5 Budgeting Tips for Agents

Business Success

Jul 25, 2018

Get ahead of the inevitable rate hike

Fannie Mae’s economists dusted off their crystal balls, peered into the housing market’s near future and came away upbeat.

In the overall economy, they predict strong growth and low unemployment rates to continue. So, bring on the rate hikes, right?

They predicted four rate increases in 2018 (up from the three they predicted in March) and then another three in 2019. Hopefully, this won’t impact too many of your buying clients.

Their housing market-specific news includes a continued tumble in the conventional mortgage application rate. Which is why, in a business so dependent on a healthy economy, it’s important to be strategically budgeting both your personal and business money.

I did a deep dive into the experts’ opinions on what it takes for an independent contractor to financially succeed during the tough times. Here are several of their basic tips.

Start with your personal budgeting

Taking care of your personal finances is job one. Once that’s done, you’ll have a clearer picture of how much money you need to make and how much of it you can devote to your business expenses.

When budgeting, you need to be flexible enough to accommodate your income swings and to allow for an emergency fund. Most financial pros suggest you’ll need enough to cover both your living and business expenses for six months.

Once complete, that budget may be a real eye-opener. Look for ways to cut needless spending and redirect that money elsewhere.

Forbes.com’s Laura Shin suggests taking a critical look at your recurring spending. “Are you really using all the offerings of your mobile phone plan …? Do you go to the gym often enough to justify the monthly cost? What if you took up running, played tennis with a friend or used exercise DVDs instead?”

She also mentions that you consider cutting the cord. Cable TV has become ridiculously expensive when there are other, less expensive options (streaming) out there.

Your business budget

If you don’t already have a business account, open one now. Your tax preparer will worship the ground you walk on.

And, if you do your own taxes, you’ll be immensely grateful every quarter that you don’t have to pick through your expenses to separate the business from the personal.

Your real estate business budget needs to include more than your listing expenses, gas, and auto maintenance costs. Among the other categories, ensure your budget includes money for: taxes, health insurance, disability insurance, website expenses, salaries, marketing your business, closing gifts, wardrobe, and professional fees.

Once you’ve created the budget, it needs to be maintained. Track your expenses and income and tweak the budget, as needed.

Consider the bucket system

If you’re like a lot of us, you haven’t a clue where you spend your money and how much is wasted. Budgeting is a pipe-dream that you know will never meet reality.

So, make budgeting a game, of sorts. Divide your expenses into three “buckets.”

1: The first bucket holds all your ongoing expenses, such as utilities, house and car payment and other debt payments.

2: The next bucket is for expenses such as food (both dining out and groceries), entertainment and clothing.

3: The third bucket is for the money you’ll spend in the future for things like healthcare deductibles, retirement accounts, home repairs and maintenance and vacations.

Do the same with your business expenses.

Your business expense bucket

Start the system with bucket number three, decide how much of each commission check you’ll need to set aside for future expenses. Experts suggest that you open a separate account for your third bucket. The first payment you make from each commission check should go to this account. The rest of the check goes toward monthly personal expenses (bucket number one).

The amount left over after taking care of recurring expenses is what you can dump into bucket number two.

To remain on track, monitor your spending for two or three months to determine how much you’re spending from the second bucket. Take the average, multiply it by 12 and divide by 52. This will give you the amount of money you can spend, weekly, from the second bucket. Divide it again by seven to get your daily limit.

Remember to be mindful of your spending, especially for business items. “Expenses should create income. If an expense doesn’t create income, it should be eliminated,” Tom Wheelwright, CPA told Inman.com’s Dani Vanderboegh.

Question every purchase. If you don’t need to make it, don’t.

A smart way to utilize your marketing budget? Attract buyers with a proven method of marketing.

Send the Don’t Wait postcard from the Fence-Sitter Series to at least 100 prospects in an area where you want more buyers.

Need help targeting the perfect niche of buyers or sellers? Use our mailing list tool to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

PLUS: When you have time…here are 3 free ways we can help you CRUSH IT in 2018!

1. The 12 Month Done-For-You Strategic Marketing Plan.

The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Listing Inventory, Geographic Farming, and Sphere of Influence – Click Here – Click Here

2. The Free 2018 Real Estate Business Plan.

Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan – Click Here

3. The Free Online ROI Calculator.

Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! – Click Here

Also…check out these cool tools

Three Click Postcards – Just snap a home photo & create a postcard all from your mobile phone

MLSmailings.com – Automated Just Listed, Just Sold Postcards

Market Dominator System – Become a neighborhood brand

Want to Refer a friend or colleague? Refer them, Here. THEY get a Free $25 Gift Card and YOU become their hero!

