The Value Equation that Determines Your Income
- May 18, 2016
- 2 min read
Updated: Sep 16, 2025
The amount of money you make in real estate will be based on the value equation: value multiplies by the number of people you add value to to equals your income.
To be successful, you must create a list of people and then constantly continue to add value to them.
According to research done by The Group In and Ninja Selling out of Ft Collins, CO, You should expect to receive $1,000 annually for each contact in your database that you are top of mind with and are regularly adding value to. These people know, like and trust you. 100 people per year x $1,000 = $100,000.
Based on research completed by Richard Robbins International, You should expect to see a 15% return in transactions from your A-List (people who know you by first name and have said that they would recommend you). If you have 100 people in your database, that means 15 transactions x $7,500/transaction = $112,500 per year.
How to start building your database:
Choose a database software or system. Start simple and grow later.
2 Brainstorm a list of people you know by first name. Do this on paper, as a simple text file, or a MS Word document.
3 Enter these names into your database, one-byone and update as much information as possible on each person. Use social media to assist in gathering necessary information. Take your time. Each person is worth $1,000 annually to you.
4 Contact each client with something of value, and update or confirm any missing contact information. Some people believe they need to segregate their contacts into different categories. Initially, it is much simpler not to do this, but rather review the merit of the segregation once you have a basic, consistent touch-base, and value-added system in place.
If you do not know a lot of people, this only means that your income will remain low until you take action to begin meeting more people, adding value to them, and adding them to your database.
Not sure where to start? Check out our post on “150 People (or more) to Add to Your Database Right Now!”
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