Admin

Numbers, what numbers? Success tips #8

By
Real Estate Broker/Owner with Exit One Realty - Denver 130401

 

Numbers, What Numbers?

Numbers, who wants to spend time wallowing in numbers? Not me, but I have found that without spending time with the numbers chances of becoming a major producer are reduced dramatically.

First, almost all top producers know the numbers. What numbers?  Lets start with the very basics.

Ricky and Roberta Realtor keep track of the time they prospect and know that for every 100 calls made, one lead is generated. They also know that 75% of the time a lead produces a client.  What does that tell us? It takes 133 contacts to produce a client.  They now know that to produce one transaction a month they need to make 133 contacts a month. Initially that sounds like a lot, but if we divide it by the number of days worked, say 25, it only takes 5.2 contacts a day.  Pretty easy wouldn't you say?  Now what do they do if they want to increase their income?  One of two things, increase the conversion rate to better than 75% or increase the number of contacts.

Without keeping track of the numbers how would they know what they need to do? Simple, they wouldn't. Not  knowing your numbers puts you in a reactive mode rather than an active one. Creating a consistent income requires the discipline to keep track of what you are doing (the numbers).  While that can be embarrassing for most agents it can be an eye opener and career changer for others.

I know, your betting the average agent doesn't keep tack of the Numbers and your are probably right. That average agent is doing between 2 and 3 transactions a year worse than that, I understand that the lastest stats are indicating the almost 50% of Realtors around the country had no transactions in 2011 - now those are easy numbers to track.  For me I'll keep track of the numbers.

More numbers coming,  Till Then

Posted by

Hats

Steve & Diane Cramer

CRB, CIPS, CRS, SRES, ASP, GRI, SFR, ABR

Past Presidents - North Metro Denver Association of Realtors

Broker Owners - Exit One Realty

Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

We always review statistics with our agents at office meetings.  This goes a long way toward convincing our sellers to choose the proper price points.

Jan 26, 2012 10:32 AM
Paula Pitts
Keller Williams Realty Gulf Coast - Pensacola, FL
850-417-8301

Hey, You are in Denver!

The home town of an author of some real estate sales books recommending a an opposite approach.

Interesting.

Jan 26, 2012 10:46 AM
Steve Cramer
Exit One Realty - Denver - Broomfield, CO
Realtor Emeritus, CIPS, CRB, CRS, SRES, SFR

I live in Broomfield which for all practicle purposes is Denver.

Feb 05, 2012 05:12 AM