Today, I want to answer the question: "Jim, how do I get out of this rut?" This week I want to make a final attempt to give you some simple steps to create momentum needed to build a business that is predictable and enjoyable, and I want to prove it to you using a simple mathematical equation.
I think it's pretty clear from my MMPT topics, to start the year, how I feel about systems, processes, habits and routines. You're either sold on the approach or you are not. Let me just remind you, I've yet to see a high producer eliminate peaks and valleys and maintain consistent growth without having some key systems, processes, habits and routines. I've got the math to prove it.
Here are the steps you need to follow:
Step 1: Change Your Mindset. You operate at the frequency you are emitting. If you come to the game as a victim, you will lose. No one is coming to rescue you. If you log on to a 'higher radio station" each day you will attract what you need to be successful in life and business. This is not up for debate. It's proven to be a fail-proof strategy. Remember…Thoughts Create Feelings, Feelings create the action. Action creates the results.
Step 2: Eliminate or minimize anything that is standing in your way of a higher-level version of you.
Step 3: Work your lists. Do not put any focus on anything else until you've got your Hot List, Warm List and Top 100 created. Identify creative ways to communicate with these lists authentically.
Step 4: If you do not work towards building productive habits and routines, the first 3 steps will not stick.
Step 5: Repeat until you are in flow and you've created productive bio-rhythms through habits and routines. Once you've mastered these 5 steps, then you can move on to the more intricate actions needed to become that top 1%. Focus on becoming an ELP with these 5 steps and then you can move on.
What is at risk? Let me take you down a mathematical approach to what you are facing. But first, let me explain to you what we know about the proven data around a successful real estate business:
- Quantum physics has proven you attract what frequency you are on.
- If your environment is unorganized, your business will be unorganized.
- Your subconscious mind is 80M times more powerful than your conscious mind.
- A habit or routine is a regularly repeated action, either positive or negative, done without thought.
- You are the sum of the 5 people you spend the most time with consistently. Choose wisely.
- A well-maintained database will create a 20% return each year.
- Each month that you do not connect with your database, you lose 10% top of mind marketing placement per the Direct Marketing Association.
- An average agent works about 2,600 hours a year. This should be the max before you lose effectiveness.
- 20% of your active clientele will steal 80% of your joy. Create boundaries and choose wisely.
- Everything is an equation. You can get to any answer using math.
Okay, let's do some math. It is my best estimate that the difference between someone that has a hobby vs having a business is 2x higher production based on "profit per hour" and on "GCI.” So let's do a quick calculation together:
I'm going to use $7.5M in production vs. $15M in production. Based on your situation use the same calculation and adjust accordingly.
7.5M at 2.5% is $187,500 gross. 15M is $375,000 gross. You can use your personal splits to create your net.
Based on this, we know that the difference is $187,500 to the positive for someone having a business over a hobby. We also know that with both scenarios, they are working essentially the same amount of hours. A person with a business uses their systems, processes, habits and routines to eliminate the time needed to produce the extra $7.5M. The person selling 7.5M is producing at a $72 an hour gross based on 2,600 hours. The 15M producer is producing at $144/hour gross working the same number of hours per week.
For those with a business, I want you to visualize putting that additional net GCI and maxing out your investments and taking one extra major vacation per year. With those actions and experiences, what does your situation look like in 10 years?
At the end of the year, for those of you that still have a hobby, I want you to take that $187,500 and put it in a big pile, pour gasoline on it and light a fire. Yes, that's essentially what having a hobby costs you on an annual basis versus taking the time to create a business. If looking at it daily, you're lighting about $550 on fire based on this example. On top of it, you are way more nervous, less sure about yourself and live in an unpredictable environment that leads to stress and unhappiness.
Running a business is NOT more work. Yes, there is some initial effort up front but over the long term but your profitability per hour worked will soar. This option is for everyone, it's a choice. All it takes is a decision.
Team, this is the best sales pitch I can make. I’ve got nothing left. If the stakes are not clear after today's call, not sure that I can get you there until you are forced to change your mindset around this topic: RE: My real estate heart attack. Keep coming back to this call if you are struggling with getting over the hump.
For those of you that have made the decision and are working towards it every day, I congratulate you. Be patient and you will not recognize your life and business in a year.
I am going to move onto more "business" related topics in future MMPT's but I will keep a PLAYLIST together which I put on my Instagram @askjimmiller profile link. You can go there to listen to my top episodes that I think are paramount to getting you from "RUT to ROUTINE.”