How To Determine What Your Real Estate Business is Worth - Joe Stumpf's By Referral Only

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How To Determine What Your Real Estate Business is Worth

Can you sell a real estate business? It’s a good question.

Would you buy your real estate business right now? What could you sell it for right now?

The secret is that a real estate business becomes successful when you measure one metric and that is called Return On Relationship, your R.O.R.

In this article:

So what do you do to get your R.O.R to soar? To get that number way up there?

Calculating Your Return on Relationship

Let’s imagine that you have three parts of your business. You have the before unit, the during unit and the after unit. The before unit’s all your marketing, your advertising, your promotion. The during unit is the experience people have with you. The after unit is all of your friends, family members, and spheres of influence. Basically all of the people who know you, like you and trust you.

Your R.O.R. comes from your after unit. Imagine that you have 150 people in your after unit, and over the course of a 12 month period, that 18 of those 150 people either bought a home, repeated with you or refer someone to you. The return on the relationship would be 12% because 12% of 150 is 18. You would say my return on relationship is 12%. That’s a number I would encourage you to take a look at. Look over the last 12 months and the total number of people in your after unit, the total of transactions that came from that, divide that and what you’ll find is your current ROR.

Last 12 months:
Total number of transactions ÷ total # in after unit = Return on Relationship

Where You Want Your R.O.R. To Be

The gold standard, the one that we should measure ourselves against is 20%. So if you come to us and you have 100 people that know you, like you and trust you, our goal certainly is to get it up to 150. However, while you have 100, we want to get 20% or 20 of those people to introduce or recommend or repeat with you in the next 12 months… that’s our gold standard.

We have agents that have been with me for 15, 18, 20 years that now have like 75% return on relationship and they have 150 people. So anything is possible if you put the right systems and processes in place, and that’s your intention from the beginning.

How To Get Your R.O.R. to SOAR

So if you are reinventing your business right now. Or if you’re restarting right now. Or you’re looking to say, “Hey, I’ve got to have a better way to do this. I’m just on a hamster wheel always looking for my next client,” then you might want to check out how By Referral Only offers to help agents & lenders with the systems to make it all happen so you can focus on return on relationship, your ROR.

So let’s get your ROR to soar. Learn More Here.

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  • 7+ Essential "Always On" Communications (including emails, postcards, newsletters, and more)
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All of these are designed to help you in different ways:

  • Some campaigns help you deepen relationships and reconnect with your sphere
  • Some can help you generate new leads and referrals
  • Some can help you nurture a lead or contact, lead them to take action, and work with you.

Basically, everything you need for your Before, During, AND After unit marketing.

We guarantee you’ll LOVE By Referral Only…

… and if, for some reason, you decide later that you don’t want to be a member anymore, then we’ll happily cancel your account without any penalties or fees. We do not ask for contracts or commitments, just that you implement and try the programs and systems.

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By Referral Only is your ONE place to get everything you need to consistently market your Real Estate or Lending business.

  • 7+ Essential "Always On" Communications (including emails, postcards, newsletters, and more)
  • Client Connection Campaigns (including our upcoming Summer Seller & Fall Connection Campaigns)
  • Daily Written and Designed-For-You Social Posts & Planning Calendar
  • Monthly Written-For-You Text Message Scripts
  • Smart Guidance Funnel (Lead Nurture with Landing Page Funnel)
  • Dominate Your Farm Area (Lead Generation)
  • Certified By Referral Only Consultant Coursework (CBROC)
  • Robust and Easy-To-Use CRM
  • Automation & Technology Access
  • Private Member Community Access
  • Wisdom Wednesday Trainings and Special Member-Only Trainings Throughout The YearWisdom Wednesday Trainings and Special Member-Only Trainings Throughout The Year
  • Magic Words Dojo (our dialogue and scripts database)
  • And soooo much more

All of these are designed to help you in different ways:

  • Some campaigns help you deepen relationships and reconnect with your sphere
  • Some can help you generate new leads and referrals
  • Some can help you nurture a lead or contact, lead them to take action, and work with you.

Basically, everything you need for your Before, During, AND After unit marketing.

All-Access By Referral Only Membership is $199/month ongoing. You can cancel at anytime and there are no contracts.

In fact, we guarantee you’ll LOVE By Referral Only…

… and if, for some reason, you decide later that you don’t want to be a member anymore, then we’ll happily cancel your account without any penalties or fees. We do not ask for contracts or commitments, just that you use the programs and systems.

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*I agree to receive recurring messages from By Referral Only to the provided mobile number and also agree to the By Referral Only terms and privacy policy at byreferralonly.com. Message & data rates may apply. Reply STOP to cancel anytime. Reply HELP for info.