Generate more business by tracking your stats? How?
First of all, why should you? Yes, it does take a bit of time to set-up a spread sheet in Excel and then a smidgen of time to track your stats.
I spent a couple of hours deciding what I wanted to track and getting the spreadsheet set-up, and it takes me about five - ten minutes a week to keep it updated.
I do this because I know how many offers I have to write to convert to a closed escrow. My stats have fluctuated a bit in my first 18 months of real estate, but the figure holds pretty steady. How is this helpful?
Well, first of all I don't get discouraged when offers don't get accepted. I know by my stats that it's going to happen and to roll with it. I also know that statistically speaking, my next sale is just around the corner.
This keeps me encouraged when it seems like nothing is going my way.
I also track my number of open escrows, how much volume I have in open and closed escrows, and how much income, both gross and net, I have in completed transactions and open escrows.
Why? Because I have set an income goal for the year, a pretty high one, and how am I going to make my goal if I don't know where I am? How do I know how much more I can spend on advertising if I don't know how much I've spent? How do I know if I need to pick-up more floor time because I'm behind in meeting my goals or if I can back off a bit and take some time off because I'm on target?
Here are suggestions to get a handle on your business and make it more productive:
- Keep track of your conversion rate (how many offers you need to write to get a closed escrow)
- Keep track of your volume in sales
- Keep track of your gross income
- Keep track of your net income
I keep track of these statistics in an Excel spreadsheet. (Email me if you need help.) I track more than this, but I don't want to overwhelm you with my obsessiveness.
You should also know and keep track of:
- How many active listings in your market
- How many solds last month
- Your absorption rate
- Your inventory (go see it)
I keep track of these figures and my real estate income and expenses in Quicken. It's fast, easy and makes it a snap at tax time.
By being pro-active and setting goals, tracking your success and knowing your market, you are taking control of your business and the direction it will go instead of letting the market take control of you.