Recently, an agent and I had a conversation about what she needed to do to make $250,000 in the next 12 months. The conclusion we came to is actually pretty simple.
The topic I wanted to address with you today is conversion and the economics of our industry.
I was working with an agent recently and I asked her what she wanted to make in the next 12 months. When she told me she wants to make $250,000 in that span, I asked her how many appointments she thought she'd have to go on to hit that amount, which is a lot of money.
She threw out a number, but I challenged her to look at it differently.
First, we examined how many appointments she thought she'd convert. Conservatively, I asked what if she converted 75% of her appointments and made it to closing in 75% of those opportunities. Then we factored in taking two weeks of vacation, meaning she'd work 50 weeks in the next 12 months. I then asked what if she went on one appointment per week.
THE FORMULA TO MAKE $250,000 IS ACTUALLY PRETTY SIMPLE AND STRAIGHTFORWARD.
If she got hired for 75% of those appointments and 75% of those appointments closed, that's a total of 28 closed transactions. If we say an average commission is $10,000, that's a gross commission of $280,000 over 12 months. Even if you pay your brokerage $30,000, you'd still be making $250,000.
So the formula is simple to make $250,000—you need to go on one appointment a week, get hired for 75% of them, and then close 75% of those deals. It's truly that straightforward.
If you'd like to talk more about your career or about putting a plan together to reach your goals, I'd love to talk with you. Contact me soon, I look forward to connecting with you.
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