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The 6 “Algorithm of Sales” Metrics You Must Know To Scale Your Business


I want to talk to you about what I call the algorithm of sales. And what that means is that there's some base numbers in our industry, that if you embrace them, it can unlock unlimited opportunity.

The problem is most agents don't want to embrace them. They just want somebody to hand them a buyer or seller. Or for a buyer or seller to literally lay down in front of them so they can just start working with them.

Guys, that doesn't work.

You have to go out there and work the numbers if you want to do well.

I'm going to give you six numbers that are going to be just what I would call standard in the industry that you have to embrace for you to have success.

1. For every 30 conversations you have, you'll average one closing.

So if you want to make 300, 400, 500, $600,000 a year, you just have to figure out how many closings you need. And then multiply that number by 30, which will tell you how many conversations you need to have in the next year.

And also remember this:

Every single closing you will ever have will be the result of a recent conversation you had.

Conversations are the foundation of contracts.

2. For every 10 sphere members you have in your database, you're gonna average one closing a year — if you're actively working it.

There's another algorithm of sales that you can plug into.

3. For every 50 online leads that you generate, on average you're probably going to close one transaction.

50 online leads to one transaction.

4. For every two listing appointments you go on, you'll probably average one closed transaction.

Some of you might have much more than that today, but as the market changes that might change as well.

5. For every three buyer appointments you go on, you're probably going to average one closed buyer.

6. For every hundred pieces of mail you send, you'll probably average one lead.

You see, there's an algorithm in this business and if you plug into it, you can scale. You can do anything you want. But you've got to embrace the numbers.

This is a numbers game, right? It's also about relationships.

But at the end of the day, we've got to start driving these numbers forward.

I hope this helps you. It helps you, gets you to thinking about your business and the algorithm of sales for you personally.

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