There are actually only 3 things a Realtor can do to make money in the Real Estate Business.
With that being said, there are things which are essential to getting paid, that need to happen, but they are not actual money making activities.
What is the difference?
Think of it this way; There are essential things that must happen to close a deal that you already have under contract, like ordering the Home Inspections, filling out an Addendum, etc… but they are not money making activities.
Money making activities are things you do which increase your production, that take you from having, let’s say, 4 deals under contract, to having 5 deals under contract.
The 3 Real Estate Agent Money Making Activities Are:
1. Setting Appointments
This includes your lead generation and lead follow up activities. Anything that you are doing that leads to you setting an appointment for a “Buyer Consultation” or a “Listing Consultation”.
2. Appointment Conductions
You were successful with #1, in setting an appointment, now you must deliver a great “Buyer Consultation”, or “Listing Consultation”, so you can turn that appointment conduction into a signed/committed Client.
3. Writing/Negotiating Contracts
You were successful with # 1, and now #2. Now, you must lead the process of getting your Clients under contract. That of course, entails you writing and/or negotiating contracts to result in an accepted contract for your clients.
These are the only 3 activities you can do to make money.
Now, some may argue this, and say things like, “I have to write up this Repair Request Form which is necessary for the closing to move forward, and eventually close, AKA get a commission check. But, that is still not a money making activity. Its nurturing business you already have , yes, it is extremely essential, but again, it is not increasing the amount of properties you have under contract.
Have you heard of the 80/20 rule?
Most people spend 80% of their time on the items which make them 20% of their income, and only 20% of their time on the things making them 80% of their income.
Top Real Estate Producers understand the 80/20 rule, and they flip it around. They make sure 80% of their time is spent on what makes them 80% of their income, and 20% of their time on what makes them 20%.
With that being said, if you want to become a top producer, it is critical to spend 80% of your time, energy, and focus on these 3 money making activities.