Using the 80/20 Rule to Build a Successful Business

By
Real Estate Broker/Owner with Premier Homes Realty 607004

HOW TO USE THE 80/20 PRINCIPLE

TO BUILD A SUCCESSFUL REAL ESTATE CAREER

 

We are all familiar with the 80/20 rule.  20% of Realtors generate 80% of the business in your local market.  If you're not part of the 20%, maybe some of the activities you are doing on a daily basis in not conducive to producing successful results. 

When you apply the 80/20 rule on an individual basis, you can say 20% of activities you do in a day will produce 80% of your business results.  What does that mean to you?  It means you are spending a lot of time doing things that do not generate success.  If you focus on the activities that generate business for you, then you will be more successful in your real estate career. 

We are all guilty of working but not really working.  We are spinning our wheels looking busy but what are we really doing!  Here is a list of activities that you can do on a daily basis that should help to produce more results.  If you use your time more wisely, then you should begin to see and improvement in your results!

 

  1. LEAD GENERATE
    1. Every day you should be performing activities that results in a return of leads.  Here are a few examples of activities that generate leads:
      1. Calling Expired Listings
      2. Blogging
      3. Calling past clients asking for referrals
      4. Purchasing leads through 3rd party vendors
      5. Community Involvement.  Attend networking and community events.
      6. Be an active participant on social media sites.  Share content, ideas and advice.
      7. Build a referral base
  2. NETWORK
    1. Get involved in community events and activities in your neighborhood
    2. Go to networking events to meet other business professionals
    3. Be sure to be up to date on local and regional market conditions so you will be knowledgeable about your local area
  3. SERVICE CURRENT CLIENTS
    1. Make sure you are providing your best service to your current clients so you they will want to tell everyone they know about the great service you gave them. (Referrals)
    2. Consistently provide your clients with updates and information on the buying or selling process and next steps so your clients will feel well informed.
    3. Stay organized and on top of your paperwork so you are not missing important deadlines for your clients
  4. FOLLOW UP WITH PROSPECTIVE CLIENTS
    1. When you get a new lead, follow up with them.  Many Realtors contact their leads only once or twice and then give up.  Try different forms of communication to reach your prospective new client
  5. CONTINUE TO IMPROVE ON YOUR SYSTEMS AND EDUCATE YOURSELF ON NEW PROCESS & PROCEDURES OF THE BUSINESS
    1. Build market and business plans for future goal
      1. Create marketing plan for listings and create fliers, newsletters, and other promotional collateral
    2. Attend training classes, webinars and sales meetings to learn new techniques and changes in the industry
    3. Read books that will develop your skills to be a better Agent
  6. GENERAL DAILY ACTIVITIES
    1. Respond to emails and missed phone calls
    2. Update website info/profiles and social media

 

Visit us at www.premierhomesmd.com to search for houses in the Maryland area.  Contact us at (410) 363-1535 or info@premierhomesmd.com.

Posted by

Premier Homes Realty
Tabitha Rector-Richardson
Broker/Owner/Realtor
(443) 415-4215 cell
(410) 363-1535 ext 101
tabitha@premierhomesmd.com
www.premierhomesmd.com

Comments (34)

Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Tabitha,

Great reminder to keep your eye on the prize & not get side-tracked by low return busy work.

Sep 15, 2016 11:10 PM
Tabitha Rector-Richardson

Exactly!

Sep 15, 2016 11:25 PM
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

A reminder of what should be done to bring business home to me.

Sep 15, 2016 11:30 PM
Ron Aguilar
Gateway Mortgage Group - Saint George, UT
Mortgage & Real Estate Advisor since 1995

all 6 items are important but #1 is critical to your biz. 

Sep 16, 2016 12:41 AM
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

Purchase leads? Not.

Sep 16, 2016 01:39 AM
Tabitha Rector-Richardson

Purchasing leads is not for everyone but I know several Agents that buy leads as part of their lead generation and they are successful.  Good luck to you!

Sep 16, 2016 06:55 AM
Victoria Palmer
Victoria Staging & ReDesign - Lake Havasu City, AZ
Home Staging & Redesign

Busy work will do just that keep you busy and away from the key money making activities.  Great post.

