I discuss the 80/20 rule and how we can apply it to real estate.
For part two of our Six Personal perspectives, we’ll talk through the 80/20 rule. Last time, we went through self-mastery. If you missed it, you can access it here.
The 80/20 principle was developed by Vilfredo Pareto back in the 1800s. What it states is that 20% of our efforts will lead to 80% of the outcome. Pareto saw this in crop growth, with 20% of growers making up 80% of crop yield in the area. If you look this up, you’ll see it happening in lots of different industries.
We can use this by remembering that 20% of what we do, as long as we do the right things, will lead to 80% of the outcome. What actions make up these 20% in real estate? Lead generation, lead follow-up, writing contracts, negotiating contracts, and going on appointments are all probably part of this.
When agents focus on that 20%, over time that leads to 80% of their income. Find out this week what you’re currently doing and develop those key items, the 20%, that can help you improve. You could even reverse engineer this and think about what goal you want to reach and what tasks will help you get there.
Next time we’ll be back with our third part, going from entrepreneurial to purposeful. If you have any questions about this topic in the meantime, don’t hesitate to give us a call. We’re always here to help.