The Simple Equation That Predicts Recruiting Success

by | Jan 9, 2025

Before Christmas, I introduced you to the Procrastination Equation which states:

Procrastination = (Expectancy x Value) / (Delay x Impulsiveness)

The numerator in the equation (Expectancy x Value) is what’s known as the Expected Utility Theory.

Many economists believe this equation does a good job explaining most human behavior.

From this viewpoint, almost every decision you make—from deciding if you’ll workout today to attending your child’s sporting event—is based on how much pleasure or perceived value you’ll receive and the degree of certainty you will receive it.

Since it’s the engine that drives behavior, it cannot be ignored when recruiting.

Frequently ask yourself these two questions:

Do I expect to be successful when performing my recruiting tasks?

Is there a tangible payoff when I successfully complete my recruiting tasks?

Unless the answers to both these questions are a resounding “Yes!”, you’re going to struggle with avoiding the important work of recruiting.

To get to a yes, you must change something about the task or what you believe about the task.

For example, if you don’t expect to be successful in making recruiting calls, change your script, change who you’re calling, get a referral before calling, observe your peers making recruiting calls, etc.

To overcome recruiting inertia, you must evaluate your actions at the behavioral and task level.

This is where your mind decides what it’s going to do.

 

 

The Simple Psychology of Real Estate Recruiting [2nd Edition]

Unlock the secrets of effective real estate recruiting. Revised to include actionable frameworks for sharper execution and to help you turn psychological theory into a repeatable recruiting system.

Creating Pacts to Avoid Distraction

Creating Pacts to Avoid Distraction

Notice the two parts to Nir’s formula: a pre-commitment and an external force to keep you accountable to that commitment. For recruiting setting goals and time-blocks in your schedule is not enough. Most people need some kind of external accountability, as well.

Look for Individuals Who Want to be Measured

Look for Individuals Who Want to be Measured

It’s not that people with a growth mindset don’t experience failure—they just see failure as an opportunity to learn new things, to be challenged, and to experience curiosity. This is an important topic to cover during interviews and follow-up conversations with your prospects. If you find someone who likes being measured, you’ve likely found someone who will push through the inherent failures of growing a real estate business and experience long-term success.