A roller coaster goes up and then goes down.

Roller coasters can be both fun and scary, but the constant fluctuation (up and down) of the income realtors earn is only scary. But this pattern of income is extremely common in this industry.

First, you must understand that the income roller coaster most experience is 100% avoidable! Most realtors experience this unpredictability their entire careers, but just because they do, that does not mean you have to.

The reason this fluctuation occurs for many realtors is simple. Realtors start off not having any business, so they spend their days lead generating and other activities which lead to connecting with clients. Then they get some clients and stop doing the things that produced the clients in the first place. This process is repeated over and over.

To avoid taking a ride on the income roller coaster, you must do these three things:

#1: Manage Your Schedule

#2: Know Your Money Making Activities

#3: Delegate

Let's break each down. 

#1: Manage Your Schedule As discussed here, so much of your success will boil down to planning and managing your schedule. If you learn to make it a habit to plan your day out the evening before, you will most likely avoid the income roller coaster altogether. Have your appointments blocked off on your calendar along with your lead generation, lead follow-up, paperwork, and anything else essential to creating a successful day. 

We will go deep into tracking your numbers in the next real estate success tip blog entry, but the great thing about tracking is that you will be able to identify the exact amount of action that must happen daily to ensure you are hitting your goals. Each day you should know how many leads you need to generate, how many reach outs, how many conversations you need to have, and how many appointments you need to be setting to hit your yearly goal. Everyone’s goal is different, so your personal goals will determine how much time you need to allocate for each activity. 

Once you have your schedule planned and time blocked, stick to it. Create a plan, and then execute on the plan! If you allow yourself to get into a reactive state, having an effective day will become very difficult.

#2: Know Your Money Making Activities As a realtor, you will make money in this business in three ways (read more here). The first is your activities leading to setting appointments (lead generation and lead follow-up). The second is the actual appointment conductions that allow you to convert the lead into an actual signed/committed client. The third is contract negotiation. You need to negotiate contracts to get your buyer and seller clients into under contract status.

Everything else you do inside your business, even though it may be essential, must be classified as a non-money making activity. These are things which are essential but are not actually adding more deals in the under contract status. Examples include: Turning in paperwork to your broker, ordering inspections, inputting your listing into the MLS, etc.

As stated in point #1 above, you MUST manage your schedule to ensure that the essential non-money making activities do not take over and prevent you from doing your daily must money making activities. Daily planning will massively assist in ensuring this will not happen to you!

#3: Delegate Delegation becomes critical in a growing real estate business (more on delegation here). No matter how well you plan, how well you manage your calendar, or how good you get at your money making activities, you will hit a capacity. There is only so much time in a day, and only so much you can do. Eventually you will need to employ some help. I recommend you hire out the essential non-money making activities first.

Of course this plan easy to lay out in a blog post, and the process itself is not that tough. The hard part is staying disciplined daily to follow this plan. But, if you choose to create the necessary discipline to do so, you can avoid the real estate income roller coaster, and your future self will be extremely grateful you did. It is not easy, but well worth it!

And now it is time to take action on this information! Remember, information is no longer power, it is taking action on the information we learn which creates power in our lives… So, go take MASSIVE action, and keep up the amazing work!

Thanks for reading!

  Joshua Smith, Realtor/Mentor/Entrepreneur

-Voted 30th Top Realtor in America by The Wall Street Journal

-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily