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Intermediate Agents and The Power of the Dashboard

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So this post is for those agents that are currently at a level that they are okay with, but would like to get up to that next level.  Mid level real estate agents often suffer from one key issue in their business that keeps them from experiencing explosive growth – they don’t really know where their business comes from!

Recently I heard a great concept from Wayne Einhorn, who is the president of an organization called EDI coaching.  These guys are focused on helping businesses reach their potential, as well as run more like businesses.  The concept was called “the dashboard”.   The concept of the dashboard is that you regularly need to be checking on a small number of key metrics in your business – the stuff that really tells you about how you are doing.  Most agents who are in that middle tier are suffering from being salespersons, rather than business owners, who need to know where the gaps are to take it to that next level.

dashboardSo what are the items that should be on your dashboard.  Well, I think there are a few key numbers that you need to know at all times so that you can effectively govern your business:

  1. How many buyers and sellers do I usually have under contract at any given time? It is always amazing that when you ask this of agents, that frequently they don’t have any idea what they are usually handling!
  2. How many listings and buyers do you have coming up in the next 12 months? You should definitely know what’s in your pipeline.
  3. What’s my conversion rate? This is how many CMA’s do you have to do per listing?  If you have a low conversion rate, maybe you need to improve the way you do your listing presentation, or better qualify people, but without knowing whether your conversion rate is at a good or bad level, you can’t act.
  4. What am I spending on my business? Understanding what you are investing back into your business, and the return that you are getting on it should be a key number that all business people are watching.
  5. Am I charging appropriately for my services? If you are a full service provider, are you consistently charging a full fee for your services?  If not, how can you develop better strategies to defend your value on service, rather than on price?

There are certainly more statistics that you would want to know to understand the way your business functions, but once you choose the ones that you want to track regularly (8 should be the absolute max), you should be looking at them on your dashboard weekly!  Set yourself up a process so that you can quickly and easily track these statistics and you will be much better equipped to make sound decisions.  These are the instrument panel of your real estate business, and need to be watched to know if you are on course to achieve your goals.

 

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