There are 3 ways to make more money as a real estate agent.
Fast Value: You can do any combination of the three, but make sure you choose right based on where you’re at now. The wrong decision can cost you tons. The right choice will help you reach the next level.
Here are the three ways…
- Sell more homes
- Increase your average price point
- Raise your average commission
Sounds simple enough… but let’s break it down a bit further so you can identify which is the best for you to focus on.
Selling More Homes
To sell more homes you can do only two things…
- a) Generate more leads
To generate more leads, you will need to do more “sweat equity” or more “check equity”. Regardless of where you currently get your leads from, doing more of it will do the job.
The framework I follow to walk through this is: MORE > BETTER > NEW
Do more of what’s already working. If you can’t do any more of it, do it better. If you can’t do any more, any better… then you can think about doing something new.
- b) Convert more of them
To convert your leads at a high level you don’t need to get better at sales. You probably just need to be following a proven process.
I train brand new agents to convert just as well as 5+ year agents within their first 30 days. How? Because we train a proven process that works.
Don’t get hung up on “sales skills” – Use proven principles to convert more leads. I promise this will get you selling more homes.
Then, once you’re selling, you can focus on increasing your sales skills to sell even more homes.
Don’t use this as a roadblock. Find and follow a proven process.
Increase Average Price
Honestly… don’t focus on this. It’s a complete waste of effort.
At least for how 99% of agents try to do it.
Most agents forget to make money and get experience on the way to being a “Luxury” agent.
The best way to be a luxury agent is to be luxury yourself. I don’t mean wearing a Gucci belt, I mean by making a ton of money. Do that first, and your price point will go up, I promise.
But… here is how to increase your price point the correct way (in my opinion):
First, do deals. Make money. Create happy clients and past clients (they don’t have to do a deal with you to refer you business).
Your past clients will upgrade down the road, which will lead to an increased price point.
Second, generate leads in higher price points. Sounds obvious, but I promise it will increase your price over time.
Third, don’t try to double or triple your price point overnight. Focus on growing it by 10% or so per year.
If you’re at $1m this year, $1.1m next year, $1.2m the following, etc. Within 5 years, you would have nearly doubled your price point.
AND
You would have made a ton of money along the way.
Raise your Commission
Being more valuable allows you to charge more.
Charging more will obviously make you more money.
Yet when most agents think about charging higher commissions, they think they need to be a strong “closer”.
I’m here to tell you that this isn’t true.
The “close” isn’t a fancy line you say at the end of a presentation…
or something you say right before getting a contract signed.
Your sales process is what will earn you higher commissions. Make yourself (and your service) more valuable.
Which actually gives me a great idea for the next YouTube video I’m going to put out. “How to make yourself more valuable”.
Again, a proven sales process will help you earn higher commissions on your deals. Another thing I talk about in-depth in our sales masterclass.
If you want to check it out, go to the community page to learn more.