The “Power Base” Plan For Crushing Your 2022 Goals


What is your power base?

Have you ever heard that term before? Well, your power base is a measurement and it's a great measurement that all of us should understand and really work towards improving over the course of the next 12 months.

So here's what it is:

It's the amount of sales your database is producing every year per member. So I'm going to give you an example to kind of put this in perspective:

Let's say you have a guy named John. John's a realtor has been in the business for years. Let's say John sold 22 homes last year. And his database size was 232. So we had 232 people on his database, created 22 closed signs last year. He can simply divide the 232 by 22 and this gives him his power base number, which is 10.5.

What does that mean? That means for every 10 and a half people in his database, he's averaging one closed sale.

What's the national average?

It's about 10. So if you're doing 10 and a half, your database quality, may not be quite on par or on target, but it also could be that your messaging or the quantity of your contacts, isn't quite on par. So you got to kind of measure what's going on. 10 is kind of the benchmark. We want to try to get below that number, which means we're actually doing better than the standard. But when we're above that number, that means we're not doing quite as well.

So how can we use this number? I'm gonna give you a couple of different ways to think about how we can really strategize with this number coming into the new year:

Let's say John says, Hey, you know what I want to do? Not 22 transactions next year, but I want to do 30. I want to close 30 deals next year.

So what can he do? You could use Q2. We've talked about that in the past if you've watched these before.

Q2 is measuring the quantity and the quality of his contacts and his database.

So let's look at the quantity:

If he wants 30 closings, he can take his 30 (that's his goal) times 10.5 (what his database is currently producing) and he can say, okay, then I need to grow my database from 232 up to 315.

And why do I get 315? 30 times 10.5. He wants to close 30 transactions. He's averaging 10.5 people per transaction close. So that's 315. So now he's got a gap he's got a fill. He's got 232 in his pipeline now. He needs to get 315 to hit his goals.

But there's another way for him to get to his database goal or his closing goal:

He can increase the quality of his database, maybe weed some people out, add better people into the system. Or improve the quality of his messaging, right? Maybe his messaging can be improved or how much he's messaging and engaging with people.

So let's assume he was able to just keep his current database, but now he's getting 30 transactions out of it a year.

What would his power base number need to be?

Well, if you just take that 232, his current sphere, and divide it by 30, his power base number would need to be 7.7. So he would need to get that down to for every 7.7 people in his database, he's averaging one closed sale.

The reason we look at these numbers and we start to measure these numbers is we treat our business like a business. We just don't hope and pray that something is going to happen.

We take control and we do not allow ourselves just to, you know, kind of be at the whim of the market. Cause we're strategy0driven. We're not market driven. And by doing so, we're going to take back the essence of what it means to be a business owner and entrepreneur, which means that I'm doing the work to get what I want. Right?

So that's going to be us diving in getting our hands dirty. As Gary V says, have your head in the clouds and your nose in the dirt, you figure it out and you make sure that you start hitting the goals that you set for yourself.

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