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How Being System-less Can Cost You $30,000 a year.

December 01, 20213 min read

People are wired differently, thank God for that! Some people are, “go with the flow”. Others have a system for everything, and everything is in a system.


We need both of those types to make the world go-round. In real estate, though, you will realize that when you put a dollar amount on your time, it saves you thousands and thousands each year to have concrete systems.


  • First, we have to agree everyone is worth something when they are working. We call that a “dollar per hour” for this example. Time for us is simply broken down to a monetary amount when we work.

  • Second, you need to know that your efficiency per hour is in exact proportion to profitability.

As coaches, we understand our clients have a hard time creating a system for everything. It’s like trying to catch butterflies on knowing where to start. We would like to break out this equation to show an example of how much not having a system is costing them in profitability to get the ball started.


Let's say an agent earns $150,000 gross each year.

They work an average of 46 weeks out of the year, and each week they work about 46 hours.

So, we take $150,000 and divide that by 46 weeks, which gets us $3,261 per week (rounded up).

Then we divide that by 46 hours, which puts us at $71 per hour.


So, the agent who makes this much and works this much is worth $71 per hour.


In that hour, chances are “decision making” takes a minimum of 10 minutes per hour.


We define “decision making” as anything done without a system. Examples include deciding what closing gift to pick up, deciding what to put on a brochure, deciding who to call next. All those decision-making tasks, when added up, equal at minimum of 10 min. per hour for the average person.


If we break that $71 dollar an hour down to what we are worth per minute of every working hour, we are at $1.18 per minute.


Now we take that per minute amount and multiply it by 10 (min) and that is $13.96… PER HOUR.


Multiply $13.96 by 46 hours a week, then 46 weeks a year and we get $29,546… that is how much “decision making” costs that agent per year.


For agents who make $300,000 a year, you just hit a full-time salary at just shy of $60,000. Crazy, right?


Creating a system for everything in your business will expedite everything you do, it will help you know your day inside and out, treat your clients with amazing service, AND give you peace of mind.


You’ll make more per year as you grow your systems.


Start with the basics.


Get a checklist started for every seller and buyer you work with. Have a system to ensure that you know who to call every single day. Create items of value as handouts or videos that you can send to your clients throughout the transaction. The creation process takes a little time, and the payoff is huge.


  • Your clients feel taken care of.

  • You’re able to sleep at night knowing that you haven’t forgotten anything.

  • Your family and friends see the confidence you have when you take on a client, then they start giving you more referrals.

Some people are wired differently, and in real estate, even the ones that go with the flow end up having a system in place over time.


So, where do you start?

We suggest going after the Big Rocks first. The items you MUST do every day to get your business working. From there, create the habit of documenting everything and getting a small and effective system in place to make your job easier moving forward. Make it as simple as it needs to be, not too complex. We like the term “turn-key” so we can hire it out with ease when the time comes.


If you are looking for some initial systems to start your business, let us know. Our time in the industry could give you a jumpstart.

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