Have you got a goal for 2021? If not, let me suggest a goal for you – one that might take you by surprise.
No, don’t aim to make more sales in 2021. Instead, set yourself the goal of making more profits.
Last year was crazy. But it wasn’t completely unexpected – because if you study history, you know crises happen from time to time. Sooner or later, another one will occur. Maybe next year; maybe next decade. Nobody knows. All we know is that another crisis is coming.
So in 2021, whether you’re an agent or a principal, your goal should be to become more profitable. That way, no matter what happens in your local market, your business will be sustainable.
Of course, one way to increase your profits is to win more listings. But it’s also possible to make more money while making fewer sales.
“It’s not what you make, it’s what you keep that counts.”
Back when I was a principal, I sometimes had periods when profits would fall to worrying levels. My solution was always the same – work like mad to win more listings. It never occurred to me that I could achieve the same growth in profitability by cutting my costs.
In real estate, it’s not what you make, it’s what you keep that counts. That’s why it really is possible to sell fewer homes yet have a healthier bank balance.
So my challenge to you for 2021 is to look for ways to reduce your costs.
That will allow you to grow your profits even if you win fewer listings. If you do win more listings, even better – you’ll earn more revenue and get to keep a higher share of that revenue.
So, how can you cut your costs? There are as many ways as you can think of, but let me share four of the most obvious ones.
First, if you’re with a group, switch to a group that lets you keep 100% of your revenue, like One Agency.
Second, if you have debts, speak to a broker about refinancing your loans. Interest rates are at record-low levels and there are dozens of lenders competing hard for business.
Third, consider whether you really need an office on the main street. If not, consider moving to cheaper premises off the main street or working from home.
Fourth, use comparison sites to find better deals on your insurance, electricity, internet and phone plans.
If you think creatively, you could save tens of thousands of dollars per year. Running a leaner business will not only deliver you higher profits in 2021 – it will also leave you better placed to handle whatever crises come our way in the years ahead.
If you love what you do but want to make a change – either to keep more of what you earn, shift to a more lifestyle focused operation and reduce running costs; I invite you to contact me at One Agency and discuss confidentially how our model, (less than $1000 + GST per month regardless of your GCI) may be just the answer to breathe new life into your career and future proof yourself.
“It’s not what you make, it’s what you keep that counts.”
‒ Paul Davies, Founder and CEO
Revised edition: Written by our Founder and CEO Paul Davies with a foreword by leading real estate coach and trainer Tom Panos, ‘How To Profit In Real Estate Business Ownership’ is compulsive reading for established and aspiring agents looking for a way to achieve success and maximise fee retention.
As founder and CEO of the fastest growing real estate network across Australasia, I offer real estate professionals an opportunity to reap the financial rewards of going it alone with the security and clout of an established brand. Talk to me and my team about your options.
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One Agency is a revolution in real estate, empowering both individual real estate professionals and established agencies to take control of their future and bring an entirely new level of service to clients.
