you know how much you want to make, then how many deals does that take?
10:42
SPEAKER_01: Well, how many, once you know that, okay, how many clients does it take to get that many closings?
10:49
SPEAKER_01: Unless you're closing 100% of the clients you get, which is great.
10:54
SPEAKER_01: I know some of you probably do, but a lot of you probably don't.
10:57
SPEAKER_01: How many do you need?
10:58
SPEAKER_01: Like, are you closing 80% of the deals that you of the clients you get?
11:04
SPEAKER_01: I mean, some of you get a buyer client that ends up not buying, or they end up, you know, not using you, or they end up, you know, deciding to move elsewhere, or you get a listing that just doesn't sell, or like these things happen, right?
11:17
SPEAKER_01: So are you closing 80%?
11:19
SPEAKER_01: Okay.
11:20
SPEAKER_01: Well, we need to account for that.
11:22
SPEAKER_01: And then what does all this mean per year, per month, per week?
11:27
SPEAKER_01: How many appointments do you need to get that many clients?
11:30
SPEAKER_01: How many calls, how many emails do you have to send?
11:33
SPEAKER_01: How many posts?
11:33
SPEAKER_01: How many videos does it take?
11:35
SPEAKER_01: How many leads from ads does it take to get a certain number of appointments?
11:40
SPEAKER_01: So when you understand all this, you know, okay, I need to do, I need to talk to this many people today, I need to talk to this many people this week, I need to do this many social media uh pieces of content on social this week.
11:53
SPEAKER_01: I need to add this many new contacts to my database every week.
11:57
SPEAKER_01: And when you do that, that's what you focus on, knowing that at the end, the way the numbers play out, your end goal happens.
12:05
SPEAKER_01: But if you're just focused on, for example, earning 500k a year, but you don't know what happens in between, you you could just be spinning your wheels doing all sorts of shit that you you fall up, you you end up falling short at the end of the year.
12:18
SPEAKER_01: So here's some examples for you.
12:19
SPEAKER_01: Okay, I broke this down.
12:21
SPEAKER_01: And like I said, there are a bunch of different levers you can pull, and I'll go over some of these.
12:26
SPEAKER_01: A bunch of different levers you can pull to increase your income or to increase your profitability.
12:32
SPEAKER_01: So, for example, if you want to earn$500,000 in in net income for the year, and and look, you need to specify.
12:41
SPEAKER_01: If you have a goal, you can't just say, I want to make a million dollars or I want to make$500,000.
12:45
SPEAKER_01: Well, is that net or gross?
12:47
SPEAKER_01: Because there's a difference.
12:49
SPEAKER_01: Because you have fees and expenses that come out of your commission, right?
12:54
SPEAKER_01: Uh and and I'm gonna I'm gonna go into those numbers as well and give you some actual hard numbers, some actual examples of how to calculate this.
13:02
SPEAKER_01: So let's start with this number of half a million dollars.
13:05
SPEAKER_01: Your goal is to net after expenses.
13:08
SPEAKER_01: I don't mean after taxes, okay.
13:10
SPEAKER_01: That's a that's a different net because I don't know what your tax situation's like.
13:12
SPEAKER_01: I don't know what all that, but after your expenses, uh as far as transactional expenses, you want to net$500,000.
13:22
SPEAKER_01: Okay.
13:22
SPEAKER_01: Well, then what's your average commission?
13:25
SPEAKER_01: What's your average commission?
13:27
SPEAKER_01: You could figure that out by what is your average check amount.
13:30
SPEAKER_01: You could just go back and look at your previous, you know, 12 months or two years worth of commission checks.
13:35
SPEAKER_01: What's the average?
13:36
SPEAKER_01: You could do that.
13:37
SPEAKER_01: I mean, that's that's easy.
13:38
SPEAKER_01: Or what's your average price point?
13:40
SPEAKER_01: And then what's your average commission rate that you earn?
13:43
SPEAKER_01: Is it three percent?
13:44
SPEAKER_01: Is it two and a half?
13:44
SPEAKER_01: Is it two?
13:45
SPEAKER_01: What is it, right?
13:47
SPEAKER_01: So five hundred thousand dollars, okay.
13:50
SPEAKER_01: If you are uh earning two and a half percent per deal, well, that's twelve thousand five hundred per deal.
14:00
SPEAKER_01: That is twelve thousand five hundred per deal.
14:03
SPEAKER_01: That's 40 deals per year, okay, 40 deals per year, and that ends up being 3.33 deals per month.
