By Dean Naughton

As I train hundreds of REALTORS® each year, I see a trend. Each REALTOR® is trying to find the secret that will make real estate "the way it was," or "better than before." They are looking for a quick fix to their financial problems, an expressway to the pot of gold. I am here to tell you I have found it, yes; I have found the real secret of real estate.

This is my 17th year in the real estate industry, and I want to share the secret to success in real estate. GOALS. Yes, making goals is the fastest way to realize the wealth real estate offers. GOALS. Year after year, I see REALTORS® succeed and fail. The most common denominator for both outcomes is whether they had GOALS or not. I am not talking about wishes or dreams. I am not talking about memorizing what your broker says or what the latest book preaches. I am talking about real, honest, thought-out GOALS. So how do you do it? How do you make your GOALS for 2009?

Stephen Covey says it best. "Begin with the end in mind." Begin with what will make you happy at the end of 2009. What is the revenue you want to produce in 2009? Is it $100,000, $200,000, or $500,000? Take your number and break it down by 12 months. How much monthly revenue do you need to make to reach the end goal? For example, if you choose $240,000 for 2009, then your monthly revenue goal is $20,000.

Now that you know your monthly revenue goal, how many transactions do you need to do to meet your goal? For instance, if your monthly revenue goal is $20,000 and you average $4,000 per transaction, then you will need to close five transactions per month. This works whether you are a listing agent or a buyer agent; it is still the number of transactions.

If you need five transactions, calculate how many appointments you need to complete one transaction. If you take buyers out six times before they choose a property and close on it, multiply your appointments (six) by the number of transactions (five). So you need to have 30 appointments per month to reach your goal. That is only 1.5 appointments per day in a five day work week. PIECE OF CAKE!

Now, here is the tricky part. How many leads does it take you to get an appointment? How many people do you have to talk to before you convert them into an appointment? Do five leads bring you to one appointment? 10? Only you know the answer, and if you do not know the answer, start tracking it. Most REALTORS® can convert one out of three, so in other words, three leads will get you one appointment.

Multiply your appointments needed (30) per month by the number of leads it takes to get an appointment (three) and you will see you need 90 leads per month. That is three leads per day. It's that simple!

So to recap, to earn $240,000 in 2009 you need to have three leads per day and convert one of your leads to an appointment. Take them out six times, on the average, to get a contract that sticks and close five of those contracts per month. Look at your time commitment. Each appointment takes approximately two hours, so if you need 1.5 appointments a day, each day you will spend about three hours with clients. If you spend another hour preparing for and closing their transactions, then that is only four hours of work per day. For the full-time REALTOR®, you still would have four to five more hours per day to prospect for your three leads!

The real secret of real estate has not changed in 17 years. Setting goals, then working to achieve those goals, and being wise with your time, is the fastest way to reach your "pot of gold." To download a FREE goal-setting worksheet, email Dean at dean@salesev.com.

Dean Naughton has trained thousands of REALTORS® to maximize their production. To attend one of Dean's seminars, email Dean at dean@salesev.com for a full calendar of events.

Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.

Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.

In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®. (Amended 1/00)

Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where REALTORS® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.

The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal. In the interpretation of this obligation, REALTORS® can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, "Whatsoever ye would that others should do to you, do ye even so to them."

Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of their activities whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below. (Amended 1/07)

"To REALTORS®, the Code of Ethics offers the lessons of hindsight, the guidance of foresight, and the understanding of insight — a rare gift of vision."

— William D. North, former Executive Vice President and General Counsel, NAR

By Diane Flannagan

I know I'm not the only one wishing for a return to the "good ole days" when houses were selling without much effort and buyers were standing in line, regardless of the price, to buy. It doesn't look like that type of market will be back anytime soon so what must an agent do to adjust to a "buyers' market"? The first step is understanding the definition of market types: a buyers' market is generally an existing inventory of over seven months, a sellers' market is generally an existing inventory of under five months. So what changes as market types change? The way we generate and convert leads.

In a sellers' market, the product sells itself. Buyers stand in line to bid up the price of the product. Occasionally common sense leaves all together in the rush to "get a house, now." In sellers' markets, agents can afford to invest their time and money in attracting business with their marketing efforts. Marketing is reactive and relies on attracting business. Marketing is relatively passive; after all, in a sellers' market all you had to do was be there.

It is obvious that the consumer's appetite for housing and confidence have dwindled along with the economy. Housing is a big ticket item and therefore a "first hit" commodity. Top Producers have already moved their activities to more prospecting and less marketing to improve their profitability and effectively work in this market. Prospecting is seeking and is therefore active in its intent. One of my coaching clients says, "I have learned to simply ask for business without any investment in the answer. The more people I ask the luckier I get!

To survive and thrive in this market you may want to try the following:
• Learn to ask and don't get attached to the result.
• Proactive open houses – Invite the neighbors to a "sneak preview."
• Call your past clients – give them good news, they got bad news from the newspaper.
• Join a community or civic group.
• Look to social media – Facebook, ActiveRain, Twitter, etc. help you become known, especially to generation "X" and "Y."
• Develop "Talking Points" – scripts to use in lead conversion.
• Work on referral sources – especially other agents.
• Go door-to-door in your market area – there is no "do not knock" directory.
• Deliver a marketing item in person – it makes an impression.
• Give your cards out everywhere – one top producer we know puts 10 business cards in her pocket every morning and does not go home until they are all given out to people she doesn't know.

Switch to more prospecting than marketing and watch your business soar!

Diane Flannigan is the Director of Career Development for John Hall and Associates, Phoenix.