Millionaire Real Estate Agent : It's Not About the Money by Keller Gary.; Jenks Dave.; Papasan Jay

Author:Keller, Gary.; Jenks, Dave.; Papasan, Jay. [Keller, Gary.; Jenks, Dave.; Papasan, Jay.]
Language: eng
Format: epub, pdf
Published: 2007-05-08T13:17:58+00:00

160/yr. or 13.33/mo.

160/yr. or 13.33/mo.

Annual Sales Volume

Average Sales Price

$80 Million

Average Sales Price

$250,000

$250,000

Listing Sales Volume

Buyer Sales Volume

$40M/yr. or $3.33M/mo.

$40M/yr. or $3.33M/mo.

Total Annual GCI

$ 2.4 Million

3% Average

3% Average

Commission/Side

Commission/Side

Total Cost of Sales

GCI from Listing Sales

– $700,000

GCI from Buyer Sales

$1.2 Million

$1.2 Million

Total Gross Income

COS from Listing

COS from Buyer

$1,700,000

Specialist $100,000

Specialist $600,000

– $700,000 Operating Expenses

$1 Million in Net Income

Figure 34

Earn a Million

183

The Economic Model of the Millionaire Real Estate Agent accounts for all the principle variables that lie between your leads and your net income.

If you already know your key numbers, then it becomes a simple exercise to convert these numbers to represent your current production numbers.

If your conversion rates, average sales price, or average commission per side are better than our benchmarks, their inclusion will have a positive net effect on the model. You’ll either net more or be able to lower your buyer and seller listing appointment goals to make the same amount. You and everyone on your team must own these essential numbers and know precisely how a change in one affects the others. If you or your team doesn’t yet know your numbers, then your immediate mission should be to start tracking them in detail. In the end, knowing your numbers and how they interact in your Economic Model builds confidence and stability into your business. This is when it really starts feeling like a business!

Below is a recap of the key issues and numbers of the Millionaire Real Estate Agent’s Economic Model:

The Big Issues of the Economic Model of the

Millionaire Real Estate Agent

1. 320 Closed Sales with an Average Sales Price of $250K

2. $2.4 Million in GCI

3. $700,000 Cost of Sales

$700,000 Operating Expenses

4. 27.72 Seller Listing Appointments per Month

25.58 Buyer Listing Appointments per Month

5. 20.58 Seller Listings Taken per Month

16.63 Buyer Listings Taken per Month

6. 13.33 Seller Listings Sold per Month

13.33 Buyer Listings Sold per Month

Figure 35

184

The Millionaire Real Estate Agent

You now have six goals that you and your team can put on your goal sheet and post around your workspace so they are in clear sight at all times. If this is your business focus, then let it be your visual focus as well.

The Economic Model of the Millionaire Real Estate Agent is a Big Model for Big Goals. It should serve you well from start to finish. If you do not yet have a listing or buyer specialist, leave those areas in your personal model as placeholders for the future. Eventually, you will need talented people to help grow your business, and before you hire them, you need to understand the impact they will have on your cash flow and net income.

MODEL TWO: THE MILLIONAIRE REAL

ESTATE AGENT LEAD-GENERATION MODEL

Let’s face facts. To achieve big in real estate sales, you will need a lot of leads. To be a Millionaire Real Estate Agent, you will need enough leads to drive your millionaire Economic Model. It’s that simple. If you follow the Economic Model of the Millionaire Real Estate Agent, your annual lead-generation goal is quite clear—lead generate in order to net 160 listings sales, which will in turn lead to 160 buyer sales.

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