What if we told you that you could spend $1 to make $10? You would do it, right?
Spending money is easy. Most real estate agents just spend money and–if they see there’s still money in the checking account–things are good.
But you don’t want to be like most real estate agents…
Here’s the thing: if you don’t track it, it doesn’t exist. It’s really easy to invest money into any shiny object that comes your way as a real estate agent. Whether that is the newest lead generation platform or sign rider program–as long as it says we’re promised that it will make us more money or make our lives easier, we will throw money at it.
Chris Tamm, founder of Firepoint, looked at real estate a much different way when he entered the industry. Chris Tamm had years of experience running real estate teams and mortgage companies. He wanted to bring an MBA perspective to his business. He started looking at what was really giving him a return on investment. It can be simple to throw around the phrase, “You gotta spend money to make money,” but many are too eager to spend money and are too busy to check if they are actually making money. A deposit into the bank account does not indicate a positive return on investment.
The value of money without time means absolutely nothing.
Do not give into the temptation to simply look at how much you spent on your new shiny object–marketing software, partnership, lead generation–then point to how much total money came back and declare that your return on investment.
Time plays a very important role in analyzing your return.
For example, what if I told you there was a lead generation company that could guarantee you either a 2x or 6x Return on your investment (ROI). You’d choose the 6x right? Now what if I told you that it would take 1 year to see it that 6x return? Changes the equation right?
Depending on where you are in your business–just starting out or established–the time in which you will see your return means something.
If you are starting your business you might be willing to see less ROI if it means that money returns to you 6 months quicker. If you are more established then you would be more willing to invest in longer term marketing strategies that yield higher ROI knowing that your business will be around to benefit from them.
Firepoint’s Business Reporting is designed for you.
If you’re spending money on marketing and lead generation, you must see exactly where it’s going. Otherwise, you will constantly fall victim for chasing the shiny object in your marketing plan. With Firepoint, we track your spending and returning revenue on every lead source in detail.
You are able to set custom time frames so that you can know your true return on investment. This allows you to make well-informed business decisions without needing sophisticated business training.