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MY MILLIONAIRE
REAL ESTATE AGENT
BUSINESS
PLAN
Think Big • Aim High • Act Bold
Live Large
TABLE OF CONTENTS
PLAYING WITH THE NUMBERS
My Economic Model..............................................................................................................................................4
Economic Model Worksheet ...............................................................................................................................4
Guidelines............................................................................................................................................................5
Instructions ..........................................................................................................................................................6
My Lead-Generation Model ...............................................................................................................................13
Instructions ........................................................................................................................................................13
My Budget Model ................................................................................................................................................33
Instructions ........................................................................................................................................................33
My Organizational Model...................................................................................................................................43
Instructions ........................................................................................................................................................43
TARGET PRACTICE
My Long-Term Planning Worksheet.................................................................................................................50
ANNUAL ACTION PLAN
My Annual Action Plan.......................................................................................................................................52
STAYING ACCOUNTABLE
My Annual 4-1-1 ..................................................................................................................................................63
My Perfect Week .................................................................................................................................................65
My Accountability Relationship.........................................................................................................................66
SOMEDAY ACTION PLAN
My Someday Action Plan....................................................................................................................................68
THREE-YEAR ACTION PLAN
My Three-Year Action Plan ...............................................................................................................................75
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
2
PLAYING WITH THE NUMBERS
Playing
with the
Numbers
This section of your business plan is designed to get you comfortable with
the Models. After each model is discussed in detail, you will have an
opportunity to play with the numbers.
As you go through each model, focus on your one-year goals.
Then, once you are comfortable with the numbers, we will switch to some
target practice. Finally, we will put it all together to create your Annual,
Three-Year, and Someday Action Plans.
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
3
PLAYING WITH THE NUMBERS
My Economic Model
How
To
Economic Model Worksheet
Refer to the Guidelines and Instructions on the next few pages for an explanation of how to
complete each step.
Economic Model Worksheet
Time Frame (MM/YY – MM/YY): ___/___ - ___/___
Net Income (before taxes)
Step 1
Cost of Sales
(29.2 % of GCI)
+
Operating Expenses
(29.2% of GCI)
=
Gross Closed Income (GCI)
Gross Revenue from Sellers
÷
Step 2
Gross Revenue from Buyers
Step 3
Commission
÷
=
Seller Sold Volume
=
Buyer Sold Volume
Step 4
÷
Average Sales Price
÷
Average Sales Price
Step 5
=
Sellers Sold
=
Buyers Sold
Step 6
% Conversion Rate
÷
Seller Listings Taken
=
% Conversion Rate
÷
Seller Listing Appointments
=
÷
3%
65%
=
÷
=
80%
3%
80%
Commission
% Conversion Rate
Buyer Listings Taken
65%
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
Step 7
% Conversion Rate
Buyer Listing Appointments
Step 8
4
PLAYING WITH THE NUMBERS
My Economic Model
Guidelines
Key Points
1. This first pass through completing your economic model is meant to get you familiar with
using the model. Unless you truly know your percentages for Cost of Sales (COS),
Operating Expenses, and Conversion Rates, you should use the Millionaire Real Estate
Agent percentages. When you get to your Annual Action Plan you will have an
opportunity to change these percentages.
2. The Millionaire Real Estate Agent percentages are meant to get you in the game and
performing at a high level. If your percentages are more or less than these, you will want
to identify why.
3. Your actual COS will vary based on your organizational model (whether or not you have
buyer or seller specialist(s)) and the costs of being associated with a company and/or
network. Generally speaking the COS percentage will range between 15% and 30%.
Using 29.2% might seem high, however you should remember that you are trying to build
your business beyond your one-year goals. Using this percentage positions you on the path
to maximize your long-term potential. If your COS is actually lower than this, that just
means you have more money going to your bottom line.
4. When you get to the Budget Model you will have an opportunity to calculate your actual
COS and Operating Expenses.
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
5
PLAYING WITH THE NUMBERS
My Economic Model
Instructions
Step 1
Identify your annual Net Income goal.
Directions:
1. Figure out how much income you would like to net (pre-tax) over the next 12 months.
2. Enter this number on the Economic Model Worksheet (previous page).
Step 2
Determine what your Gross Closed Income (GCI), Cost of Sales (COS), and Operating
Expenses must be in order to meet your Net Income goal.
Directions:
1. Either use the formula on the next page or refer to the GCI to Net Income Quick Chart on
page 7.
NOTE: Regardless of your current expenses and COS, we recommend that you use the
percentages set forth in this exercise. Later in this plan, you will perform a gap analysis
between your current expenses and COS and the Millionaire Real Estate Agent
benchmarks.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
6
PLAYING WITH THE NUMBERS
My Annual Economic Model
Instructions (continued)
The Formula
The Economic Formula is designed to take you from a desired Net Income to all of the other key numbers that
must be achieved in order to earn that Net Income.
GCI = Net Income ÷ .416
The Fundamental Formula is:
For example, if you desired to have a Net Income of $500,000, your GCI would equal $500,000 ÷ .416 which
equals $1,201,923.
To understand this formula and where it comes from, let’s take a quick lesson in Economic Algebra:
• Net Income = GCI – Total Expenses
• Total Expenses = Operating Expenses (29.2% of GCI) + COS (29.2% of GCI)* = 58.4% x GCI.
• Therefore, the formula becomes GCI - .584 GCI = Net Income
• This can be restated as GCI (1-.584) = Net Income
• Which is the same as .416 GCI = Net Income
• If you know Net Income and want to know GCI, you flip the formula to read GCI = Net Income ÷ .416
Another way to look at it:
GCI
- COS
- Op Exp
= Net Income
GCI
=
=
=
100%
29.2%
29.2%
41.6%
Net Income Goal
% of GCI you want to Net (.416)
Now, let’s use your numbers.
1. Take the Net Income Goal you established in step 1 and divide it by .416.
______________ Net Income
÷
.416
= ______________ GCI
Enter this number next Gross Closed Income (GCI) under Step 2 on your Economic Model
Worksheet.
2. Now that you have your GCI goal, simply multiply that number times .292 to get your COS
___________________ and by .292 to get your Operating Expenses __________________.
Enter these numbers next to Cost of Sales and Operating Expenses under Step 2 on your
Economic Model Worksheet.
* Note: As a reminder, COS of 29.2% is a combination of what you pay to your Company (and Network), what you pay for
your Buyer Specialist and Listing Specialist, and any outgoing referral fees you may incur.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
7
PLAYING WITH THE NUMBERS
My Economic Model
Instructions (continued)
Net Income to GCI Quick Chart
Net Income
COS (29.2%)
EXP (29.2%)
GCI
Net Income
COS (29.2%)
EXP (29.2%)
GCI
30,000
21,058
21,058
72,115
500,000
350,962
350,962
1,201,923
35,000
24,567
24,567
84,135
550,000
386,058
386,058
1,322,115
40,000
28,077
28,077
96,154
600,000
421,154
421,154
1,442,308
50,000
35,096
35,096
120,192
650,000
456,250
456,250
1,562,500
60,000
42,115
42,115
144,231
700,000
491,346
491,346
1,682,692
70,000
49,135
49,135
168,269
750,000
526,442
526,442
1,802,885
80,000
56,154
56,154
192,308
800,000
561,538
561,538
1,923,077
90,000
63,173
63,173
216,346
850,000
596,635
596,635
2,043,269
100,000
70,192
70,192
240,385
900,000
631,731
631,731
2,163,462
125,000
87,740
87,740
300,481
950,000
666,827
666,827
2,283,654
150,000
105,288
105,288
360,577
1,000,000
700,000
700,000
2,400,000
175,000
122,837
122,837
420,673
1,100,000
772,115
772,115
2,644,231
200,000
140,385
140,385
480,769
1,200,000
842,308
842,308
2,884,615
250,000
175,481
175,481
600,962
1,300,000
912,500
912,500
3,125,000
300,000
210,577
210,577
721,154
1,400,000
982,692
982,692
3,365,385
350,000
245,673
245,673
841,346
1,500,000
1,052,885
1,052,885
3,605,769
400,000
280,769
280,769
961,538
2,000,000
1,403,846
1,403,846
4,807,692
450,000
315,865
315,865
1,081,731
2,500,000
1,754,808
1,754,808
6,009,615
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
8
PLAYING WITH THE NUMBERS
My Economic Model
Instructions (continued)
Determine your goal for Gross Revenue from Buyers and Gross Revenue from Sellers.
Step 3
Directions:
1. Take the Total Gross Revenue that you identified in Step 2 and divide it by 2. If you focus
on listing sellers and marketing those sellers appropriately, half of your revenue will come
from sellers and half will come from buyers.
Remember: to assure your highest possible income focus on listings then plan to close one
buyer for each closed listing. Your listings attract your buyers.
Gross Revenue from Sellers
________ Total Gross Revenue
÷
2
= ________ Gross Revenue from Sellers
Gross Revenue from Buyers
________ Total Gross Revenue
÷
2
= ________ Gross Revenue from
Buyers
2. Enter these numbers on the Economic Model Worksheet.
Determine how much Seller Sold Volume and Buyer Sold Volume you will need in order to
meet your Gross Revenue goals.
