3 Actions to Give Your Business a Boost | #TomFerryShow Episode 11
Don’t miss these key take-a-ways when watching this weeks episode:
- Go to (2:56) to find out your unique number of conversations, appointments, and transactions to achieve your goals
- Go to (5:17) on what I call the Power of Right Focus
- Go to (9:18) for 3 actions you should take immediately to make sure you go into the next quarter the right way
Hey everybody, welcome to the Tom Ferry Show, episode 11. Today as we sit here and we reflect on what happened in the first quarter of this year, you’re probably asking yourself the same question I’m asking every client and every coach and everyone I’m talking to, which is simply this: Hey, are you on track for your goals? And in many cases I’m hearing, “I’m crushing it, Coach.” Or, “You know what, I’m right in line.” Or I hear this: “I’m slightly behind but I feel like I’m really doing the right things.” And I always ask the same question: “Are your behaviors in alignment with your goals?”
We all know the world-famous quote “When you do the things, you have the power. And when you do not the thing, you have not the power.” You know, it’s really that simple. I mean real estate is not that complicated. Got to talk to a lot of people, got to have a lot of conversations, you know, got to do the right things day in and day out, and when you do, your behaviors, when your behaviors match your goals, you always win, regardless of snow, for all my friends in the, you know, D.C. area, or in Boston, my goodness what’s going on there.
So let’s just say you’re in Boston and there’s been 3 feet of snow. And, and I know some of our clients are absolutely having the best first quarter of their life, while others are buying into “it’s not fair, it’s the snow.” Let me give you a little hint. The real estate gods don’t care. The only thing that matters is, are you doing the right thing every single day regardless? All my friends in Canada, they’re giggling, they’re saying, “Oh, they’re complaining about snow? Hello, we have 7 feet of snow and it won’t go away until July.” Here’s a little hint: when there’s lots of snow outside, everyone’s home. It’s a really good time to call and say, “Ever thought about moving to Florida? Think about it.”
The bottom line is this. If you’re sitting here right now at the end of the first quarter and you’re asking yourself, am I on track, am I off track, those are the right questions. The bigger issue is, are your behaviors in alignment?
Are Your Behaviors in Alignment?
We’ve all seen this before. I’ve got my goals, I’ve got my plan. I know I’ve got to do certain things every single day, whether I want to lose weight or I want to make sales or improve my relationship, whatever it is you’ve got to have a plan. So here you are, and the question is, are your behaviors leading you to the pot of gold, you achieving what it is you want, or are your behaviors leading to that unhappy face where your goals become X-ed out? It’s that simple.
I broke down some numbers for you. Now I know your goals are probably higher, but let’s just do some easy math. Let’s say your goal is to make 200,000 dollars a year. Your average commission on a 400,000 dollar sales price is 10,000 dollars as an example. That means you’ve got to have 20 closed transactions in order to achieve your goal.
Now what we know after decades of tracking and measuring is it’s about 50 conversations to 1 sale made. 50 conversations to 1 sale made. Now, I know if you’re one of our clients with Zillow you’d say, “Wait a minute, Tom, I’m coaching, you know, or I’m converting 6 out of 100, which means, you know, it’s a little bit better.”
The bottom line is it’s about 50 conversations, 50 good conversations, to 1 sale made. So what does that mean? In order for us to do 20, I’ve got to have 1000 good conversations with people: Have you had any thoughts of selling?, You must know someone who’s had thoughts of selling, If you were to move, where would you go next? 50 good conversations to find the one that’s ready to sign with you and move forward. Well, check it out. At 50, that means at the end of the first quarter you should be sitting at 250 good conversations you’ve had so far this year.
Now, stop for a second. If you’re ahead of your goal and you’re behind on your good contacts, is that going to catch up? You know it is. If you’re right on track with your goal and you’re right on track with your contacts, way to go, you’ve been doing the right thing, creating the right disciplines, the right behaviors. But if you’re behind on your goal and you’re way behind on the number of people you’re talking to, you shouldn’t be depressed, you should be excited. You see, if you want to change my behaviors the first thing I’ve got to do is become aware of it, right. Awareness is the first step to all change. Finally saying to yourself, “Hello, my name is Tom and I’m aware, I know what’s going on, and now I can make a good decision, I can move forward powerfully.”
So, think about it. You’re going to want to take your goals, your average commission, your goals for transactions and ask yourself, times 50 of that number, have I had that many conversations, have I talked to that many people? And if you haven’t, you’ve got to make some changes.
The Power of Right Focus
Let’s talk about one of the obvious changes. I call it the power of right focus. Now watch this. We all know that in real estate there’s a lot of minutiae, there’s a lot of things you could be thinking about every single day. We did a video on this you remember, all the stimulus coming at you all the time. Well, remember earlier, do the thing, have the power. Do the thing, have the power.
My question for you is, what are you focusing on throughout the day? Are you focusing on the drama, or what I refer to as #lazyagents. Drama seems to dominate our industry. You know, 87 percent of all people in real estate fail after 5 years, 87 percent after 5 years. If you want to be a part of Club 13 can you buy into the drama? No, you’ve got to focus on the right things, and if you’re a veteran rock star watching this right now you of all people know you’ve got to get away from the drama and focus on what you can control, which is the number of people you talk to and the results you produce from that in your business.
