By: Jerry Rossi, ROSSI Speaks 2009
Why did you choose Real Estate? This is a question I have asked thousands of real estate professionals.
The top three answers are:
Money – stated many different ways such as – “To learn more about real estate so I can invest in it.” “So I can buy a house, send my kids to college, and pay off my debts.” And, “So I can achieve financial independence.”
Freedom – “I want to be my own boss.” “I’m tired of others ordering me around.” “I’m tired of working for the man.”
Time – “To spend more time with my family doing what I want to do.” “I want to create my own hours.” “I don’t want to work 40 hours a week.” “I need more flexibility to be with my kids.” “I’m retired and want to set my own schedule.”
More Money, Freedom, and Time – the dream of man since the beginning of time. Volumes of books, countless plays and fables, and thousands of years of history have witnessed this quest. And still, we seek more Money, Freedom, and Time.
Others reasons given – “I got into real estate because I love houses and I love people.” This answer usually comes from new, or non-productive, real estate licensees in a feeble attempt to justify their decision. One sage broker upon hearing a newbie offer this answer said, “I felt that way too when I started, two months later I hated both.” We laugh, but real estate is a serious job. It is not just about houses and people. It takes a lot of work and competent knowledge to effectively satisfy the needs of today’s techno-savvy, consciously aware and evolved consumers, especially if you are doing any volume of business.
Once in a blue moon someone will answer, “I didn’t choose real estate, real estate chose me.” Usually these folks have been born into the business. Their mother, father, uncle sold real estate or owned a company and they inherited it. We have many grand real estate families in the US and Canada. My perception is that this is again on the rise. Allowing a real estate career to set a good example for our children is a goal I made because of my daughter’s (then 12) answer to the question, “Are you going to be in real estate like your father?” “No,” she politely replied, “I want to spend time with my children when I grow up.” That was an eye-opener. And, totally changed the way I was attacking the business.
If the number one answer is Money, let’s look at the numbers: Only 10% of all the licensed associates (including full and part time) are earning in access of $200,000 per year, 20% earn an average to good income. The remaining 70% of those licensees make less than $12,000 per year!
New Numbers:
Eight months ago (Feb. 09) the above figures changed. Once 10% of the associates earned 80% of the commissions paid, now they earn 85% of the fees! Before 70% of the associates earned less than $1,000 a month now they earn less than $500 a month. Eight months ago we had 30% new agents, 30% staying agents, and 30% leaving real estate. Now we have a many as 51% not renewing their licenses.
By the way there is no such thing as part time associates. There are PRODUCTIVE ASSOCIATES AND NON-PRODUCTIVE ASSOCIATES. Time spent per day in the business has nothing to do with it. I have many other new numbers to share with you in my presentation, Demands of the New Consumer.
Why, if money is the reason they chose real estate as a career, do so few make money? My conclusion is that money may be a reason but it is not the motivator.
Ask yourself, “Am I earning enough dollars in proportion to the time I invest in real estate?” That is to ask, “After expenses, how much do you make an hour?” Years ago I was posed that question and immediately went to work to generate an answer. After more research hours than I care to admit, the answer was a tad over minimum wage. Once again, I had to re-evaluate my career.
It’s all about Life Habits
It is sad how many feel that real estate is a money panacea. “I’ll get my license and money will pour in.” If you are new in the business, you will quickly figure out the untruth of that statement. We think that at least real estate will change our lives, also an untruth. You see, whatever you did before real estate, you built a life of habits. You have established, by habit, how much money you need. That is what you continue to do to satisfy your comfort level. In upcoming writings, I will uncover how our brains work on habit and how our choices are directed by these habits. This understanding allows us the power of choice to change; that is, change and create new money habits for abundance and happiness.
In his book Rich Dad, Poor Dad (a must read) Robert T. Kiyosaki talks about how building equities in real estate can make one wealthy. Many of us got into the business to learn how to invest in real estate and then NEVER bought a single investment property. We have a million excuses and ‘if Id’a’ stories. We gladly find investments for others then sit on our dwindling assets, frozen in complacency, only to P&M about how we should’a, could’a, would’a. Remember, you won’t get rich selling real estate. You will get rich owning it.
Freedom – “Be my own boss”. The good news about real estate is that you can be your own boss. The bad news is – you are your own boss! Therein lies the dichotomy. Many of us came from professions where it was someone else’s job to keep us busy. We had a job description that told us what to do (at least in general) 8 hours a day, 5 days a week. Now we have the freedom to do what we choose. We find no-productive ways to keep busy. Even multi-million dollar producers tell me they spend too much time doing nothing.
No More Coaching
I have taught hundreds of classes on how to manage your real estate career only to be disappointed when I return a year later to find that my students are still in their same old work habits with no advancement in their success. Other educators, trainers, and coaches tell me they have experienced the same thing. It is because of this that I have given up coaching. Coaching, to me, means telling someone how to get better at playing a game that has a defined set of rules. Real estate has ethics, it has laws, but it doesn’t have success rules. Each successful agent I know… well let me first give you the definition of success that I use from Michael Vance:
“Success is the building and maintaining of Spiritual, Physical, Philosophical, Psychological and Financial Goals.”
Each successful agent I know is as different as the way they approach this business. No two are alike. Yes, there are traits that are similar, but their goals are different. The defining factor in your success is your goals. This knowledge caused a light bulb to go off in my head, “that’s why coaching does not work”, and I immediately changed to Mentoring. Mentoring is based on observation. I use the formula that was taught to me years ago by Bill Moore, 1984 President of the National Association of REALTORS:
II (Inside Information) +OI (Outside Information) = FS (Far Sightedness)
Once I changed to mentoring the results went off the chart. This simple reframe has given me a new approach to life as well as my presentations. And I love sharing it with my audiences (tell you company and association to bring in ROSSI Speaks); and, no, I am not selling a mentoring program.
Much of what I have uncovered will effect change and stimulate abundance and quality of life.
Everyone is at Ground Zero
Real estate has tripped the paradigm and everyone is set back to zero. Get a fresh start and stop all you’ve done in the past to generate business as it’s a new world.
About Jerry Rossi:
Rossi, Rossi Speaks, Inc., provides interactive workshops, enhances and effectively delivers the sponsor’s message, motivation, and education for companies, corporations, and associations internationally. He’s delivered 3000 plus presentations over the last 25 years. Edutainer, author, columnist, humorist, lifestyle motivator/coach, program host and creator.
He says, “I have the greatest sales job of all; that is, selling rooms full of people on their ability to do a superior job, as perception is reality.”
Rossi, Author of Dog Eat Dog & Vice Versa – 9 Secrets To Put The Bite Into Your Marketing
Certified e-PRO Trainer / ROSSI Speaks, Inc.
(800) 722-7543 / (919) 846-6333 / (919) 846-0166 Fax
Email: Speak2Me@RossiSpeaks.com
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