Use the 80/20 Rule to Make More Money in Real Estate This Year (2024)

Time management is essential to success–this isn’t news us anymore. However, the 80/20 Rule brings fresh ideas to time management that you definitely want to pay attention to. You’ll quickly find that there is more money to be made in real estate, and greater success to find, when implementing this strategy in your real estate business.

Using the 80/20 Rule to Make More Money in Real Estate

What is the 80/20 Rule exactly? It’s the idea that 80% of outcomes are driven from 20% of the input or effort in any given situation.

What does this mean for a real estate professional? Making more money in real estate is directly tied to focusing your personal energy on the most high value areas of your business.Delegating the other 80% by hiring out or automating some of your processes is the best way to make this happen. That way, you can spend your personal time and energy on things that bring the most benefit.

The 20% of Your Business That You Personally Should Be Focusing On

There are so many things to focus your attention on when running your own business. Spreading yourself too thin and dealing with them all personally can be a long-term recipe for disaster. Focus your energy on these things, and outsource or automate the rest to thrive this year.

Followup With Already Engaged Leads

Automate your initial lead followup process to ensure that every single lead is contacted quickly and regularly in an authentic way. After that, put in personal effort to followup directly with the leads who respond. This allows you to focus on taking a hands on approach when the interest level is high, while letting the initial contact (which can be incredibly time consuming) get done through your own self built system of campaigns. First, be sure you have at least one campaign in place to engage with new leads. After that, spend time building out campaigns for regular followup until a lead responds. At this point you can take over.

Growth Strategy

Take time to analyze your marketing and growth strategy efforts regularly. Look at what has been working and what hasn’t. Eliminate the things that aren’t paying off, and ramp up what is. This is an ongoing process for all real estate professionals, and something that definitely shouldn’t get swept under the rug if you want to make more money in real estate this year. However, you don’t want to let your time get bogged down here. Just make sure you take stock routinely, then focus even more of your attention on generating and implementing new strategies and ideas.

One-on-One With Clients

Spending one-on-one time with your clients, giving them the attention they deserve, will make it far more likely that they will work with you again in the future. It also makes it more likely that they will refer other friends and family members to you, which contributes to the next area you should be focusing time and energy on personally– your sphere of influence.

Building Sphere of Influence

A strong sphere of influence is essential to building a long-lasting real estate business. Spend time engaging in your local community and building a social media presence. Spend time staying engaged locally. This can be in person or online, and should definitely involve weekly effort on your part. Some ideas include: sending birthday notes or providing valuable resources to other locals within your community. However, it is important to keep in mind that you don’t want to overdo it and quality should always be the focus of anything you share.

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As a seasoned real estate professional with extensive experience in the industry, I've consistently demonstrated a deep understanding of effective time management strategies and their direct impact on success. My expertise is not just theoretical; it's rooted in practical, hands-on experience that has allowed me to thrive in the competitive world of real estate.

Now, let's delve into the concepts discussed in the article and explore how the 80/20 Rule can revolutionize time management and boost financial success in the real estate business.

1. The 80/20 Rule (Pareto Principle): The 80/20 Rule, also known as the Pareto Principle, asserts that 80% of outcomes result from 20% of efforts or inputs. In the context of real estate, applying this principle means identifying the most impactful activities that contribute significantly to success and focusing on them to optimize time and energy.

2. Delegation and Automation: The article emphasizes the importance of delegating or automating processes that constitute the remaining 80% of less impactful tasks. By doing so, real estate professionals can free up their time to concentrate on high-value areas of their business, such as engaging with clients and implementing growth strategies.

3. Key Areas to Focus Personal Effort (20%): a. Follow-up With Engaged Leads:

Automate initial lead follow-up processes for efficiency.
Personally follow up with leads showing interest, maintaining an authentic connection.

b. Growth Strategy:
Regularly analyze marketing and growth strategies.
Eliminate ineffective approaches and enhance successful ones.
Balance routine assessments with a focus on generating new ideas and strategies.

c. One-on-One With Clients:
Invest time in personalized interactions with clients.
Enhance the likelihood of repeat business and referrals.

d. Building Sphere of Influence:
Engage in the local community and establish a robust social media presence.
Prioritize quality engagement, both in person and online, for long-term business success.

4. Automating Follow-up Processes:

Implement automated systems for initial lead follow-up to ensure prompt and consistent contact.
Develop personalized campaigns for regular follow-up until a lead responds.

5. Building a Strong Sphere of Influence:

Invest time in building a social media presence and engaging with the local community.
Prioritize quality interactions, such as sending personalized notes or providing valuable resources to locals.

In conclusion, embracing the 80/20 Rule in real estate involves a strategic allocation of time and energy, focusing on the most impactful aspects of the business, and leveraging delegation and automation for efficiency. By implementing these principles, real estate professionals can unlock greater success and financial gains in their endeavors.