14:13
SPEAKER_01: Well, that's not bad, right?
14:15
SPEAKER_01: Doing 3.3 deals a month is much easier than this big half a million dollars, right?
14:23
SPEAKER_01: Now, of course, how much uh like two and a half percent of what, right?
14:28
SPEAKER_01: That also matters.
14:30
SPEAKER_01: So if you're gonna make$500,000 of a$500,000 property, I forgot to mention that, the property's$500K, you're making two and a half percent, that's$12,500 gross, you need 40 deals or 3.3 deals per month.
14:46
SPEAKER_01: Okay, you could round up to one deal per week or one client per week.
14:50
SPEAKER_01: Now, I like I said, there's levers you can pull.
14:54
SPEAKER_01: Well, on a$500,000 house, if that's your average, if you increase your your commission that you earn from 2.5% to 3% on average, just by charging more for your services, instead of$12,500 per check on average, you're getting$15,000 per check on average, which means that instead of 40 deals in a year to earn$500K, you need 34 deals per year.
15:18
SPEAKER_01: So six deals less.
15:20
SPEAKER_01: That's 2.8 per month.
15:22
SPEAKER_01: Okay.
15:23
SPEAKER_01: Well, there's another level lever you can pull.
15:25
SPEAKER_01: Because if you're like, well, two and a half percent, that's just what, you know, that's the going rate in our market, okay, fine.
15:30
SPEAKER_01: What's your going rate?
15:31
SPEAKER_01: Is what I would add.
15:32
SPEAKER_01: What the hell do you charge?
15:33
SPEAKER_01: I don't care what your average for the market is, because there's here's the truth.
15:38
SPEAKER_01: And this is where a lot of limiting beliefs and bullshit stories just come out.
15:43
SPEAKER_01: Okay.
15:43
SPEAKER_01: But I'm gonna be honest with you because this is this is real shit.
15:47
SPEAKER_01: If you believe that you just have to take whatever the market gives you or whatever the listing is offering, that's fine.
15:53
SPEAKER_01: Your commission is gonna keep going down over time.
15:55
SPEAKER_01: That's just the way it is.
15:56
SPEAKER_01: That is a choice you can make.
15:58
SPEAKER_01: But you know there are agents in your market.
16:00
SPEAKER_01: Let's say your average commission for the for the market is 2%.
16:05
SPEAKER_01: Okay.
16:06
SPEAKER_01: Well, there's agents earning 3% on average.
16:09
SPEAKER_01: There's agents earning 3.5%, there's agents earning 4%, there's agents earning more than that per deal on average.
16:16
SPEAKER_01: That's just a fact.
16:17
SPEAKER_01: So they just made a decision to charge more for their services and got really good at defending why they charge that much and making it clear to the client that it's worth it.
16:29
SPEAKER_01: So you could do that too, right?
16:31
SPEAKER_01: But if you, if if you're like, well, two and a half percent, that's all odd I charge.
16:35
SPEAKER_01: That's what that's the choice you've made for your services, two and a half percent is what you charge, awesome.
16:41
SPEAKER_01: But you instead of settling for twelve thousand five hundred dollar checks, you want to increase that.
16:46
SPEAKER_01: You don't want to have to do 40 deals a year, you want to only have to do 34 deals a year.
16:50
SPEAKER_01: Well, at 2.5%, if you bump the price point to 600K from 500, just by going up by marketing to different neighborhoods, by increasing the price point of the deals you close.
17:04
SPEAKER_01: Now you're earning an extra$2,500 per check, you only need 34 deals per year instead of 40, and that's 2.8 deals per month.
17:12
SPEAKER_01: That's less than one a week.
17:15
SPEAKER_01: Let's be honest.
17:16
SPEAKER_01: When you hear that you only need to close two to three deals per month, that's much more doable in your mind, right?
17:24
SPEAKER_01: That's much more empowering to think about than you have to close 34 or 40 for the year, or you have to earn 500K.
17:32
SPEAKER_01: This is the power of breaking it down into bite-sized chunks.
17:35
SPEAKER_01: Well, let's pull the okay, you you've already pulled the lever of price point.
17:39
SPEAKER_01: You went from 500K to 600K.
17:42
SPEAKER_01: Congratulations, awesome.
17:43
SPEAKER_01: And by the way, you can keep going up if you'd like or go down, totally your choice, right?
17:47
SPEAKER_01: You can pull the lever.
