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? ›
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 your success comes from 20% of your ideas. 80% of the public uses 20% of their computers' features. 80% of crimes are committed by 20% of criminals. 80% of sales are from 20% of clients.
What is the 80-20 rule for income? ›
The 80/20 budget is a simpler version of it. Using the 80/20 budgeting method, 80% of your income goes toward monthly expenses and spending, while the other 20% goes toward savings and investments. Of course, the 80/20 budget rule won't work for everyone.
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 80-20 rule quizlet? ›
The Pareto principle (also known as the 80-20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. From a business vantage, "80% of your sales come from 20% of your clients".
How do you apply 80 20 rule in business? ›
In business, for instance, this means 80% of your profits come from 20% of your sales. So, it would help if you focus your energy on those clients who make up the 20% of your highest sales. If you're a marketer, you may have noticed that 20% of your marketing messages account for 80% of your campaign results.
What is the 80 20 rule of sales how to find your best customers? ›
So what exactly is the Pareto Principle? It's more commonly known as the 80/20 rule, and explains the phenomenon of disproportionate distribution - suggesting that 80% of results or effects come from 20% of causes or inputs. Applied to eCommerce, that means 80% of your sales come from just 20% of your customers.
Which statement best describes the 80 20 rule? ›
The 80/20 Rule (also known as the Pareto principle or the law of the vital few & trivial many) states that, for many events, roughly 80% of the effects come from 20% of the causes.
This rule suggests that 80% of effects come from 20% of causes. For example, 80% of a company's revenue may come from 20% of its customers, or 80% of a person's productivity may come from 20% of their work. This principle can be applied to many areas, including productivity for small business owners.
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 principle summary? ›
"The 80/20 Principle asserts that a minority of cause, input, or effort usually lead to a majority of the results, outputs, or rewards." "Celebrate exceptional productivity, rather than raise average efforts. Look for the short cut, rather than run the full course.
What is the 80 20 buying a house? ›
When you use an 80/20 mortgage to buy a home with no money down, you're making one purchase with two separate loans. The first loan goes toward 80% of a house's selling price; the second, as you may have guessed, is used to cover the remaining 20% of the home's cost.
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 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.
What is the number one rule of real estate? ›
For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price. If you want to buy an investment property, the 1% rule can be a helpful tool for finding the right property to achieve your investment goals.