Directions:
Step 4
1. Take the Gross Revenue from Sellers (determined in step 3) and divide it by your average
commission rate. This equals your Seller Sold Volume.
2. Take the Gross Revenue from Buyers (determined in step 3) and divide it by your average
commission rate. This equals your Buyer Sold Volume.
Seller Sold Volume
________ Gross Revenue from Sellers
÷ .03
Average Commission Rate
= ________ Seller Sold Volume
Buyer Sold Volume
________ Gross Revenue from Buyers
÷ .03
Average Commission Rate
= ________ Buyer Sold Volume
3. Enter these numbers on the Economic Model Worksheet.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
9
PLAYING WITH THE NUMBERS
My Economic Model
Instructions (continued)
Step 5
Determine your Average Sales Price.
Directions:
1. Estimate your average sales price. This may be based on the local market average or your
specific targeted market area average.
2. Enter this number on the Economic Model Worksheet.
Determine how many seller listings sold and buyer listings sold you will need in order to meet
your volume goals.
Directions:
Step 6
1. Take your Seller Sold Volume (determined in Step 4) and divide it by your average sales
price (identified in Step 5). This equals your Seller Listings Sold.
2. Take your Buyer Sold Volume (determined in Step 4) and divide it by your average sales
price (identified in Step 5). This equals your Buyer Listings Sold.
Seller Listings Sold
________ Seller Sold Volume
÷________ Average Sales Price
= ________ Seller Listings Sold
Buyer Listings Sold
________ Buyer Sold Volume
÷________ Average Sales Price
= ________ Buyer Listings Sold
3. Enter these numbers on the Economic Model Worksheet.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
10
PLAYING WITH THE NUMBERS
My Economic Model
Instructions (continued)
Determine how many seller and buyer listings you must take in order to meet your listings
sold goals.
Directions:
Step 7
1. Take your Seller Listings Sold (determined in Step 6) and divide it by the 65% Millionaire
Real Estate Agent conversion rate. This equals the number of seller listings you must take.
If you know your own conversion rate from seller listings taken to seller listings sold, you
may use this number instead.
2. Take your Buyer Listings Sold (determined in Step 6) and divide it by the 80% Millionaire
Real Estate Agent conversion rate. This equals the number of buyer listings you must take.
If you know your own conversion rate from buyer listings taken to buyer listings sold, you
may use this number instead.
Seller Listings Taken
________ Seller Listings Sold
÷ 65% Conversion Rate
= ________ Seller Listings Taken
Buyer Listings Taken
________ Buyer Listings Sold
÷ 80% Conversion Rate
= ________ Buyer Listings Taken
3. Enter these numbers on the Economic Model Worksheet.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
11
PLAYING WITH THE NUMBERS
My Economic Model
Instructions (continued)
Determine how many seller and buyer listing appointments you must have in order to meet
your listings sold goals.
Directions:
Step 8
1. Take your Seller Listings Taken (determined in Step 7) and divide it by the 80%
Millionaire Real Estate Agent conversion rate. This equals the number of seller listing
appointments you must get. If you know your own conversion rate from seller listing
appointments to seller listings taken, you may use this number instead.
2. Take your Buyer Listings Taken (determined in Step 7) and divide it by the 65%
Millionaire Real Estate Agent conversion rate. This equals the number of buyer listing
appointments you must get. If you know your own conversion rate from buyer listing
appointments to buyer listings taken, you may use this number instead.
Seller Listing Appointments
________ Seller Listings Taken
÷ 80% Conversion Rate
= ________ Seller Listing Appointments
Buyer Listing Appointments
________ Buyer Listings Taken
÷ 65% Conversion Rate
= ________ Buyer Listing Appointments
3. Enter these numbers on the Economic Model Worksheet.
Determine your monthly seller and buyer listing appointment goals.
Directions:
Step 9
1. Take your Annual Seller Listing Appointments (determined in step 8 and divide by 12. Do
the same for Buyer Listing Appointments.
Monthly Seller Listing Appointments
Monthly Buyer Listing Appointments
________ Annual Seller Appointments
÷ 12
= ________ Monthly Seller
Appointments needed
________ Annual Buyer Appointments
÷ 12
= ________ Monthly Buyer
Appointments needed
So, your real short-term action-focused goal is to consistently achieve this number of seller and
buyer appointments each and every month. Now, you know what your lead-generation program
must do. It must provide enough leads for you to have this many appointments.
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
12
PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions
Determine your annual lead-generation goal.
Step 1
Directions:
1. Under step 9 of My Economic Model, you identified your monthly appointment goals. In
the end, your lead-generation program must generate this number of appointments and you
must achieve your projected conversion rates. That having been said, the most direct way
to determine the nature and amount of lead-generation activity you will do is to calculate it
from the number of closed sales that you desire to achieve. Look back at your Economic
Model. Under Step 6, you identified your goals for buyer listings sold and seller listings
sold. These two numbers combined equal your annual lead-generation goal.
My Lead-Generation Goal
____________ Sellers Sold, which in turn leads to ____________ Buyers Sold for a total of
_____________ Closed Sales.
Determine how many names you will need in your contact database.
Step 2
Remember Your Ratios:
To People You’ve Met
To People You Haven’t Met
8x8
12 Direct
33 Touch
12:2 Ratio*
50:1 Ratio**
Appears on page 187 of The Millionaire Real Estate Agent
* The 33 Touch program should result in repeat and referral business at a rate of one referral and one repeat for every
twelve people in the program.
** Your 12 Direct program should generate one piece of new business for every fifty people in the program.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine how many names you will need in your contact database (continued).
Based on the ratios on the previous page, you have three options for meeting your Closed Sales
goals:
1. Option 1: Meet your Closed Sales goal through contact only with people in your Met
database (i.e., 8 x 8 followed by 33 Touch).
2. Option 2: Meet your Closed Sales goal through contact only with people in your Haven’t
Met database (i.e., 12 Direct).
3. Option 3: Meet your Closed Sales goal through contact with a combination of people from
your Met and Haven’t Met database. This combined option is the one that is most
recommended.
Step 2 (continued)
Directions:
1. Determine the number of contacts you will need using all three options. Refer to the
examples on the next page for assistance).
Option 1: Using Met database only.
You can expect, over time and consistent contact, 2 sales for every 12 names in your database.
Based on that ratio, use the following formula to determine the number of contacts you will need:
Closed Sales Goal _____ x 12/2 = ______ Contacts in your Met Database
Option 2: Using your Haven’t Met database only.
You can expect, over time and consistent contact, 1 sale for every 50 names in your database.
Based on this ratio, use the following formula to determine the number of contacts you will need:
Closed Sales Goal _____ x 50 = ______ Contacts in your Met Database
Option 3: Using a combination of Met and Haven’t Met.
Determine what percentage of your closed sales you would like to come through contact with your
Met database and what percentage you would like to come through contact with your Haven’t Met
database. For example, if you already have a lot of names in your Met database, you may choose
to go after 80% of your closed sales through contact with this group.
Closed Sales Goal _____ x ___% from Met database = ______ Sales from Met database
Closed Sales Goal ____ - _____ Sales from Met database = ____ Sales from Haven’t Met database
______ Sales from Met database x 12/2 = ____ Contacts in your Met Database
______ Sales from Haven’t Met database x 50 = ____ Contacts in your Haven’t Met Database
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine how many names you will need in your contact database (continued).
Examples
Step 2 (continued)
If your goal was to net $100,000 and you need 38.5 Closed Sales in order to meet that goal, here
is what your 3 options would like:
Option 1: You will need 231 contacts in your Met Database (38.5 x 12/2 = 231)
Option 2: You will need 1925 contacts in your Haven’t Met Database (38.5 x 50 = 1925)
Option 3: You have decided to focus on getting 60% of your closed sales from your Met
database and 40% from your Haven’t Met database. Therefore, you need 138.6 contacts in your
Met database and 770 in your Haven’t Met database.
38.5 (Closed Sales Goal) x 60% from Met database = 23.1 Sales from Met database.
38.5 –23.1 = 15.4 Sales from Haven’t Met database
23.1 (sales from Met database) x 12/2 = 138.6 Contacts in your Met Database
15.4 (sales from Haven’t Met database) x 50 = 770 Contacts in your Haven’t Met Database
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
15
PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine how many names you will need in your contact database (continued).
Directions:
2. Record your numbers from the previous page in the table below:
Step 2 (continued)
Understanding My Options
MET
+
HAVEN’T MET
Option 1
_______ in database
+
0 in database
Option 2
0 in database
+
______ in database
Option 3
_______ in database
+
______ in database
GOAL: _____ Closed Sales this Year
3. From your list of options above, select which option you will focus on for the next 12
months and record in the table below:
Choosing My Option
Option #
MET
_______ in database
HAVEN’T MET
+
_______ in database
GOAL: _____ Closed Sales this Year
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine how many names you need to add to your database on a monthly basis.
