Sales goals are just as important in real estate as they are in any other business. Successful goal achievement begins with using valid criteria and understanding the linkage between sales goals and strategic planning.
Within your strategic plan for your real estate business, there should be a sales plan. This plan centers around specific sales goals to secure the result of converting those who have received your marketing message to an actual selling or listing client.
After establishing specific goals, then your challenge is to monitor these goals to ensure achievement. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.A.Y. S.M.A.R.T. criteria for goal setting.
Many real estate agents have goals, but very few have integrated specific goal setting criteria into their goal planning, goal setting and goal achievement process. The S.M.A.R.T. criteria:
- Realistically Set High
- Target Date/Time Driven
are not new, but unfortunately, still not utilized as much as they should be.
One of the reasons for this is because the What’s In It For Me (WIIFM) or the W.H.Y. has not been included. All goals should be committed to Writing. When sales goals are written down, the intangible thought now has some substance and becomes more real. The paper can be not only actually seen, but also touched. Suddenly, the sales goal appears to be more concrete than just a wish or a dream.
Additionally, goal planning, setting and achievement is a process that should become a Habit of behavior. Weekly written grocery lists or the daily “to do” lists are habits that improve performance. Planning, setting and executing sales goals should become a habit that is consistently demonstrated on a weekly, monthly and yearly basis.
Finally, goals need to be Yours. Achieving goals for someone else usually are not successful because of the WIIFM. When the business sales goals can be translated into your specific goals, then you have greater ownership of the goals.
When the W.A.Y. S.M.A.R.T. criteria are infused into sales goals, successful goal achievement has been greatly increased. For example, using the industry average of 6% commission rate with 3% going to the listing broker and 3% going to the selling broker, the typical real estate agent averages 1.5% commission unless she or he listed and sold the property. If the sales goal is to earn $20,000 the first year, this means that the agent must achieve listings or sales of over $1.3 million. By the second year, the goal may have been increased to an income of $30,000 which translates into listings or sales of $2.0 million. By having the marketing research, the sales plan is data and market driven. Consequently, the agent can determine how many homes he or she needs to list or sell based upon the $1.3 or $2.0 million.
Sales goals are directly tied to the market plan within the strategic plan. Without goals, the real estate agent is embracing what I call the “spray and pray”sales technique where there is a lot of hoping something will stick and very little results.