background
Photo by Carl Heyerdahl on Unsplash
Have you discovered that you can't do everything well yet? There is a fundamental principle known as the "80/20 rule". This is also often called the "Pareto Principle". It was named after an Italian economist, Vilfredo Pareto, over a century ago in 1895. He noticed that people in society seemed to divide naturally into what he called the "vital few", or the top 20 percent in terms of money and influence, and the "trivial many", or the bottom 80 percent. Later, he discovered that virtually all economic activity was subject to this principle, in that 80 percent of the wealth of Italy during that time was controlled by 20 percent of the population. Pareto’s 80/20 rule can be applied to almost any situation and is profoundly relevant to being a successful realtor. Understanding this principle is essential to learning how to prioritize your tasks, days, weeks, and months.

Understand what is your 20%
Take a look at all of your transactions over the past 5 years (or as long as you have been in the industry). Categorize each transaction with as many as 10 tags per each deal. Tags may include Buyer or seller, location of property, type of property, characteristics of client (such as first time buyer, empty nester, investor, etc.). Chances are you will find that 80% of your transactions, and therefore your income, comes from 20% of your transactions that all have certain similar characteristics. You may even consider making additional lists for lead generating activities to determine where to spend your money and efforts generating leads on what has proven to be effective.
 
Spend 80% of your time and energy on YOUR 20%
If you have a list of ten items to accomplish, two of those items will turn out to be worth more than the other eight items put together. These items could be client meetings, networking events, marketing activity or property showings. The reality is that most people procrastinate on the top 10 or 20 percent of items that are the most valuable and important, the "vital few", and busy themselves instead with the least important 80 percent, the "trivial many", that contribute very little to their success.

Eliminate trivial time wasters in your bottom 80%
Don’t spend time on the trivial many. Keep these types clients (people or properties) on your contact list. Refer them to others who find success with these types and, where legal, take a referral fee. But don’t waste your time showing first time home buyers 28 listings when you don’t have a good track record with first time home buyers. Chances are there is someone in your office who has that gifting. Set limits on the number of activities you will take on at any given time. If studying the MLS and personally visiting agent open houses is what prepares you best for time with your top producing types of clients, then spend your time and energy there instead of on creating mailers or working social media. By subtracting the non-essential, you will create more space for the fruitful and essential.

Joseph James Real Estate is focused on the success of our agents. Designed with the agent in mind, Joseph James Real Estate in Kearny, NJ provides what is essential to our realtors in order to help them succeed. The agent’s success is the broker’s success at Joseph James. Are you a real estate professional looking for a new broker to maintain your license? Complete the contact form below. It’s essential.

95% Commission

Learn more about being a Joseph James Agent