So you just lost $11,520 in commissions last month!!
I am working with agents daily, and today I was doing an analysis for one agent who lost $11,520 in potential commissions!
Every business professionals has past clients, leads and referral partners, but what do they do with them? From what I have seen, no much. Placing your database on an automated email drip campaign or sending standard newsletters aren't going to get the business rolling in. You need to provide them with VALUE!
I am sure you have seen this statistic before: "78% of people 
surveyed said they would use their real estate agent again, BUT only 8% actually do!" Why, you may ask; because they forgot about them!
Ok, now lets do the math. These are the rough numbers from my agent this morning:
- Past Clients: 150
- Past Leads: 100
- Referral Partners:4
_______________________________________________________________________________
- Past clients should net at least 1 referral per 100 per month = 1.5
- Past Leads should net at least 1 referral per 100 per month = 1
- Referral Partners should net at least .5 referrals per partner per month =2
_______________________________________________________________________________
TOTAL POTENTIAL REFERRALS = 4.5
Average Contract Rate =65% (2.93 rounded to 3)
Average Sales Price = $128,000
Average Commission = 3% ($3840)
TOTAL POTENTIAL COMMISSION LOST FOR THE MONTH = $11,520 (3840 X 3)
This is all really simple math and in many cases the potential number of referrals may be higher. How do your numbers work out? What do you need to do differently to get more referrals? Do your past clients, leads and partners think of you immediately when someone is talking about buying or selling?
The best question of all what would you do with a potential 36 more deals a year!!?? ( an extra $138,240 for the year)
Comments(2)