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Two Vastly Different Approaches... Two Successful Real Estate Careers

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Education & Training with Sell with Soul

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I have a new soapbox that has fired up my blogging energy... doncha' love it when that happens? Off we go...

I had an interesting meeting last summer with a real estate agent who started in the business the same year I did, in the same company. That year, he was the Rookie of the Year ... and I was runner-up to him. Neither of us recall who was third, of course!

Anyway, we literally hadn't run into each other since that awards ceremony in the mid-90's. Oh, I've seen his name around and he's seen mine, but we've never actually talked. We both went on to have successful careers and to set our individual worlds on fire (in our own minds anyway) and are still alive and kicking, almost 13 years later. Good thing.

So, last summer, we had the opportunity to chat about our respective careers. Since his dad had been a mega-producing broker at the time this guy (let's call him Skip) entered the business, I always assumed that his success had been handed to him. Au Contraire!

Skip explained that his dad wouldn't even let him in the door of his real estate office until he had, get this, worked for a year as a copier salesman. After that, he had to get his appraiser's license. Only then did Dad allow him to hang his new real estate license. But that was only the beginning - the boot camp then begun. Skip had to call all 600 of his dad's past clients, had to knock on 20 FSBO doors and call 20 expired listings per week. He had to hold two open houses every single Saturday. I'm sure there was mass-mailing and advertising tossed in there, too, but he didn't mention it.

And, voila! Skip was Rookie of the Year!

At the same time, I was taking my friends to lunch and attending social events with my future-ex-husband. I did some open houses and returned phone calls in nano-seconds. That was about it for my prospecting efforts.

And voila! I was the Rookie of the Year Runner-up!

Truth be told, Skip blew me away in production. He sold something like 70 houses that first year to my 25. But I was pretty darn happy with my 25 and I was enjoying the heck out of my new real estate career. So, for me, it worked. Had I been forced thru Skip's boot camp, I wouldn't have made it past my first month.

Fast forward to today.

Both Skip and I have had successful careers. We've made a lot of money and have consistently been top producers in our offices. I'm sure he has a lot of plaques on his "me wall," as do I.

But our approaches are still vastly different. He said he has to sell AT LEAST 100 houses a year to be profitable - that is, to support the systems and staff he's put in place. He HAS to cold call, he HAS to door knock, he HAS to prospect, prospect, prospect to stay afloat. He said that if he only has 5 closings in a month, he's in deep financial doo-doo. 

Me? Well, my "best" year was in 2001 when I sold something like 70 houses. But you know what? That year, I brought home less than 40% of my gross commissions (not counting taxes) because the cost of maintaining that level of production was astronomical. A few years later, I sold "only" 35 houses and netted exactly the same amount, working half as hard and taking on only half the risk. Hmmmmmm.

Today, my business is very simple (and cheap) to run. It's just me, myself and I. No assistants, no buyer agents, not even a free-lance transaction coordinator. I don't advertise, farm or SEO. Due to my strong sphere of influence and past client database, I have a steady stream of good business. Will I sell 100 houses this year? Uh, no. But do I work 60 hours a week? Nope. Haven't done that in years.

I imagine Skip's annual income is close to a million, if not more. Mine? Nowhere close to a million! But do I feel as if I'm been blown away by my fellow Rookie? Not really.

I don't ever want to be in the position of having to be a mega-producer in order to survive. I just want to take on the amount of business I can handle all by myself, the amount of business that I can easily attract using the soulful methods and philosophies that have always worked for me.

I must be getting old...

A&S

 

 

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Comments (23)

Lisa Spalding
Casa Latino Four Corners, REALTOR, CDPE - Longwood, FL
REALTOR, CDPE

Great post!  Most people don't understand the Extreme hours and level of commitment that it takes to be a Mega Producing Agent.  I see one agent in my office that is there at ALL hours and will tell you point-blank she has "no life" or "no time" for herself and family.  She doesn't take a day off, ever, and feels guilty if she takes a few hours for a nice dinner.  She answers her phone every time it rings.  While that's not wrong in any way, there is definitely a balance issue in that type of business plan.  She runs ads in real estate magazines and gets a lot of listings, which is a good thing.