Step 3
Directions:
1. Record the following information in the table below to determine how many names you
need to add to your database in order to meet your goals:
a. Current Numbers: How many names you currently have in your Met and Haven’t
Met databases.
b. Goal Numbers: The numbers you recorded in Step 2 based on the Option you have
chosen to pursue.
c. People I need to add: The difference between your Current Numbers and your
Goal Numbers. This is how many names you need to add over the next year to
meet your goal.
Gap Analysis
MET
HAVEN’T MET
Goal Numbers
- Current Numbers
= People I need
to add*
* This is the minimum number of people you will need to add to your database in order to meet your goals and assumes
you are converting appointments to listings taken and listings taken to listings sold at the Millionaire Real Estate Agent
conversion rates. When you create your Annual Action Plan, you may want to think about increasing this number.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
17
PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine how many names you need to add to your database on a monthly basis
(continued).
Step 3 (continued)
2. Determine how many names you need to add monthly. You have two options:
1.
You can either take the number of contacts you need to add and divide by 12
(focusing on adding the same number of names each month), or
2.
You can focus on adding more names in the beginning of the year, thus insuring that
they will receive the number of touches needed to generate sales. Remember, your
conversion ratios are based on consistent contact over time. Therefore, names
added toward the end of the year may not receive enough touches to contribute
toward your closed sales goal.
Monthly Goals
MET
HAVEN’T MET
Month 1:
Month 2:
Month 3:
Month 4:
Month 5:
Month 6:
Month 7:
Month 8:
Month 9:
Month 10:
Month 11:
Month 12:
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
18
PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine your methods for obtaining contacts.
Directions:
1. What methods could you use to add people to your Met database?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Step 4
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
2. Where could you obtain lists of names and addresses to put in your Haven’t Met database?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine what obstacles might get in your way.
Directions:
1. List the obstacles that might prevent you from building your contact database. List what
you will do to eliminate or manage each obstacle.
What you will do to eliminate or
manage this obstacle:
Step 5
Obstacles:
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
20
PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Methods for Marketing and Prospecting to the General Public.
Directions:
1. Circle all of the Marketing and Prospecting methods that you are currently using in your
business.
Prospecting
(Proactive and Direct)
Step 6
1.
2.
Telemarketing
FSBO (For Sale by Owner)
Expireds
Just Solds
Just Listeds
Past Clients
Allied Resources
Geographic Farm Area
Apartments
Corporations
Builders
Banks
Third-Party Companies
Face-to-Face
Allied Resources (Meals)
Door-to-Door Canvassing
Open Houses
Client Parties
Networking Events
Allied Resources
Social Functions and Community Events
Seminars
Booths at Events
Teaching and Speaking Opportunities
Marketing
(Proactive and Indirect)
1. Advertising
Newspapers
Personal Vehicles
Radio
Magazines
Bus Stop Benches
Billboards
Yellow Pages
Television
Grocery Carts
Moving Vans
2. Promotional Items (Magnets, Calendars,
etc.)
3. Internet Websites
4. Direct Mail
Postcard Campaigns
Newsletter Campaigns
Just Sold/Just Listed Cards
Special Events Cards
Quarterly Market Updates
5. IVR and Computer Retrieval programs
6. Broadcast
Voice
E-mail
Fax
7. Signs/Directional Signs/Brochure Boxes
8. Name Badges/Logo Shirts/Car Signs
9. News Releases/Advice Columns
Geographic
Demographic
10. Sponsorship
Little League
Charities
Community Events
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Methods for Marketing and Prospecting to the General Public (continued).
Directions:
2. List 3-4 creative ways that you could expand your current Marketing and Prospecting
activities. List the actions you will need to take to make this happen. For example, maybe
you are currently telemarketing to FSBO’s and you are going to expand that to begin
telemarketing to Expireds as well. You have decided that you will need a telemarketing
script specific to dealing with Expireds. Your action step will be to contact your peers and
ask for the appropriate scripts.
I will need to take the following
actions to make this happen…
Step 6 (continued)
I will expand my current Marketing
and Prospecting by…
3. List 3-4 completely new Marketing and Prospecting activities that you will add over the
next 3 months.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 8 x 8 program to suit your style, time and budget.
The 8 x 8 is a high impact, high saturation technique that puts you in the Number One position in
the minds of everyone in your contact database within an eight-week period. For the best results,
agents are encouraged to use the 8 x 8 to “jump start” their 33 Touches and to come up with
different versions of the 8 x 8 (such as a FSBO version). Follow these steps to implement:
Directions:
1. Set aside a specific time for the next eight weeks to make contact with all of the prospects,
customers, and past customers in your contact database.
Step 7
Drop off a letter of introduction, your personal brochure, a market
report, and your business card.
Week 2
Send a recipe card, inspirational card, community calendar, or
market statistics.
Week 3
Send a recipe card, inspirational card, community calendar, or
market statistics.
Week 4
Make a telephone call:
“Hello, this is __________ from Keller Williams Realty. Did I catch
you at a bad time? How are you? Did you happen to receive the
__________? Have you had a chance to look at it? The reason I’m
calling is to find out if you happen to know of anyone who might be
buying or selling their home...”
Week 5
Week 6
Week 7
Week 8
Send one of your free reports.
Send a real estate investment or house maintenance tip.
Send a refrigerator magnet, notepad, or other usable giveaway (not
throwaway!) with your name, logo, and contact information on it.
Make another telephone call:
“Hello, this is __________ from Keller Williams Realty. Did I catch
you at a bad time? How are you? Did you happen to receive the
__________ that I sent you? That’s great. Did you have any
questions? As you can tell, I really hope you will allow me to be your
Realtor for life. And also, let me just give you a quick reminder that if
you happen know of anyone who might be buying or selling their
home, could you please share their name with me or my name with
them…”
Every single touch should have a quick reminder and instructions on how to give
you referral business.
Week 1
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 8 x 8 program to suit your style, time and budget (continued).
2. Mark the dates in which you plan to do your mail-outs and telephone calls on either a large
calendar or in your contact management software.
3. Modify the 8 x 8 to work for you. The point is for you to be systematic as you make
contact for the next eight weeks so that you quickly become Number One in the minds of
everyone in your contact database. It is better for you to modify this technique so that it
works for you, rather than not doing it at all or doing it haphazardly. Here are some ideas:
Step 7 (continued)
Instead of 6 mail-outs and 2 telephone calls, do 4 mail-outs and 4 telephone calls.
Instead of doing 8 weeks, do 12 weeks.
Week #
I will make contact by:
I will include this creative and
quick reminder and instructions*
on how to give me referral
business:
1
2
3
4
5
6
7
8
Ongoing
Implement your 33 Touches.
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have
referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 8 x 8 program to suit your style, time and budget (continued).
4. Now that you have your general 8 x 8 program, develop customized 8 x 8 programs for the
various sources. From the list of sources below, put a check next to the ones for which you
will develop customized 8 x 8 programs: Use the tables on the next 3 pages to design your
customized 8 x 8 programs.
Step 7 (continued)
FSBO’s (remember, FSBO’s require more face time)
Expired/Withdrawn Listings
My Geographic Farm
My People Farm(s)
My Sphere of Influence
People who attend my Open Houses
My Allied Resources
Relocations
Builders
My IVR System captures
Other:
___________________________
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 8 x 8 program to suit your style, time and budget (continued).
Here is my 8 x 8 for ______________________________
Week #
I will make contact by:
I will include this creative and
quick reminder and instructions*
on how to give me referral
business:
1
Step 7 (continued)
2
3
4
5
6
7
8
Ongoing Implement your 33 Touches.
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have
referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 8 x 8 program to suit your style, time and budget (continued).
Here is my 8 x 8 for ______________________________
Week #
I will make contact by:
I will include this creative and
quick reminder and instructions*
on how to give me referral
business:
1
Step 7 (continued)
2
3
4
5
6
7
8
Ongoing Implement your 33 Touches.
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have
referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 8 x 8 program to suit your style, time and budget (continued).
Here is my 8 x 8 for ______________________________
Week #
I will make contact by:
I will include this creative and
quick reminder and instructions*
on how to give me referral
business:
1
Step 7 (continued)
2
3
4
5
6
7
8
Ongoing Implement your 33 Touches.
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have
referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 33 Touch program to suit your style, time and budget.
33 Touch is a systematic marketing and prospecting technique, which ensures year-round contact
with all of the prospects, customers, and past customers in your contact database. Consider using
contact management software because this can be a lot of activity to follow up on. Follow these
steps to implement:
Directions:
1. Set aside a specific time each day/week to make contact with your prospects. In one year,
you will have made contact by:
Step 8
18
A combination of seventeen e-mails, mailings, letters, cards, or drop-offs
(which might include your business card) and may be one of the
following: letter of introduction, your personal brochure, market reports,
Just Sold/Just Listed cards, holiday cards, your personal newsletter, recipe
cards, property alerts, real estate news or articles, community calendars,
invitations, service directories, promotional items, etc.
