We are so busy servicing our clients that we something forget that our business needs attention as well. As independent contractors, the commissions we receive are our bread and butter, so to say, and it’s very important for you to have a long term plan for your earnings.
On the blog today is sharing with you the strategies I used to double my real estate commission earnings and I know they will change your success levels forever.
Track Your Commissions
Nothing will set you up for success better than knowing exactly where your business came from last year. Set up a system to track each commission cheque you receive and write down where the business originated. Was this off of a sign call or a referral? Knowing where your income comes from will allow you to prioritize clients and prospects. Then you can duplicate the fruitful ones and waste less time on the less successful ways.
Create a Funnel for Incoming Commissions
Working on strictly commission is both a blessing and a curse. It allows for large chunks of income to stream into (and out of) your account if you don’t have a plan. Here’s how to get your real estate commission funnel started:
- Set up a separate business account with your bank;
- Set up direct deposit so your commissions go directly into your new business account;
- Put a percentage of each commission check toward your estimated tax payments;
- Put a percentage of each commission check toward your personal savings account;
- Transfer what you need for living expenses on a monthly basis; and
- The rest stays in your business account.
Follow-Up Is Important
Keeping yourself accountable is one thing, but missing a commission cheque is entirely another. This might sound crazy but if you’re busy enough, it’s possible. And because they’re not fun to track down after a closing is tied up, it’s important to keep tabs on your pending & closed commissions.
Another benefit to monthly check-ins is that you’re reminded of where you are in comparison to your goals for the year. It’s also possible that your split might have been incorrect or a fee meant for the client got taken out of your commission check by accident. Pay close attention to these details shortly before and after closing day.
Have a Daily Visual of Your Commission Tracker
Keeping a commission tracker on a bulletin board where you can see it every single day will be a constant reminder of where you are and how close you are to crushing your goals. In contrast, it’ll keep you accountable if you’re falling behind.
Focus On Transactions - Not Dollars
It’s important to re-evaluate your goals on a constant basis. Change your mindset and goal setting format from commission dollar targets to activity level targets. This means that you set a goal for how many transactions you want to close and break that down into how many calls, emails, appointments, open houses, etc. you need to complete in order to hit that target.
Managing your real estate career like a small business can change the way you manage and operate. Focusing on what works and spending more time on those strategies can help you accomplish your goals.
What do you do in order to manage your real estate business and how do you track your commissions?
With Love | Nikki xo