Like you, the good Reverend is a fellow salesperson on a ‘mission from god’ and he just put $100K on your collection plate!
$100K On 1 Lead Per Day!
Having delivered numerous homilies as shepherd of several congregations of salespeople in lead-based sales organizations, the Deacon can say with certainty, the one constant running through all of them is the business plan.
And, the most important (and fun) part of the Business Plan (aside from actually writing and executing it) is determining your revenue goals as measured by your desired personal gross income figure.
If, for example, you want to generate $100,000 in gross income over the next 12 months, you need to break it down!
Here’s the math using our model:
$100,000 per year equals $8,333 average per month in required closed revenues.
Lets say you have an average deal size of $200,000 and an average 2.5% Co-Op commission, that means every closed deal will yield $5,000 in gross transactional revenue.
Take the $5,000 and subtract an average $200 listing agency-imposed administrative fee adjustment (usury!) and your adjusted gross transactional revenue is $4,800.
Multiply that by 60% (presuming the buyer was procured as a house-generated lead) and your adjusted gross revenue per deal is $2,880.
Chip-in $100 to the our contract administration pool and your gross average earnings per deal are $2,780.
Divide your target monthly gross income of $8,333 by $2,780, which equals 3.33, and you can plainly see that you need to close just-over 3 deals per month to achieve your revenue goals.
Now, how do you get there?
The key to knowing how to get there is calculating how many leads you need to work with every month.
Using a 100% lead-generated model, the numbers work out as follows:
First, let’s talk about converting Leads into Clients:
We’ll make the assumption that you can convert 25% of the leads you receive into active buyer prospects. (These are clients with whom you are visiting properties)
Then, let’s assume that of this 25% you will close 70%.
Second, let’s calculate how many leads per month you need:
Now, divide your target annual income by your average per-deal gross revenue. That’s $100,000 / $4,800 = 21
21 is the number of qualified active buyer leads that you need to receive each month.
Now, we need to divide the number of leads you need (21) by your closing percentage (70%) in order to arrive at the gross number of leads you need to receive every month. 21 / .7 = 30
30 leads per month is your target! That’s it!
$100K On 1 Lead Per Day!
Can I get an amen? …Thank you!
If you’d like to talk more about how Siegel Realty & Finance Group makes buyers happy (and maybe save your soul) call or text me at 773-968-1110 or shoot me an email at scott@scottmsiegel.com