Fast Forward another three years, into Jake's fifth year selling real estate.
(Jake's story begins here.)
Jake is the perennial top producer in his office and is considering going out on his own. He works about 30 hours a week and sells around 70 properties a year. Last year his gross commissions topped $300,000 and it looks as if he'll do it again this year.
His expenses? Not bad at all. Because his business is almost 100% SOI, his marketing budget is quite low, perhaps only 5% of his gross. And that 5% is spent mostly on entertainment (lunch dates and dinner parties, afternoon BBQ's and impromptu happy hours.) The rest of his marketing budget goes toward business cards, newsletters, annual calendars and postage. He spends no money on geographic farming, newspaper advertising or even web leads. Yeah, he has a website, but it's not a big source of business for him. He doesn't need it to be.
Let's look at Jake's sales statistics thru the years:
Year One: 25 homes sold (22 to SOI) Gross Commission: $71,000
Year Two: 38 homes sold (32 to SOI) Gross Commission: $138,000
Year Three: 47 homes sold (40 to SOI) Gross Commission $215,000
Year Four: 57 homes sold (51 to SOI) Gross Commission $305,000
Year Five: YTD in July: 33 closings, 12 active listings, 5 in escrow, 5 active buyers
Projected gross commission - well over $300,000
So, do you think Jake is a BELIEVER in the power of SOI? (more about Jake here)