Hey welcome back to the tom ferry show today. I want to talk to you as if i was your business coach and my only intention was to help you achieve your goals. Tap into your potential make the money that you want, save the money that you want and ultimately create the certainty that you need. So you know exactly what you have to do on a daily basis in order to achieve what it is you want.

So i love starting with that question. Do you believe, as i believe that the next 14 months can truly be extraordinary in your business? If the answer is yes, my friend you've got the right mindset. Let me take you through what i call the ultimate success formula. After 31 years in this industry and more than 35 000 hours of coaching, i can tell you the single most important thing that you need.

As you start, the journey on the next 14 months - and i know we're already into november - is to know exactly what you want to be crystal clear on what you want, and i know you're watching this you're, like tom i've, been around you for a long time. I've been setting goals, i know, listen to me as a coaching company, we're onboarding new clients every single day, 200 300, sometimes 400 a month, and when that happens, we'll we'll start by saying. Do you have a clear set of goals and i'm telling you right now: 80 percent of the people have a vague notion of what they want. There's a big difference between a vague notion of what they want: i'd kind of like to earn x versus definitively i'd.

Like to sell this many homes, this much volume, this much gci this much in expenses, this much in taxes and this much money saved, there's a big difference and i cannot stress to you. The streets are paved with gold right now in the residential, real estate business, and i want you to capitalize on it. So i'm going to do a two-part show today we're going to talk about getting to know exactly what it is that you want and then we'll spend the balance of next week's show filling in the gaps on exactly what you have to do to achieve your greatness. So, let's jump in if i was sitting with you one-on-one, i would ask you all these questions.

The first one is: what is the total number of transactions you're committed to do next year, based upon the lead source? So i literally want you to break down. I want this many from my past clients, this many from my sphere, this many from agent agent referral. This many from my geographic farm expired listing, zillow on and on and on. The key is that i'm not just saying i want to sell 12 homes.

I want to sell 500 homes you're breaking it down in tranches, so you know where you have to concentrate. You also understand the time you need to spend the marketing either your energy, your time or your dollars, and ultimately the return on your investment. So don't just have a blanket goal, be specific because it's going to really inform you as to where you need to spend your time number two break down the total sales volume by buy side and sell side. What's the total volume you want to achieve number three total commissions paid gross after your split is the key, the money to you? What's the gross after your split, be clear on that number know it, so we can take action on it number four.

This is where it gets interesting and i'll break it down in a minute. Is how many appointments do you need in order to achieve that goal? Now, i'm going to give you two benchmark numbers based on our coaching clients for years. The first one is four buyer consultations to one closing so on the buy side of the business, not showing property four times where you sit down and say tristan stephanie, let me explain what it's like to buy a home today. You haven't done it in 10 years or you're a first time.

Buyer. Has anybody taken the time to show you this this this and this and explain all these processes by doing a powerful buyer consultation you're going to up your conversion you're going to get trust and loyalty, more reviews, everything you want and the four to one ratio: 25 Conversion is just a base mark, so you can say: can i beat that? Can i do better so, as you're plotting out your goal, i want to do 12. Buyer side sales. I know i've got to do four.

Buyer consultations to one. I need 48 buyer consultations to achieve my goal. Then the listing side is a two to one, fifty percent conversion. So i go on two appointments.

I have one listing that closes now. You might say i'm beating that number today. I would ask you if you know that number to incorporate it. Otherwise i want to give you a baseline number for you to go out and beat so number.

Four is figuring out exactly how many appointments i need to do so. I can start to think through my ideal day, my ideal week month, quarter year, etc, and maybe just maybe get a visual up of how many appointments i need to go on. So i can win number five. Is your budget for your expenses? I cannot trust you enough.

For nearly a decade i've been telling people stop spending your money on dumb stuff, get a budget save more cash. My number one ranked video on youtube talks about the three different types of agents and how they use their money and what they do. And if you haven't watched that tristan, maybe we should link it up, whether you're on youtube or wherever you're watching. It watch that video to make sure, as the money comes in you're doing the right stuff.

But it starts with having a budget which i'm going to show you today and of course the last one is having a goal for profit after taxes. So if you just stop right there - and i say to you the ultimate success formula is knowing exactly what you want. I read a quote a long time ago and i forget, i think it was maybe tim ferriss. He said something the effect of vague people get punished and the people that are specific they get rewarded right.

We get rewarded. When we have a specific ask, i want to sell 25 houses now, i'm targeting focusing on it versus the fake person says i'd like to do a little bit more than i did last year, make a little bit more money than i did last year in this Business and in all businesses, those people get punished, get very crystal clear on exactly what you want: a thousand transactions 10 transactions. It's your goals, get it in writing now. The next part is, i want to talk to you about your budget, so i want to give you just some examples of things that we're helping our clients do to to give them again a measuring guide to be able to say how am i comparing to this.

