Tracking Numbers on Real Estate Leads
You’re an entrepreneur. There’s no question that you are full of confidence, intelligence, and ambition. But at the end of the day, the difference between a highly successful entrepreneur and a typical entrepreneur is one thing.
It’s all in the data. Entrepreneur Magazine says your best shot at success comes when you have “a complete understanding of the numbers that drive your business.” While the big numbers after the close of a sale are important, don’t overlook the data that came before and paved the way for that big commission check.
The REDX talked to some of the biggest money making realtors in the industry, the people making a minimum of $250k, and we asked them where their money came from.
What we heard didn’t surprise us. All agents know that prospecting and leads are the foundation of their business, but when we ran the actual numbers we found 2 astonishing things.
250k Agents Track their Business Numbers
$250k agents don’t only know that their business comes from great leads, but they know which leads are the most productive and have the numbers to back it up.
78% of the richest realtors in America track their numbers—compared to only 42% of realtors earning $70k or under. Ultra successful realtors track three things:
- How many contacts need to be made before an appointment is set
- How many appointments it takes before a listing contract is signed
- Average commission made on each contract
Bottom line: $250k agents track more than their income. They track the specific investments of time and work they put in before they even get to the sale.
$250k Agents Understand the ROI of their Business
The playing field is pretty level from the outset. All agents, regardless of their take-home will get in contact with about 7.6% of all expireds they contact and 38% of the FSBOs they contact.
What happens after that is where we start to see the gap widen.
It’s clear that $250k agents are doing something differently than $70k agents. The value of the $250k agents’ monthly listings is over $2000 more than the $70k agents.
Not only did these successful agents track their numbers, but they understood them, let them inform their daily habits, and developed strategies for success based on them.
One agent we interviewed took her highest yielding commission checks and asked some questions about them:
- What type of lead was it?
- How hard did I have to work to get the lead?
The first question led her to find that certain leads were more profitable than others in her particular market. The second question clarified whether the time she had to put into generating the lead, making the calls, setting the appointment, and closing the deal was worth the return in money.
This particular agent broke down the numbers so that she knew exactly what each call was worth to her. If calls on FSBOs came out to $13 each but calls to expireds returned $8, she focused her time on the FSBOs.
Bottom line: $250k agents understand where the money comes from so they can focus on the things that give the most return on their investment.
Join us next week for a discussion about how principles of accountability turn $70k agents into $250k agents.