Time management is essential to success–this isn’t news us anymore. However, the 80/20 Rule brings fresh ideas to time management that you definitely want to pay attention to. You’ll quickly find that there is more money to be made in real estate, and greater success to find, when implementing this strategy in your real estate business.
Using the 80/20 Rule to Make More Money in Real Estate
What is the 80/20 Rule exactly? It’s the idea that 80% of outcomes are driven from 20% of the input or effort in any given situation.
What does this mean for a real estate professional? Making more money in real estate is directly tied to focusing your personal energy on the most high value areas of your business.Delegating the other 80% by hiring out or automating some of your processes is the best way to make this happen. That way, you can spend your personal time and energy on things that bring the most benefit.
The 20% of Your Business That You Personally Should Be Focusing On
There are so many things to focus your attention on when running your own business. Spreading yourself too thin and dealing with them all personally can be a long-term recipe for disaster. Focus your energy on these things, and outsource or automate the rest to thrive this year.
Followup With Already Engaged Leads
Automate your initial lead followup process to ensure that every single lead is contacted quickly and regularly in an authentic way. After that, put in personal effort to followup directly with the leads who respond. This allows you to focus on taking a hands on approach when the interest level is high, while letting the initial contact (which can be incredibly time consuming) get done through your own self built system of campaigns. First, be sure you have at least one campaign in place to engage with new leads. After that, spend time building out campaigns for regular followup until a lead responds. At this point you can take over.
Growth Strategy
Take time to analyze your marketing and growth strategy efforts regularly. Look at what has been working and what hasn’t. Eliminate the things that aren’t paying off, and ramp up what is. This is an ongoing process for all real estate professionals, and something that definitely shouldn’t get swept under the rug if you want to make more money in real estate this year. However, you don’t want to let your time get bogged down here. Just make sure you take stock routinely, then focus even more of your attention on generating and implementing new strategies and ideas.
One-on-One With Clients
Spending one-on-one time with your clients, giving them the attention they deserve, will make it far more likely that they will work with you again in the future. It also makes it more likely that they will refer other friends and family members to you, which contributes to the next area you should be focusing time and energy on personally– your sphere of influence.
Building Sphere of Influence
A strong sphere of influence is essential to building a long-lasting real estate business. Spend time engaging in your local community and building a social media presence. Spend time staying engaged locally. This can be in person or online, and should definitely involve weekly effort on your part. Some ideas include: sending birthday notes or providing valuable resources to other locals within your community. However, it is important to keep in mind that you don’t want to overdo it and quality should always be the focus of anything you share.
Learn more about automating your follow up process today, and check out the Agent Legend blog for more tips to help your real estate business thrive this year.
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FAQs
What does this mean for a real estate professional? Making more money in real estate is directly tied to focusing your personal energy on the most high value areas of your business. Delegating the other 80% by hiring out or automating some of your processes is the best way to make this happen.
What is the 80-20 rule in real estate? ›
What this really means is that overall, 20 percent of things are vitally important, while the other 80 percent are not. When used correctly, this one principle can greatly increase productivity and effective management skills. For real estate agents, time and project management is everything.
What is the 80% rule in real estate? ›
In the realm of real estate investment, the 80/20 rule, or Pareto Principle, is a potent tool for maximizing returns. It posits that a small fraction of actions—typically around 20%—drives a disproportionately large portion of results, often around 80%.
What is an example of the 80-20 rule in sales? ›
Here are some examples you may have already experienced in your business: 80% of your sales volume is generated by 20% of your customers. 80% of your revenues are generated by 20% of your products. 80% of your complaints come from 20% of your customers.
What are the 80/20 rule real examples? ›
80% of results are produced by 20% of causes.
So, here are some Pareto 80 20 rule examples: 20% of criminals commit 80% of crimes. 20% of drivers cause 80% of all traffic accidents. 80% of pollution originates from 20% of all factories.
How can you use the 80-20 rule? ›
You can use the 80/20 rule to prioritize the tasks that you need to get done during the day. The idea is that out of your entire task list, completing 20% of those tasks will result in 80% of the impact you can create for that day.
What is the rule of 20 in real estate? ›
"Possession" requires more than incidental benefit from the public property, but requires actual physical occupation of the property pursuant to rights not granted to the general public; thus, the use of property such as hallways, common areas, and access roads at airports, stadiums, convention centers, or other public ...
What is the golden rule in real estate? ›
In November, Corcoran appeared on the BiggerPockets Real Estate Podcast with her son Tom Higgins to describe two methods she says make up her “golden rule” of real estate investing: putting down 20% on an investment property and having tenants of that property paying for the mortgage.
What is the 1 rule in real estate? ›
The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.
What is the 80 20 rule content? ›
The 80/20 rule in content marketing states that 80% of your content should focus on providing value to your audience, while only 20% of your content should promote your brand or product. It ensures that you provide valuable content to your audience while promoting your brand or product.
What's the 80-20 Rule? The 80-20 rule is a principle that states 80% of all outcomes are derived from 20% of causes. It's used to determine the factors (typically, in a business situation) that are most responsible for success and then focus on them to improve results.
What is the 80-20 rule in property investment? ›
What is the 80/20 Rule exactly? It's the idea that 80% of outcomes are driven from 20% of the input or effort in any given situation. What does this mean for a real estate professional? Making more money in real estate is directly tied to focusing your personal energy on the most high value areas of your business.
What is the 80-20 rule question? ›
Who are the few people that give you the most inspiration? What are the 20% of distractions that keep you from your work 80% of the time? What are the 20% of work- related things you do that bring you 80% of your revenue? Which 20% of mini-goals should you focus on, that will bring you 80% faster to your goals?
Does the 80-20 rule still apply? ›
This is why the 80-20 rule is usually used in business, but you can also apply it to your personal goals, like finances and spending or even learning a new skill. The 80-20 rule requires you to throw out a few time-honored myths about productivity. First, the myth that everything matters equally – it doesn't.
What is the 80-20 rule for mortgages? ›
Real estate's 80/20 Rule refers to the LTV ratio, a primary element of all lenders' Risk Management. A mortgage loan's initial Loan-To-Value (LTV) ratio represents the relationship between the buyer's down payment and the property's value (20% down = 80% LTV).
What is the 7 rule in real estate? ›
In fact, in marketing, there is a rule that people need to hear your message 7 times before they start to see you as a service provider. Therefore, if you have only had a few conversations with the person that listed with someone else, then chances are, they don't even know you are in real estate.
What is the 80-20 rule for costs? ›
Financial Industry: Finance and economic businesses, such as accountancy firms, may use the 80-20 rule to find that 20% of costs led to 80% of their expenses for their clients.
What is the 90 10 rule in real estate? ›
Roger shared his 10/90 rule, balancing risk by investing 10% in higher-risk projects and 90% in stable, cash-flowing properties. This strategy helps navigate economic cycles and maintain a steady income stream. Proper documentation's crucial role in avoiding issues with seemingly trustworthy partners was emphasized.