17:49
SPEAKER_01: But you you you're now selling six hundred thousand dollar houses on average, and you increase how much you charge for your services.
17:56
SPEAKER_01: So now you go to three percent.
17:58
SPEAKER_01: At 600K, the average commission check for a 3% uh commission is$18,000.
18:05
SPEAKER_01: So you went from$12,500 to now$18,000 per closing on average.
18:11
SPEAKER_01: That means to earn$500K in a year, you only need 28 deals.
18:17
SPEAKER_01: That's 2.3 closings per month.
18:21
SPEAKER_01: When you look at it that way, it's much more attainable, right?
18:26
SPEAKER_01: So let's take it a step further.
18:28
SPEAKER_01: So if you're at this point, you're probably like, okay, I great, yes, 2.3 deals a month.
18:33
SPEAKER_01: I just need to increase my price point.
18:35
SPEAKER_01: I need to increase my commission.
18:36
SPEAKER_01: Uh, by the way, you could also increase the fees you charge if you charge if you charge a transaction fee.
18:42
SPEAKER_01: There's agents charging between$100 and$1,000 per transaction in transaction fees.
18:48
SPEAKER_01: So I talked to an agent the other day that uh what was it?
18:51
SPEAKER_01: It's it's a thousand dollars uh charged to their buyers up front.
18:55
SPEAKER_01: Oh, by the way, uh, that's in addition.
18:58
SPEAKER_01: So it's a thousand dollars and they they get a bunch of extra stuff, and and you know, sometimes there's a rebate involved.
19:04
SPEAKER_01: You can do a bunch of different things, but just for wrapping your head around this, especially since you're probably listening to this versus watching on YouTube, uh let's make it easy for you, nice round numbers.
19:16
SPEAKER_01: If you if you charge a$1,000 transaction fee to a buyer and you do 28 deals a year, that's an extra$28,000 in income.
19:25
SPEAKER_01: And hopefully you're with a brokerage that is not charging a ton in uh in fees, right?
19:32
SPEAKER_01: So with my brokerage, I'll just speak for my brokerage because I know the numbers and you know, they may be more, they may be less than what your than what your brokerage charges you to do transactions.
19:43
SPEAKER_01: So at my brokerage, it's a sixteen thousand dollar cap.
19:47
SPEAKER_01: So you're gonna be paying sixteen thousand dollars to the brokerage um if you hit your cap.
19:53
SPEAKER_01: Okay.
19:53
SPEAKER_01: Now there's a couple, like a couple hundred bucks in fees here or there.
19:56
SPEAKER_01: So but let's say it's like eighteen to eighteen thousand dollars for the year.
20:00
SPEAKER_01: Well, if you're selling 28 or 30 houses, you're actually at my brokerage, they give you all of your cap back, by the way.
20:08
SPEAKER_01: So you're basically paying nothing to be at our brokerage.
20:12
SPEAKER_01: That's another story.
20:13
SPEAKER_01: There are it's my brokerage isn't the only one that does this, that does this.
20:17
SPEAKER_01: Like there's there are ways to earn your cap back at different brokerages.
20:21
SPEAKER_01: So it's you have to factor your split and your cap into your calculations.
20:29
SPEAKER_01: But if you're selling a certain number of houses at the right place, uh going back to episode 314 last week, put your butt in the right seat, make sure you're in the right vehicle that to get you where you need to go.
20:40
SPEAKER_01: If you're in the right vehicle, if your butt is in the right seat, you could not be paying anything to your brokerage at all.
20:46
SPEAKER_01: Your brokerage could actually be paying you if you take advantage of referrals and revenue share and stuff like that.
20:52
SPEAKER_01: So you whatever you are able to do, you factor these in.
20:57
SPEAKER_01: But just for argument's sake here, for example's sake, we're just talking about commission.
21:01
SPEAKER_01: We're just talking about closings and commission.
21:04
SPEAKER_01: But if you want to net$500,000, you have to factor in how much is your brokerage going to take?
21:10
SPEAKER_01: So if you're earning$15,000 to$18,000 per commission check on average, and your brokerage takes$16,000 for the year, well, just you have one more deal for the year to close, right?
21:24
SPEAKER_01: You close one extra deal, it covers the cap for your brokerage.
21:28
SPEAKER_01: And if you're in the right place, they're gonna give the whole damn thing back to you anyways.
21:33
SPEAKER_01: But if not, you close one extra deal and there, you've net the$500K instead of just gross the$500K.
21:39
SPEAKER_01: So factor that in.
