How to Build Your Business with Cash Flow and Revenue
by: Margaret Vierra, Broker
Cash flow= Immediate income
Revenue=Money over time
This is how I have been successful in my real estate business.
In addition to primary residential buyers and sellers, you must think more broadly. I analyzed my own business and identified where it has provided me revenue over the past 24 years.
I found that my best repeat and referral business came from business owners and investors.
In one example, I have completed 14 listings and sales with just one client. With another client, I completed 8 transactions. Another client, I completed 10 and so on. One client did start with a small condo and down payment assistance, which I then sold and assisted them to “move up” 2 additional times, creating 5 transactions. I could name many more.
- When you target and work with people who are interested in only selling or purchasing a primary residence, you will earn immediate cash flow, but not revenue. One example would be a first time, minimum cash down payment buyer OR a high income wage earner, who has no interest in owning other property and is looking for that life time estate. The minimum down payment buyer generally will take many years before they can purchase again. They may eventually sell and “move up”, but that will take time. They usually will have a network of “like” friends and family, who are in the same financial situation. Thus, you will earn cash flow, but not necessarily revenue. The estate buyer is better, higher cash flow, but will also take several years before they make another move.
- For revenue building – Target and build relationships with business owners, investors, non-owner occupants to create your network of “connectors”.
- “Connectors” – People who can connect you with other “revenue” building relationships.
Example:attorneys, accountants, restaurant owners, contractors, architects, civil engineers, or just any business owners who have their own networks.Develop and build these relationships and you will have repeat and referral business over the long term, thus “revenue”.
My recommendation is to “mix it up”.People often ask me what my specialty is.I always say, my specialty is my client base.Whatever they need, I can assist with.