It’s time for The Millionaire Real Estate Agent Wake Up Call
GUEST BLOG POST by Michael LaRocco – http://annunci-marketing.com/
Over the last few months, I have found a huge correlation between what a highly successful real estate agent produces and the amount they spend on marketing. When you look at the opposite and start to compare them to a newer inexperienced real estate agent or one that is simply only making mid to low six figures, you notice one thing.
The amount of money spent on marketing and the way they run their career.
When you look at a 7-figure earner, you notice they’re spending anywhere between $30,000 to $120,000 on marketing alone.
They also run their career as a business hiring team members that take over specific areas of their business for them. They might hire a listing specialist, marketing specialist, showing specialist, and so on and so on.
While a 6-figure earner runs their career as just that… A career. When going through the book The Millionaire Real Estate Agent, co-author and owner of one of the fastest growing real estate companies in the world Gary Keller talks about how agents need to do the 3 L’s.
Listings
Leads
Leverage
When it comes to listings, a real estate agent can close many in the time it takes to help a buyer find a home. This is because selling a home can bring in multiple prospects while helping a buyer can take months and can turn sour in the end when they decide they’re going to wait a few more years before purchasing.
Then with listings, you not only get to help the seller sell their home but throughout the process, you get to help them buy a new home (if they don’t already have one lined up) which is how a real estate agent “double dips” in a fiduciary way.
In other words… This is one way to use leverage.
The best way to use leverage though is hiring a team that knows what they are doing so you can focus on what you do best. As explained above, you might hire a listing specialist, a marketing specialist, or even an assistant. Or maybe you hire a marketing agency that has a few different virtual assistance in place to accomplish twice as much with half the cost.
But let’s do some math real quick so all of this can make a bit more sense on why a 7-figure earner will NEED to hire out these types of positions…
It will take 320 closed deals at $250,000 per property to reach $80,000,000 in sales.
Now take 3% of the $80,000,000 to get the GCI (gross commission income) which is $2,400,000.
Now you’ll need to factor in all of the expenses, which the book The Millionaire Real Estate Agent says is about $1,400,000 when you factor in software, continuous education, training team members, salaries, commissions, and splitting some commissions with the broker (if there is a commission split. I mention this because I have met a few people who pay a flat fee instead of a split commission while I have met others who have split 50/50 with their broker) if applicable.
But the really sad part is…
Talking with most real estate agents that want to be in the 7-figure earner category, they don’t want to “risk” the money on hiring a marketing agency and when they get an enormous amount of leads, they literally don’t know what to do with it.
Most don’t have a proven model they’re following and don’t have big enough goals to follow. Each real estate agent has the ability to do great things in a massive way. But they don’t want to step outside of their comfort zone and build a company. They stay in the “safety zone” and run everything as if it was a career.
The number one goal of any agent that wants to become a 7-figure earner is they need to run it as a business and hire the right people to do so. The end result should always be the same. Hire a CEO to run the company so you can scale to bigger things.
To contact Michael LaRocco visit his website at: http://annunci-marketing.com/
