Keep track of how many conversations lead to signed clients.
Today I’ll go over key performance indicators that you should be monitoring in your real estate business. In real estate, we work on commission, and it’s unlikely that you’ll go under contract with a cash buyer and close within two weeks of your first day on the job. It’s more likely that it will take you six months to get paid. Even after that, it might take as many as 18 months to get a steady flow of paychecks.
The most important things to track when you intend to grow your business are the number of conversations you have, the number of appointments that you go on, and the number of clients signed. Based on the last three months of tracking, we need about 37 conversations to get one signed client. For every two signed clients, we get a closing. So if we want to hit our goal of 250 closings, we need to have 18,500 conversations.
If you’re interested in finding out how these calculations could apply to your business or if you have any other questions, call, text, or email me. I look forward to hearing from you.