2010 Business Plan, is yours complete?

Real Estate Agent with The Payne Group at Keller Williams Success Realty

Have you completed yoour 2010 business plan?  Have you started implementing your plan?

Here is a quick breakdown if you need a business plan

How much do you plan to earn?  GCI?
How much of your GCI will come from sellers (listings)?
How many sellers do you need to sell?
How many buyers do you need to buy from you?
How much of your GCI will come from buyers?
What is your average commission?
How many of the listing that you will take will sell?
How many buyers that you work with will buy?
What is your listing appointment conversions rate?
What is your buyer appointment conversion rate?

Let's do a business plan based on these assumptions: Yours can and will be much different if you know your conversion rates.
$200,000 CGI (before any broker splits since everyone could be different)
50% from sellers  $100,000
50% from buyers $100,000
Average commission $5000 per side before any broker splits
65% of your listings will sell (assume you only take sellable listings)
80% of your buyers will buy (assume that you only work with ready, willing and able buyers and you are not a chauffer)
50% listing appointment conversion rate (only taking sellable listings, remember)
50% buyer appointment conversion (ready, willing and able buyers, not tourists looking for tour guides)

You would need to sell:
$200,000 GCI/$5000 avg commission = 40 sales
20 Listings
65% will sell, you need 31 listings taken
50% of the listing appointments you go on you turn down, you need to go on 62 listing appointments

20 Buyers
80% of the ready willing and able buyers will buy, you need to work with 25 buyers
50% of the appointments you go on will not qualify or you won't work with, you need 50 buyers appts

Each month:
5 listing appointments
3 listings taken
2 listings sold
4 buyer appointments
2 buyers sold

You need to get 4 buyer appointments and 5 listing appointments, basically 2 appointments per week!

I would love to see other plans or see how others plan, everyone's plan is going to be different, each person has their own numbers and conversions.

Anyone else use the Millionaire Real Estate Agent Business Plan?

Posted by

Jeff Payne, Broker Associate
The Payne Group at Keller Williams Success Realty
850-392-1770 Office
850-890-0132 Cell


Comments (3)

Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

jeff, we do ours in december. it is real similar to what you are doing.

Jan 18, 2010 03:13 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Jeff -  I am actually working on my budget, I know it is late.  If you are 9 sales behind your goal in March, do you tack it on to April?

Jan 18, 2010 10:13 AM
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

Ted, thanks for reading my blog, we too have ours completed in December.
Wendy, I add them to the next month, whether it be appts, listings or sales, I add them on..

Jan 19, 2010 12:19 AM