It’s all over the news; things are tough. In our industry, we are not only living in a low-inventory world, but we are also dealing with inflation at a 40-year high, historically high home prices, and more competition with other agents. These are unprecedented times to be sure.
The question becomes, what are you going to do about it? Are you going to sit around and complain, or are you going to be proactive and future-proof your income? Business basics teach us that there are three ways to grow any business:
- Increase revenue
- Decrease expenses
- Increase profit margins through a combination of the above
So, these are great in theory, but what about execution?
How do you increase your revenue? Simple: you generate more closings.
- Nurture your sphere of influence with consistent, hyperlocal information through a customer relationship management system or CRM. Here are five strategies to stay hyperlocal.
- Use websites and technology platforms to generate leads and fuel your sales funnel.
- Consider geo farming and other prospecting methods to reach new clients.
- Find an unfilled niche segment of your local market and serve that audience with targeted content and advertising. For example, senior citizens downsizing, investors securing rental income in a college town, property management, to name a few.
How do you decrease your expenses?
For most agents, their most significant expense is not their marketing. Instead, it is their broker splits. So, how do you decrease this cost? The solution is deceptively simple — move from a brokerage charging a larger percentage split to a brokerage charging a smaller split or even better yet a flat fee per transaction. Flat fee, 100% commission brokerages like Fathom Realty are among the fastest-growing brokerages in the country because agents want control of their expenses and how they spend their commission dollars earned.
How do you increase your profit margins?
Before you start working on increasing your profit margins, you…