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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Sorting Real Estate Leads for Better Follow-Up Engagement
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FAQs
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% rule in real estate? ›
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
What is the 80/20 rule for rental property? ›
InvestNext is a powerful ally for real estate investors seeking to understand and apply “What is the 80 20 rule in real estate.” This principle, which asserts that approximately 80% of outcomes (or outputs) are due to 20% of causes (or inputs), is crucial in the realm of real estate investment.
What are real examples of the 80/20 rule? ›
80% of your weekly tasks affect 20% of your future. 80% of grief is caused by 20% of people in your life. 80% of alarms will be set off by 20% of potential causes. 80% of the energy in a combustion engine produces 20% output.
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.
How do you use the 80 20 rule in sales? ›
Applying the Pareto Principle in Your Marketing—the 80/20 Rule
- 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.
- 80% of your quality control issues involve 20% of your products.
"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 10 to 1 rule in real estate? ›
The 100 to 10 to 3 to 1 rule is a guideline for real estate investors that suggests a property's monthly rent should be at least 1% of its total purchase price.
What is the 25 rule in real estate? ›
To calculate how much house you can afford based on your salary, use the 25% rule—never spend more than 25% of your monthly take-home pay (after tax) on monthly mortgage payments. That includes your mortgage principal, interest, property taxes, home insurance, PMI and HOA fees.
Where can the 80-20 rule be applied? ›
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.
YOUR BUDGET
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 80 20 business transformation? ›
The 80/20 or Pareto principle is a long-standing business strategy that a lot of companies are applying right now to increase profit margin. It boils down to a simple statement which can be adapted to your business model: Companies should focus on the 20% of inputs that create the majority (80%) of their outputs.
What is the 80-20 rule for dummies? ›
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.
What is an example of the 80-20 rule for productivity? ›
80/20 - How to Increase Your Productivity by Doing Less
- ~20% of seeds planted result in 80% of the flowers.
- ~20% of the world has ~80% of the wealth.
- ~20% of occupational safety hazards lead to ~80% of the injuries.
- You wear ~20% of your clothes ~80% of the time.
As part of its REALTOR safety program, NAR trains its REALTORS to practice the “10-Second Rule.” It says one of the reasons REALTORS and agents end up in dangerous situations is because they are not paying attention. To counteract, they should take 10 seconds to observe and analyze their surroundings.
What is the 5 2 rule in real estate? ›
During the 5 years before you sell your home, you must have at least: 2 years of ownership and. 2 years of use as a primary residence.