Real Estate Conferences = Business Success

Business Success

May 23, 2018

Why They are so Important

Sure, you’ll have a chance to dance the night away, sightsee and maybe, if inclined, get tipsy when you attend one of the multitudes of real estate conventions and conferences held every year.

But that shouldn’t trivialize the value they offer you as a business owner and real estate agent. Building relationships, gaining new knowledge and soaking in inspiration—all in one place—is multi-tasking at its finest.

Learning new ways of doing real estate

The educational opportunities offered through the workshops and by attending the lectures from well-known trainers and successful agents are worth their weight in gold.

Think about it: how much time can you devote during a typical work week to bring yourself up to date on the various tech trends agents are utilizing in their businesses? And also find out what’s coming down the pike that may relieve some of the pressure on your schedule?

Attending a real estate convention forces you to take the time to slow down and pay attention to ideas and trends that you can employ in your own business.

Then, there are the hands-on demonstrations at the trade expos where you can actually see new products and technology in action, rather than just read about them online.

Schmoozing is good for business

Most of us have a circle of colleagues that we occasionally socialize with over a drink or a cup of coffee. Typically, we discuss clients, rarely touching on and sharing new ideas (they may be friends, but they’re our competition as well).

Getting away from the office, out of town, where you can make new connections with agents from different markets, frees you to speak more candidly. You may learn new marketing ideas (or new twists on old ideas). You’ll definitely broaden your referral base and build new relationships.

Don’t limit your networking to the event’s venue, but “look out for vendor parties and other events outside of the main stage,” suggests Kayla Matthews at inman.com. “Those outside events are great ways to deepen the connection you’ve made with other professionals at the conference during the day.”

Get inspired

From motivational lectures by some of the country’s top real estate coaches to success stories from other agents, inspiration abounds at real estate conferences.

And, no, it’s not the same as listening to a motivation CD in your car. Being surrounded by like-minded people, the applause and bright lights ratchet up the excitement level unlike what you can experience listening to a CD.

If you plan on attending Inman Connect San Francisco this year (July 16 to 20), you’ll find a long list of speakers who are sure to inspire you to higher levels of tech use, to build a team, become a better leader and more.

Tom Ferry’s next Success Summit is happening in Anaheim, CA (August 6 to 9). There you can pick up tips on lead conversion, marketing strategies and get inspired to become more efficient.

If you’ve yet to attend a REALTORS® Conference & Expo, make it a point to attend this year when it’s held in Boston from November 2 through 5. Last year’s attendees learned about their successful competitors and what they bring to the table and information that inspired them to prospect “like never before.”

Or, step outside your box

If the thought of sitting in a room with 4,000 other people who work the same grind as you makes you want to curl up in a ball, consider different types of conferences.

For instance, if you want to utilize technology more in your business, get up to speed on what’s new and what’s coming down the pike at a Growth Hackers summit. While 2018’s was held in February, consider joining them next year. They promise to offer inspiration to “people looking to grow their businesses.”

Or, niche down even smaller and attend the next Traffic & Conversion Summit and learn how to convert your website traffic, content marketing, Pinterest promoted pins, Facebook video tests and more. The speaker’s list features leading minds from the digital marketing world. This is another that was held in February of this year, so make it a point to attend next year’s.

Attending industry and even non-industry conferences give you a chance to re-evaluate what you’re doing and find tips to learn how to do it better and more efficiently. Yes, they can be expensive to attend but consider it an investment in your business and don’t forget – they’re tax deductible.

To create growth in your business right now, send the Free List of Homes postcard from the Call to Action Series to at least 100 prospects in an area where you want more listings, today.

Need help targeting the perfect niche of sellers or buyers? Use our mailing list tool to create the ideal list or call our support team for assistance at 866.405.3638!

PLUS: When you have time…here are 3 free ways we can help you CRUSH IT in 2018!

1. The Free 2018 Real Estate Business Plan.

2. The Free Online ROI Calculator.

3. The 12 Month Done-For-You Strategic Marketing Plan.

Also…check out these cool tools 🙂

3 Click Postcards – Just snap a home photo & create a postcard all from your mobile phone

MLS Mailings – Automated Just Listed, Just Sold Postcards

Market Dominator System – Become a neighborhood brand

Take it to the Next Level

Business Success

Jan 10, 2018

7 tips to take your real estate business to the next level

If indications are right, 2018 should be quite the interesting year in real estate.

