Ensure SUCCESS in Your Real Estate Business During Down Markets

If you've ever spent any time around a financial adviser, you have probably heard the word diversification. My name is Chance Brown. I'm a broker owner of CB&A Realtors. And today I want to talk about diversification of revenue in your business, which sounds maybe a little complicated, but it's actually a pretty simple concept when we get down to it. What we're trying to avoid is putting all of your eggs in one basket in case that basket gets turned over and a bunch of the eggs get cracked. We want to do the same thing for the revenue in your business. One of my smartass responses when I hear something that drives me crazy, which is 100% of my business is referral. And people brag about that. When I hear that, my typical response is, "Well, then you're probably not trying very hard. Like, go talk to some strangers. Go host an open house. Do something, man. What happens if the market go drops by 50%." And all of your business is referral. Well, now your business just dropped by 50%. That's not a smart business strategy to be 100% referral. It's just not. In our brokerage, we train these and we call it the pillars of income. We have each one of our agents come up with four pillars of income to where if one area of their business dropped off, these others would pick up. Now, this is going to sound crazy. In an ideal universe, each one of these four pillars would help you achieve 100% of your revenue goal for the year. Like on its own, it could achieve your revenue goal. So, you're basically doing a plan to 400% your your revenue goal. Does it always work that way? Usually it does not actually, but you'd usually end up ahead of where you wanted to be because you're focusing on different areas that you probably wouldn't have if you didn't have this strategic plan in place. So, let's talk about these four pillars. It ain't social media. Like, stop it. Liking and commenting is not a strategy. It's a diversion. There is an asterisk here. If you're using social media and you know how to run campaigns and you're building ads out, you're running campaigns and those are resulting in inbound lead generation at a rate that can help you meet your revenue goal, then yes, social media. But if you're just using social media because you got nothing else to do and you want to death scroll and hit like, that's not a strategy, friends.

That's just a diversion. That's just you wasting time that could be doing something else to help grow your business. Your first one as a freebie is your sphere of influence. It absolutely should probably be the primary driver. I don't like 100% but I like 75%. I'm good with that. But there needs to be other things. So whether that's your kids are a pillar because you're doing 97 activities a week with them and you're always around other people. That could be one. One could be open houses if you're particularly awesome at open houses. It could be farming a territory. It could be farming a group. It could be whatever your niche is. There are a lot of different things that could make up these pillars. I would tie them to the things that you want to do in business and specifically know that you have strengths for. So if you're farming, for example, maybe it's events inside the neighborhood that build your farm as opposed to just mail like we used to do in the old days. And if that's your strong suit and you want to build your neighborhood presence by that, cool. For me, I've had everything from the Houston Livestock Show and Rodeo be a pillar where I've done a lot of business from people I've met at the rodeo, which I never went into my rodeo volunteer service with that expectation. and but it's become a pillar of my business over the years. It could be groups that I'm a part of whether it's my fraternity alumni or my college alumni and it's my best friend. He's a retired cop. Cops are his bread and butter in his business cuz they all know him. It's a tight community. We see the same thing with firefighters, teachers, stuff like that.

There's a lot of different roads you can go down to build these pillars, but it's important that you identify at least four. Start with sphere of influence, add three more and stick to those. If you change your pillars every 2 weeks because you did something and it didn't work and now you think it's stupid, that's not a pillar. Think about the Parthonon. Think about the coliseum. Those pillars have been there for 2,000 years. Your pillars need to stay. They need to be consistent. They need to build your business. Hope that's helpful. I hope that helps you focus where your revenue can come from and do the activities that help achieve that goal. If you have any questions, please don't hesitate to reach out. Always happy to help. And if you like this, give us a follow. We'll be bringing you more