There are myriad variables that often define the line between success and failure, some of which are out of our control.
But one thing is certain: when it comes to high-performing real estate agents, most make a habit (obsession?) of constantly reviewing and understanding the numbers that define their business.
Like anything else, comfort with your numbers does not always come easy for many agents. In fact, for many, the numbers aspect of our business can be intimidating and stressful. This is particularly true if the numbers are not telling you a story you want to hear.
Let’s take a look at some of the ways that numbers are important, along with a few tips of how you can get comfortable with being a numbers person:
- Numbers define success, or, put another way, numbers don’t lie. But that’s the point: you can learn a lot about yourself and your approach to the real estate business by tracking your numbers-but importantly, you can sift between what is working or not working through constant analysis of your numbers.
- There is a logical progression with regard to using numbers to measure success. For example, you can analyze the relationship between calls, contacts, conversations and contracts. How many calls do you need to make each day to achieve the number of positive conversations that lead to listings? These ratios become the foundation for your daily prospecting routine.
- Many real estate professionals see data as a negative thing-something they have to do, instead of want to do. With some effort, you can flip that thinking on its head. Turn data analysis into something you look forward to, instead of something that you see as a necessary evil. Perhaps, to establish good habits around numbers, you set aside the same time each day to review your results-and stick to that plan for at least one month, which is just about the right amount of time for good habits to begin to stick.
- Numbers help you fight complacency. Again, they never lie. If your transactions lag your goals, it’s probably reflective of the fact that you are not putting enough energy into your daily prospecting efforts.
- We’ve said this before in this blog, but it bears repeating: your most important number could be the number of times you get rejected each day! Think about it: if you get rejected, say, 50 times each day, it is confirmation that you’ve made at least 50 calls. You can’t control when somebody answers the phone. But you can control the effort you put into your outreach. In fact, you can use rejections as an important goal, if not your most important goal.
- While we’re discussing numbers, let’s look at another set of numbers we often fail to acknowledge as we pursue our goals: the amount of money you are investing in yourself, in building your business. As with any set of numbers, you can chart the value these kinds of investments have in driving profitable revenue:
- Hiring a coach
- Purchasing a proven Lead Generation/CRM system, such as Vulcan 7
- Hiring a part-time admin to help you manage the details of your growing business
- Attending conferences, virtual or otherwise
Marcus Lemonis, popular host of the reality show, The Profit, said this: “Control your cash, stick to your core business and know your numbers.”
We couldn’t have said it better. If you’re reading this blog, your core business is likely real estate sales, which means your numbers are obvious: calls, contacts, conversations, contracts, closings. By getting comfortable with your numbers, over time, everything begins to add up.