How To Easily Make $100,000 in Real Estate
Make $100,000 in Real Estate Even When You Don’t Know Anyone
In real estate, making $100,000 is a very achievable goal. Having a commission goal of $100,000 is a common number that most new and growing real estate agents will set for themselves and you can hit this goal even if you don’t have any people in your database. In this post and podcast, you will learn how you can go from have no people in your database to $100,000 in real estate commission in 1-2 years.
If you haven’t downloaded the Rev Real Estate School business plan, you can download in below.
The Path to $100,000
Let’s break down to path to $100,000 using the math from the business plan. Remember, this is when you are starting with 0 people in your database.
You will see the following break down in the real estate agent business plan.
Each household is worth $1,000/year and you need to meet 25 people to add 1 to your database.
With that in mind, the math looks like this.
Number of People in Database: 0
Annual GCI Goal: $100,000
To reach $100,000, you need 100 households in your database.
People Needed in Database: 100
If it takes meeting 25 people to add one to your database, then 25x100 = 2,500 people you need to meet.
If you plan on working 5 days a week and 50 weeks/year, that gives you 250 days to meet 2,500 people.
That means on each work day, you need to meet 10 people!
If you plan on working 6 days a week and 50 weeks/year, that gives you 300 days to meet 2,500 people.
That means on each work day, you need to meet 8.3 people!
Not too bad right?
Now you may be thinking that if you add 100 people to your database over the course of 1 year, then you may not be at $100,000 that year and you would be right, but I can guarantee that you will produce at a higher level than if you did not do this. Plus the next year, you should be making $100,000+
Maybe people are quite shocked at this and don’t realise that if they meet around 10 people per day, they could be increasing their production by $100,000 - the small things add up!
How is Each Household Worth $1,000/year?
If you are wondering how each household is worth $1,000 per year, then understand it all comes down to how you take care of your database. If you follow our 33 Touch Plan, then you are putting yourself in a position to each $1,000 per household.
You can download the 33 Touch Plan (plus the 8x8 Plan) below.
Podcast Transcript
[00:00:00] Hello and welcome to Rev Real Estate School. The podcast with quick tips and actionable advice to help you sell more real estate in today's world. And now your host Michael Montgomery.
[00:00:11] Hello and welcome back to Rev Real Estate School. I'm your host Michael Montgomery. Today we are talking about something super exciting especially if you are a numbers person. We're talking about how you can go from zero to one hundred thousand dollars in gross commission. If you don't know anybody: so zero people in your database. Maybe you're a brand new real estate agent or entering a new market. We are going to talk about what you need to do and how many people you need to meet in order to hit one hundred thousand dollars.
[00:00:41] Now one hundred thousand dollars is kind of this line in the sand that a lot of real estate agents will draw. And it's very market dependent. Of course if you're in a market where your average sale price is two hundred thousand it's going to be a little bit different than if your average sale price is a million. So we have to take that into consideration. But what we're working with here is we typically use an average of around seventy five hundred dollars for an average commission. And we're going to break it down based on that number. One hundred thousand dollars and having zero people in your database and how you can get up to that number in about 1 to 1 and a half years time and this will be an enjoyable path to one hundred thousand dollars if you've been following the show and listening to our podcast you know a lot of what we're talking about is relationship building and building a database and then building a sales structure through people that know like and trust you.
[00:01:30] It becomes a little bit more enjoyable when you're dealing with people that you know like and trust, yourself. So these numbers that we're going to use here and how this math is broken down has worked to an absolute T in my business as well as a lot of our agents and a lot of people that have used a structure like this have seen these numbers work perfectly. So you can trust the numbers you can know that this will work.
