Why You’re in Danger of Being Too “Transaction” Focused

Why You’re in Danger of Being Too “Transaction” Focused photo
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When you first get into the real estate business, you see these people who are selling tons of properties and you can’t help but think they’re just swimming in commission cash.

Then, the more seasoned you become, you realize that might not actually be the case.

In fact – don’t take this the wrong way – I see lots of agents, team leaders and brokers who seem ultra-successful on the surface, but they’re still cash poor.

And that’s a problem.

I sense some – not all – people in our industry have become too focused on closing transactions and have lost sight of the ultimate goal of profitability.

Sound familiar? Hit home?

Whether you’re an owner, a broker, a team leader or a solo agent, profitability should always be our objective.

Let me flash back a few years to tell you a personal story. Not because I want to brag about what I’ve done, but to help you maintain focus on what’s truly important.

 

Creating My 20-Year Vision

Back in 2015 I sat down with my wife and together we created a 20-year vision of where we want to go.

What kind of lifestyle do we want? When do we want to retire? What actions are necessary to make those goals reality? You know… big questions like those.

Part of that process was getting extremely specific about goals and mapping out our path of how we’d arrive at our desired destination two decades later.

I actually created quarter-by-quarter goals for our net worth 20 years into the future. (Yes, all 80 quarters!)

You might think that sounds over the top, but for me it all went back to the first step of the four disciplines of execution: Set a wildly important goal. I now know exactly where I want to be not only in 2035, but if I’m on track here in Q2 of 2019 or anytime throughout the journey.

 

Not All Transactions Result in the Same Outcome

Without that document to keep me focused on the big long-term goal, it would be much easier to fall into a “transactional” mindset.

And the problem there is that not all transactions are equally profitable.

Think about that listing that took months and months of marketing to get sold, versus the one that was priced right from the start and sold within days. You got a commission check for both, but one of them had exorbitant, profit-killing costs associated with it.

It’s real easy to fool yourself into thinking you’re successful because you’re busy and you’re closing deals. But if you’ve lost sight of the bottom line, it’s all for naught.

 

You Work Too Hard to Not Address This Issue

Look, I’m not writing this to bring you down. If it stings a bit, it’s because it might be hitting home.

I know this – You work way too hard to just break even. It’s time to take a step back, analyze how you run your business, and make sure you set yourself up for the financial future you desire.

It’s time to declare your intent to become wealthy and align your behaviors with that objective.

It’s time to look beyond the transaction and instead focus on the future. What’s your plan in 2020? 2025? 2030?

 

5 Crucial Questions You Must Answer to Maximize Profitability

Here are five key questions that will help keep you focused on the bottom line:

  1. What is your budget for this year?
  2. What is your most profitable transaction? (How can you get more in this “sweet spot”?)
  3. What is your least profitable transaction? (How much time, money and effort are going toward that?)
  4. What are your most profitable lead sources? (How much time are you spending there?)
  5. What’s your budget vs. your costs… and are you adhering to those numbers?

 

So… Where’s Your Focus?

Is your focus on racking up transactions, regardless of costs? Or is it on building a profitable business that sets you up to achieve your own long-term vision?

Ultimately, are you spending enough time on wealth creation?

If your answer is no, you should really consider joining me May 14-15 at Shift!

It’s a brand-new event we created to deal with today’s new market realities and it’s about operationalizing your business, mastering your marketing and accelerating your sales.

Specific to your balance sheet and building wealth, Bank of America Sr. Executive Ann Thompson will be speaking on managing your money instead of letting your money manage you.

That’s in addition to an all-star speaker lineup including Jay Abraham, Mark Roberge, Matthew Ferrara, Tiffani Bova, Treasure Davis, Bill Pipes and myself. I’m so excited and I guarantee it’s going to be a fantastic experience for anyone interested in taking their business and their life to new heights.

Check out more details here.

Tom Ferry - SHIFT!


 

 

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