Projects Don’t Create Income
Now, you can also be working on projects, and that’s good, because people are like, “Oh, I’m really busy.” “What are you working on?” “Oh, I’m working on my file, I’m working on this, I’m building this new thing, I’m working on that.” But the problem is you’re working on all these projects; if you’re avoiding the hours of power (following up on your leads, calling your past clients in your sphere, doing open houses, responding to your online leads) If you’re missing that, what are you doing? You’re focusing on projects. Projects don’t create income. What are you going to do, you going to call your bank and say, “Hey, look, this month I’m not making my mortgage payment; can I send you a sample of the projects I was working on?” as if they create any monetary value for you in the short term. Pay attention. We’ve got to talk to people. I don’t know if you’re e-mailing, texting, smoke signals, it doesn’t matter, but 50 conversations equal 1 sale.
Hour of Power & Appointments
Now, hour of power or appointments. Hour power or appointments. Because we know appointments ultimately are going to equal signed contracts. I would ask you to look at this. And I know there’s hundreds of other rings, but stop for a moment and ask yourself, which one of these dominated my first quarter? Where was I? Was it the drama? And I know some people it’s just the little drama. “I got a flat tire.” “When did it happen?” “January 3rd, and I’m still pissed”, right. Did drama dominate you in the first quarter? Were you dominated by the building of your business, the projects, and you forgot to allocate the time of hour of power, you forgot to focus on appointments?
I know this. A whole bunch of our clients, especially our coaching clients that are watching, they know the game is whoever books the most appointments wins. Whoever books the most appointments wins. I don’t care if it’s a preview appointment, I don’t care if it’s a listing appointment – actually I like those a lot – a first buyer, first time initial meeting, showing appointments, meeting with someone that could have a positive impact on your business at Starbucks for 15 or 20 minutes to talk about real estate. Appointments, appointments, appointments, appointments.
Behaviors, right. How do you get them? You got to do the hour of power. So if you’re sitting here watching this like, “Well which one should I focus on?” For 99 percent of the people it’s do your hour of power. Schedule the time where you make the calls, where you do your follow-up, where you’re pushing out. Like I used to say metaphorically where you’re shaking the tree every single day, because if you shake the tree and you make the calls and you touch people in your database and you do the marketing and you do the open houses, knock on the doors, whatever you want to do, when you do those things guess what happens. Somewhere a piece of fruit falls, and that’s the game. So what do I want you focusing on? I want you doing your hours of power. Because I know when you do that you’re going to get your appointments.
3 Actions to Focus On
1. Commit to the right behaviors. What are the behavioral adjustments you need to make? Remember, awareness is the first step, and it takes a truly powerful person to be able to look themselves in the eye and say, “Hey I haven’t been doing the things I’m supposed to do, so I can’t complain about the market, I can’t complain about conditions, because it’s on me. If I didn’t do the work it’s on me.” And that’s a powerful place to come from. It’s a very powerful place to come from. So be honest with yourself, look yourself in the mirror and say, “You haven’t been bringing your A game. The good news is, you got 3 more quarters.” So let’s make some commitments, you with me?, and accountabilities for the second quarter.
2. Create an accountability. So I’ve been asking a lot of the people I work with, “As you think about what you want to do in the second quarter, you think about the behavioral adjustments you want to make, whether it is committing to an hour of power, I say let’s set an intention of, you know, 21 times in a month we do an hour of power, and we do that for the next 3 months, so we’ve got 63 hours of power.” When you do that, what’s the pleasure? “Oh, Coach, I want X, Y, and Z, you know, I built the muscle, I followed through, I did what it took, and I’m going to reward myself with X.”
Then I say, “What’s the pain going to be?” And this is where it gets really fun, because you know Tony Robbins built his entire career on one statement: “We will do more to avoid pain than we will to gain pleasure.” I believe if you’re truly committed to making the behavioral changes in order to have the type of business that you want, you should have a pain accountability. Create some accountability, pain, pleasure, ideally both, and then watch how your behaviors begin to adjust.
3. Track and measure your activity. So get it up, get it visual, and know that if it’s hour of power every day or if it’s booking appointments every day that it’s up on a wallboard and you’re tracking it every single day, because you and I both know when you track and measure things improve.
It’s the end of the first quarter. Are your behaviors matching your goals? If they’re not, now is the time to make an adjustment. There’s a whole bunch of lazy agents in the market and they’re trying to gobble away a transaction here, a transaction there from your business. If you don’t like that, then you need to do something about it. Make more contacts, talk to more people, serve more clients, do more open houses, do all the things we’ve been discussing on the Tom Ferry Show, and you will ultimately serve more clients and make the kind of money that you deserve.
So, thank you so much for watching. If you haven’t made some comments, stop lurking on my Facebook page. Get involved, let me know what you think. Post something on my YouTube channel, send me a tweet, let me know how I can make it better. Maybe send this to a few of your friends that maybe need to make some behavioral changes. It could be the best thing you’ve ever done for them. Thanks again for watching.
Remember always, Your Strategy Matters and Your Passion Rules!