So if you look at the slides, here's what it says, your operating expenses, starting with operating staff. Now this could include your virtual assistant, your transaction coordinator, your outsourced, videographer, your full-time assistant, heck. You could even include if your cpa advises it. The salary that you're paying yourself out of your corporation, we recommend that that's no more than 15.5 percent of your total budget marketing and lead generation.

10. Now, if you're in massive growth mode, i've seen that at 16 17, even as high as 20 percent just be mindful just be mindful. That's one of those areas that i see people in many cases, spending too much and in some cases not investing enough and keeping themselves as a secret agent, so 10 between listing launches right, direct mail. Anything to your past clients in sphere, any other lead sources.

You're going after facebook boosts videos and more 10 seems to be the optimal number again. If you're in massive growth mode, you can ratchet that up, but just be mindful, remember: we want a higher net profit, also below that education and coaching one and a half percent supplies communications tax, auto insurance equipment. Basically, the whole thing rolls up to no more than 30 percent of every dollar comes in to operate your business, including a salary for you talk to your cpa about that. But that means you've got a business that generates 70 percent gross margins.

That's a good business! My friend, i know you want all of it, but that's not reality. We're running a business. You have to make investments in your tech in yourself in your marketing in your exposure, so a 70 gross margin business is phenomenal. Then you see below i've got a big asterisk.

There talk with your cpa. Tax rules are always changing, but, let's just say it's 30 to 40, maybe 50, maybe 62 percent. You got to put that number and you got to push it aside. I don't get mad about taxes, you know what i do.

I focus on making more money. You have the ability to do the same, so don't get mad about the taxes, make more money, but no matter what, when that money comes in, i want to allocate it appropriately. So i'm not shocked the number of times. I've talked to people that say: oh my gosh tom, i was having my best year ever and i'm depressed, oh gosh.

Why are you depressed? I owe revenue, canada. I owe the irs 200 300 400 and i said, but didn't you listen? I told you every check that comes in, take x amount and put it into your tax account. I know tom, i heard it, but i didn't do it and then they get depressed versus saying. Hey cost me this much to run my business.

It cost me this much in taxes. Now it is what it is now. I've got the balance to live my life, to spend some money to save some money, to pay off my debts and do the things i want to do. The bottom line is this: my friend, this is your budget and it goes without saying you are where you are financially because of the budget you have or you don't have, and the disciplines you have around investing in saving or you don't have, and i just want To challenge you, the next 14 months are going to be very fruitful in this business and, if you're going into it blindly, financially you're probably going to end up with more of the same at the end of 2021.

And my commitment is, i want you healthy. I want you wealthy, so let's make sure we get a budget now, as we progress you'll see, i've got a little note here. It says, please allow your manager, your mentor or your coach to hold you accountable to what matters, especially when it comes to finances, especially when it comes to finances. Having that accountability in place with finances makes all the difference in the world now.

So speaking of accountability, one of the things that i brought up to all of our coaches and coaching clients this year at the summit was inside of the ultimate success formula. I want you to declare what are you going to average percentage of retained commission now? I know as we get into this it's just it's a delicate matter. Like people start saying: oh, you know tommy, you understand like it was a past client or it was a friend or you know. I was in the middle of this high-end negotiation and me and the other agent.

We decided to reduce our fees just a little bit and kick it in to get the deal done. Here's the deal i've been doing this for a long time. I know the game. What you don't seem to understand is you think in the moment that one time it doesn't matter, but that one time becomes a pattern, it becomes the easy way, the fast way to just get the deal done and then guess what happens over time.

The number of agents that have come to me and said: hey, my gross sales volume was a hundred million dollars and i grabbed my phone and i calculated i go and you were able to retain 1.8 percent on your side. What happened? Listen. I interviewed chris voss on my show. I hope you take the time to study and read this material, because at the end of the day, if you don't know how to negotiate your own fees, you're going to lose financially, i want you to win.

I want you to be wealthy. I want you to sell a lot of houses, provide unbelievable service and get rewarded for your hard work, and the stress that you take on are you with me on this? Are you with me on this? So, look at this little slide when we say it doesn't really matter that one time you take a 500 000 average sales price at 2. It's a ten thousand dollar commission, but look at it at two point: seven: five: just the ability to hold your fees and negotiate more effectively and deliver more value and be strong in your approach. You're talking about a three thousand seven hundred fifty dollar difference.

Now you say on that one transaction: it doesn't matter but times that by ten fifteen eighteen, a hundred and two three hundred listen, my friend it absolutely matters. I value you, i'm looking for you to value yourself, your services and your ability to negotiate at a much higher level, and all of that is going to make 2021 infinitely and financially better for you so shorter show today we're just getting started on what you want. Take the time to answer the questions, take the time to get clear and specific about exactly what you want, how many transactions, what sources, what average commission percentage! Are you going to keep retained to you and then on next week's show, i'm going to show you your daily number, i'm going to give you a schedule, i'm going to give you all the things you need to follow through and execute so 2021 can truly be Unbelievable for you thanks so much for watching give me some comments below share this with a friend at night. That needs to see it, and i look forward to seeing you next week get into action.