20 steps to a $1,000,000 year in real estate
A $1 million year may seem like a pipedream to some real estate agents.
Here’s the deal: $1 million gross commission income equals 100 transactions at $10,000 average commission, based upon the national average $400,000 sale price.
55 transactions are required if your average sale price exceeds $750,000. You’ll need 40 transactions if your average sale price exceeds $1 million
Here are 20 steps that will help you get there.
1. Accept the fact that success is yours.
“If it’s meant for me, it’s up my side.”
It’s not up your broker, your market, interest rates or president. It’s up you. You are responsible for your success. All of it. This year, there will be at most $4 million in sales. How many projects will you be involved? You can make a $1,000,000 year.
2. Invest your time before investing your money
Many people invest four years in college, only to then graduate with student loan debt and a job they hate for the next ten years.
Learning is not a one-way street. You must continue to learn in order to be able to earn the income you desire. You’ll only get sporadic income if you work irregularly. You’ll get momentum faster if you work consistently
These are your stages of learning:
Formulation. (Getting ready to start, creating your plan).
Concentration (Doing the actual work, learning your skill and doing it well)
Momentum (Repetitive, predictable success)
Breakthrough (High-level implementation without getting bored or falling back to the initial stage).
3. These four essentials will help you be prepared
These are the things you must have immediately. You will be unsuccessful if you fail to master these four skills.
Scripts: Open house scripts for proactive lead generation, open house scripts for follow-up, basic conversations with your circle of influence, prequalifying and closing scripts. Scripts are questions that lead to a conclusion.
Pre-Listing Package: This is not your broker’s package, and it is not something you can find for free online. Pre-listing packages that are powerful, personalized, and proven to work.
These items are worth your time and money before you spend it on anything else.
4. Be a salesperson.
It’s not strange to be a salesperson, talk about real estate, or just to have conversations with people. It’s not financially viable and won’t make you a million dollars a year.
This is a contact-based business. It will involve meeting face-to–face, voice to-voice, and being on video with multiple viewers.
5. Select the right broker
Real estate is where you will invest your time, effort, and money. You must own a portion of the brokerage. Your broker relationship must be monetized in multiple ways.
Maximize your ownership and maximize the benefits of what you are building. Your brokerage must be a wealth-acceleration vehicle.
6. Follow a business plan
Failure to plan is planning for failure. Plan your personal life and business. These are the questions you should be able answer:
Why should you invest in real estate? What can it do for you and your family Set your goals in five areas.
Where can you find the right people to help you grow your business? Learn about lead generation.
What is your “magic number”?
Your profit-driven, powerful ideal schedule. How will you spend your time?
7. Define what makes your unique
Can you answer the following question: What makes your company different? WHICH REASONS should I hire you?
Sellers request a reduced commission as they don’t know how to deal with agents. Agent kickbacks are also requested by buyers.
It is your job to prove your value. Start with your pre-listing packet.
8. Keep your momentum going and you’ll be there.
Once you have mastered the art of lead generation, set financial goals, created your daily schedule and established your magic number, it’s time for execution. Now it’s time to do the work.
Get to work!
9. Keep track of everything
Use visual accountability aids. You can invest in a coaching program to help you track your progress.
Know where your business is coming in, what your average sale price is, as well as if you are ahead or behind. It is crucial to track everything for your success.
10. Strategically build your company
A million-dollar or more business is the best way to make a million dollars. There are four ways to achieve a high average sales price:
List expired and withdrawn properties that are more expensive. Find luxury builders who can build spec homes.
Socially network to get into this market. You can move and live in this type of area. This takes both time as well as money.
Listings that luxury clients want to purchase.
You can market your way (both online or in print) to the neighborhoods you want to control.
11. Strive for a $1,000,000 year.
Your No. Your number one job in real estate is to generate new business consistently while still providing the best customer service to existing clients.
This is the most important skill you can master, or you will never reach the seven-figure mark.
You must put 10% of each commission in savings, 20% in taxes, and the remainder in your operations account. You should not combine savings and taxes.
Glen Sanford famously stated, and accurately, that agents are terrible at saving money and paying taxes.
13. Follow the Spokes in-the-Wheel method
There is no quick fix for lead generation. Multiple spokes are required for lead generation.
Make your own wheel and include both passive and pro-active spokes. However, the pro-active is more predictable and easily duplicated.
Listings are the key to everything. Buyers drive transactions one at a time, sometimes. Know your magic number, and work hard to increase it. It’s the engine that drives your business.
15. Up your social media game
Start with YouTube and create short videos that highlight your expertise.
Once you have identified what makes you unique, you can amplify your personal brand via social media. Keep your message.
Social media can be used to supplement, but not replace, proactive lead generation.
When done right, social media can reach more people and make their lives easier than individual calls. It’s permanent and can be used even when you aren’t working.
You must get over your discomfort with video. Video is becoming increasingly important. Video is free and it equals the playing field. Video and AI are the future.
Videos should be tailored to real estate and your market. Consider how a buyer or seller looks for an agent in your area.
16. FOCUS: One Course, One Success
Your profit-driven schedule should be a constant reminder of your commitment. What should your schedule look like? To find out, follow your real estate treasuremap.
Your day should be split between generating new business and servicing existing customers. You will be disappointed if you expect instant success and instant gratification every day.
Consistent success is only possible when you do what you don’t want to do, even if it’s not at the highest level. It is not important to focus on this now and then.
17. Do not let boredom get in the way of your momentum
Repetitive boredom pays off.
James Clear, in Atomic Habits, writes that boredom is the greatest threat to success. Because habits cease to delight us, we become bored with them. This is what we expect. As our routines become more common, we stop being open to new ideas.
It’s important to have good habits and work discipline. But, most importantly, you must stick to them even when you get bored.
18. Invest as often and as early as possible.
You can invest in rental properties, and you can also build a portfolio with three funds.
A three-fund portfolio is one that has only basic asset classes. It usually includes a domestic stock index fund, an international index fund and a bond index fund.
19. It’s not possible to do it all alone
You can’t navigate the real-estate wilderness by yourself. Premier coaching can help you shorten your learning curve while increasing your earning potential.
20. Rinse and Repeat
Refer to point 1. To achieve a $1,000,000 year, go back to point 1. This is possible.
Real Estate Coaching Radio is a podcast that Tim and Julie Harris host for Realtors. They have been helping agents succeed in all market conditions for over 20 years.