21:40
SPEAKER_01: Uh, so the three levers to to make more, increase the price point, okay, like sell more expensive houses is the easy way to say it.
21:51
SPEAKER_01: And by the way, that is a choice.
21:53
SPEAKER_01: You if you've chosen to market to a low priced area with first time home buyers and starter homes and everything.
22:00
SPEAKER_01: There's nothing wrong with that.
22:01
SPEAKER_01: But if you want to make more, you could choose to market to higher end areas.
22:07
SPEAKER_01: So increase the price point.
22:08
SPEAKER_01: The other lever is increase how much you charge in commission.
22:11
SPEAKER_01: And the other lever is increase fees or add a transaction fee, maybe 250 bucks or 500 or whatever.
22:18
SPEAKER_01: Right?
22:19
SPEAKER_01: These things add up.
22:19
SPEAKER_01: So do the math on it if you choose to do those things.
22:23
SPEAKER_01: I'm not telling you you should.
22:24
SPEAKER_01: I'm just telling you you could if you want to.
22:28
SPEAKER_01: Now, when you arrive at uh selling around three deals per month, okay, so all of these examples are hovering around three deals per month to make 500K.
22:40
SPEAKER_01: If you're in the$500 to$600,000 price range of homes, some of you are more, some of you are less.
22:47
SPEAKER_01: You know, do the math.
22:49
SPEAKER_01: But let's take it if you're like, okay, I need to be selling three deals a month.
22:54
SPEAKER_01: What are the daily actions?
22:55
SPEAKER_01: What are the weekly actions required to hit three deals a month?
22:58
SPEAKER_01: Okay, so let's take it back.
23:01
SPEAKER_01: How many, like what's your closing rate?
23:04
SPEAKER_01: How many clients do you have to get to get a closing?
23:07
SPEAKER_01: Are you closing 80% of the clients you work with?
23:10
SPEAKER_01: That's the number that I'm going to run with here.
23:12
SPEAKER_01: So if you need to sell 40 deals, then that means you need 50 clients.
23:19
SPEAKER_01: So 80% of 50 is 40.
23:22
SPEAKER_01: So with an 80% closing rate, 80%, whatever you want to call it, but you're closing 80% of the clients you get.
23:29
SPEAKER_01: And if it's more, congratulations.
23:32
SPEAKER_01: You need 50 clients, not just 40, but 50.
23:35
SPEAKER_01: 50 clients will mean 40 closings.
23:38
SPEAKER_01: So 50 divided by 52 weeks means you need about a client per week.
23:44
SPEAKER_01: Well, how do you get a client per week?
23:46
SPEAKER_01: So I break it down this way.
23:48
SPEAKER_01: And and on a piece of paper, like if you're on YouTube, you can see this right now.
23:52
SPEAKER_01: I just I just wrote all this down on one of my daughter's notebooks.
23:57
SPEAKER_01: You can see this on the screen right now if you're watching on YouTube.
24:00
SPEAKER_01: But over here, oh, nope, over here, I just you start at the top and then work your way down.
24:07
SPEAKER_01: You reverse engineer.
24:08
SPEAKER_01: So you go from 50, 50 clients, how many appointments does it take for you to get a client?
24:15
SPEAKER_01: How many appointments does it take for you to get a client?
24:19
SPEAKER_01: Does it what's your what's your closing rate on like a listing presentation or a buyer consultation?
24:24
SPEAKER_01: Is it is it 50%?
24:26
SPEAKER_01: Let's say it's 50%.
24:27
SPEAKER_01: If it if it's more or less, cool.
24:31
SPEAKER_01: If to get one client per week, you need two appointments.
24:35
SPEAKER_01: Well, there you go.
24:36
SPEAKER_01: Right?
24:37
SPEAKER_01: Now you know you need two appointments every week.
24:40
SPEAKER_01: If you're only closing 25% of the appointments you get, well, then you need four appointments per week to get one client per week, right?
24:48
SPEAKER_01: Know your numbers.
24:49
SPEAKER_01: And it and if you don't know exactly, do your best guess, right?
24:53
SPEAKER_01: And be conservative on these.
24:54
SPEAKER_01: Round, round, round to where it makes it easier to hit your numbers.
25:00
SPEAKER_01: I was gonna say round up or round down, but I guess it depends on how you're looking at it and the context.
25:04
SPEAKER_01: So uh you know what I'm talking about.
25:07
SPEAKER_01: Be conservative on the numbers is the best way to put it.
