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
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
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
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?