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.

Learn more about automating your follow up process today, and check out the Agent Legend blog for more tips to help your real estate business thrive this year.

The Best Follow Up Systems For Realtors

The best leads and the best campaign follow ups together in one place.

Filter leads into the right campaigns for better lead engagement

Sorting Real Estate Leads for Better Follow-Up Engagement

Strategy with your lead follow up will increase the number of leads who respond to your messages.

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

FAQs

What is the 80-20 rule 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.

See Details ›

What is an example of the 80-20 rule in sales? ›

Here are some examples you may have already experienced in your business: 80% of your sales volume is generated by 20% of your customers. 80% of your revenues are generated by 20% of your products. 80% of your complaints come from 20% of your customers.

Get More Info Here ›

What are real examples of the 80/20 rule? ›

20% of customers account for 80% of the profits of many businesses. 20% of criminals account for 80% of criminal losses. 20% of motorists cause 80% of the accidents. 20% of those who marry represent 80% of the divorces (serial marriage failures)

What is the 80-20 rule of money? ›

YOUR BUDGET

The 80/20 budget is a simpler version of it. Using the 80/20 budgeting method, 80% of your income goes toward monthly expenses and spending, while the other 20% goes toward savings and investments.

Discover More Details ›

Where can the 80-20 rule be applied? ›

Although the 80-20 rule is frequently used in business and economics, you can apply the concept to any field. Wealth distribution, personal finance, spending habits, and even infidelity in personal relationships can all be the subject of the 80-20 rule.

What is the rule of 20 in real estate? ›

"Possession" requires more than incidental benefit from the public property, but requires actual physical occupation of the property pursuant to rights not granted to the general public; thus, the use of property such as hallways, common areas, and access roads at airports, stadiums, convention centers, or other public ...

Discover More ›

What is the 80-20 rule of sales how to find your best customers? ›

Use the 80/20 Rule to Drive Customer Loyalty

Those are the ones that likely generate 80% of your revenue. Once you've identified the top 20% of your high-value customers, explore how you can allocate 80% of your effort and resources to activate those customers to spend more effectively.

Learn More ›

What is the 7 rule in real estate? ›

In fact, in marketing, there is a rule that people need to hear your message 7 times before they start to see you as a service provider. Therefore, if you have only had a few conversations with the person that listed with someone else, then chances are, they don't even know you are in real estate.

Learn More ›

What is the 90 10 rule in real estate? ›

This concept shows that if you have 10 tasks that are 90% complete, you've essentially accomplished nothing. For some real estate professionals, this can be the crux of their business. It also may mean the difference between success and failure for them.

Tell Me More ›

What is the number one rule of real estate? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

Read The Full Story ›

What is the 50% rule in real estate? ›

The 50% rule is a guideline used by real estate investors to estimate the profitability of a given rental unit. As the name suggests, the rule involves subtracting 50 percent of a property's monthly rental income when calculating its potential profits.