together a basic and proven real estate agent Economic Model that you can trust to help you achieve your maximum potential. The Economic Model we propose is about approaching your economics and this business in a manner that works for any real estate sales business, from a one-person sales operation to a large, dynamic team. Big Models work for everyone and lead to Big Goals. In fact, the model advocated here has no known limits.
THE THREE KEY AREAS
OF
YOUR ECONOMIC MODEL
There are three critical areas of focus in your Economic Model. First, you need to focus on knowing the key numbers you must hit. Understanding how the different aspects of your business interact to produce financial results is essential to making sound decisions. Then you’ll have to focus on the number of appointments you must make, the driving numbers in your Economic Model, and the conversion rates you must achieve, the key variable in the equation. Let’s quickly touch on all three.
1. Focus on the Numbers You Must Hit The greatest thing your Economic Model will tell you is what numbers you must hit in order to net the income you want to receive. The formula shown in Figure 7 is simpler than you might have thought. With a model like this,
“We begin with the end in mind. We know the numbers we must hit and we never lose sight of them.” Chris Cormack Millionaire Real Estate Agent Ashburn, VA Sales volume—$70 million
you can fill in performance numbers and see in a very clear way how high or low averages in one area affect the rest. Once you get a feel for the way the numbers
interact, you can take the guesswork out of your planning and set specific goals in specific areas to achieve specific results.
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The Millionaire Real Estate Agent