I prefer to take on manageable business, mostly Sellers and a few choice Buyers that I can handle on my own and refer all my other Buyers to my business partner.  I take 2 days off a week (at least) and spend time with the family a lot.  It's cool.  I haven't run a magazine ad in a few years and just network with friends, family, and business partners/strategic alliance partners.  I do send monthly success stories to my Sphere of Influence and try to contact everyone by phone and email regularly, even if it's to leave a message of "Hey, I was just thinking about you..."  Well, I'm off to take the kids to Grandma's house for awhile.  Gotta go find my 3 year-old's shoes in the mess that's his closet...  :)   

Jun 20, 2009 01:01 AM
Sara Goss
HatmakerGroup.com GMAC Real Estate - League City, TX
Realtor - Houston Bay Area, Texas

I like to tell prospective clients that I only have as many clients as I can manage. Don't want to work myself into bad health or bad attitude.

Jun 20, 2009 01:13 AM
Ed Rybczynski
Integrity Real Estate - Havre de Grace, MD
Your Source for Local Real Estate

Jennifer

This post is a masterpiece.  Deeply insightful and desperately true.

Ed Ryb

Jun 20, 2009 01:39 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Great information. I can't imagine someone surviving in this current market by door knocking and cold calling.  I wonder if the do not call list hurt his sales when it first came out!

Jun 20, 2009 02:19 AM
Bob Dunn
Sutton Group West Coast Realty - Abbotsford, BC

Love your attitude. I remember when there were no mega agents in this business. I think it was largely motivated by the trainers and coaches who promoted their systems. The push was to be BIG. assistants, buyers agents, etc.. More listings. Bigger staff.

I've noticed some new Realtors who have immediately bought into absolutely massive branding and advertising systems.

Sure they are BIG but big at what.

Jun 20, 2009 03:33 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Jennifer - I have never been a top producer (and have never wanted to be) but I have had some really great years.  I've only been in the mortgage biz since 2001 and for the first six years, my production/income increased every year.  For me, 2008 was my worst production/income year ever (even worst than my first year).  Halfway thru 2009 now and this is definitely looking to be my comeback year (better than 2008, not as good as 2007).

The issue now is that with my average sale being half of what it used to be, I now have to double my production to make the same amount of income.  IT'S ALL GOOD THOUGH!  It's an uphill struggle but because I have simplified my business as well as my life, I can actually be more efficient and productive on less.

I see what the top producers have to be like to be a top producer and that is why I have never, ever wanted what they have.  They can have all their mega systems and their gazillion minions (who are the one who actually run the business and take care of the clients) so that they can run around town plastering their face all over the place.  Me and my processor (who's an absolute GODDESS) will play in our own little corner of the sandbox.

Jun 20, 2009 04:10 AM
Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

I like your plan much better than Skip's......much more fun and enjoyable!

Jun 20, 2009 10:26 AM
Andrew Haslett
Van Warren Home Inspections, NAHI CRI - Fort Knox, KY
Heartland of Kentuckynulls, Best Home Inspector

jennifer, thank you for that insight. Not being the realtor, though I probably know more than the average bear, there is still so much of which I know very little.

It also reminds me of how to balance my marketing efforts.

Jun 20, 2009 03:05 PM
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee 423-677-6677

It just goes to show, everyone is different.  Skip would probably go nuts not doing what he's doing.  I personally, stick to your type plan.  We'll probably live longer too!

Jun 21, 2009 01:22 AM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

What a great post and a great story. I hope one day to get to be a mega producer . I am bnot sure what that is like but would like to find out

Jun 21, 2009 01:45 AM
Sue Gabriel
Cleveland, OH

I would be ECSTATIC to sell 25 houses a year!! And I remember working with a mega producer who had her 13-year old daughter sleeping in the office, on the floor, under her desk - on Christmas Eve. No thank you!!

 

Jun 21, 2009 01:58 AM
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Sue - At the time, I didn't think there was anything special about it -  I was stunned to find out I'd won any sort of reward. But now, yeah, it doesn't sound kind of impressive. Different world, perhaps.

Charlie - Yes, it is nice to know you have all the business you want...

Cindy - Y'know - you're probably right. I'm sure Skip does revel in his schedule, on some level. Although, when we talked, he said he knew he had to change something because he couldn't keep up the pace, physically or emotionally.

Andrew - Glad I was helpful!

