Establish Your Real Estate Marketing Goals

How to establish a Numbers Breakdown for your real estate practice?

What I will do in this blog is to show you a sample Numbers Breakdown for someone interested in earning $150,000 per year with an average Sales Price of $200,000.

After the Numbers Breakdown example in this article, in a future blog posting, I will list several items that could be included in your list of implementable projects or activities so you can establish a 12 month Business Plan.

The next thing you should do is choose the things you will implement into your real estate business based on the way you have chosen to market yourself, the speed at which you want your business to move forward and the commitment of both time and financial resources you will put forth to achieve the goals and dreams you have set for yourself.

After you have completed this step, write the plan out and Go To Work! That’s it…keep it simple and just keep “doing the deal” every single day in 90 day segments for the rest of your career.

Income and Transaction Numbers Breakdown – $150,000 per Year

1. Goal = $150,000 for the entire year

2. Goal = $12,500 per month

3. Goal = $3,125 per week

4. Goal = $446 per day

5. Goal = $55.80 per hour based on a 8 hour work day

6. Using a Average Sales Price of $200,000 for your transactions

7. Using an average commission to you of 2.25%, you will average about $4,500 in gross commissions to you in your brokerage company. If you also pay the company a 5% processing fee, you will net $4,275 per closed transaction.

8. Therefore, you will have to close 35 transactions over the next 12 months.

9. Assuming a 12% fall out of escrows, you will need to open about 40 escrows in order to close 35 transactions over the next 12 months.

10. Assuming a ratio of 75% listing side closed transactions and 25% buyer side closed transactions, you will need to close 26 listing sides and 9 buyer sides.

11. In this business plan, we are assuming the agent will focus their marketing efforts on getting listings. The buyer generated transactions will come from sign calls, website leads, referrals and public open houses.

12. If only 75% of the listings you take are actually sold and closed, you will need to take 35 listings during the 12 month period. That’s 3 listings per month.

13. If you close 35% of the listing appointments that you go on, you will need to go on 100 appointments per year or about 8.33 listing appointments per month. You will need to go on about 2 listing appointments every week in order to reach your goal of $150,000.

14. Assuming you need to talk to 7 “real leads” each week to get a listing appointment, you will need to talk to 14 “real leads” each week or about 2 “real leads” per day to reach your activity goals for your desired income.

15. To obtain 2 “real leads” per day, you may have to talk to 50 people throughout the day, if your ratio of contacts to real leads is 25:1.

16. If you are talking to people about 3.5 minutes per person, you will need personally prospect about 175 minutes per day to reach your goals…that is about 3 hours a day of prospecting.

17. These are the numbers you will need to track each and every day.

18. Always contact past clients or your sphere of influence people-contact no less than a minimum of 2 people every day.

The Numbers Breakdown is your starting “benchmark”. Do the work to hit your activity numbers so you can evaluate and discover your own personal numbers.

Once you know your numbers, you can improve them by improving your sales skills and by implementing the additional projects in your 12 month Business Plan. By implementing the additional projects, your ratios should improve in every area because people will get a better feeling and sense of confidence about you and what you can do for them.