The Basics
This is a formula that describes the way your business works
What is the Economic Model?
An agent can take these either from a buyer with an Exclusive Buyer Agency, or from a seller with an Exclusive Right to Sell.
What is a listing?
The Millionaire Real Estate Agent should estimate that they will convert ____% of appointments to listings, and ______% of listing to closings.
What are 80% and 65%
"We begin with ______________ in mind. We know the numbers we must hit and we never lose sight of them"
- Chris Cormack
What is the end?
What does Gary Keller say are the key variables in your income equation?
What are conversion rates?
One of the three basic goals of the EM is to show you where your money comes from, also called this.
What is gross revenue or gross income?
What is commission?
Conversely, the Millionaire Real Estate Agent should estimate that they will convert ____% of buyer appointments to agency agreements, and ______% of agency agreement to closings.
What are 65% and 80%
"Every day I try to work fifteen files and have three seller ____________________."
Mike Mendoza
What are listing appointments?
According to Gary, there are this many limits to the scale of the economic model and different sizes of businesses?
What is none?
The second of the three basic goals of the EM is to show you where you spend your money, also called this (keep an eye on these).
What are expenses?
This number is what the typical home sells for at a given time in the marketplace.
What is average sales price?
Based on the MREA model, what is the ratio that one should aim for between listings and buyers?
What is 50/50?
"We've discovered that the more we master our _________ and ______________, the better our conversion rates are."
Gary and Nikki Ubaldini
What are scripts and dialogues?
If these don't happen in your business, nothing else will.
What are appointments?
Don't get caught in it, but the last of the three basic goals of the EM is to show you what money is left over for you, also called this.
What is net income?
This number is determined by the sum of the sales prices for the homes that we sell in a given period of time.
What is volume?
For every 10% increase in average sales price, the number of units needed to get the same volume decreased roughly this many percent.
What is 9%? (See page 179)
"We focus now on lead tracking. As a result, we have increased our speed of response and our percent of ______________."
David and Julie Crockett
What is conversion?
Mastering these three things will drive your conversion ratios.
What are presentations, scripts, and dialogues?
Most agents who don't have a good economic model for their business track activities with no projected _________ attached.
What are outcomes?
When you divide the number of listings by the number of appointments you take, you get this percentage.
What is your conversion rate?
According to the MREA economic model on pg 183, what is the total number of appointments needed to hit the goal of 320 closed units per year?
What is approximately 616?
"Converting _________ into appointments is one of the most important things for me to do."
Sherry Wilson
What are calls?
One of the benefits of the Economic Model is that it helps take the _______________ out of planning your business goals.
What is guesswork?