[00:01:53] Now as we jump into the numbers there's two assumptions that we have to make. And you may have heard these numbers break down in different ways and how many people you need in your database in order to reach a certain income goal. We're going to use one person or one household equals one thousand dollars in GCI. Now that number can shift a little bit. But if you do interact with your database on a regular basis and you use strategies to stay in touch with your database that can work very very well. If you're in a slower market or you're less in touch with your database you can see that number drop maybe to about 850 or so. And if you're in a strong market or you're like a database wizard then you could see that number go up to about 1250 or so or even higher. It really depends on how you interact with your database. For the sake of this we're using one thousand dollars per one household or one person depending in your database and this is a very commonly used metric that you can use and you can follow; but again, you have to interact with your database on a regular basis. I will have our thirty three touch plan linked up in the show notes as well. If you follow this 33 touch plan as well as these numbers then you should be right in line. The second assumption that we need to make is that every 25 people or so that you meet or that you talk to one will enter your database. So we've seen this work quite well and we've tracked it and the number of people that you talk to one in about twenty five will enter your database if you're having the right conversations with them. And I think this is very reasonable. So these are the two assumptions that we're making.
[00:03:34] Now let's jump into the numbers and how this looks. So you want to make one hundred thousand dollars however you have zero people in your database. OK. So what do we have to do. Again this will be broken down in the show notes in case you're driving or something like that you may not be able to run through the math but this is how it looks. So number of people in your database is 0. And then number of people that you're going to require in your database in order to hit one hundred thousand will be 100 because 100 times 1000 will equal one hundred thousand. So you need 100 people in your database in order to reach that amount. However you have zero people in there, so you need to add 100 people into your database. How many people do we have to meet in order to put 100 people into our database? Well If one in 25 then the one hundred times twenty five which puts us at twenty five hundred people so we have to meet twenty five hundred people in order to get our database number up to 100. OK. We have that twenty five hundred and it seems like a really big number. But if you start to break it down it's actually quite achievable.
[00:04:42] Now let's look at how much you might want to work throughout the year and let's say that you plan on working even 250 days of the year. So that is 50 weeks times five, so five days a week for 50 weeks. This includes basically two weeks of a location plus not necessarily weekends so you might not even do this you might be working more than this. However just for the sake of argument we're going to break this down on two hundred and fifty days that you plan on working this year. So five days a week for 50 weeks based on the number twenty five hundreds of the number of people that you need to meet in order to get one hundred people or households into your database. You will then need to meet 10 people a day. And if you up that to six days a week that you plan on working, now we're talking about 300 days throughout the year. We're talking almost eight or so a day that you need to meet in order to reach that twenty five hundred people at the end of the year. And then that should equate to 100 people or households entering your database which then equates to if you plan on interacting with them in the proper way as will be outlined in the show notes then you can expect to have one hundred thousand dollars at the end of the year.
[00:05:56] I've seen this work absolutely perfectly. It works absolutely perfectly almost every year in my business and I've seen it work absolutely perfectly in brand new agents agents that are new to markets all sorts of things. So you can trust these numbers. However you might also be thinking OK well that's one year. So I meet and I put 100 people into my database for that one year. That doesn't necessarily mean I'm going to make one hundred thousand dollars that year. And you are exactly right. However I can guarantee you you are going to produce a lot more by using the strategies of trying to build your network and build your database than you would if you did not do any of these strategies and then you can count on the next year if at the end of one year you have 100 people in your database that you are interacting with on a regular basis then you can count on that one hundred thousand dollars in your next year. And remember we're assuming that this person doesn't have anybody in their database who doesn't know anybody in their community.
[00:06:52] This can work for anybody if you already have people in your database then you already have a leg up on this equation. And oftentimes when people hear this they really start to realize how doable it actually is. And you really have to break it down into chunks like this. So with no people in your database you need to meet between eight and 10 people a day depending on how many days of the year you plan on working. And then within a year's time to two years time you should see a hundred thousand dollars in GCI.
[00:07:20] Thanks again for listening this episode. I really appreciate it. Remember you can always ask a top producer anything all you do is write and review the show and then head over to the free coaching section on our website. Let us know where you did that. And a top producer gives you call and you can ask them anything on your mind. Thanks again for listening and we'll see you in the next lesson.
[00:07:38] This episode of Rev Real Estate School has come to a close. Thank you for tuning in. We'll see you back here for the next lesson.