If you’ve decided it’s the year you’ll take a giant leap forward in your real estate business, well, I’ve got your back, read on for tips on how to do just that.

Treat your business as a business

It is not only a business, but it is one in which you are the CEO. So, act like a CEO.

Do you have a business plan? If not check out our Free Online Realtor Business Plan.

“If I asked you to drive from Omaha, Nebraska to San Diego, California what would be the first thing you would do? Probably mapquest and plan out the directions!” suggests Bubba Mills of Corcoran Consulting and Coaching.

“If I ask you how to do 50 transactions in one year, then shouldn’t you do the same thing?” he continues.

Those “directions” can be found in a business plan – the roadmap for your real estate business.

And, if you do have a plan, does it still require the use of outdated strategies? Update your Real Estate Marketing Plan to meet the needs of today’s real estate practice and today’s real estate consumer.

Next, build a budget, itemizing how much you’ll spend on your car, your dues, desk fees, E&O insurance, your listings and all the other things you spend money on in your business.

A budget is the only way to ensure you’ll meet your income goals by the end of the year.

Let the past guide you

Decide to focus on what has brought you success in the past and do more of it.

Perhaps choose the one tactic that worked best for you as a new agent and concentrate on that for a time.

Was it cold calling?

Sending postcards or newsletters? Door knocking? Whatever it was, resurrect those skills that worked in the past and put them to work helping you jump to the next level.

Start one new thing this year

Try your hand at something you haven’t done before such as automating your Just Listed/Just Sold Postcard mailing.

Free up time from manually handling your Just Listed Just Sold Postcard mailing and automate it instead.

It’s easy to do, affordable and takes the ongoing stress of getting those cards out in a timely manner off of your shoulders.

This leaves you more time to focus on other areas of marketing that need your attention.

How about trying your hand at sending a newsletter?

Las Vegas agent Debbie Drummond tells the story of how a newsletter helped her snag a client for a luxury high-rise condo after an agent who lived in the building failed miserably.

The couple ended up calling Debbie after they received her newsletter. “The newsletter has proven to be a money maker,” she tells Tyler Zey at easyagentpro.

Hire help

The quickest way to move your real estate business to the next level is to stop doing things that don’t make you money.

Hire an assistant to do them for you.

“If I had to touch every single piece in my system myself, I would never be able to produce multiple amounts of volume,” one of Las Vegas’ top producers tells the Las Vegas Review-Journal.

“You have to be efficient, and you have to leverage the system (by hiring).”

Think you can’t afford an assistant? Try going the virtual route first. If you choose a virtual assistant who specializes in real estate you’ll do away with the time and effort involved in training him or her.

Two to consider are Kim Hughes & Company and Real Support. Both companies specialize in supporting real estate agents.

Pay tribute

To truly move your business to the next level, you need to admit that it’s time to stop ignoring your past clients.

To drive this point home, did you know the cost to acquire a new client is five times higher than pursuing someone you’ve already worked with.

Ready for another powerful statistic? Nearly 40 percent of home sellers found their agent through a referral (according to the NAR).

If your website isn’t effective, fix it

Who in your market ranks organically for your preferred keywords?

If it isn’t you, maybe you have some website issues. Check out the sites of those who do and vow to beat them at the Google game.

What are they doing that you aren’t? Typically, it’s the agents who post content consistently that get the best organic rankings, but go through the sites, page-by-page and learn from them.

Take time off

Taking time off actually increases our productivity by 80 percent, according to researchers at Alertness Solutions.

They are a company founded by former NASA scientists that provide fatigue management consulting services.

Research from Harvard University, however, cautions that unless your vacation is planned (at least one month ahead) and you travel far from your work, you won’t get a good ROI on that time away.

Unplug – completely – while you’re away and your focus will be stronger when you return to work, according to researchers at Boston College Center for Work and Family.

Rest and recharge your way to the next level in your real estate business.

Choose a Newsletter or the Market Dominator to send to 200 homes in your Geographic Farm in the month of January! Make sure they know YOU are their neighborhood expert.

The ProspectsPLUS! Team are your biggest fans! We are here to help you succeed in 2018. Please reach out to us if there is any way we can help you at 866.405.3638.