The Deal Maker is a Leads maker

I have been doing some researching and reading during this pandemic and I stumbled upon this information in the Internet.

90% of the Brokers/Salespersons earn 10% of the commissions in the real estate industry

5% of the Brokers/Salespersons earn 20% of the commissions in the real estate industry.
4% of the Brokers/Salespersons earn 30% the commissions in the real estate industry

1% of the Brokers/Salespersons earn 40% of the commissions in the real estate industry.

I am not so sold about this but what I did was I tried to put numbers on it and see if this holds true to our setting here in the Philippines.

The first question is how many Real Estate Brokers and Salespersons are we talking about? As per PRC, there are about Twenty Five Thousand and Seventy-One (25,071) Licensed Real Estate Brokers in the Philippines. Add to that the number of their respective salespersons, let’s just peg this at average of ten for each broker, we now have a total of 275,781 real estate sales force in the country. Now that we have a grand total we can now get the 90%, 5%, 4% and the 1% of the sales force. Let’s categorize them as Category 90, 5, 4 and 1 respectively.

Now, let’s do some more math. In 2018 the real estate industry sold P500B worth of properties. If we are to follow the 5% commission rate industry standard this is a whopping P25B in commissions for all Brokers/Salespersons to share. Let’s get the 10%, 20%, 30% and 40% of the P25B commission pie. This is P2.5B, P5B, 7.5B and P10B respectively. Now let’s apply this to the information above.

Those who belong to Category 90 will get P10,072.40 each.

Those who belong to Category 5 will get P 362,607.88 each.

Those who belong to Category 4 will get P 679,902.09 each.

Those who belong to Category 1 will get P 3,625,815.81 each.

Let us pause for a moment and try to gather our wits. Question yourselves, where do I fit in here? What is my category then as a practicing Broker/Salesperson?

In my years in the industry I have witnessed and experienced the deluge of people in all walks of life entering the world of real estate and I must say that Category 90 would come and go in a span of six months to a year or two. These are the people who were looking for a part time job, a racket of sorts, eager to earn big bucks the quickest possible way. They are the ones who are lured to real estate selling and being told that this is the quickest fix to their financial troubles only to realize that there are tons of work and learning to be done for one to be successful. Most of these people are the ones who left a job, earning a salary every 15 days. What they don’t realize is that they are now self employed and there will be no money coming in every fifteen days. This is where they start to question, not themselves, but the industry.

To be successful in real estate one has to commit to the industry, and face the challenges it bequeaths. These 90% should understand that in order to earn more in real estate you must learn more about the industry. These people failed to maintain a positive attitude and stopped in understanding that it is actually your attitude and not only your aptitude that makes you successful in real estate. That there are a ton of things to learn and one must go out of his way to gain more knowledge in order to be competitive in this industry.

Category 5 are those who make a decent income and experienced a semblance of success equivalent to a good and stable job. These are hard working people who give countless hours but do not work smart enough. Thus they are the ones who are vulnerable to a burn out that results in fizzling out of the business in five years or so.

Category 4 would be those who are always punching their way year in and year out. These are the ones who are productive and we can say the movers and shakers of the real estate industry. Over the years of practice they will become the pioneers of the industry, etching their names and their legend. They advertise heavily and you can almost see their faces everyday in social media. They are highly sociable, well educated, disciplined, organised, they work hard and they work smart. They have a long and successful career in real estate.

And now for the Category 1. These are the cream of the crop. The Diamond. The Platinum ones, more precious than gold. They also possess traits of the ones in Category 4 but are cut above them. These are people who are highly motivated. They live a more balanced life, they take care of their bodies and health, read more books, attend more seminars, enriching their knowledge about the industry, about handling their finances, they are in a stable relationship and have a stronger faith. They have gargantuan goals before the start of every year and they make it a point to achieve those goals. They know when and how to recalibrate and sharpen their saw. They focus on real estate deals with lesser stress but could generate bigger income for them. These people understand the importance of advertising but fully grasp the idea that closing deals always starts with a lead. They believe that without a lead you are farther away from a deal. These people know how to generate and harness real estate leads.

Real estate deal making is an art, a science and math combined. Add technology to it then you are bound to be successful if you choose this endeavour.

Whatever category you are in now, it is always your personal decision if you want to climb up the ladder or go down from it.