Measuring the Performance of Your Real Estate Team

What are the key performance indicators or KPIs that matter most when it comes to running a real estate team? And this is especially important if you're looking to make the shift from a traditional real estate team leader that is sort of in the grind, doing transactions, loose collection of agents, no standards, processes, structure, cadence. Like if you're in that world right now, the way to freedom in your real estate business is knowing your numbers. And as their quote unquote boss, the thing that is really, really important is to help them achieve their goals, your agents, your team members, to achieve their goals by helping them understand their numbers, traditional agents, traditional methods. You know, typically a stereotypical real estate agent is not one that loves numbers, not one that loves spreadsheets. And so if that's you and you're really wanting to not watch this video, this is especially important to you. Make sure you stick the end of the video. I want to give you access to a report I put together that goes through all six stages of growth when it comes from going from an agent to an owner in your real estate business. If you liked the video, give me the thumbs up. Subscribe to the channel, turn your notifications on and make sure you leave comments so we can go back and forth on the content. You know, when I think about this journey from just super busy doing everything in their real estate business to absolutely free business owner, I think of Kirby and Christina Screwrat out of Minneapolis, Minnesota. You know, when I met them, they were like in it, just on the transaction treadmill. They had one licensed assistant, they were both doing production, both working with buyers, both working with sellers, yet they wanted more from their business. And when I think about one thing that differentiated them from anyone else that we've worked with and the massive success that we were able to have with them and tripling the size of their business, taking their hours down by half, more than 5, I think 7xing their take home income from their business. It came down to them knowing their numbers, becoming the CFO of their business. A good CFO in a business provides the business owner with data that they can make decisions on. So let me say that again, a good CFO doesn't just crunch numbers. A CFO is not a bookkeeper that knowing your numbers is not just bookkeeping, it's providing data to the business owner that needs to make decisions based on that data. And so it just so happens that you don't really have the capacity financially, a position on your team to hire a cfo. So you must become the CFO of Your business, if you're going to scale it. And that's one thing that Kirby realized and like I said, the one thing that allowed him to run his business by the numbers. Kirby and I committed together to work on the tracking systems, on the leading and lagging indicators, Every bit of data for every team member, every lead source, every dollar spent in the business. The, the model that we're going to build our business to, the economic model, nobody talks about it, right? Nobody really knows what these big teams are doing in terms of their financial, you know, returns. Are they running the right economic model? Most team leaders build a business that, yeah, they may be doing 250, 300, 400, 1200 transactions. Yet when I look inside some of these teams, I know one in particular does about 1200 transactions. The team owner does about 200 transactions, claims that he loves real estate that much that he needs to do that, that amount of production. When I dig deeper, I find out that the business, a six million dollar company, is only making about 12% profit. When I take out his production, not a lot of profit remains. And this is case after case after case because they don't, either they don't know their numbers, they want to put their head in the sand with respect to their numbers, or their ego is too big that their top line matters more than their bottom line. So here are some steps that you can take if you're at the point where you need to figure out what numbers to track in the business. What are leading indicators, what are lagging indicators? You know, we've got the business tracking system that we use for our members. Just a few things for you to know if you, if you want to figure out if you need help in this area, you know, are you tracking the return on investment in your marketing? Are you tracking the number of leads by lead source? Are you tracking the cost per lead, the cost to set an appointment, the cost to meet that appointment or sign that appointment and the cost to close that appointment by lead source. Are you tracking your agent productivity? Do you know how many meaningful conversations your agents need to make to get someone to agree to meet with them and what the show up rate for that appointment set to appointment met? What's the sign rate from appointment met to client obtained? And then what's the client obtain to under contract to closing? Right. Are you tracking all of those metrics by agent? Are you tracking which agent does better on which lead sources? Right. Not every agent, not every person is created equal. Are you coming up with the right data in your business? Are you looking at the data in your business to a point where you can make good decisions about your business and put the right people in the right position so that the business can succeed and be as profitable as possible. So I mentioned earlier, you know, this journey from agent to owner and becoming the cfo. Most of us are just like struggling to make it through every day. And a lot of you don't have that part of your brain where you love spreadsheets and you're really good with numbers. I happen to be blessed in this area, which is why I focus so much on this lever, this leverage point to be able to scale my business. If you're at the point in your journey where you just need help and you wish there was a guide to take you from stage to stage to stage, there are six full stages that I went through to go from that first year selling 27 homes to selling over 400 homes in a single year where I was working one day a week. That took me about six years to go through all six of those stages. That is located at real estate business growing growth. Com. It's our real Estate Business Growth Navigator. It's a free report that you can get access to just by going to realestatebusinessgrowth. Com or clicking on the link below. If you like the video, give me the thumbs up. Subscribe to the channel, make sure you turn notifications on and as always, leave me comments. We'll see you on the next video.