We all know about the 80/20 rule applied in the business according to which 20 % of the companies do 80 % of the business. This rule is valid for all spheres of business and could be applied for all industries and in the countries throughout the world. When it comes to the real estate business however, this rule is getting even more striking. According to recent research made, only 7 % of the real estate agents actually do 93 % of the business. This means that hundreds of thousands of realtors have not even done one deal a year and that is why many of them do not renew their real estate licenses.
The announcement of the 7 / 93 rule for the real estate industry can bring serious consequences and can directly impact the performance of the individual property investors. This information is very important for the realtors, who have to make up their mind whether they fall in that 7 % category or not and what they can do in order to be part of the 7% of successful real estate agents.
The real estate agents who want to make a difference can get to the next level by mastering the benchmarks in the real estate sphere and learn how to set new goals in order to own more of the business in the certain area. The experts believe that the same ratio of 7 / 93 could be applied for the real estate investors as well. Those professionals who really want to make a difference should know who their real competitors are and who are just not worth competing with, as being part of the 93 %.
This is especially important when one tries to work with realtors. Some of the real estate investors have never dreamed of it. Others consider working in collaboration with realtors is really profitable. That is why the good real estate investors make the efforts and expend substantial resources trying to do business with real estate agents. It is not easy to get the attention of the realtors and earn their business, as this comes with time and costs money.
The important thing here is for the real estate investors to find realtors that are part of the 7 % mentioned above. In other words, investors have to find a real estate agents who are doing deals and have enough knowledge to influence the deal flow and to control the two parties in the processes – both sellers and the buyers.
Real estate investors know that some of the agents in that 93 % have some value and their services could be used as well. Real estate Investors should also look for those realtors that have potential but have been ignored for one reason or another. These realtors are expected to be quite receptive, easier to work with and will bring a good ROI in the end.
Time is everything, so it’s especially important for real estate investors to choose the right realtors to work with – those with huge potential that is yet to be unleashed. The best way to find them is to set small deals and inspect how they will cope with them. The great realtors are motivated, focused, capable and eager to learn new things, willing to outwork and be more successful than their competition. After all, the 7 % realtors are fighters and they will do everything to make things happen.