What’s Your Real Estate Practice Moneyball?

Man holding dollars

When performance is measured, performance improves. When performance is measured and reported, the rate of improvement accelerates.

Successful real estate professionals tend to be great salespeople, good communicators, and connectors of all things home services in their communities. As amazing entrepreneurs and artists tracking and measuring, “the business” typically does not come naturally.

Yet running a real estate practice is a unique operation, first off, real estate agents operate on 100% commission and are highly motivated to make more sales. So how do you set benchmarks for you and your team that will help track and improve performance?

Know your Moneyball.
Know the four disciplines of execution.

  • It starts with a clear and wildly important goal
  • Then it continues by identifying the LEADING indicators of success – the Moneyball
  • Adding in a SCOREBOARD, just like any sports game, so you know if you are winning or losing instantly
  • Topping it off with a cadence of accountability

Consider this:

The most important leading indicator of the success of your real estate practice is the number of NEW appointments you have in your calendar right now. No appointments, no revenue. It’s just that simple. Creating NEW appointments is your Moneyball.

New appointments come from a simple client and prospect communication plan. Now every coach and mentor has some type of formula like this:

5,5,4: Five contacts a working day to your inner circle or sphere; 5 contacts a day to new prospects and 4 follow up contacts on leads from the past.

or

120 contacts a week

or

8 by 8; 33 and 12: 8 touches for everyone you meet for 8 weeks; 33 touch program which is: 18 touches via newsletter, cards or drop-offs; 7 thinking of you touches; 4 telephone touches; 2 birthday touches (both partners); 1 touch each for a special holiday; and 12 direct contacts to those in your target zone but you have not met yet.

Whatever system you follow, we simply know it takes about 50 conversations or more to create 4 new appointments and 1 or more new signed agreements. Based on these numbers, you can reverse engineer the system you need to produce the result you desire.

A system will produce what a system will produce nothing less, nothing more!

So far, we have:

  • A wildly important goal for you
  • The leading indicator of success: new appointments
  • A client and prospect communication plan that matches your goals and personality

Next, what do your clients say about you and how do you measure it on a scoreboard? Your brand is not what YOU think it is; YOUR brand is what OTHERS say it is. A simple survey for all of your clients AND vendor partners:

  • What do we do well?
  • What can we do better?
  • Would you refer me to others?
  • Anything else we need to know?

Be the hub? Expand your network. Do you have a defined network of home service providers that your clients and prospects can rely on? Could I call you to get a recommendation on a landscaper, a plumber, a roofer, an interior designer? Example: adding or connecting with one vendor partner per week.

Finally, personal branding… self-promotion, including building a social media presence that positions you as the expert in your area. Example: creating one new video per week.

There you go, 4 critical disciplines for execution:

  • A wildly important goal for you
  • The leading indicator of success: new appointments
    • A client and prospect communication plan that matches your goals and personality
  • A scoreboard idea to measure it all – up and visual is best just like a sports game
  • Accountability from the consumer with consistent surveys

And 5 critical key performance strategies to execute for your real estate practice:

  • The leading indicator of success: new appointments
  • A client and prospect communication plan that matches your goals and personality
  • A simple survey to gain feedback
  • Expanding your network by being the hub for your tribe
  • Personal branding

The chief obstacle is staying OUT OF the whirlwind of everyday activities that might be urgent but not important. The GOLD is in the important but NOT urgent activities like the 5 KPI’s listed above.

The week is yours own it!

About the Author
Mark is the Chief Executive Officer of JP & Associates, a rapidly growing full-service real estate brokerage. He is focused primarily on expansion and productivity. He has invested nearly 20 years in understanding the inner workings of high performing real estate agents, teams, managers, and leaders in major markets across the world. In prior assignments, he served as a Business Coach, in progressive leadership capacities for the 5th largest US-based real estate brokerage firm; in sales and customer marketing leadership capacities for a major consumer goods company; and served a stint in the US Army, Medical Service Corp. He was later recalled to active duty during the desert storm campaign.

Mark is a father of 3, lifelong learner, Spartan and adventure athlete. He earned his MBA from California State University and a Behavioral Change Certification from the National Association of Sports Medicine. A number of years ago he decided to make "One Helluva Move" and not play it safe, and since then in his spare time he has climbed the world’s tallest free-standing mountain - Kilimanjaro; completed the Spartan tri-fecta, the LA Marathon and the world-famous Iowa border to border RABGRAI ride among other crazy adventures.