I was recently at a Coldwell Banker training and the instructor asked, "what do you plan to do with your first commission check?" I knew immediately because I had already made a conscious decision on how to invest it wisely. I know that investing it in my company was the way to go - advertising!
I can't say that I was surprised by the answers from the rest of the agents in the room. "Pay off bills" and "go out to dinner" were the most popular.
To me, if I do something, I want to do it better than everyone else. People are somehow shocked at how others succeed and they wonder why, after they've paid off their bills and gone out for a nice steak, they're broke and that being a real estate agent isn't for them.
The sad truth is, they were never really a real estate agent because they lacked the very thing you must have in order to be successful - an entrepreneurial and business-like approach!
Now I can say that I have the luxury of being financially able to spend my first commission check (which I should be getting soon already!) on advertising, but even if I didn't, it would be divided up, using a spreadsheet and no matter what, at least 35% of it would go toward increasing my advertising. Furthermore, I would pay myself a salary and be sure to make the check, and all subsequent checks, business related!
I wish my "competition" all the best. I like to see everyone succeed (and that's the truth). However, I must say, deep down, I feel pretty darn good about my chances of completely crushing a large portion of my "competition".
By Thomas McGiveron
Good luck!!
lol @ Dane!!!
Shame.. invest in your business you should feel guilty...tst tst tst
lol...
well i'm not really all that serious - i'm actually a very funny and easy-going guy. my post did read a bit harsh - sorry! : )
it's just that if you look at from the perspective below - you'll know what i'm getting at:
perspective 1:
get first commission check of say $5000.
pay off bills $2500
other personal expenses $2000, caring for the pets, a mini-vacation get away, the kids karate lessons/dance lessons, groceries, etc.
what's left $500 - 1/2 this gets spent on a dinner and MAYBE you spend $250 on real estate advertising.
perspective 2:
first commission check $5000
purchase laptop for business (deductible biz expense see cpa) - $1000
other business expenses - 1500 on marketing/advertising, gas for business related travel, business lunches (networking), seminars, continuing ed
Pay self a month salary $2500
pay the MINIMUMS on personal bills and other household expenses like kids and family stuff - personal
now the second perspective will net you a MUCH GREATER CHANCE of increasing your revenues.
as you increase revenues, THEN you start paying yourself MORE and THEN you start really paying off your personal expenses. as i increase business revenues, i can pay myself more to wipe out my debt at an excelerated rate, while also making more and more money. bills have minimum payments for a reason... : ) pay them until you can afford to easily pay them off at a faster rate.
additionally, the more involved you become in minding your business - more personal expenses become legitimate BUSINESS EXPENSES. this is HUGE.
that's just my philosophy. i've done it with other businesses and i'm of course going to apply it to my real estate agent business.
: ) get the lipo - finance it, pay the minimums, make 150k this year (12,500) and pay it off fast, then get a boob job! that will definitely increase revenues! lol [this comment is not meant to offend anyone if i did i apologize - my PC disclaimer] : )