Updated: Oct 10, 2019
In our last video, we talked about setting an income goal for 2020. Today, we’re going to talk about the second step to creating your goals.
STEP 2: After you have your income goal, what’s next? What to do with your income goal once you have it set?
When I started in real estate, I had an income goal but it wasn’t connected to my daily activities. My mindset was, “I’m going to show up today and I will do my best.” That’s great right? NO! It is not a good business strategy.
A good business strategy is looking at your conversion numbers and figuring out what you need to do in order to get a closing. If your goal is $100,000, how many closings do you need to reach $100,000?
Most of the time when people do this, they start off a bit overwhelmed. They see the closing number and it might seem like more than what's possible. And this is where people start questioning, “How do I know what's possible versus not possible?”
I recommend you grab The Millionaire Real Estate Agent book and look up the economic model. There is a chart there that you can use. Photocopy that chart and then fill it out. This will help you work backward from your income goal.
Figure out how many closings you need. Don’t forget to take into account your average price point and your commission. Then work all the way back to how many contacts you need on a daily basis.
If you do this with your numbers, you will be able to see how many contacts you need on a daily basis. The most common response I hear is “That’s very doable. Maybe I need to raise my goal”. Sounds awesome right?
Start with your income goal. Then figure out how many closings you need to achieve that income goal and then work backward.
Two (2) tips for you:
Tip#1. A lot of times people take into account their vacation days. For me, I take 2 weeks of vacation every year. And work the remaining 50 weeks of the entire year. And here’s the formula:
50 Work Weeks / # of Contacts = My weekly goal
Something is still missing here! A lot of times we forget to add events that we will attend like Family Reunion or Inman’s conference. Take note that whenever you go to these events, you are not lead generating during these times.
What you want to do is take the 52 weeks and then subtract your vacations and total time away from lead gen. Even your sick days. For me, I throw in about a week or two for days that I cannot work because I’m ill. Things happen and something unexpected may come.
If you're at career visioning, you may want to subtract that as well -- the times that you will be out on training. If you are not actively making phone calls, subtract that time.
I find most clients usually end up working actively on the phone about 46 weeks out of the year on average.
Tip #2. Take into account your base pay. Say again you want to make $100,000. If you're an ISA with 24K as your base pay, subtract the 24K before doing your calculations. This is because that is really what you need to earn either through commission or bonuses.
Use these two (2) tips to work backward from your yearly goal to set your daily and weekly goals.
This is a lot to cover in a short video so if you have additional questions about goal setting and how the economic model works, go and check The Millionaire Real Estate Agent.
There's a whole chapter dedicated to the economic model, and it will explain to you how to figure out how many contacts you need to hit your goal.
You can also reach to us at www.isamapscoaching.com and click the button that says Talk to a coach. We will be glad to help you.
Happy goal setting!