Are You Keeping Score of Everything?
Yes, real estate agents need to keep score! BUT, – not as much of your pending and sold units and volume. You need to keep score of your activities that will lead to the results, goals and outcome you desire.
I can hear some of you saying, “Huh? I need the pendings and closings to make my income goal!”
True! However, just marking those off as they come is not “affecting” the score! Let me explain…
Lead Indicators vs Lag Indicators
A scoreboard in a basketball game is lit up with the number of points scored. At the end of the game, it tells us who won and who lost. This is called a “lag indicator” – meaning, this is the outcome or result of the game played on the court.
The scoreboard is actually affected long before the tip-off. Practice is key! Shooting, dribbling, training, memorizing plays and much more are the skills called on during game time. The more you practice, the better you get. In other words, practicing makes your odds of success better!
During the actual game, you have coaches and players strategizing about how to add more points to the scoreboard while also keeping their opponent from scoring. They call and run plays that will “affect change” to the score on the scoreboard – offensive and defensive. Practicing skills, and playing the game are the “lead indicators” because they affect the outcome or the final score. Get it?
In the world of real estate, we make goals for the number of units we’ll sell or the sales volume we want to achieve or for the gross commission income we want to bring in. This is great, but it’s only half the plan.
Activities and Practice
Everyone wants to win the game. It’s easy to say “I’m gonna win!” The real question is how? What’s your plan?
Pending and closed sales don’t just magically show up. There are specific, measurable activities that lead to them. THESE activities are the “lead indicators” and what you definitely want to be tracking.
These numbers tell a story and allow you to bob and weave or make changes that will affect the score on the scoreboard positively or negatively. Your list might include things like:
- How many people have you added to your database? The more people the higher the odds you will connect with some of them to buy or sell real estate. What’s a good number to shoot to add each month?
- How many appointments have you gone on? Again, making appointments is the life’s blood of real estate agents. How many do you need to go on per month (figuring in your conversion rate) in order to meet your annual goals?
- Signed Agreements mean you are actively working with a client. How many signed agreements do you need per month to reach your annual goals?
- How many times a week do you practice your presentations or objection handlers? Knowing what to say and when is key to helping your clients!
These metrics are “lead indicators” because you can monitor them and up your activities if you are in danger of not achieving the results or outcome you want.
It’s like budgeting. If you wait until the end of the month to see how you did, you can’t change anything – it is what it is.
However, if you are tracking your activities – how you spend your money weekly, you can change the activities for the balance of the month so you remain in budget.
Your scoreboard should start with your annual goals – your lag indicators. Then, break it down to quarterly, monthly and even weekly tasks and activities that will support your annual goal.
That way it never has a chance to get away from you. You’ll know because you are keeping score of the lead indicators in addition to the lag indicators. Go, Fight, Win!!