How to Get Out of Your “Cozy Spot”
What is a real estate agent’s “cozy spot”?
I like to break it down by the number of transactions and work involved in those transaction (as you can see in the chart at 0:43):
- 0-12 transactions: As a newer agent, this is a time where you’re still learning the business and juggling all the different pieces. If you can make it past this period, you move into the next phase—the “cozy spot” of real estate.
- 12-24 transactions: Here, you’ve mastered the craft, have a nice flow of clients, and are more or less on autopilot. The job doesn’t require as much work as it used to but you’re still making a decent income.
- 20-40 transactions: At this point, you get a bit busier. You still have a steady flow of clients and you’re still feeling good, but you’re starting to manage a lot more.
- 40+ transactions: This is the point where many consider starting their own team. Things are getting to be overwhelming, and you need to start delegating.
What makes your cozy spot cozy? It comes down to two things. The first is that your skills as an agent have become great and the job doesn’t feel like work anymore. The second is that you’re getting a very high return for all of your effort. As you grow, it’s important for these two things to remain a priority because they’re what make your business enjoyable.
How do you increase your cozy spot from 12 to 24 to 20 to 40 transactions? We do this with something called TOE time (Transaction time, One-on-one time, Everything else time). These are all ways to categorize what you do in your business and understand where your efforts are being spent. Transactions time means any time spent managing your active clients—going on showing appointments, listings appointments, writing offers, attending home inspections, etc. One-on-one time means anything that involves relationship-building with someone (e.g., check-ins or phone calls). Everything else time includes everything else, but it usually involves administrative or marketing tasks such as updating your CRM or putting together an email newsletter.
You can stay cozy and become more productive by paying attention to your TOE time.
As you get business and reach the 20- to 40-transaction tier, you’ll need to figure out where in your TOE time you’ll need to hire help. That’s the secret to moving your cozy spot. If you don’t find a way to outsource, it will lead to what I call the “cozy spot plateau.” This plateau is basically a feast-or-famine cycle in which many agents find themselves. Things will be super busy one moment, dead the next. They have no choice but to go out and generate more business.
The key to a successful real estate business, and one where you’re still cozy at a higher level of transactions, is to outsource the things you can in your TOE time so you can focus on your one-on-one relationship-building activities. That will feed your business long term and keep your pipeline consistent.
Moving forward, there are two keys to avoiding the cozy spot plateau and making your business more efficient and productive:
- Take a hard look at your TOE time and where you can outsource
- Prioritize one-on-one relationship-building activities—it’s the lifeblood of having a sustainable, consistent pipeline in our business
You can stay cozy if you like, but you can stay cozy and become more productive by paying attention to your TOE time. If you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to hear from you.