25:10
SPEAKER_01: So if you know you need four appointments per week, okay, how many people do you have to talk to?
25:16
SPEAKER_01: How many new people need to go into your database every month, every week, to get an appointment?
25:23
SPEAKER_01: How many new leads on social media do you need to get?
25:26
SPEAKER_01: How many, if you're running ads, how many leads does it take to get an appointment?
25:31
SPEAKER_01: Well, if to get one appointment takes 15 leads, well, let's say 20 leads, okay, then to get four appointments, you're gonna you're gonna need 80 leads.
25:44
SPEAKER_01: Once you know that, then you're you're like, okay, every week you need to be getting 80 leads and you need to have great follow-up, and you know, you need to do all that because those, and then then we're at the bottom here.
25:55
SPEAKER_01: Okay, 80 leads you know will lead to four appointments.
26:01
SPEAKER_01: And if your numbers are better than that, great.
26:04
SPEAKER_01: If they're not, okay.
26:05
SPEAKER_01: 80 leads leads to four appointments.
26:08
SPEAKER_01: Four, and I'm working my way up.
26:09
SPEAKER_01: If you if you saw on YouTube, working my way up.
26:14
SPEAKER_01: 80 leads per week going up equals four appointments.
26:19
SPEAKER_01: Four appointments per week equals one client per week.
26:22
SPEAKER_01: One client per week equals 50 or 52 per 50 clients per year.
26:28
SPEAKER_01: You close 80% of those clients, buyers or sellers, you get 40 closings.
26:34
SPEAKER_01: Those 40 closings at your price point of$500,000 at 2.5%,$12,500.
26:43
SPEAKER_01: You have made yourself$500,000 in net income for the year.
26:48
SPEAKER_01: You see how this works.
26:50
SPEAKER_01: It's this is not here's what's crazy.
26:53
SPEAKER_01: We spend all this time, like days and days and days wasting time in junior high, in well, in all school, right?
27:03
SPEAKER_01: With fucking algebra and statistics and sine and cosine and all this bullshit that I don't even know what it means anymore because it doesn't matter anymore.
27:12
SPEAKER_01: You to be wildly wealthy, you need to understand addition, subtraction, some percentages, some multiplication, and and the relationship of numbers.
27:22
SPEAKER_01: Like that's all you have to know.
27:23
SPEAKER_01: This is financial math.
27:24
SPEAKER_01: This is not super scientific, crazy shit.
27:27
SPEAKER_01: And if you need to know like compounding interest, you use a compound interest calculator rather than doing it by hand.
27:33
SPEAKER_01: Like who the fuck knows how to do that by hand?
27:35
SPEAKER_01: I don't.
27:35
SPEAKER_01: I just go to a more mortgage calculator or a compound interest calculator on my phone.
27:40
SPEAKER_01: So if you know that all you've got to focus on is getting 80 leads per week, and then based on your ratio of how many of those you turn into appointments, pretty soon those 80 leads per week turn into half a million dollars in income per year.
27:59
SPEAKER_01: Well, now you know what to do.
28:00
SPEAKER_01: You need to go set up the system to get 80 leads per week.
28:04
SPEAKER_01: If you do us, if you do cold calling or door knocking or whatever, just change those numbers out.
28:10
SPEAKER_01: When you if you knock on 60 doors, you get an appointment, or you knock on 20 doors and you get an appointment.
28:18
SPEAKER_01: Okay, you just change the numbers out based on the strategy you have.
28:21
SPEAKER_01: Now, if you're if you have multiple strategies, cool.
28:25
SPEAKER_01: Like you have leads, you have door knocking, you have cold calling, you have emails, you have whatever.
28:31
SPEAKER_01: Where do your where does your business come from?
28:33
SPEAKER_01: And just replace those and work your way up and work your way down.
28:37
SPEAKER_01: So, like I said, we're gonna put together a spreadsheet to help with these.
28:41
SPEAKER_01: It's not gonna be perfect because you all have different businesses and and all of that, but to see the relationship of how this all works is really powerful.
28:49
SPEAKER_01: So hopefully, right before I tell the story of one of these agents that I'm coaching one-on-one and this breakthrough that we had the other day, and how you can do the same thing for for stuff that uh that you find daunting or you you're scared or nervous about, we're gonna flip that.
29:06
SPEAKER_01: Okay, but before I do that, I really want you to grasp the c this concept.
29:11
SPEAKER_01: You start with your goal.
