One of the most important lessons my broker taught me was to “Lead with revenue”. So just what does that mean and why is it important?
What Does Leading With Revenue Mean?
Leading with revenue simply means that you spend money that you have already made from sales rather than spending money that you don’t already have (i.e. running up the credit card). That seems contrary to the more common phrase “It takes money to make money”. But when you think about it, the two schools of thought are not mutually exclusive. Yes, it does take money to make money. You have to invest in systems and tools in order to grow your business. But that money that you are going to use to invest in these systems and tools needs to come from the revenue that you generate from sales in your business.
Why Is Leading With Revenue Important?
Having some cash on hand when you first start this beautiful career will be very helpful since you won’t be collecting a paycheck for awhile. When you first begin your career in real estate you will indeed need to tap into some savings to get started. At a minimum you are going to need business cards, marketing materials, yard signs, and other general supplies. You will also have some sign-on fees with your broker and your local MLS board. But going forward after that, your expenditures need to be paid from revenue.
How It’s Done
There are lots of ways to generate business without spending a lot of money. Open houses are almost zero costs, especially if you team up with a lender who many times will provide your flyers and help promote traffic to your open house. Walking the neighborhood and door-knocking doesn’t cost anything but time. Calling your database is free. So there are many ways to get started in the real estate business without spending too much cash.
The Big Payoff
Once you begin having sales and closings, then you can start investing more of that revenue in better tools and systems to grow your business even bigger. But don’t forget that just because you have it doesn’t mean you want to spend it. Keep more of what you make by creating a budget and getting creative with your lead generation techniques. Then you can enjoy the good life that you are working so hard to achieve.