REMEMBER! Every mistake or failure is a learning opportunity. Despite that, there are some mistakes that are more cost-effective to learn from other people.
We agree with the idea that time is money - but for this list we are only considering things that contain an exchange of currency. So things like bad lead follow up are not included in this list or not knowing all your tax right offs.
Here are some common money wastes for real estate agents
1. Wrong Hires
Unmotivated agents - or part time agents taking you away from your own business. This might be the #1 item on our list. Wrong hires can be a big waste of time and money. To prevent this you can be more selective about who you hire.
2 Choosing the Wrong Brokerage
In the normal 9-5 job world, a job interview should ideally also be the candidate seeing if the company they are applying to is a good fit for them. Some companies might have a culture that clashes with how you normally do business. Some might offer independence, which is great for some agents. While some agents might prefer companies that have a more hands-on approach. Be sure to understand this before joining a new brokerage.
3. Buying Leads
You should never buy leads. Also don't mistake buying leads with paying for ads for leads. For some companies, they run ads on your behalf that generate leads for you - but they don't technically sell you leads. Buying leads - or a leads list - won't benefit most agents. Purchased leads are likely a distance away from buying or selling a home, and should be nurtured properly.
4. Some Physical Advertising
While physical mailers, flyers, bench ads, car magnets, and yard signs can still bring you business. Some physical advertising might not be the best idea. Grocery cart ads come to mind. It might be better to spend your money elsewhere.
5. Buying into Too Many Platforms
There are plenty of platforms to choose from. That doesn't mean you should buy into all of them. There is only so much a single agent can do. It can also be complicated to coordinate the communication between all the platforms. Let alone, some platforms will receive less agent attention - which will lead to a lack of results.
6. Expensive Gifting
Yes, get your clients a closing gift. Just be practical about it. :)
7. Boosting Facebook Posts
Boosting Facebook posts are different than Facebook advertising. Boosting an FB post is what it sounds like - you pay to get your post in front of a wider audience. This can be great for open houses or events that you want people to be aware of - but it is more for increasing reach instead of increasing leads. If you DO boost posts, try coupling it with a landing page so you can generate leads from the budget you spent.
So what about YOU? What would you consider the biggest wastes of money in real estate?
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