Working in the Singapore real estate market, we share a common phrase: your calendar is your boss. As a full-time, self-employed real estate consultant, self-discipline is the number one key we all need to possess. No appointments in your calendar, means no new leads, which means no business. No matter how competent you are at your job, no one will be around to witness and recognise your skills.
You have to know your average revenue per deal, no matter which market you are in—residential, commercial, or industrial market, this is important for all business types. From there you are then able to reverse engineer and create your business plan.
Here, we illustrate the triangle theory.
Let’s say, you wish to hit a gross sales commission revenue of $240,000 in the next 12 months—that equates to 52 weeks, but let’s keep a buffer of four weeks for travel, sick days, and other incidences, so you have 48 weeks. Your average deal revenue is $10,000 per deal, each from the buyer’s side and the seller’s side, before deducting expenses and other taxes and fees. Henceforth, you will need to close 12 cases to hit your target—with 12 buyers and 12 sellers. With a 50% closing rate, you will need to have 24 active buyers and 24 active sellers to work with, within the next 12 months. You need to meet and convince at least 48 buyers to allow you the opportunity to help them find a fitting property, and 48 sellers to appoint you to sell their property. This means you will be meeting at one potential buyer and one seller every single one of the 48 weeks.
When we breakdown the numbers this way, it may seem a little daunting to you, especially if you are a newer associate. However, if you have the mindset that you are meeting these people to help solve their problems and think of solutions and ways to value-add, your business becomes much easier.
So, go ahead and take a look at your calendar for the next few weeks, and see how many people you can meet with to offer solutions to help them. Remember, your customers are engaging you because they believe that you will bring a value-add to them.
