Know your hourly rate.
Within Keller Williams, a phrase often spoken is “Know Your Numbers.” Every activity that we carry out as business owners should be done purposefully to serve our goals best. Achieving our goals satisfies our ‘Purpose’ – the motivation and the big ‘Why’ which drives us onward.
One of our six personal perspectives is Accountability, and being accountable can be defined as doing what we say we will do. What we decide to do will be identified by understanding what our Big Rocks are and by following the One Thing philosophy. All of this becomes evident in our GPS, actioned through our 411 and then held accountable.
Every activity can be accounted for or translated into numbers. While leveraging our KW tools, ongoing analysis will enable us to define our business’ health and allow us to ‘inspect what we expect’ and change actions where appropriate in pursuit of our goals.
One vital number to know is your hourly rate. This can be defined as how much we target to earn as an average every hour or by what we actually make as an average every hour – target hourly rate and actual hourly rate.
Gary Keller, and through the foundational model of the MREA, has built the Agent and Agency business model on three distinct drivers, Leads, Listings and Leverage, or the three L’s.
Leverage comes in the form of Models, Systems, Tools and Resources. The easiest way to achieve the primary goal of any business, namely profit is, through leverage.
When understanding the numbers of your business and your hourly rate, the best advice given by Gary Keller is to leverage others where activities can be carried out at a lower hourly rate than what your actual or target hourly rate is.
The main purpose of this message is to encourage everyone to get to know your business through knowing and understanding your numbers, especially your hourly rate, and to consider leverage to drive profitability. Learn to leverage others by studying the Organisational Model within the MREA and understanding your numbers through the Economic Model. Leveraging others for certain business activities also buys you time back to do more of the things you love, activities that you are good at, and through this, you will find that the result will be an increase in your actual hourly rate.
Regional Development Director, KWUK