Both Lou Ludwig and Barbara Todaro recently wrote posts cautioning one to not focus on money as motivation in one’s real estate career.
I’d like to offer a counter opinion.
Money plays a vital role in the success or failure of any business. ( And like it or not, if you help buyers, sellers, tenants or landlords, you’re in the real estate business. )
You own a real estate practice.
You are a business owner.
Over the past 24 years, I’ve seen many agents get their real estate license with dreams of huge dollar signs dancing in their head. Then they have some success and often do one of two things…
-They get super motivated to make more and begin throwing that commission check here, there and everywhere, buying ad space, leads, slick logos and marketing pieces because they want more, and they want it yesterday.
OR
-Or, they don’t put money away for taxes, don’t budget expenses and have no plan or idea for how long that check needs to last until the next closing.
Real Estate is a business and every business has to be about the money.
Not just about the money, but it cannot and should not ever be a fleeting thought.
Goal setting and business planning are a must for the success of any business. But because it takes money to make money, the end result (hopefully a profit margin) should always be factored into that plan. Expenses planned and budgeted for, income goals set monthly, quarterly, annually.
If one sets an income goal, that’s not a bad thing. Maybe their goal really is is to pay off a mortgage, or buy an investment property in order to retire early and have a higher quality of life. Maybe it’s to pay off student loans or give back more to their church.
There will be times when you’re motivated by money and there will be times when you’re motivated by other goals.
Long story short, Being motivated by money isn’t a bad thing.
That’s my two cents on the topic (Pun intended)
Read Lou’s post here and Barbara’s post here
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