Sep 16, 2016 01:39 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Excellent post here. It is indeed the distractions (80%) that hinder results.  Focusing efforts on the right things is the only way!

Sep 16, 2016 02:34 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I would add prospecting and drip marketing to every lead to keep yourself top-of-mind with them.

Sep 16, 2016 03:41 AM
Tabitha Rector-Richardson

Great suggestions.  Thanks!

Sep 16, 2016 06:56 AM
Mike Bjork
Evolve Bank & Trust - Redondo Beach, CA

Great advice , Tabitha! You provided a lot of great activities for one to prospect and generate business. If they are consistent with this on a daily basis, then they may be on of those 20%ers!

Sep 16, 2016 10:48 AM
Tabitha Rector-Richardson

Thank you

Sep 19, 2016 12:18 AM
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

Great ideas for an agent at every level of their career.  The 80-20 rule is actually caed the Paretto Rule or concept.  Actually very old concept. 

Sep 17, 2016 07:58 AM
Tabitha Rector-Richardson

Yes it is a very old concept but it can be applied to many aspects of your life and career.  Thanks for the comment!

Sep 19, 2016 12:19 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Thanks for the reminder, Tabitha.    Several agents in my office spend a lot of time doing things that don't grow their business at all, and I'll have to admit a few bad habits have rubbed off on me lately.   Although I always make my current clients my #1.    I wonder if your # 4 might work better for me at a higher priority, since those are people that are already "warm."    Regardless of the order, I get your point: that our focus needs to be directed on keeping the future pipeline full.    

Sep 18, 2016 02:49 AM
Tabitha Rector-Richardson

We all sometimes get caught up on doing "busy work" but we sometimes need to be conscience of when we go astray and get back focused.  Thanks for the comment!

Sep 19, 2016 12:20 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post and list of to do items.  It's so easy to appear busy in this business.  I attend at least 2 networking functions a week where other realtors don't venture.  There are so many realtors in our area and so skipping the vastly attended ones is key to have one on one time with people.  

Sep 18, 2016 11:58 AM
Tabitha Rector-Richardson

I need to find more time to attend networking events and build relationship with professional in other industries.  It's on my to-do list of things to do  :-)

Sep 19, 2016 12:22 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks Tabitha, a lot of wisdom behind the 80/20 ratio, amazing how accurate it is in so many areas.

Sep 18, 2016 03:45 PM
Tabitha Rector-Richardson

I agree!

Sep 19, 2016 12:22 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Thanks Tabitha. This is a great starting point for new agents and a great reminder for the rest. 

Wishing you much success.

Sep 18, 2016 11:57 PM
Tabitha Rector-Richardson

Thanks!

Sep 19, 2016 12:22 AM
Brien Berard
Remax Professionals Laurel MD - Laurel, MD
Maryland Real Estate Agents - Laurel Real Estate

This is great and very generous of you to put it together.   I need to read this first thing every day.  Thank you.

Sep 19, 2016 11:22 AM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Nice, it is good to be reminded about the plan...and doing ones very best to stick with it.

Sep 21, 2016 05:21 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

No matter how long you are in the business , Lead Gen has to be a part of every day !

Sep 21, 2016 12:07 PM
Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

I like how you applied the 80/20 rule to what we do in a day. I like the list too. I've never paid for leads myself, but had an interesting discussion this morning that made me think I may be approaching that topic with the wrong mindset. (Not that I intend to start paying for leads anytime soon, but to be open to the fact that it does work for some). 

Sep 22, 2016 03:52 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

With the advent of mega-teams with downstream lead generation that could be the 93-7 rule.

Oct 13, 2016 04:19 AM
Sajy Mathew
Coldwell Banker Residential Brokerage - Lancaster, PA
Making your real estate dreams become a reality!

Late seeing this post but a great reminder and refresher as we move into the new year.  Thanks

Dec 04, 2016 11:26 AM
Tabitha Rector-Richardson
Premier Homes Realty - Owings Mills, MD
Premier Homes Realty (443) 415-4215

Thanks Sajy Mathew 

Dec 04, 2016 03:22 PM