When we were growing up we were taught the importance of saving our money because of the effect of compound interest. In it's simplest form the definition of compound interest is "earning interest on your interest". Getting out of the box for a moment if we really think about it building a real estate business is very similar to building a bank account for the long term so we can earn compound interest. When we we first got our license and started our business we made the initial deposit into the bank. Then we started doing money making activities, open houses, floor duty, client meetings, marketing, newsletters... Each activity was like putting a small deposit into the bank to help build our account. The activities led to clients, clients led to referrals then the cycle started. Activities (deposits) led to more clients which led to more referrals... our businesses started to grow and we were "earning interest on our interest", our business started growing exponentially. The reason I bring this up and make the analogy is because of what we have seen happen with agents through this challenging market. On one end we have seen agents who have completely stopped doing activities (making deposits) to the point where their business have dried up. Metaphorically and in realistic terms they have gone to the bank to take all of their interest back out, they have been and will be leaving the business. Most agents let their activities (deposits) slip a little or maintain the level they were at, they kept working and their money stayed in the bank. The upper end and a good portion of you saw the need to make more deposits (activities) to keep your business going through the bad times. Coming into a new market it is so wonderful to see those of you on the upper end who have kept working through everything reap the rewards of your efforts, you are "earning interest on your interest" and your businesses are going to new heights. Everyday we wake up we have one simple decision to make, do we want to make a deposit or be forced to take a withdraw.
Enjoy the coffee,