| Saturday, November 27, 2010
| Saturday, November 27, 2010
This article is excerpted from my report titled “How Real Estate Agents Can Eliminate Negative Cash Flow in Their Businesses.”
The most profitable real estate business for the future will not look anything like the real estate business of the past. In fact, the real estate business of the future will focus entirely on cash flow. Here’s a snapshot of how this business will look:
1. Zero negative cash flow
2. No long-term contracts
3. Complete flexibility
4. Limited or no overhead
5. No debt
6. No salaried employees
7. Will reverse the cash flow on monthly expenses
8. Will focus on generating higher-quality free leads
9. Will use automatic lead-conversion systems
10. Will be engineered around your ideal lifestyle, not sales growth.
11. Simplicity will rule over complexity.
12. Will maintain significant amounts of cash in financial reserve.
I realize this may sound impossible. It definitely IS possible. Picture this for your business…
Every day, new high-quality leads are generated and automatically imported into your database management system. These new leads are put through an automatic marketing funnel whereby certain percentages are converted into clients. These new clients are pre-trained to operate according to your rules of engagement.
Each lead is followed up with on a weekly basis, using a content-oriented email newsletter delivered for free.
Your business doesn’t require physical office space other than your home office. Everything above happens online or remotely. Everything you need is at your fingertips, within your home office. This means you don’t have to drive to an office.
Your lead generation and conversion systems are designed in such a way that you have the luxury to reject a new client if they won’t work on your terms. This is because your business expenses are minimized, you won’t need to work with every client or prospect that touches your business. You’ll have the luxury to “cherry-pick” the best clients from your marketing system and work with these clients on your terms.
You have one or two good agents who you can give new clients to and feel comfortable that they’ll turn the clients into sales. These agents work remotely from their home offices and are paid commissions on the homes sold to your clients. They do not receive any salary or fixed payment from your business. They pay their own business expenses and must sell to earn income. The income your business receives from these home sales is used to build your financial reserves of your business.
Because this business is structured to minimize overhead and completely offset other business-related expenses, every commission check received from your personal home sales will be positive cash flow. Depending on your market and commission rate, you should be able to reach your cash flow goal with 2 or 3 home sales a month with zero negative cash flow. When you factor in the commissions received on homes sold by your buyer’s agents, you’ll enjoy your ideal lifestyle with virtually no risk and complete freedom.
NOTE: If you’d like to read more about how to eliminate negative cash flow in your business, visit http://www.zeronegativecashflow.com