In 1897 — Vilfrerin Pareto, Italian economist, discovers that 20% of the world’s population enjoys 80% of the world’s wealth. He later confirms the 80/20 principle is at work in most areas of life — 20% of land produces 80% of the food, 20% of plants produce 80% of the oxygen, 20% of motorists cause 80% of accidents, 20% of beer drinkers drink 80% of all beer, 20% of people who marry are involved in 80% of all divorces, 20% of clothes in a person’s closet are worn 80% of the time, 20% of carpets get 80% of the wear and we spend 80% of our time in 20% of our house. The 80/20 Concept later called the Pareto’s Principle, the 80/20 Rule or the Principle of Least Effort.
This same principle can be adapted to our real estate businesses by being able to distinguish the “Vital Few” from the “Trivial Many” that we do real estate with. Ask yourself this very important question. “What are the vital few that will give me the greatest results for my time and energy invested? What are the 20% of my real estate activities that will yield 80% of my desired results?”
Then we need to Focus on them!!
Finding and doing the “Vital Few” is leverage for our careers and we do more each day of what works; avoid what doesn’t work and eliminate low dollar activity time. Literally you should start a “stop doing list.”
Here are some examples to kick start your “stop doing list” today.
1) Unmotivated Sellers
2) Overpriced listings that don’t sell
3) Over duplication
4) Unnecessary processing
5) Unnecessary movement of people — e.g. showing buyers more homes than necessary
6) Unnecessary movement of goods
7) Waiting/unnecessary meetings/meetings that focus on “the trivial many”
8) Designing goods and services which do not meet user needs.
Agents should be shifting and practicing 80/20 Thinking. So how do we practice 80/20 thinking in real estate Wade?
[ez_box title=”Let us start by looking at your business and what gives you the biggest bang R.O.I. for your time?” color=”red”]
* Top sources of business?
* Top types of customers — buyers, sellers, investors?
* Top types of activities — listing, selling, prospecting?
* Top skills/systems that work (or don’t work)?
* What are my highest income/hour activities?
[ez_box title=”Then the next steps you take is to find your niche — something you enjoy and are good at in real estate.” color=”red”]
* What activities do you enjoy in this business?
* What activities are you good at?
* What are you not good at? Are you willing to learn?
* If you don’t enjoy doing the “vital few” are you willing to do it anyway? Delegate it? Hire someone to do it?
* Ask yourself maybe is it time to change careers?
After determining your highest return on investment sources and where you are at your best in real estate then each day write out and focus on your “Daily and weekly Goals and To Do Lists” with 80/20 Thinking and focus on your “Vital Few”.
Always remember that life has no rehearsals, only performances. Time is life. Time (life) is our most valuable asset. 80/20 thinking can save you time. 80/20 thinking can save your life! 80/20 thinking can save your real estate career and from all of us burning out.
I trust everyone takes action and implements this powerful principle into their real estate business and shift you in control of your time and real estate career and not real estate in control of you and your time.
Strength and courage,
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