29:12
SPEAKER_01: How here's how much you want to make.
29:14
SPEAKER_01: How many deals is that based on how much you make per deal?
29:17
SPEAKER_01: How many deals is that?
29:18
SPEAKER_01: How many per month?
29:20
SPEAKER_01: How many per week?
29:21
SPEAKER_01: Well, then you know, okay, well, to get a client per week, you need four appointments per week.
29:25
SPEAKER_01: Okay, well, how many, how many conversations does that take to get an appointment?
29:28
SPEAKER_01: How many leads?
29:29
SPEAKER_01: How many, how many calls, right?
29:31
SPEAKER_01: How many Zillow leads, all of that stuff?
29:33
SPEAKER_01: Then you know what to do every single day and every week.
29:37
SPEAKER_01: And then you know with confidence, just based on math, at the end of the year, you have your 500k in income.
29:45
SPEAKER_01: So I hope this was deeply empowering for you because it should be.
29:50
SPEAKER_01: Once you know how to break your goals down into bite-sized actionable chunks.
29:55
SPEAKER_01: Speaking of which, one of the agents that I coached the other day, he was telling me that uh, so he's part of a team, and on their team, they get Zillow leads.
30:04
SPEAKER_01: So he's getting Zillow calls on his phone.
30:07
SPEAKER_01: And he said that he has a lot of nervousness and anxiety and reluctance around these calls, right?
30:12
SPEAKER_01: And and look, I when he told me this, I completely empathized with him and understood because I remember years and years ago when we were doing truly a leads back before Zillow and Trulia merged.
30:24
SPEAKER_01: We were doing truly a leads, and I used to get these calls just random times.
30:29
SPEAKER_01: Like I'd be out doing whatever, and all of a sudden, like, oh, there's a truly elite.
30:33
SPEAKER_01: I need to answer it immediately.
30:34
SPEAKER_01: But I also like there was something about it that I was nervous about.
30:38
SPEAKER_01: I had this call reluctance because I was looking at it wrong.
30:41
SPEAKER_01: So what I helped this agent do, and I said, okay, let's figure something out here, because you see these calls as like, oh, like it's it's like a negative thing.
30:50
SPEAKER_01: It's like it's draining to you.
30:52
SPEAKER_01: It's, but my God, you literally have money calling you.
30:55
SPEAKER_01: And he's like, What do you what do you mean?
30:57
SPEAKER_01: I was like, okay, here's what we're gonna do.
30:59
SPEAKER_01: I said, How much is your average commission check?
31:02
SPEAKER_01: How much do you make on average?
31:03
SPEAKER_01: And he he he looked back at his numbers and he's like, um, I think his number was around uh 13,000, something like that.
31:11
SPEAKER_01: So he's like, the average, the average check that he gets is 13,000 bucks.
31:14
SPEAKER_01: It's like, okay, cool.
31:16
SPEAKER_01: So how many of these Zillow leads do you need?
31:18
SPEAKER_01: How many calls do you need in order to produce a closing?
31:22
SPEAKER_01: And he's and he's fairly new, but he's like, our team says that on average, they need 10 to 15 calls, 10 to 15 Zillow calls to get a to get a closing.
31:33
SPEAKER_01: So we just rounded up to 15, which is what I was talking about earlier, rather than going with 10, which is the rosier outlook, we just rounded up to 15 instead.
31:42
SPEAKER_01: So for every 15 calls, he's gonna get a$13,000 commission check.
31:47
SPEAKER_01: So we just did the, we just did the math on that.
31:49
SPEAKER_01: And I was like, I was like, you realize that every single phone call is worth$866.
31:59
SPEAKER_01: And he just the look on his face completely changed.
32:02
SPEAKER_01: He's like, wait a minute.
32:04
SPEAKER_01: And it's just because we looked at it differently.
32:07
SPEAKER_01: If each commission check that he got was$13,000, and on average it takes 15 of those Zillow lead calls to get a closing, then that means$13,000 divided by 15 is 866.
32:23
SPEAKER_01: So we just flipped, we just flipped the narrative.
32:26
SPEAKER_01: We just flipped the way we look at it.
32:27
SPEAKER_01: So instead of those calls being like, oh, you know, now there's it's time to be nervous, I had him change the contact on his phone.
32:36
SPEAKER_01: So instead of saying like Zillow lead, it said$866 or whatever that number was for him.
32:41
SPEAKER_01: I think it was actually a little bit less.