Ann - Me, too... but even if I liked his plan better, I couldn't possibly do it...

Donne - I've been an "award-winning" agent, but certainly not a tippy-top producer. I'll admit, I thrived on those years of my career when I was overwhelmed with business and had to pull all-nighters. But the difference is, for me, that I was building my business doing what I enjoyed - EARNING referrals (by taking great care of my clients).

Bob - I know very few mega-producers - I think it's unfortunate that there's so much hype over being MEGA that perfectly competent and reasonably successful real estate agents feel somehow... inadequate.

Donna - he's a good guy, not cheesy, not icky, but definitely not afraid to pursue. I imagine that the DNC put a crimp in his style, but I'm sure he found a substitute for all that energy!

Ed -  A Masterpiece! Wow! That's a first for me. Big Smile!

Jun 21, 2009 02:11 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Girl, I'm right there with you (on the getting old part). We must be really old because we dont have Skip's drive (hah).

Just describing what he has to do already wears me out.

The truth is that I've always wanted to be in the 30 under 30 list. But I found out about that list after I was 30. I do have big dreams and big expectations of myself. I am still working on achieving the # transactions that I planned for myself when I first moved into FT.

I realized it takes ALOT to be successful. Although I have ALL the essential qualities of a mega producer, what I also have is a family. A family takes time to nourish and build. A business requires just as much time.

In my recent post (as I face that fairly often these days), I realize that it may be better for me to back off my mega producer dreams and have my family to enjoy my small accomplishments with me. What is success of a mega producer with no family to celebrate with? I'd rather do the opposite.

But then again, maybe it doesnt have to mean backing off my dreams FOREVER, but just put that on the back burner for a while since I too, am in the family growing stage in life.

What I did was I compared success of people 20 years before my time. What I want is their success NOW in this stage of my life. I need to knock reality into my head that it wont happen. They built their business, walked in my shoes 20 yrs ago. But I want it all now.

So, as I comment here in your blog, I don't think I will ever view people who may be less "productive" the same way again. Maybe they have a life too!

Jun 22, 2009 03:18 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

If you are getting old, you are making me feel old Jennifer!  Life is a balance, and we each have to choose our path!  Doesnt make us bad if we do our jobs well.

Jun 22, 2009 04:28 AM
Christine O'Shea
Christine E O'Shea Broker - Naples, FL

Hi Jennifer, great post and so true, sometimes so much money is spent to make money it is not worth it.  I think it all depends a lot on ego and how much one wants recognition.

Jun 22, 2009 09:49 AM
Anja Kerstens, 669.270.8034
Compass - Morgan Hill, CA
GRI, NHCB, CDPE, CHS. Silicon Valley Homes

I wonder if Skip has a life.  Jennifer, you have made a choice not to be a slave to yourself but to balance your life and be happy.  I admire that.

Jun 22, 2009 05:05 PM
Teral McDowell
Referral Patners LLC - Murphy, TX

I like your approach. Life is short enough and I want to enjoy it. All work and no play is not appealing. I really liked your post.

Jun 23, 2009 06:43 AM
Anonymous
Tracey
I'm not sure how this blogging thing works but I had to post you a note.......I felt like I was reading my story about how you do your business! I was in the same shoes, working at a pace so fast that I was a top agent my 1st year in Realestate. I'm no longer that agent (thank god!) and I work by referral only for who I want only and referr the rest to my office friends.....This year I celebreate my 10th year in realestate and hope to have many more! I love reading your newsletters when I have the time so keep em comming:)
Jul 06, 2009 11:52 AM
#21
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Jennifer - I have always wanted to have a certain level of success, but not so much that it interferes with my family.  I think if you have good systems in place, excellent staff, and great marketing, you can have both.  This will take hard work, but that doesn't necessarily mean working 60 hrs per week, or working on Christmas Eve.  You need to trust in the employees you hire, that they can do what you hired them to do, and understand that you don't have to make all the decisions. 

Jul 21, 2009 06:07 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

You know - I left this in bookmarks a looong time ago because I didn't have time to comment on it.  Truth be told, i see that here.  The COST of maintaining super-agent status is huge because the overhead goes up.  It cost a lot to get me off the ground.  But I can't keep adding on to those expenses through hiring and come up with no more than I had before...Balance is the key.

Aug 13, 2009 07:09 AM