Work On Your Real Estate Business, Not In It Part 6

October 19, 2009

Let’s put things in perspective by considering some numbers and looking at how someone who works on their business spends the hours of each work week, and contrast that with someone working in their business.

Let’s assume each rep is devoting an equal amount of time to their business – 50 hours per week.  Let’s assume for each rep that any sales prospecting activities are initially worth $100 per hour on average, and any administrative tasks are costing $20 per hour.

Typical Rep (Working In Their Business)

10 hours (Sales Tasks) @ $100/hour = $1000
40 hours (Admin Tasks)

Weekly Revenue – Expenses = $1000
Yearly Revenue – Expenses = $52,000

More Successful Rep (Working On Their Business)

30 hours (Sales Tasks) @ $100/hour = $3000
20 hours (Admin Tasks)
Hired 50 hours (Admin Tasks) @ $20/per hour = Spent $1000

Weekly Revenue – Expenses = $2000
Yearly Revenue – Expenses = $104,400

Now let’s look at the true top producers and examine what sets them apart.
Top 10% Rep (Really Working On Their Business)

50 hours (High Level Sales Tasks) @ $200/hour = $10000
Hired 20 hours (Low Level Sales Tasks) @ $40/hour = spent $800
Hired 60 Hours (Admin Tasks) @ $20/hour = spent $1200

Weekly Revenue Minus Expenses = $8000
Yearly Revenue – Expenses = $374,400

Top 1% Rep (REALLY Working On Their Business)

50 hours (Highest Level Sales Tasks) @ $500/hour = $25000
Hired 20 hours (Mid Level Sales Tasks) @ $100/hour = spent $2000
Hired 20 hours (Lowest Level Sales Tasks) @ $40/hour = spent $800
Hired 60 Hours (Admin Tasks) @ $20/hour = spent $1200

Weekly Revenue Minus Expenses = $20400
Yearly Revenue – Expenses = $1,050,400

Notice that the top 1% rep is making by far the highest amount of money for each hour that they work.  That’s because they focus all their personal efforts exclusively on the handful of tasks that contribute the most to revenue generation.  Even if they have to pay someone $100 per hour to handle the mid level sales tasks, they know it’s worth it if it frees them up to focus only on the tasks yielding $500 per hour.  They are working on their business as much as possible.

One of the best ways of investing in your business is learning how to use the internet and technology to boost your business.  The reason is the internet is already the mainstay of the real estate business and will continue to shape the business in the coming years.  You can get a wealth of information on becoming an internet empowered real estate professional by taking any of my many continuing education courses.  All of these courses have been approved by the Registrar, REBBA 2002 for continuing education credits.

Filed under: Inspiration,Marketing Tips,Networking Tips

Tags: administration, branding, marketing, prospect, prospecting, real estate course, real estate education, real estate educators, time management