What is Your Business Model?
June 8, 2006 by Michael RusserEvery real estate sales associate, whether they are aware of it or not, operates according to a specific business model."? Unfortunately for most agents, their model absolutely guarantees they will forever be frustrated in how much they earn, how little free time they have and how much they don't enjoy what they do."? The good news is that if you change your "model" you change your results too, here's how"
A "business model" simply dictates how you do three things:
- Generate leads
- Convert those leads
- "Fulfill" (i.e. handle) the business that is generated
Here's what the failed business model looks like for the vast majority of agents:
- Generates leads only through prospecting ' when they go on vacation or try to take time off their pipeline of new business dries up;
- Tries to use standard sales techniques to convert the Internet Empowered Consumer 'a process well proven to fail;
- Tries to handle all aspects of fulfilling new business themselves ' this puts an absolute limit on how much new business they can generate."? Makes it impossible to find the "sweet spot" of just enough business to be satisfied but not so much that you are overwhelmed.
It should be very clear why this doesn't work, and hence why so many in the business are less than satisfied with their career."? Now here is a model that does work 'every time:
- Generates leads through effective target marketing ' this works whether the agent is in the office, on vacation or sleeping."? The pipeline of new business never dries up;
- "Speaks the language" of the Internet Empowered Consumer ' converts them far more easily and readily as a result;
- Outsources all non-core tasks ' this frees them up to do what they do best, while talented others take care of the rest.
By changing the model you change the results 'it is as simple as that.














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