Profitability Tips for Real Estate Professionals

Keeping a real estate business profitable is a challenge that many professionals in the industry will have to confront. To ensure the growth of the business, a licensed agent or broker should focus more on securing a constant revenue stream.

There’s no doubt that working in real estate is highly lucrative, but there are times when you have to gauge the profitability of your real estate business and make necessary adjustments.

Let’s take a look at a few tips to help keep your business’ income flowing:

The real estate industry is in a constant state of flux. You’ll never know if people are more likely to buy or sell a home. In addition, you also need to keep tabs on your operational and marketing expenditures.

Focusing on the numbers that directly affect your bottom line allows you to make necessary adjustments to your budget. It all starts with determining your key performance indicators or KPIs for gauging the success of your client acquisition activities.

The most crucial of these KPIs is the close rate which shows the number of real estate leads that convert into clients. It also helps you determine the amount of time before a conversion takes place. Focusing on this KPI enables you to create strategies that let you allocate time and resources on quality real estate leads and optimize your client acquisition process.

 

According to figures from RealTrends.com, 53% of real estate businesses spent less than $5,000 on marketing in 2017. Without a doubt, much of this amount goes to digital marketing campaigns involving blogs, emails, newsletters, and social media. 

However, the complexity of managing these channels for lead nurturing and lead conversion comes with a high cost. To address this issue, real estate professionals can streamline their marketing campaigns through automation. With the right platform in place, brokers and agents can engage their target clients at minimum costs.

 

Handling a heavy workload can be daunting to real estate professionals. Not only does it lead to burnout, but it also diverts attention towards tasks that have no positive impact on the bottom line. You should be focusing on client acquisition and networking, not on menial tasks such as preparing flyers or creating effective descriptions for listed homes.

Offloading such tasks to your in-house staff or to real estate virtual assistant companies proves to be a more practical approach to reducing the number of tasks you handle. You can then set your sights on activities that promote revenue growth such as expanding into other markets. 

 

According to a 2013 report by Contactually, roughly 42% of new home buyers come from referrals. It also points out that past clients are the number one source of new business for many realtors. This is because past clients who have had a positive experience with you can add to your credibility within the field.

Sure enough, referrals continue to drive revenue for real estate businesses. In order to get referrals from your existing and past clients, you can simply launch an email campaign wherein clients can refer someone they know in exchange for a gift, whether it’s a discount voucher or a free concert ticket. You can also add a form on your website that clients can use to make a referral.

There are definitely plenty more tips for securing the profitability of your real estate business. Nonetheless, the best way you can attain this is to hire virtual assistants who can help you explore other opportunities for enhancing your income stream.

Get started by hiring an OVS virtual assistant today!