32:43
SPEAKER_01: But so every time he got one of those leads calling, it now said$866.
32:50
SPEAKER_01: I said, look, man, literally$866 is calling you right now, and all you have to do to put that money into your bank account is swipe to answer.
32:59
SPEAKER_01: And the look on his face, the the demeanor, like his shoulders sank, and he just he like exhaled and he's like, This is big.
33:08
SPEAKER_01: Because now he saw a way to be excited about those phone calls.
33:13
SPEAKER_01: He was stoked about those phone calls.
33:16
SPEAKER_01: Every single time his phone rang, he was putting 866 bucks into his freaking bank account, literally, because that's just how the math plays out.
33:25
SPEAKER_01: And so now, whenever the phone rings, it doesn't say Zillow lead, it says 866 bucks.
33:31
SPEAKER_01: And I think he tried to, I think he put an emoji, like a money bag emoji on the on the contact as well.
33:36
SPEAKER_01: So that's what he sees on his screen is 866 bucks.
33:41
SPEAKER_01: And to take that money and put it in his pocket, he just has to answer the call.
33:45
SPEAKER_01: He just has to answer the call.
33:48
SPEAKER_01: I did that back in the day and it helped me dramatically.
33:51
SPEAKER_01: Whatever it is in your business, it you you know you need to do and you know it's good for you, but you're still reluctant, you're still fearful, or you're nervous, or or there's some blockage happening.
34:02
SPEAKER_01: Flip the way you look at it.
34:04
SPEAKER_01: Run some numbers on it, crunch, crunch a few numbers.
34:06
SPEAKER_01: That wasn't super complicated.
34:08
SPEAKER_01: How much are your commission checks?
34:10
SPEAKER_01: How many calls do you need to get one?
34:12
SPEAKER_01: And we figured out each call is worth$866.
34:16
SPEAKER_01: So how many doors do you have to knock on?
34:18
SPEAKER_01: How many, how many people do you have to talk to?
34:19
SPEAKER_01: How many people do you have to meet?
34:21
SPEAKER_01: How many new contacts do you need to put in your database?
34:23
SPEAKER_01: How many parties do you have to go to?
34:25
SPEAKER_01: How many whatever, right?
34:27
SPEAKER_01: How many mailers do you have to send out?
34:29
SPEAKER_01: How many texts?
34:30
SPEAKER_01: How many social media videos?
34:32
SPEAKER_01: How many YouTube videos do you have to do to get a closing, to get a client?
34:35
SPEAKER_01: And when you crunch the numbers on that, you now get excited about the actions.
34:41
SPEAKER_01: That's what's so cool.
34:42
SPEAKER_01: Setting the big goals is awesome.
34:45
SPEAKER_01: You must do it.
34:46
SPEAKER_01: But you can't just set it and then just go play video games all day.
34:50
SPEAKER_01: You have to then put action behind it.
34:52
SPEAKER_01: And when you put specific, intentional, targeted action behind what you want, oh my God, uh, you get what you want.
35:01
SPEAKER_01: And then when you get what you want, you're like, holy shit, this is powerful.
35:04
SPEAKER_01: And then you do it again and you set a bigger goal, and you just you you you reverse engineer the process again, and then you do it again.
35:11
SPEAKER_01: And pretty soon you're just this is how it happens, you guys.
35:15
SPEAKER_01: This is how it happens.
35:17
SPEAKER_01: This is how you go from one to 10.
35:22
SPEAKER_01: Rather than just going from one to one and a half or one to two, like if you double each year, that's that's fantastic, right?
35:28
SPEAKER_01: But what if you 10x?
35:32
SPEAKER_01: Now you see the process for doing it, but you have to know which actions to take in the short term that will lead to the long-term big, hairy goal.
35:42
SPEAKER_01: It becomes very doable if you break it down into bite-sized, actionable, doable chunks.
35:50
SPEAKER_01: Success is not super complicated.
35:52
SPEAKER_01: Becoming wealthy in real estate is not super complicated.
35:55
SPEAKER_01: It does not take, you don't have to be a genius.
35:58
SPEAKER_01: You just have to be disciplined and you have to build some confidence around that.
36:03
SPEAKER_01: When you do small, seemingly insignificant things repeatedly over time, and they're targeted and calculated, so you're doing the right things knowing that it's going to lead to a certain outcome, that's all that it takes.
36:18
SPEAKER_01: So if you need to listen back to this episode multiple times and re-listen and like, wait, how did he say it?
36:27
SPEAKER_01: What should I do next?