8
Thank You or Thinking of You cards
3
Telephone calls
2
Birthday cards (husband and wife)
1
Mother’s Day card
1
Father’s Day card
33
Touches Total
Every single touch should have a quick reminder and instructions on
how to give you referral business.
2. Start by mailing everyone in your contact database one of your mail-outs. The benefit of
making contact by mail is that it makes it easier for you to call everyone and say: “Hello
this is __________ from Keller Williams Realty. Did I catch you at a bad time? I sent you
a __________, did you have a chance to look at it?”
3. Upon completion of each call, mark the dates in which you plan to do the rest of your mailouts and telephone calls on either a large calendar or in your contact management software.
Remember, you will be making at total of 33 touches during the next year.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 33 Touch program to suit your style, time and budget (continued).
4. Modify the 33 Touch program to work for you. The point is for you to be systematic as you
make regular contact throughout the year. It is better for you to modify this technique so
that it works for you, rather than not doing it at all or doing it haphazardly. Here are some
ideas:
Deliver May baskets, flags, pumpkins, and Christmas cookies as part of your touches.
Instead of sending Mother’s and Father’s Day cards, send recipes or market statistics.
Instead of a quarterly newsletter, do a monthly newsletter (amounts to 12 mail-outs).
I will include this creative and quick
reminder and instructions* on how to
give me referral business:
Step 8 (continued)
Qty.
Over the course of one year, I will
make these touches:
Total Touches
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have
referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Design your 12 Direct program to suit your style, time and budget.
12 Direct is a systematized method of working the Haven’t Met portion of your database. It stands
for twelve direct mail pieces mailed out annually.
Step 9
Directions:
1. Determine if you are going to plan your annual 12 Direct program at once or if you will
develop your direct mail pieces on a monthly basis.
2. Determine how much of your 12 Direct program will be outsourced. Perhaps you will
design your own direct mail pieces but you will outsource the production and distribution
to a qualified vendor. Or, you may choose to outsource the entire process.
3. Block out the appropriate amount of time to work on your 12 Direct program.
(continued on the next page)
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PLAYING WITH THE NUMBERS
My Lead-Generation Model
Instructions (continued)
Determine how much your lead-generation activities will cost.
Directions:
1. Under Step 2, #3 you decided how many names you will need in your Met and Haven’t
Met databases in order to meet your closed sales goal. Record those numbers here:
MET
HAVEN’T MET
________ Names
________ Names
2. Based on those numbers, record how many closed sales will come from your Met database
and how many will come from your Haven’t Met database.
MET
HAVEN’T MET
Step 10
________ Names
÷ 12
x
2
= ________ Closed Sales
________ Names
÷ 50
= ________ Closed Sales
3. Record your average cost for a touch. If you are not sure, use the Millionaire Real Estate
Agent average of $0.50 per touch. ________
4. Determine the cost of your Lead-Generation Program.
MET*
HAVEN’T MET
1. Every 12 people in your Met database marketed
to 33 times each year (33 Touch) = 2 sales.
(One sale is a referral and one is repeat
business.)
2. Restated: 396 touches (12 x 33) = 2 sales.
3. So, 396 touches x _____ (your average cost of a
touch) = $______ for 2 sales. Divide this
number by 2 for your cost per sale: _______.
4.
________ Closed sales from Met database
x ________ Cost per sale
= ________ Cost for your 33 Touch
program/yr*
1. Every 50 people in your Haven’t Met database
marketed to 12 times a year (12 Direct) = 1
sale.
2. Restated: 600 touches (50 x 12) = 1 sale.
3. So, 600 touches x _____ (your average cost of a
touch) = $______.
4.
_________ Closed sales from Haven’t Met
database
x _________ Cost per sale
= _________ Cost for your 12 Direct
program/yr)
* Note: The cost of the 8 x 8 program is not included.
Total Cost: ____________
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions
Record your GCI, COS, and Operating Expenses from your Economic Model.
Step 1
Directions:
1. Before we begin, record your annual goal numbers for GCI, COS, and Operating Expenses.
This will save you from having to flip back and forth between your Budget Model and
your Economic Model. You will find these numbers on your Economic Model Worksheet.
__________ Gross Closed Income (GCI)
— ___________ Cost of Sales (COS)
— ___________ Operating Expenses
= ___________ Net Income
Definitions
Gross Closed Income (GCI) – based on an assumed 6 percent total commission with 3 percent for each
side of the sale. (Although this will vary by agent and by city and is always negotiable, we had to pick a
basic commission standard. For simplicity’s sake, we have included all additional transaction fees
charged buyers and sellers in the commission rate. It was the inclusion of these fees that brought the
commission up to approximately 6 percent.)
Cost of Sales (COS) – related to the amount of money paid to a listing specialist and the commission
split paid to a buyer specialist. From our experience, a talented listings specialist will cost you between
$65,000 and $100,000 (and the conservative, high end is assumed for all calculations.) For the buyer side
we assumed a 50/50 split for buyer specialists. Again this is a conservative figure. If your value
proposition to your staff is such that you can compensate at a lower rate and still recruit and retain talent,
you’re in a much better position to net a higher income. Cost of sales can also vary widely based upon
such variables as local market conditions, average price, support provided, source of leads, local
employment conditions, etc. What must be understood is the implications for your net income when you
raise or lower these costs. COS also includes referral fees, fees paid to your company (split, cap, desk
fees, etc.) and any additional royalties you pay to be associated with a network.
Operating Expenses – all the other costs of doing business, including marketing, rent, salaries,
equipment and supplies, advertising, etc. Our research shows that as your business grows, this can
reasonably be held at or below 30 percent of gross revenue (GCI). The impact operating expenses have
on your income goes straight to the bottom line. When they rise your net income will fall and when they
fall your net income will rise.
Net Income – the amount of profit your sales business earns. Bear in mind that net income is always
your primary goal. It is natural to have goals in other areas, but always work backward from your net
income. This perspective assures that you never lose your grasp on the interplay between these four
economic categories.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Determine your actual COS.
Directions:
1. Do you have one or more Buyer Specialists? If yes, complete questions a and b. If no,
proceed to #2.
a. What is their combined commission split? ________________
b. What will the COS for your Buyer Specialist(s) be if you hit your goal for Gross
Revenue from Buyers (refer to your Economic Model Worksheet)?
_______ Gross Revenue from Buyers x _____ % Commission received by Buyer
Specialist(s) = __________ COS for Buyer Specialist(s).
Step 2
2. Do you have one or more Listing Specialists? If yes, complete question a. If no, proceed
to #3.
a. What is their combined salary and bonuses? ________________. This is your
COS for your Listing Specialist(s).
3. Record all other COS expenses. You can either enter your projections for the next 12
months, or enter last year’s numbers as your benchmark.
Desk Fees*
Split/Cap
Royalties/Franchise Service Fees
Referral Fees
Other
Other
Total
4. Record your total projected COS.
Buyer Specialist(s)
Listing Specialist(s)
All other COS
Total Projected COS
* If you rent a desk or office from your company, this rent goes in your Operating Expenses. By desk fee we mean
those companies in which company dollar is paid as a monthly fee and is often called a desk fee.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Conduct COS Gap Analysis.
Directions:
1. Determine the percentage of GCI for your total projected COS.
________ Total projected COS ÷ _____ GCI = _______ Percent of GCI.
Step 3
2. How does this compare to the 29.2% of GCI for the Millionaire Real Estate Agent?
3. Your percent of GCI for COS is determined by your actual COS and by your projected
GCI (established under My Economic Model). So, if your COS is significantly higher than
29.2%, ask yourself if you need to adjust your annual GCI goal. If you are comfortable
with your GCI goal, then your only other choice is to find ways to reduce your COS.
Some questions you can ask yourself are:
a.
b.
c.
d.
e.
Did I bring on a Buyer Specialist too soon?
Am I paying my Buyer Specialist too high of a commission split?
Did I bring on a Listing Specialist too soon?
Am I paying my Listing Specialist too much?
Am I paying too much in royalties or fees to be associated with my current
network?
List 3-4 ways that you can adjust your % of GCI for COS and bring it closer to 29.2%.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Categorize your Operating Expenses.
In this step, you will record your actual expenditures for the previous year. You will then establish
your budget for this year by adjusting your previous year expenditures as you see appropriate.
Perhaps you are planning to hire an assistant mid-way through the year and you know you will end
up paying approximately $30,000 per year. You would adjust your Salaries expense from last year
by adding an additional $15,000 (1/2 of an assistant’s salary). Then, for both last year’s actuals
and this year’s budget, you will determine the % of GCI. Finally, you will compare these
percentages to the Millionaire Real Estate Agent model and determine where you need to make
adjustments.
Step 4
Directions:
1. If you have your actual expenses for the past 12 months broken down by category, enter
them in the My Last Year’s Actuals column on the next page. If you do not have your
numbers with you, make an educated guess. When you get back to your office, you should
go through the exercise of using your actual numbers.
2. Determine your % of GCI for last year’s actuals by dividing each expense by last year’s
GCI.
