Most Realtors get fooled by this vicious trap.

The punishment for getting caught up in this malicious trap is living commission check to commission check.

Many years history repeats itself.

The winter months most realtors are going into hunger mode.  The famine has arrived, and panic ensues.

Then the weather starts to warm up.  The housing market also starts to warm up.

A cornucopia of transactions arrives.

As soon as you sign the new buyer of seller contract, your mind begins to visualize your reward for selling this house.

Now I can buy this or now I can buy that.

All my hard work and persistence is paying off.

Here’s the misguided thinking.

Not all of that commission check belongs to you.

Additionally, you probably already spent some of that commission check on marketing or some other area of your business.

After you factor in those expenses, the big hefty commission check is smaller than you initially calculated.

In reality, you don’t have as much money to make that dream purchase you’ve been salivating on for the last month.

Sometimes you even decided to charge it on your credit card.

You’ll have about a month to pay off the purchase.

However, that next month you don’t sell as many houses.

Now you have to pay interest on the credit card balance that you’re now carrying.

Now that I’ve painted a picture of the continuous cycle of living commission check to commission check looks like, I’ve got a question for you.

What are you going to differently this time ensure history doesn’t repeat itself?

Living commission check to commission check is a miserable way to live.

Stress.

Anxiety.

Sleepless nights.

Working more hours than is healthy.

Burnout is knocking on the door.  Burnout will be bursting through the door before you can shake a stick at a three-legged pig.

Then you have a wonderful idea.

It’s absolutely brilliant.

However, this wonderful thought is you have about your Realtor business is the biggest misconception that most Realtors have.

If I can just sell more houses, I won’t have to worry about money!

This misconception is very similar to another misconception many people outside of the Realtor industry have.

If I can just win the lottery, I won’t have to worry about money!

I think we can all agree winning the lottery is a money strategy better left to fools.

Statistically, you’re more likely to get struck by lightning than you are to win the mega millions jackpot.

Why you might ask am I comparing focusing on selling more homes to winning the lottery?

Most things in life don’t change with earning more money.

You still buy stuff.  Now the stuff you buy is more expensive.

George Carlin hit the nail on the head when he said the following:

“I don’t know about you, but I need a place to put my stuff. That’s the whole meaning of life.  Trying to find a place for your stuff. That’s all your house is.  Your house is just a place for your stuff. If you didn’t have so much stuff, you wouldn’t need a house. That’s all your house is.  It’ a pile of stuff with a cover on it.

Everybody has their own pile of stuff. When you leave your stuff, you gotta lock it up. Wouldn’t want somebody to come by and take some of your stuff. They always take the good stuff.

That’s all your house is. It’s a place to keep your stuff while you go out and get more stuff.

Sometimes you gotta move.  You gotta get a bigger house.  Why??

Too much stuff!!

You gotta move all your stuff. And maybe put some of your stuff in storage.

Imagine that.  There’s a whole industry built on keeping an eye on your stuff.”

Here is the biggest thing that happens when people make more money.

They spend more money.

Most people spend whatever money they see in their bank account without even thinking about it.

Then there are those that spend more money than they have in their bank account.

We call those people borrowers.

Those borrowers get penalized heavily for their undisciplined spending.

Every year they incur an 18% – 29% penalty on their undisciplined spending.

We call that penalty credit card interest.

Yet, these are the same people who are looking for the next stock tip.  They want to ride the stock market like they are cowboys.

If you think for a moment…

I’ll tell you a guaranteed way these borrowers could get an 18% to 29% return on their investment without any risk.

If these people started paying down their credit card balances, they would automatically start making money.

18% to 29 % guaranteed return on investment with zero risk.

That’s a pretty good deal.

That is a deal I’ll make every day of the week.

If I can just sell more houses, I won’t have to worry about money!

Here is the problem with focusing only on selling more houses.

Focusing on selling more houses is one dimensional.

Selling more houses is a great strategy if you are going to be happy with the income you earn from selling 20 – 30 homes per year.

If you’re happy with selling only 20 – 30 homes per year, you don’t need to read the rest of this article.

If you have grander ambitions for your real estate business, you’re going to accept that you will hit a glass ceiling once your production is 20 – 30 homes per year.

Once you move to selling more than 30 homes per year, your time becomes limited.

You run out of time.  Now to make more money, you have add a new person to your team.

With this strategy, you’ll bring in more commissions.

However, you didn’t do all the work to earn those additional commissions, so you have to pay the people that helped you earn the commissions.

With every new home you sell above your 30 homes, you keep less of the money.

Realize this now.  From now on, each house you sell is worth less money to you because you have to share the commissions with other people.

As your business grows, the percentage of commission you keep goes down.

This is a simple fact of business.

You are now transitioning from the world of a Realtor salesperson to the world of a Realtor business owner.

Now I’m going to go one logical step further.

If you’re not able to make ends meet with selling just 30 homes a year, you will never make ends meet selling 300 homes per year.

Business gets more complicated and expensive, the larger you grow.

You have to get a handle on the money side of your business when your business is simple, only selling 30 homes per year.

Once you learn how to get a handle on the money side of your business selling 30 homes per year, you’ll have put yourself in a good position to pay yourself handsomely when your business is selling 100 homes per year.

Keep this in mind.

It’s much easier to establish a system to manage your business money when your business is small than when your business is bigger.

Now is the time to learn how to control and manage the money side of your Realtor business.