In today’s content I will continue with Take Flight V4.0 by transitioning into the 3rd of 5 sections of the program. We'll transition from "The Cockpit" (Mindset) and "The Tail" (Systems, Processes, Habits and Routines) into the "The Cabin" (Database and Relationship Management) where we will spend the remainder of the summer spanning 12 episodes. I want to make this transition by demonstrating that you need to truly understand "the math" in order to most effectively execute your business. I've always been drawn to the quantitative side of the business because "The Numbers Don't Lie.” If you "control the math,” you control your level of success.
Here are a few of my favorite percentages, formulas, and stats I've dug up over the last 15 years of studying high performance:
Section 1: The Cockpit (Mindset)
- Your subconscious mind controls 95% of your life. That's why maintaining a powerful set of mindfulness, meditation and manifestation practices is so important.
- You should spend 30 minutes each morning in thought.
- Focus on staying at a 51% or better positive vibration. It is impossible to vibrate at 100% positivity but it only takes a 51% positive charge to attract positive, good vibes into your life. This is not woo woo, it's strategy based on Quantum Physics.
- Your 3-Year Vision = your destination
- To make your "3YV" (3-year vision) a reality, focus on the 12 x 12 = 3 planning method. 12 weeks in a quarter x 12 quarters = 3 years. Ditch "annualized" thinking. We call this the "12 Week Year" based on a book written by Brian Moran.
Section 2: The Tail (Systems, Processes, Habits and Routines)
- It takes 30 days to create a habit, good or bad, and 90 days to create a bio rhythm, good or bad.
- "If you focus on becoming 1% better every day, at the end of the year, you'll have improved by 37 times.” - James Clear in “Atomic Habits"
- Only about 3% of brokers fully embrace systems, processes, rituals in their business. They produce 65% of the real estate transactions each year.
- The concept of "multiplication" states that if you invest a certain amount of time up front into a system or process, that time will quickly get paid back in the form of operational efficiency and give you a return on that initial time over the life of your business. 5 hours up front could save you 100s or 1000s of hours over the life of your business.
- 85% is better than 100%. There is a limited return on your time trying to be perfect. 85% is 100% awesome.
- Manage your vision to a Profit Per Hour (PPH) metric instead of Gross Commission Income or Total Production. Profit Per Hour is your total income for a time period divided by hours worked during the time period. Manage to increase your income while maintaining or dropping the hours needed to execute on producing that income.
- Before you hit $25M in production or 25 transactions, you should start to buy back your time by hiring others that can execute on tasks that are below your PPH.
- No one should work more than 50 hours a week. You lose your ability to execute at a level worthy of your fiduciary responsibilities to your clients.
- To make your 3-year vision a reality, you've got to win each year of the 3 years. To win each year, you need to win each quarter. To win each quarter, you need to win 85% of your weeks. To win the week, you need to win the day. To win the day, you need to win your morning. If you give yourself at least 1 hour in the morning each day, you win.
- 1 extra hour per day dedicated to a Morning Ritual, gives you 6 weeks of extra productive time per year. Those hours will be your most productive hours in the year.
Section 3: The Cabin (Database and Relationship Management)
- 100 people is the maximum amount of people that you can effectively manage in your database. We call this our TOP 100. More on this next week.
- If a database of clients is properly managed, you should see a 20% return on your database each year. That means if you have a highly connected TOP 100, you can expect 20 introductions by the end of each year when you have executed on your database.
- You should maintain 5 lists: Top 100, Hot List, Warm List, Referral Partners, and a list of collaborative local brokers.
- 20% of your clients will be responsible for 80% of your revenue. The Pareto Rule is alive and well in your business. In your Top 100, we call the top 20% contacts your Platinum Clients.
- Marketing to your past clients is 6 to 10x more profitable than trying to obtain a new client.
- Per Zillow and NAR in their latest surveys, more than 90% of agents fail to contact their clients after a closing. In Take Flight, I call this "one night standing" your clients. It’s the most unproductive thing you could do in your business, but still, 90% of brokers are transactional based on this stat alone.
After hearing all of these numbers, stats and formulas brought to you in one sitting, I'm sure you've got a heightened state of awareness for what's required to build a predictable and enjoyable business. Before I wrap up, I want to bring you a final formula that will officially launch us into Section 3 of Take Flight, "The Cabin" (Database and Relationship Management). Most of you have read "The Go-Giver" by Bob Burg. In that book he describes the Law of Compensation. The Law of Compensation states that your income is determined by the number of people you serve and how well you serve them. Meaning, the higher the number of people your serve x the value you provide = your compensation.
“The Numbers Don’t Lie.”
Team, hopefully you found this helpful. I'm excited to bring you great content this summer on how to better serve your clients and provide them an immense amount of valuable.