3. For each category, determine your budget for this year and record them in the This Year’s
Budget column on the next page. As explained above you will want to make adjustments
based on expenses that you are planning to add over the next 12 months. For leadgeneration, use the cost that you identified in Step 10 of My Lead-Generation Model.
4. Determine your % of GCI for this year’s budget by dividing each expense by your GCI
goal.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Operating Expenses
Category
1.
Salaries
2.
Lead Generation
3.
Occupancy
4.
Technology
5.
Phone
6.
Supplies
7.
Education
8.
Equipment
9.
Auto/Insurance
My Last Year’s
Actuals
My Last Year’s
Actuals % of GCI
10. Total Expenses
This Year’s
Budget
This Year’s
Budget % of GCI
MREA Budget
MREA % of GCI
12%
9.2%
2.0%
1.5%
1.0%
1.0%
1.0%
1.0%
0.5%
29.2%
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Perform a Gap Analysis.
Directions:
1. Now that you have identified last year’s actuals and this year’s budget, let’s look at the
numbers in relation to the Millionaire Real Estate Agent Model. For each category,
determine what your expenses would be using the Millionaire Real Estate Agent
percentages and your GCI goal. You can either multiply your GCI goal by the Millionaire
Real Estate Agent percentage, or refer to the MREA GCI to Operating Expenses Quick
Chart located on the next two pages. Record these numbers in the MREA Budget column
on the previous page.
2. How do my expenses from last year compare with the Millionaire Real Estate Agent
Model?
Step 5
3. Where was I under budget? Where was I over budget?
4. Looking at this year’s budget, how does it compare with the Millionaire Real Estate Agent
model?
5. Where am I under budget? Where am I over budget? What adjustments do I need to
make?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
NOTE: If lead-generation is lower than the Millionaire Real Estate Agent target, you may
not be spending enough on this key activity to generate the leads necessary to hit your goal.
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
GCI to Operating Expenses Quick Chart
Net Income
GCI
Salaries
Lead
Generation
Supplies
Education
Equipment
Auto /
Insurance
Total
Expenses
30,000
72,115
8,654
6,635
1,442
1,082
721
721
721
721
361
21,058
35,000
84,135
10,096
7,740
1,683
1,262
841
841
841
841
421
24,567
40,000
96,154
11,538
8,846
1,923
1,442
962
962
962
962
481
28,077
50,000
120,192
14,423
11,058
2,404
1,803
1,202
1,202
1,202
1,202
601
35,096
60,000
144,231
17,308
13,269
2,885
2,163
1,442
1,442
1,442
1,442
721
42,115
70,000
168,269
20,192
15,481
3,365
2,524
1,683
1,683
1,683
1,683
841
49,135
80,000
192,308
23,077
17,692
3,846
2,885
1,923
1,923
1,923
1,923
962
56,154
90,000
216,346
25,962
19,904
4,327
3,245
2,163
2,163
2,163
2,163
1,082
63,173
100,000
240,385
28,846
22,115
4,808
3,606
2,404
2,404
2,404
2,404
1,202
70,192
125,000
300,481
36,058
27,644
6,010
4,507
3,005
3,005
3,005
3,005
1,502
87,740
150,000
360,577
43,269
33,173
7,212
5,409
3,606
3,606
3,606
3,606
1,803
105,288
175,000
420,673
50,481
38,702
8,413
6,310
4,207
4,207
4,207
4,207
2,103
122,837
200,000
480,769
57,692
44,231
9,615
7,212
4,808
4,808
4,808
4,808
2,404
140,385
250,000
600,962
72,115
55,289
12,019
9,014
6,010
6,010
6,010
6,010
3,005
175,481
300,000
721,154
86,538
66,346
14,423
10,817
7,212
7,212
7,212
7,212
3,606
210,577
350,000
841,346
100,962
77,404
16,827
12,620
8,413
8,413
8,413
8,413
4,207
245,673
400,000
961,538
115,385
88,461
19,231
14,423
9,615
9,615
9,615
9,615
4,808
280,769
450,000
1,081,731
129,808
99,519
21,635
16,226
10,817
10,817
10,817
10,817
5,409
315,865
Occupancy
Technology
Phone
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
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PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
GCI to Operating Expenses Quick Chart (continued)
Net Income
GCI
Salaries
Lead
Generation
Occupancy
Technology
Supplies
Education
Equipment
Auto /
Insurance
Total
Expenses
500,000
1,201,923
144,231
110,577
24,038
18,029
12019
12019
12019
12019
6010
350,962
550,000
1,322,115
158,654
121,635
26,442
19,832
13221
13221
13221
13221
6611
386,058
600,000
1,442,308
173,077
132,692
28,846
21,635
14423
14423
14423
14423
7212
421,154
650,000
1,562,500
187,500
143,750
31,250
23,438
15625
15625
15625
15625
7813
456,250
700,000
1,682,692
201,923
154,808
33,654
25,240
16827
16827
16827
16827
8413
491,346
750,000
1,802,885
216,346
165,865
36,058
27,043
18029
18029
18029
18029
9014
526,442
800,000
1,923,077
230,769
176,923
38,462
28,846
19231
19231
19231
19231
9615
561,538
850,000
2,043,269
245,192
187,981
40,865
30,649
20433
20433
20433
20433
10216
596,635
900,000
2,163,462
259,615
199,039
43,269
32,452
21635
21635
21635
21635
10817
631,731
950,000
2,283,654
274,038
210,096
45,673
34,255
22837
22837
22837
22837
11418
666,827
1,000,000
2,400,000
288,000
220,800
48,000
36,000
24000
24000
24000
24000
12000
700,000
1,100,000
2,644,231
317,308
243,269
52,885
39,663
26442
26442
26442
26442
13221
772,115
1,200,000
2,884,615
346,154
265,385
57,692
43,269
28846
28846
28846
28846
14423
842,308
1,300,000
3,125,000
375,000
287,500
62,500
46,875
31250
31250
31250
31250
15625
912,500
1,400,000
3,365,385
403,846
309,615
67,308
50,481
33654
33654
33654
33654
16827
982,692
1,500,000
3,605,769
432,692
331,731
72,115
54,087
36058
36058
36058
36058
18029
1,052,885
2,000,000
4,807,692
576,923
442,308
96,154
72,115
48077
48077
48077
48077
24038
1,403,846
2,500,000
6,009,615
721,154
552,885
120,192
90,144
60096
60096
60096
60096
30048
1,754,808
Phone
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
40
PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Play Red Light, Green Light.
Another way to plan and control your expenses is to play red light, green light. Refer to page 157158 in your Millionaire Real Estate Agent Business Planning Clinic student manual or pages 155156 of The Millionaire Real Estate Agent for information on playing Red Light, Green Light.
Directions:
1. Are you expecting any big expenses (COS or Operating Expenses) in the next 12 months?
If so, list them here:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
2. Has the increase in spending, listed above, been planned in the budget?
Step 6
3. List 3-4 ways you will hold the increase accountable for a return on investment:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
4. Have you held your fixed costs (rent, salaries, leases, etc.) as low as possible so that you
have room for your important discretionary expenses (such as lead generation)? How
could you reduce your fixed expenses?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
5. What are the Red Light/Green Light checkpoints (when and how) that you will use to
reevaluate your expense and gauge the rate of return?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(continued on the next page)
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41
PLAYING WITH THE NUMBERS
My Budget Model
Instructions (continued)
Play Red Light, Green Light. (continued)
Directions:
Step 6 (continued)
6. Are you using a miscellaneous category in your budget? How does this inhibit your ability
to know where your money is going?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
7. What would be the benefits of using a standard chart of accounts like the one listed in
Appendix A of your Millionaire Real Estate Agent Business Planning Clinic student
manual?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
8. Do you or your assistant produce a monthly Balance Sheet and Profit and Loss Report?
Do you review these monthly? If not, time-block your calendar for this monthly activity.
Appendix A of your Millionaire Real Estate Agent Business Planning Clinic student
manual provides a sample Profit and Loss Report. Appendix B provides a sample Balance
Sheet.
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42
PLAYING WITH THE NUMBERS
My Organizational Model
Instructions
Determine where you are on the path to the 7th level.
Directions:
Step 1
1. Draw your current Organizational Structure in the space below:
2. Based on your organizational chart, determine where you on the path to the 7th level. Refer
to the diagram on the next page.
3. Have you added people in an order that is different from the path to the 7th level? What has
been the impact of this? What will be your next step(s) to move you closer to the path to
the 7th level organizational structure?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(continued on the next page)
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PLAYING WITH THE NUMBERS
My Organizational Model
Instructions (continued)
The Path to People Leverage
Determine where you are on the path to the 7th level (continued).
Appears on page 201 of The Millionaire Real Estate Agent
(continued on the next page)
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PLAYING WITH THE NUMBERS
My Organizational Model
Instructions (continued)
Determine what your current organization requires from you over the next 12 months.
Refer to the appropriate directions based on where you are on the path to the 7th level.
Directions:
Level One:
Your organizational structure requires a different type of focus if you are at level 1 vs. any of the
other levels on the path to the 7th level. Remember, you don’t begin the process of systematizing
your office until you have your first assistant. At level one, your singular focus for your
Organizational Model is to determine when and how you will hire your first assistant.
