As a real estate agent, it’s important to maximize the productivity of your efforts. Enter the 80/20 rule. Also called the Pareto Principle, the 80/20 rule states that roughly 80% of effects come from 20% of causes and should be applied to our business endeavors. The trick is figuring out what actions are going to produce the best measurable results with minimal effort. By removing inefficient methods to grow your bottom line, you can put more energy into the methods and tactics that will get results for both your real estate organization and your clients.
Here are some ways you can apply the 80/20 rule for your real estate organization:
1. Identify your most productive activities
Figuring out which activities are most productive for your business is a must. Don’t waste time on ineffective maneuvers – narrow in on activities that generate leads, close deals and build relationships. Don’t be afraid to cut what’s not working and put all your energy into what really matters. If you focus on the activities that are most likely to contribute to success, you’ll be in a good position to succeed. Do the research, identify which actions give you the biggest push forward, then take action and do it.
2. Cut Out or Delegate the 80%
If you want to make the most of your time and resources, it pays to identify which activities are worth investing in and which you can do without. Ask yourself if you can cut out or delegate the 80% of activities that are not as productive – get creative when looking for solutions – consider delegating tasks to staff or outsourcing work to freelancers or contractors. That way, you’ll have more energy and focus to invest in what’s really going to get happen.
3. Focus on the 20%
Ranking how effective each of your tasks is and making a priority list can help you stay focused on the top few. And if you find yourself putting off what’s meant to be your high-priority list? Get creative: establishing dedicated blocks of time for them or hiring help will keep your progress going steadily. Let go of the rest and focus on the results.
4. Prioritize Your Time
Making the most of your time is essential to every successful business, so don’t waste it on tasks that won’t move the needle. The 80/20 rule can help you identify what’s most important and get you results — fast. Put your resources into the tasks that produce the highest yield and don’t get caught up in those that offer only a shallow outcome. And if it’s not going to get you closer to achieving success, it’s probably not.
5. Monitor and Adjust
Make a habit of routinely tracking and assessing what works for you and what doesn’t; don’t let blind time allocations keep you from maximizing results. Re-assess when it isn’t yielding expected productivity; if something isn’t paying off, adjust your approach. Keep an eye on results, ditch the stagnation, and work.
Let’s get serious; if you want to be successful in real estate, you need to apply the 80/20 rule: focus on a small number of activities where the impact on outcomes is far greater than elsewhere. Spend your time wisely—don’t waste it spinning your wheels. Put all your energy into what genuinely matters, and see those results skyrocket.
Ken Goodfellow
Coach Ken International