Numbers may not be everyone’s favorite subject, but the truth is that understanding and leveraging numbers is the key to running a successful real estate business. I’ve touched on this before, but let me explain what I mean, again.
If you want to see a higher number of conversions, you need to make a higher number of calls. Thankfully, you don’t have to go to extremes for this idea to work.
Even if you make just five new real estate calls five times a week, the impact on your lead pipeline will be massive. It’s really that simple.
These five conversations five days a week will equal out to 25 new conversations each week. And if you have these 25 new conversations 50 weeks of the year, this means you will have had 1,250 new conversations in just 12 months. It just goes to show how small steps can add up over time. Think about it: What could those 1,250 new conversations do for your bottom line?
It’s a statistical fact that seven out of every 100 people will buy or sell a home at some point in the year. So, if we divide 1,250 by 100, this gives us 12.5. Then, if we multiply that figure by 7, we’d be left with 87.5. You may be thinking: What does that mean?
In short, it means that of those 1,250 leads you spoke with, 87.5 of them would be in the market to make a deal. Of course, this math leaves us with an imperfect number, but the point remains: Just five phone calls five times a week could bring you nearly 90 interested leads each year. Even at a conversion rate of just 25%, you’d still get 22 additional transactions out of those 90 leads over the next 12 months. To figure out how this would impact your bottom line, simply take 22 by your average commission. For someone with an average commission of $6,000, these 22 deals would amount to an extra $132,000 in annual income.
The numbers don’t lie. Having just a few more conversations each week will make a huge difference to your bottom line. So, what are you waiting for? It’s time to get dialing.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.