1. Based on your projected economic, lead generation, and budget models, when do you think
you will be ready to hire your first assistant?
2. If you plan to hire an assistant within the next 12 months, have you included that expense
in your annual budget?
3. What will you do to develop your ability to find, select, train, and consult your first
assistant? Where and when will you learn these skills?
________________________________________________________________________
Step 2
________________________________________________________________________
________________________________________________________________________
Levels Two-Seven:
Once you reach level two, and beyond, you have an administrative assistant who should be skilled
at documenting standards. Your focus for your Organizational Model shifts to implementing the
R/T/C/K (Recruit, Train, Consult, Keep) process so that you can build a team of specialists and
hold them accountable to performance.
1. Have you defined your job descriptions and standards? Establish a time frame for
clarifying your job descriptions and for documenting your standards. Begin where the
need is most critical. For example, if you have a buyer specialist, but haven’t hired a
listing specialist yet, you would want to define the standards for working with buyers
before you begin defining the standards for working with sellers. At a minimum, for each
person on your team, you will need to define a standard for each bullet on the Basic Job
Descriptions listed on the next page.
2. Have you established annual goals for everyone on your team? If not, you will need to set
aside at least 30 minutes per person to guide them in setting their goals and then 1 hour per
person to review their goals and reach agreement.
3. Do you have weekly accountability meetings with your assistant? your
Marketing/Administrative Manager? your Lead Buyer Specialist? your Lead Listing
Specialist? If not, block out an hour per person each week for this activity. When you get
back to the office, set up the appropriate meetings.
(continued on the next page)
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PLAYING WITH THE NUMBERS
My Organizational Model
Instructions (continued)
Back-Office Support
Lead-Generation
Team
The Forefront of your business
Basic Job Descriptions
•
•
•
AGENT
Lead-Generation Strategy
Hire/Fire/Manage Train/Coach/Consult
Meet with Executive Staff
(Weekly for Accountability
and Strategy)
LEAD LISTING SPECIALIST
•
•
•
•
LEAD COORDINATOR
•
•
•
•
•
Receiving
Sourcing
Assigning
Database Entry
Tracking
•
•
•
•
•
CMA’s
Listing Marketing
Seller Comm./Admin.
Secure Appointments
Get Buyer Agreements
Show and Sell
Weekly Buyer Calls
Negotiate Offers
MARKETING AND
ADMIN. MANAGER
•
•
•
•
LISTING MANAGER
•
•
•
LEAD BUYER SPECIALIST
Secure Appointments
Get Listings
Weekly Seller Calls
Negotiate Offers
•
•
•
•
Lead Generation and
Systems Execution
Communication Systems
Financial Systems
Oversee Staff
TRANSACTION
COORDINATOR
Contract to Close
Select and Manage Vendors
Client Communication
TELEMARKETER
•
•
•
Get Lists
Make Calls
Get Leads
ASSISTANT
•
•
Answer Phone
Administrative Overflow
RUNNER
Physical tasks/Outside office
Appears on page 200 of The Millionaire Real Estate Agent
(continued on the next page)
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PLAYING WITH THE NUMBERS
My Organizational Model
Instructions (continued)
Determine whether or not you will move to the next level within the next 12 months.
Directions:
Step 3
1. Are you planning to hire anyone in the next 12 months?
2. What position will you be filling:
_______________________________________________________________________
3. Which of the seven recruiting sources will you use?
Ads
Allied Resources
Job Websites
Temporary Employment Agency
Permanent Employment Agency
Other Agents in Your Market Place
Real Estate Schools
4. Do you have a job description for this position? If not, begin with the Basic Job
Descriptions listed on the previous page.
5. Have you developed a compensation plan? Which of the nine major compensation options
will you include in the compensation package? For each option selected, review the
information in your Millionaire Real Estate Agent Business Planning Clinic student
manual or in The Millionaire Real Estate Agent to determine how you will structure your
compensation package.
Salary
Commissions
Pay Expenses
Bonuses
Profit Sharing
Retirement Plan
Insurance Benefits
Vacation Time and Sick Leave
Equity Opportunities
6. What will be the compensation plan for this position?
________________________________________________________________________
7. Is this expense included in your annual budget?
8. What will you do to develop your ability to find, select, train, and consult this position?
Who can consult with you in developing and using these skills?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(continued on the next page)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
47
PLAYING WITH THE NUMBERS
My Organizational Model
Instructions (continued)
Determine your training needs.
Directions:
1. What training does my team require over the next twelve months?
Training
When & where will this
training occur?
Step 4
Team Member
2. What training do I require over the next twelve months?
Training
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
When & where will this
training occur?
48
TARGET PRACTICE
Target
Practice
Begin with the end in mind.
Aim high toward a big goal.
Establish your path through a set of goals.
Where do you want to be “Someday”?
In this section, you will establish your Someday, Three-Year, and OneYear Goals.
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TARGET PRACTICE
My Long-Term Planning Worksheet
Directions
1. Determine your Someday goals for each of the categories below. Refer back to your
Economic Model and Lead Generation Model from Playing with the Numbers if you need
assistance. Also, record approximately when you would like to achieve your Someday
Goals. Record this at the bottom of the column next to When: ______.
2. Determine where you need to be three years from now to be on track for reaching your
Someday goals.
3. Finally, determine where you need to be one year from now to be on track for reaching
your three years goals. Start with the numbers you identified in the Playing with the
Numbers section of this booklet. Make adjustments as needed.
Category
One-Year
Three-Year
Someday
GCI
COS (29.2% of GCI)
Op Exp (29.2% of GCI)
Net Income
Volume
Sales
Buyer
Seller
Listings Taken
Buyer
Seller
Appointments
Buyer
Seller
Database
Met
Haven’t Met
WHEN: ___________
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ANNUAL ACTION PLAN
A nnua l
Action Plan
Imagine that you have reached your summit.
You are standing at the top of your Real Estate career.
What does that look like to you? Can you picture it in your mind? Keep this
picture in your mind. This mental picture, along with your Millionaire Real
Estate Agent models, gives you direction.
Think of them as your compass.
A compass is only useful as a guide for movement in the right direction. You
don’t really need a compass if all you are going to do is stand still.
This course is about heading in the right direction with speed.
So, let’s get moving.
Now that you have played with the models and established your Someday,
Three-Year, and One-Year Goals, it is time to create your
Annual Action Plan.
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ANNUAL ACTION PLAN
My Annual Action Plan
Directions
When you concentrate on the process of implementing a plan that comes from a Big Model, big
achievement becomes not just possible but much more likely. Now that you have played with the
four models and have set your targets by aiming high, you are ready to create your plan of action.
By putting the models together in one plan, you determine where you need to be going over the
course of the next 12 months with regards to your activities and your decisions. Once you have a
completed plan, hold yourself accountable to implementing your plan on a daily, weekly, and
monthly basis.
1. Complete your Annual Economic Model using the numbers from the My Long-term
Planning Worksheet. If you need help with the math, refer back to the My Economic
Model under Playing with the Numbers.
2. Complete your Annual Lead-Generation Model using the numbers from the My Long-term
Planning Worksheet and what you learned from completing the My Lead-Generation
Model under Playing with the Numbers.
3. Complete your Annual Budget Model. Make adjustments based on what you learned from
completing the My Budget Model under Playing with the Numbers.
4. Complete your Annual Organizational Model. Make adjustments based on what you
learned from completing My Organizational Model under Playing with the Numbers.
5. Complete the Goal section of your Annual Goal vs. Actual Worksheet using the numbers
from your four models.
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ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Economic Model
Time Frame (MM/YY – MM/YY): ___/___ - ___/___
Net Income
Step 1
Cost of Sales
(29.2 % of GCI)
+
Operating Expenses
(29.2% of GCI)
=
Gross Closed Income (GCI)
Gross Revenue from Sellers
÷
Step 2
Gross Revenue from Buyers
Step 3
Commission
÷
=
Seller Sold Volume
=
Buyer Sold Volume
Step 4
÷
Average Sales Price
÷
Average Sales Price
Step 5
=
Sellers Sold
=
Buyers Sold
Step 6
% Conversion Rate
÷
Seller Listings Taken
=
% Conversion Rate
÷
Seller Listing Appointments
=
÷
3%
65%
=
÷
=
80%
3%
80%
Commission
% Conversion Rate
Buyer Listings Taken
65%
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
Step 7
% Conversion Rate
Buyer Listing Appointments
Step 8
53
ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Lead-Generation Model
My Lead-Generation Database Option
Option #
MET
HAVEN’T MET
_______ in database
+
_______ in database
GOAL: _____ Closed Sales this Year
How Many Contacts I Need to Add
MET
HAVEN’T MET
Goal Numbers
- Current Numbers
= People I need
to add
Monthly Database Goals
MET
HAVEN’T MET
Month 1:
Month 2:
Month 3:
Month 4:
Month 5:
Month 6:
Month 7:
Month 8:
Month 9:
Month 10:
Month 11:
Month 12:
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
54
ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Lead-Generation Model (continued)
My 8 x 8 Program
Week #
I will make contact by:
I will include this creative and
quick reminder and instructions*
on how to give me referral
business:
1
2
3
4
5
6
7
8
Ongoing Implement your 33 Touches.