36:28
SPEAKER_01: And then think outside the box for what your goals are and adjust things slightly.
36:33
SPEAKER_01: If you're willing to do that, this could be the episode that changes your career the most.
36:39
SPEAKER_01: And if if so, great.
36:41
SPEAKER_01: I'm glad to have played a small role in it by pointing you, pointing you in the right direction.
36:45
SPEAKER_01: But my God, when that happens, that's on you.
36:48
SPEAKER_01: That is on you for taking action and doing it.
36:52
SPEAKER_01: You took advice, you took guidance, we pointed you in the right direction, and then you ran with it.
36:57
SPEAKER_01: That's on you.
36:58
SPEAKER_01: Congratulations.
37:01
SPEAKER_01: I hope to God you are one of the people that can say you did that.
37:06
SPEAKER_01: That is why I do the podcast, and that is all I want.
37:10
SPEAKER_01: That is all that is all I want.
37:12
SPEAKER_01: I want you to do what you know you should be doing.
37:17
SPEAKER_01: Because that is I don't really know what more to say.
37:24
SPEAKER_01: If you want, if you want to give me a uh a belated Christmas gift, a new year's gift, take action.
37:31
SPEAKER_01: And then stick with it for God's sakes.
37:34
SPEAKER_01: That's why you have to break it down into bite-sized chunks.
37:36
SPEAKER_01: Because if there's small, incremental, like doable things that you know you can do every day or every week, you're gonna do it.
37:42
SPEAKER_01: But if it's this big thing like I've got to talk to 50, you know, 50 people a day, you're not gonna do that shit.
37:50
SPEAKER_01: You're not gonna do that stuff.
37:52
SPEAKER_01: If you if you have to talk to 50 people a week, well, you could do 50 people in one day and then take the rest of the week off, or just do 10 a day, right?
38:01
SPEAKER_01: Break it down into daily chunks becomes much more doable than a much bigger, hard to swallow goal or action item.
38:14
SPEAKER_01: If you found this episode powerful, helpful, insightful, please share it with every freaking agent that you know because this is not taught in most places.
38:25
SPEAKER_01: My previous broker at my old brokerage didn't teach me this.
38:28
SPEAKER_01: It took one specific person who wanted me to succeed, and he learned it from someone else, and he said, Hey, this is important.
38:37
SPEAKER_01: This will actually move the needle.
38:38
SPEAKER_01: This is actually what you should be doing.
38:39
SPEAKER_01: Let me teach it to you.
38:40
SPEAKER_01: It had nothing to do with my previous brokerage, it had to do with the person who wanted to teach me.
38:45
SPEAKER_01: So be that person, be that agent for another agent.
38:48
SPEAKER_01: Be the one that kicks over the first domino for someone else.
38:52
SPEAKER_01: Obviously, you're gonna do it for yourself.
38:54
SPEAKER_01: Obviously, you're gonna kick the domino over for your own career right now, today, to start out the year.
38:59
SPEAKER_01: But my God, be that for someone else as well.
39:02
SPEAKER_01: Share this with every agent you know, share this with your broker, share it with your teammates, share it with uh others in your office, share it on social media, share it in Facebook groups and say, uh, you got to hear this.
39:14
SPEAKER_01: Because if you found it valuable, other agents will too, other like-minded agents, agents just like you who are in the same place that you are.
39:23
SPEAKER_01: So thank you for listening.
39:24
SPEAKER_01: Thank you in advance for sharing.
39:27
SPEAKER_01: I'm super excited.
39:28
SPEAKER_01: I know I keep saying this.
39:30
SPEAKER_01: I am jumping out of my skin excited about this year for what's possible for you and agents like you, as long as you take action and put your butt in the right seat for God's sakes.
39:43
SPEAKER_01: If you have not yet listened to episode 314, the last episode of 2023, you need to go listen to that right now.
39:50
SPEAKER_01: Because that, paired with this episode, you don't need to listen to anything else for the rest of the year.
39:55
SPEAKER_01: You take action on that stuff and make big, make big moves, big, big decisions, and then take action.
40:02
SPEAKER_01: You will be in a completely different world and a completely different tax bracket at the end of this year.
40:08
SPEAKER_01: I guarantee fucking toe it.
40:10
SPEAKER_01: Thank you for listening.
40:11
SPEAKER_01: Thank you for sharing.
40:12
SPEAKER_01: I'll see you guys next week.
40:13
SPEAKER_01: Take care.