Here’s how tracking return on investment can help grow your business.

Welcome to our blog, where we empower real estate agents to succeed. Today we’re focusing on your return on investment.

Maybe you are in a situation where you’re spending money on leads and generating business, but things aren’t quite working out the way you thought they would. This may be the result of tracking your business on emotion. Tracking your business on emotion means focusing too much on your number of showings or offers instead of focusing on return on investment. 

By focusing on return on investment, you can get a better grasp of your financial situation. For example, instead of focusing on your number of showings, you should be tracking how much money you’re spending on leads and how much money you are getting out of those leads. The bottom line is, if you are in business, you need to be tracking your numbers. Otherwise, there is no way to tell if your efforts are worth the investment. 

As a general rule, I look for 10 times the return on my investments. Previously, my company was spending money on Zillow leads and receiving the return on investment we look for. However, after Zillow changed their platform, we noticed we were only receiving two times our return on investment. If I had been going off emotion and not tracking numbers, I may have never noticed the loss in revenue. 

“The bottom line is, if you are in business, you need to be tracking your numbers. ”

Now, this doesn’t need to be elaborate. A simple spreadsheet can get the job done, and there are plenty of cheap options available. The key is not complexity; rather, we want to get away from investing off our emotions and move towards investing based on ROI. This will allow you to make better business decisions and get the most out of your dollar. 

If you would like a copy of the spreadsheet I use to track my investments, or if you have questions about anything else, do not hesitate to reach out to me. I look forward to hearing from you!

Strategy Call