In an industry dominated by numbers, I am continually surprised how few agents know their own numbers. We can calculate three percent commission on a $425,000 sale in our heads, but do not know how much total revenue and expenses we had last month. We’re not even talking about more complex calculations like ROI on lead generation, etc.
And then there are annual goals! Another number that most real estate agents are allergic to. Most agents fall into two categories when it comes to goals: they either avoid setting them altogether or they just pick a number once a year at some random goal-setting class and then let “hope” take over.
So why is that?
I believe that we start with a wrong number!
Most of those numbers relate to time-based financial income - annual revenue, monthly profit, etc. And those are great metrics for performance of a publicly traded company in which you’re thinking about investing. Those are good past-based indicators of organizational performance.
Most people (and almost 100% of real estate agents are people) do not get motivated by hitting number targets. Instead, they get motivated by what those numbers represent and what those numbers make available for them.
For example, an agent may want to sell 1,000 homes so that they become #1 in their market. It’s not about 1,000 sales. It’s about being #1 and what it provides for them - maybe pride, fame, and recognition. There is nothing wrong with striving for any of that.
Or, an agent may want to earn $100,000 in a year so that she can send her kids to private school. Again, it’s not about 100K, it’s about the private school for the kids and the satisfaction that she will get from knowing that her kids are getting the education that she wants for them.
None of this is new to you. You’ve heard it all before. We are not motivated by numbers. We’re motivated by what’s behind those numbers.
Now… there is one number that’s more important than all of the others.
And that’s your Freedom Number!
So what is a Freedom Number?
Your Freedom Number is your passive cash flow that allows you to do anything you desire, any time you desire it. In other words, it’s how much money you need to live your ideal life with no financial concerns.
Your Freedom Number is not about income. It’s about wealth.
Why is your Freedom Number important?
If you ask a real estate professional “What got you into real estate?” or “Why do you stay in real estate?” and follow their answer with five rounds of “Why is that important to you?”, they will undoubtedly end with “Freedom to…”.
Yes! We’re all here chasing the freedom dream. The only question is whether we are conscious about it or not.
By the way, I am not talking about the other F-word here that so often gets collapsed with freedom: flexibility.
Flexibility is not freedom. Flexibility is about moving your minutes around to accommodate your clients or your employees. Freedom is having your minutes 100% under your control. You may have flexibility to go on vacation any time you want because you have a great team, but do you have the freedom to never come back and still receive the same checks?
Freedom Number puts all other numbers in context - it incorporates all of them. Now, you know why you need to sell 100 homes per year so that you can earn $250,000 in profit to have $75,000 invested into a stock that will produce $7,500 per year in income that’s not tied to your minutes. Or, use that $75,000 to buy a rental property that produces $10,000 per year in passive income. In other words, your monthly and annual goals fit into that number. Those goals are no longer randomly made-up numbers based on how you felt that day. Instead, those are the numbers that get you to your ultimate goal - freedom.
Freedom Number creates a filter through which you evaluate your decisions, actions, and results. You may think twice about buying a new car or taking a lavish vacation. It does not mean that you won’t buy that car. It just means that you are consciously weighing your decision and its ramifications. And oftentimes, that’s all we need to bring us back to what’s really important to us - freedom.
So the question is… What is YOUR Freedom Number?