– The Pareto Principle states that 80% of results come from 20% of daily work, but many real estate agents delegate or disregard critical responsibilities in their businesses.
– Agents should not delegate key relationships, critical moments in transactions, personal visits and gift deliveries, lead generation and conversion, strategy and systems, strategic partnerships, branding and brand promise, marketing and advertising, marketing presentation collateral, and hiring and team building.
– Agents are responsible for the most important functions in their business and should not pass them off to someone else.
– Delegating these critical functions can lead to a failure to get referrals and repeat business.
– Agents should stop doing tasks they should be delegating in order to make time for these important responsibilities.
– Lead generation is emphasized multiple times as a critical aspect that should not be delegated.
If the 80-20 principle is correct, then agents must delegate tasks. But broker Nick Schlekeway says many agents have taken it too far. Here are the areas agents should stop delegating and personally handle with care.
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The Pareto Principle states that approximately 80 percent of our results stem from only 20 percent of our daily work, but real estate agents display an alarming and consistent tendency to delegate or disregard some of the most critical responsibilities in their businesses.
Many of them do not know which 20 percent generates 80 percent of the results, and most do not delegate strategically to ensure their time is spent in those activities that are most productive. In extreme cases, their process for strategic planning and delegation seems to be formed around avoiding the things they don’t enjoy more than any real sense of vision for where they want to go.
Now don’t get me wrong: One person cannot do it all, nor should they. However, it’s also critical to note that you are responsible for the most important functions in your business. And you shouldn’t be passing them off to an admin — regardless of experience — who, by definition, does not know what you know.
Here are 10 of the most critical aspects of running a successful real estate business that should not be delegated (but often are):
1. Key relationships
Real estate sales are relationship sales in their purest form. The health and vitality of your relationships with others, your rapport, and your ability to engender trust is the most important aspect of success in a business that is ruled by referral and word-of-mouth advertising.
2. Critical moments in the transaction
Calming fears, relaying critical expertise and wisdom, closing the relationship, negotiating the deal, handing out keys, funding and recording — if you aren’t there for the big stuff, don’t be surprised if you fail to get referrals and repeat business.
3. Personal visits and gift deliveries
Nothing says you care like personal visits, lunches, drinks or gift deliveries on special occasions. Nothing says you don’t care, like delegating these things to someone else.
4. Lead generation and lead conversion
Simply put, you will develop relationships with all your best clients and the best referral sources. Although this group of “best” will evolve over time, these key relationships cannot be passed off to someone else or delegated. Ever.
5. Strategy and systems
It’s up to us to form a compelling vision first before communicating that vision to our team. Only then can we assist with forming the specific strategy and systems that need to be built to bring a vision to life. Assistants and administrators can jump in to help build the systems and execute the strategy only after we have done our part to form it in the first place.
6. Strategic partnerships
You must take charge of who will be a partner and how they fit into the overall plan, be they lenders, title and escrow officers, builders, referral partners, high-net-worth individuals, or legal or accounting professionals.
7. Branding and brand promise
Does your brand promise fit into your vision, or are you delegating this to your admin and just telling them to come up with something that looks good?
8. Marketing, advertising, lead generation
You cannot expect your administration to have the intimate knowledge of buyer and seller needs that you have as an experienced agent, nor can you expect them to understand your voice and how you want to show up in your advertising. You have to set the tone and the structure for these campaigns before you pass them off to be executed.
9. Marketing presentation collateral
What goes into your presentations — listing or otherwise? Yes, you can delegate putting them together, but if you don’t tell them what to include and what the objective is, don’t be surprised when it is not meeting your internal expectations.
10. Hiring and team building
Getting the right people on your team and building that team up takes enormous effort, patience, and vision. Attempting to delegate the vision of how your team will function or what types of people will fill the roles that need to be filled will end in disaster.
Keep in mind, with any critical function of your business, that a failure to take action and allow your admin or team members to make these decisions for you is no different than choosing to delegate them.
Also, notice that the words lead generation appear several times in this list. Although team members may help you execute strategy, you are ultimately responsible for generating leads and creating opportunities for your business.
If all of this sounds like a lot of work, it is. This is leadership in action.
I can almost hear you say, “How in the world am I supposed to find the time to do all of this stuff when I am swamped as it is?” The answer is to stop doing many of the things you are currently doing every day that you should be delegating and letting go of.
Property Chomp's Take:
In the world of real estate, the 80-20 principle, also known as the Pareto Principle, suggests that approximately 80 percent of our results come from only 20 percent of our daily work. This principle implies that real estate agents should delegate tasks in order to focus on the most critical aspects of their business. However, according to broker Nick Schlekeway, many agents have taken delegation too far and are neglecting important responsibilities. In this article, we will explore the areas that agents should not delegate and instead handle personally with care.
One of the most crucial aspects of running a successful real estate business is building and maintaining key relationships. Real estate sales rely heavily on building trust and rapport with clients and referral sources. As such, agents should personally invest time and effort into nurturing these relationships and shouldn't pass them off to an administrative assistant who lacks the same knowledge and understanding.
Additionally, critical moments in the transaction should not be delegated. Agents need to be present during important stages like negotiations and closings to provide their expertise, calm fears, and ensure a smooth process. By being actively involved, agents can build stronger relationships and increase the likelihood of receiving referrals and repeat business.
Personal visits and gift deliveries are another area that agents should handle themselves. These gestures show clients and referral sources that they are valued and cared for. Delegating these tasks can send the wrong message and make clients feel less important.
Lead generation and lead conversion are also critical functions that agents should not pass off to others. Developing relationships with clients and referral sources is a personal endeavor that requires a deep understanding of their needs and preferences. Although a team may assist in executing strategies, agents should take responsibility for generating leads and creating opportunities for their business.
Strategic planning and the formulation of systems should be done by agents themselves. They should have a clear vision for their business and communicate it to their team before any delegation takes place. Assistants can then help build systems and execute strategies, but the agent should lead the way.
Agents must also take charge of forming strategic partnerships, such as with lenders, title and escrow officers, builders, and referral partners. These partnerships play a vital role in the success of a real estate business, and agents should personally evaluate and decide who to partner with.
Branding and brand promise should not be delegated to an admin without clear guidance. Agents need to ensure that their brand aligns with their vision and values, and they should be actively involved in shaping their brand identity.
Marketing, advertising, and lead generation campaigns should be driven by agents themselves. They possess the intimate knowledge of buyer and seller needs and understand how they want to present themselves in the market. Agents should set the tone and structure for these campaigns before delegating the execution.
Marketing presentation collateral, such as listing presentations, should be carefully curated by agents. They should provide clear instructions and objectives to their admin to ensure that the collateral meets their internal expectations.
Lastly, hiring and team building should be the responsibility of agents. Building a successful team requires a clear vision and an understanding of the roles that need to be filled. Agents should not delegate the vision of how their team will function or the types of people they want to bring on board.
While it may seem overwhelming to handle all these responsibilities, it is essential for agents to prioritize their time and delegate tasks that are not critical to their core functions. By focusing on the most important aspects of their business, agents can ensure that they are personally involved in the activities that generate the most results.
In conclusion, the 80-20 principle suggests that agents should delegate tasks to focus on the most critical aspects of their business. However, it is important to identify which responsibilities should not be delegated. Building key relationships, handling critical moments in transactions, personal visits and gift deliveries, lead generation and conversion, strategy and systems, strategic partnerships, branding and brand promise, marketing and advertising, marketing presentation collateral, and hiring and team building are all areas that agents should personally handle. By taking ownership of these responsibilities, agents can increase their chances of success in the real estate industry.