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have
referred customers to me in my newsletter, a reminder at the end of a telephone call, etc.
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
55
ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Lead-Generation Model (continued)
My 33 Touch Program
Qty.
Over the course of one year, I will
make these touches:
I will include this creative and quick
reminder and instructions* on how to
give me referral business:
Total Touches
* For example, a sticker on the outside of an envelope, a bold graphic in my newsletter, photographs of people who have referred
customers to me in my newsletter, a reminder at the end of a telephone call, etc.
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56
ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Lead-Generation Model (continued)
My Lead Generation Costs
MET*
1.
2.
3.
4.
HAVEN’T MET
Every 12 people in your Met database
marketed to 33 times each year (33 Touch) = 2
sales. (One sale is a referral and one is repeat
business.)
Restated: 396 touches (12 x 33) = 2 sales.
So, 396 touches x _____ (your average cost of
a touch) = $______ for 2 sales. Divide this
number by 2 for your cost per sale: _______.
________ Closed sales from Met database
x ________ Cost per sale
= ________ Cost for your 33 Touch
program/yr*
1. Every 50 people in your Haven’t Met database
marketed to 12 times a year (12 Direct) = 1 sale.
2. Restated: 600 touches (50 x 12) = 1 sale.
3. So, 600 touches x _____ (your average cost of a
touch) = $______.
4.
_________ Closed sales from Haven’t Met
database
x _________ Cost per sale
= _________ Cost for your 12 Direct program/yr)
* Note: The cost of the 8 x 8 program is not included.
Total Cost: ____________
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57
ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Budget Model
Category
This Year’s Budget
This Year’s Budget % of GCI
Cost of Sales (COS)
1. Listing Specialist(s)
2. Buyer Specialist(s)
3. Other COS
Total COS
Operating Expenses
1. Salaries
2. Lead Generation
3. Occupancy
4. Technology
5. Phone
6. Supplies
7. Education
8. Equipment
9. Auto/Insurance
Total Operating Expenses
Total Expenses
(COS + Operating Expenses)
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58
ANNUAL ACTION PLAN
My Annual Action Plan
My Annual Organizational Model
1. Draw your current organizational model and where you see your organizational model in 12 months.
Refer to the Path to the 7th Level for guidelines on how to structure your organization.
My Current Organizational Model
What my Organizational Model will look
like in 12 months
2. Write down your action plan for making this happen. Include what recruiting sources you will use and
what Compensation options you will offer.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
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59
ANNUAL ACTION PLAN
My Annual Action Plan
Annual Goal vs. Actual Worksheet
Year: ______
Category
Goal
Actual
Variance
Lead Generation
Seller Leads
% Conversion to Seller Appointments
Seller Appointments
Buyer Leads
% Conversion to Buyer Appointments
Buyer Appointments
Listings Taken
% Seller Appointments Conversion to Listing Agreements
Seller Listings Taken
% Buyer Appointments Conversion to Buyer Agreements
Buyer Listings Taken
Contracts Written
% Seller Listings to Contracts
Seller Contracts Written (units)
% Buyer Listings to Contracts
Buyer Contracts Written (units)
Seller Contracts Written Volume
Buyer Contracts Written Volume
Seller Contracts Written GCI
Buyer Contracts Written GCI
Contracts Closed
Seller Contracts Closed (units)
Buyer Contracts Closed (units)
Seller Contracts Closed Volume
Buyer Contracts Closed Volume
Seller Contracts Closed GCI
Buyer Contracts Closed GCI
Money
Total GCI
Cost of Sales
Operating Expenses
Net Income
People
Systems/Tools
Personal Education
Planned annually, monthly, and weekly on your 4-1-1
Planned monthly and weekly on your 4-1-1
Planned annually, monthly, and weekly on your 4-1-1
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60
ANNUAL ACTION PLAN
My Annual Action Plan
Monthly Goal vs. Actual Worksheet
Month: ________
Category
Goal
Actual
Variance
Lead Generation
Seller Leads
% Conversion to Seller Appointments
Seller Appointments
Buyer Leads
% Conversion to Buyer Appointments
Buyer Appointments
Listings Taken
% Seller Appointments Conversion to Listing Agreements
Seller Listings Taken
% Buyer Appointments Conversion to Buyer Agreements
Buyer Listings Taken
Contracts Written
% Seller Listings to Contracts
Seller Contracts Written (units)
% Buyer Listings to Contracts
Buyer Contracts Written (units)
Seller Contracts Written Volume
Buyer Contracts Written Volume
Seller Contracts Written GCI
Buyer Contracts Written GCI
Contracts Closed
Seller Contracts Closed (units)
Buyer Contracts Closed (units)
Seller Contracts Closed Volume
Buyer Contracts Closed Volume
Seller Contracts Closed GCI
Buyer Contracts Closed GCI
Money
Total GCI
Cost of Sales
Operating Expenses
Net Income
People
Systems/Tools
Personal Education
Planned annually, monthly, and weekly on your 4-1-1
Planned monthly and weekly on your 4-1-1
Planned annually, monthly, and weekly on your 4-1-1
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61
STAYING ACCOUNTABLE
Staying
Accountable
Now that you have a completed plan, you must time block for focus and
then get accountability to keep that focus. In this section you will design
your Annual 4-1-1, time block your perfect week, and identify your
accountability relationship.
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STAYING ACCOUNTABLE
My Annual 4-1-1
4-1-1 Action Goal Worksheet
NAME:
MY ANNUAL GOALS
JOB
YEAR OF:
BUSINESS
PERSONAL FINANCE
MY MONTHLY GOALS
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
PERSONAL
MONTH OF:
63
STAYING ACCOUNTABLE
My Annual 4-1-1
4-1-1 Action Goal Worksheet
NAME:
MY WEEKLY GOALS
JOB
BUSINESS
PERSONAL FINANCE
PERSONAL
1.
2.
3.
4.
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64
STAYING ACCOUNTABLE
My Perfect Week
MON
TUE
WED
THUR
FRI
SAT
SUN
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
65
STAYING ACCOUNTABLE
My Accountability Relationship
How I Will Stay Accountable
Who will be my Accountability Consultant?
My Accountability Consultant
Name:
Relationship:
Phone Number:
Email Address:
How frequently will we meet?
_____________________________________________________________________________
Where and how (i.e., in person, over the phone, etc.) will we meet?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
66
SOMEDAY ACTION PLAN
Someday
Action Plan
Before your create your Three-Year Action Plan, you need to make sure
you are thinking big, aiming high, and acting bold. Let’s create your
Someday Action Plan.
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67
SOMEDAY ACTION PLAN
My Someday Action Plan
Directions
1. Complete your Someday Economic Model using the numbers from the My Long-term
Planning Worksheet. If you need help with the math, refer back to the My Economic
Model under Playing with the Numbers.
2. Complete your Someday Lead Generation Model using the numbers from the My Longterm Planning Worksheet and what you learned from completing the My Lead Generation
Model under Playing with the Numbers.
3. Complete your Someday Budget Model. At this point, you should have your budget model
in line with the Millionaire Real Estate Agent Model. Refer back to the My Long-term
Planning Worksheet for your GCI, COS, and Operating Expense goals and then break your
COS and Operating Expenses down into the appropriate categories using the Millionaire
Real Estate Agent percentages. Refer back to the GCI to Operating Expenses Quick Chart
on pages 38-39 of Playing with the Numbers.
4. Complete your Someday Organizational Model.
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68
SOMEDAY ACTION PLAN
My Someday Action Plan
My Someday Economic Model
Net Income
Step 1
Cost of Sales
(29.2 % of GCI)
+
Operating Expenses
(29.2% of GCI)
=
Gross Closed Income (GCI)
Gross Revenue from Sellers
÷
Step 2
Gross Revenue from Buyers
Step 3
Commission
÷
=
Seller Sold Volume
=
Buyer Sold Volume
Step 4
÷
Average Sales Price
÷
Average Sales Price
Step 5
=
Sellers Sold
=
Buyers Sold
Step 6
% Conversion Rate
÷
Seller Listings Taken
=
% Conversion Rate
÷
Seller Listing Appointments
=
÷
3%
65%
=
÷
=
80%
3%
80%
Commission
% Conversion Rate
Buyer Listings Taken
65%
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
Step 7
% Conversion Rate
Buyer Listing Appointments
Step 8
69
SOMEDAY ACTION PLAN
My Someday Action Plan
My Someday Lead-Generation Model
Understanding My Options
Option 1
MET
_______ in database
+
+
HAVEN’T MET
0 in database
Option 2
0 in database
+
______ in database
Option 3
_______ in database
+
______ in database
Someday Closed Sales Goal _______
OPTION 1: Closed Sales Goal _____ x 12/2 = ______ Contacts in your Met Database
OPTION 2: Closed Sales Goal _____ x 50 = ______ Contacts in your Met Database
OPTION 3: Closed Sales Goal _____ x ___% from Met database = ______ Sales from Met database
Closed Sales Goal ____ - _____ Sales from Met database = ____ Sales from Haven’t Met database
______ Sales from Met database x 12/2 = ____ Contacts in your Met Database
______ Sales from Haven’t Met database x 50 = ____ Contacts in your Haven’t Met Database
My Someday Lead-Generation Database Option
Option #
MET
_______ in database
HAVEN’T MET
+
_______ in database
Someday Closed Sales Goal _______
How Many Contacts I Need to Add
MET
HAVEN’T MET
Goal Numbers
- Current Numbers
= People I need
to add
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70
SOMEDAY ACTION PLAN
My Someday Action Plan
My Someday Lead-Generation Model (continued)
Yearly Database Goals
MET
HAVEN’T MET
Year 1:
Year 2:
Year 3:
Year 4:
Year 5:
Year 6:
Year 7:
Year 8:
Year 9:
Year 10:
Year 11:
Year 12:
Year 13:
Year 14:
Year 15:
My Lead Generation Costs
MET*
HAVEN’T MET
1. Every 12 people in your Met database marketed to
33 times each year (33 Touch) = 2 sales. (One sale
is a referral and one is repeat business.)
