When defining goals, unfortunately most agents do not take the time to look at their business or how they conducted business. Most don’t take the time to analyze their budgets, expenses or profit margins. Instead, they opt to pull a random number out of the clear blue sky.
Ask new agents how much they want to make their first year in the business, and their response will most likely be $100,000. Without having sold a single property or knowing little about the business, they believe they can earn six figures immediately.
Experienced agents are not much better. If they did $5 million in volume this year, they want to make $10 million next year. There is no rhyme or reason for doubling their volume. After all, isn’t the goal to do more than the previous year?
Take the time to think about your life, your business and integrate the two, by considering:
How much money do you spend each year?
Beyond your regular expenses, what do you need money to do this year?
How much profit do you want to make from your business?
Once you have the answers to these three simple questions, then you can determine the level of volume you want or need to achieve. When you know your numbers, you can set income or volume goals to meet your lifestyle.
If each year your plan is to double what you did the previous year, the question becomes when is enough, enough? It’s a question many agents can’t answer because they are constantly chasing more as though “more” is validation that they are a successful agent.
The job comes with enough stress—our clients, appraisers, home inspectors and lenders, just to name a few. Agents don’t need to add to that stress by pulling random numbers out of the sky and labeling them goals.
Real estate is a profession where you can decide how much or how little you want to earn. How much time you want to spend on your business and what activities you want to do and when. We can set healthy boundaries and achieve work-life balance.
This doesn’t mean that you can’t or shouldn’t be ambitious or set high goals. It simply means know your numbers. Know what you need to earn, know when enough is enough — and live your best life. The only person you need to impress is yourself because no one else matters.
–Candy Miles Crocker is the founder of Real Life Real Estate Training.