Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In a few days, I will be closing my first transaction. I am fortunate and do not rely on this income to meet my necessary expenses. In this situation, would you suggest I save the money for a rainy day or reinvest the money into marketing myself and getting my name out there?
You need to spend money to make money. This is one transaction. Do you have others in the pipeline? The goal is to always have a pipeline pumping so you don't depend on each individual check. Title companies are amazed when I tell them they can get me my checks the next time they're in my area. I don't need it rushed to me or for them to spend so much money overnighting it. So many agents live check to check and that's a bad way to live. You need to market yourself in order to get more business.
Thanks all. Savings is not an issue. I'm very fortunate in that my husband works very hard and we have a comfortable life, with 6 months savings in the bank at all times and be has a steady paycheck that pays all the bills, although having more in the bank is always better than less! Given that information, what percentage would you suggest I put to marketing?
In a few days, I will be closing my first transaction. I am fortunate and do not rely on this income to meet my necessary expenses. In this situation, would you suggest I save the money for a rainy day or reinvest the money into marketing myself and getting my name out there?
First of all, take yourself and spouse/friend to a nice restaurant. Learn to reward yourself simply, but happily. Set aside 30% for taxes. 10% for reserve, 30% for marketing, and pay your business bills, any remaining, buy yourself either a nice business suit, a tool such as a phone upgrade, or enroll in a seminar.
In a few days, I will be closing my first transaction. I am fortunate and do not rely on this income to meet my necessary expenses. In this situation, would you suggest I save the money for a rainy day or reinvest the money into marketing myself and getting my name out there?
Quote:
Originally Posted by Lori Brewer
Thanks all. Savings is not an issue. I'm very fortunate in that my husband works very hard and we have a comfortable life, with 6 months savings in the bank at all times and be has a steady paycheck that pays all the bills, although having more in the bank is always better than less! Given that information, what percentage would you suggest I put to marketing?
You have some great advice below.
Quote:
Originally Posted by kww
I'd set aside the necessary amount for taxes, take a percentage for additional marketing, and then take whatever is left and put it in the bank
Yes.
Quote:
Originally Posted by FalconheadWest
You need to spend money to make money. This is one transaction. Do you have others in the pipeline? The goal is to always have a pipeline pumping so you don't depend on each individual check. Title companies are amazed when I tell them they can get me my checks the next time they're in my area. I don't need it rushed to me or for them to spend so much money overnighting it. So many agents live check to check and that's a bad way to live. You need to market yourself in order to get more business.
Yes. Work on your pipeline. It is a pity to see agents groveling to get their check because they are seriously broke. And then they blow it without setting aside money for taxes and business fees and compound the problem.
Quote:
Originally Posted by Rakin
You also need to build your savings. You will have months where there is a gap in closings.
Pay yourself first.
Yes. Nothing says "success" like money in the bank.
Quote:
Originally Posted by CrossCountryTrip
Congrats.
Ditto!
Quote:
Originally Posted by tomocox
First of all, take yourself and spouse/friend to a nice restaurant. Learn to reward yourself simply, but happily. Set aside 30% for taxes. 10% for reserve, 30% for marketing, and pay your business bills, any remaining, buy yourself either a nice business suit, a tool such as a phone upgrade, or enroll in a seminar.
Good post by Tom.
I tend to short myself on the reward after closings, and to take care of myself all year. But, your first closing? That calls for the meat-lovers' pizza!
You are running a business, and need to think like a business person.
I would add: Think on an annual basis regarding finances, additionally with a longer term plan.
It sounds like you are on good financial footing, NOW. But life has this funny way of dealing cards we don't expect.
6 months of expenses in the bank is only a recommended bare minimum cushion to let you breathe a bit easier. When you get to 2-3 years living expenses saved, a liquid emergency fund, with fully funded retirement accounts, no debt, and college funds sitting fat and well-funded, you can free up some more of your income for fun and celebration.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