2. Restated: 396 touches (12 x 33) = 2 sales per year.
3. So, 396 touches x _____ (your average cost of a
touch) = $______ for 2 sales per year. Divide this
number by 2 for your cost per sale: _______.
4. ________ Closed sales from Met database
x ________ Cost per sale
= ________ Cost for your 33 Touch
program/yr*
x ________ # of years until Someday goal
= ________ Total Cost for your 33 Touch
program.
1. Every 50 people in your Haven’t Met database
marketed to 12 times a year (12 Direct Mail) = 1 sale
per year.
2. Restated: 600 touches (50 x 12) = 1 sale per year.
3. So, 600 touches x _____ (your average cost of a
touch) = $______.
4.
________ Closed sales from Haven’t Met
database
x ________ Cost per sale
= ________ Cost for your 12 Direct program/yr
x ________ # of years until Someday goal
= ________ Total Cost for your 12 Direct program.
* Note: The cost of the 8 x 8 program is not included.
Total Cost: ____________
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
71
SOMEDAY ACTION PLAN
My Someday Action Plan
My Someday Budget Model
Category
Someday Budget
Someday Budget % of GCI
Cost of Sales (COS)
1.
Listing Specialist(s)
2.
Buyer Specialist(s)
3.
Other COS
Total COS
29.2%
Operating Expenses
1.
Salaries
2.
Lead Generation
3.
Occupancy
4.
Technology
5.
Phone
6.
Supplies
7.
Education
8.
Equipment
9.
Auto/Insurance
Total Operating Expenses
Total Expenses
(COS + Operating Expenses)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
12%
9.2%
2.0%
1.5%
1.0%
1.0%
1.0%
1.0%
0.5%
29.2%
58.4%
72
SOMEDAY ACTION PLAN
My Someday Action Plan
My Someday Organizational Model
1. Draw the Organizational Structure (from the Path to the 7th Level) that represents where your business
will be when you reach your Someday Goal:
2. Write down your action plan for making this happen. Include what recruiting sources you will use and
what Compensation options you will offer.
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Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
73
THREE-YEAR ACTION PLAN
Three-Year
Action Plan
Now, let’s create your Three-Year Action Plan.
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
74
THREE-YEAR ACTION PLAN
My Three-Year Action Plan
Directions
1. Complete your Three-Year Economic Model using the numbers from the My Long-term
Planning Worksheet. If you need help with the math, refer back to the My Economic
Model under Playing with the Numbers.
2. Complete your Three-Year Lead Generation Model using the numbers from the My Longterm Planning Worksheet and what you learned from completing the My Lead Generation
Model under Playing with the Numbers.
3. Complete your Three-Year Budget Model. Within 3 years, you should have your budget
model in line with the Millionaire Real Estate Agent Model. Refer back to the My Longterm Planning Worksheet for your GCI, COS, and Operating Expense goals and then break
your COS and Operating Expenses down into the appropriate categories using the
Millionaire Real Estate Agent percentages. Refer back to the GCI to Operating Expenses
Quick Chart on pages 38-39 of Playing with he Numbers.
4. Complete your Three-Year Organizational Model.
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
75
THREE-YEAR ACTION PLAN
My Three-Year Action Plan
My Three-Year Economic Model
Net Income
Step 1
Cost of Sales
(29.2 % of GCI)
+
Operating Expenses
(29.2% of GCI)
=
Gross Closed Income (GCI)
Gross Revenue from Sellers
÷
Step 2
Gross Revenue from Buyers
Step 3
Commission
÷
=
Seller Sold Volume
=
Buyer Sold Volume
Step 4
÷
Average Sales Price
÷
Average Sales Price
Step 5
=
Sellers Sold
=
Buyers Sold
Step 6
% Conversion Rate
÷
Seller Listings Taken
=
% Conversion Rate
÷
Seller Listing Appointments
=
÷
3%
65%
=
÷
=
80%
3%
80%
Commission
% Conversion Rate
Buyer Listings Taken
65%
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
Step 7
% Conversion Rate
Buyer Listing Appointments
Step 8
76
THREE-YEAR ACTION PLAN
My Three-Year Action Plan
My Three-Year Lead-Generation Model
Understanding My Options
Option 1
MET
_______ in database
+
+
HAVEN’T MET
0 in database
Option 2
0 in database
+
______ in database
Option 3
_______ in database
+
______ in database
Three-Year Closed Sales Goal _______
OPTION 1: Closed Sales Goal _____ x 12/2 = ______ Contacts in your Met Database
OPTION 2: Closed Sales Goal _____ x 50 = ______ Contacts in your Met Database
OPTION 3: Closed Sales Goal _____ x ___% from Met database = ______ Sales from Met database
Closed Sales Goal ____ - _____ Sales from Met database = ____ Sales from Haven’t Met database
______ Sales from Met database x 12/2 = ____ Contacts in your Met Database
______ Sales from Haven’t Met database x 50 = ____ Contacts in your Haven’t Met Database
My Three-Year Lead-Generation Database Option
Option #
MET
HAVEN’T MET
_______ in database
+
_______ in database
Three-Year Closed Sales Goal _______
How Many Contacts I Need to Add
MET
HAVEN’T MET
Goal Numbers
- Current Numbers
= People I need
to add
Yearly Database Goals
MET
HAVEN’T MET
Year 1:
Year 2:
Year 3:
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
77
THREE-YEAR ACTION PLAN
My Three-Year Action Plan
My Three-Year Lead-Generation Model (continued)
My Lead Generation Costs
MET*
HAVEN’T MET
1. Every 12 people in your Met database marketed
to 33 times each year (33 Touch) = 2 sales.
(One sale is a referral and one is repeat
business.)
2. Restated: 396 touches (12 x 33) = 2 sales per
year.
3. So, 396 touches x _____ (your average cost of a
touch) = $______ for 2 sales per year. Divide
this number by 2 for your cost per sale: ______.
4. ________ Closed sales from Met database
x ________ Cost per sale
= ________ Cost for your 33 Touch
program/yr*
x ________ 3 years
= ________ Total 3-year cost for your 33
Touch program.
1. Every 50 people in your Haven’t Met database
marketed to 12 times a year (12 Direct Mail) = 1
sale per year.
2. Restated: 600 touches (50 x 12) = 1 sale per year.
3. So, 600 touches x _____ (your average cost of a
touch) = $______.
4.
________ Closed sales from Haven’t Met
database
x ________ Cost per sale
= ________ Cost for your 12 Direct program/yr
x ________ # 3 years
= ________ Total 3-year cost for your 12 Direct
program.
* Note: The cost of the 8 x 8 program is not included.
Total Cost: ____________
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
78
THREE-YEAR ACTION PLAN
My Three-Year Action Plan
My Three-Year Budget Model
Category
Three Year Budget
Three Year Budget % of GCI
Cost of Sales (COS)
1.
Listing Specialist(s)
2.
Buyer Specialist(s)
3.
Other COS
Total COS
29.2%
Operating Expenses
1.
Salaries
2.
Lead Generation
3.
Occupancy
4.
Technology
5.
Phone
6.
Supplies
7.
Education
8.
Equipment
9.
Auto/Insurance
Total Operating Expenses
Total Expenses
(COS + Operating Expenses)
Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
12%
9.2%
2.0%
1.5%
1.0%
1.0%
1.0%
1.0%
0.5%
29.2%
58.4%
79
THREE-YEAR ACTION PLAN
My Three-Year Action Plan
My Three-year Organizational Model
1. Draw the Organizational Structure (from the Path to the 7th Level) that represents where your business
will be in 3 Years:
2. Write down your action plan for making this happen. Include what recruiting sources you will use and
what Compensation options you will offer.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
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Keller Williams Realty  2003 My Millionaire Real Estate Agent Business Plan June 03
80

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