Use this sample worksheet to calculate the number of transactions you’ll need
Step1:
Determine your average commission per transaction
Average price range ____
X ____ % commission
= ___ total gross commission
Divide by 2 (for sale side or listing side)
+ ___
Multiply by your commission split ____
= ____ commission per transaction
Example:
$250,000 average price range
x 6% commission
= $15,000
÷ 2
= $7,500
x 60% split
= $4,500 commission per transaction
Step 2:
Income goal ____
Divide by commission per transaction ____
= Transactions needed per year __________
Example:
$150,000 income goal
÷ $4,500
= 34 transactions to reach goals
“I just had my first sale with a client from Growth Leader! And with even more prospects in the pipeline, I’m very happy with the results. I’ve had other marketing partners in the past, and in comparison, I’ve been very pleased with Growth Leader. Their customer support has been incredible.”
Mayra Perez
Century 21 Showcase
The Woodlands, TX
Calculate Number of New Prospects Needed Per Day
Calculate prospects needed per year
Take the total transactions you want ________
X 25 (prospect-to-sale ratio is 25 to 1) ________
= Total number of prospects needed ________
Break it down into a daily number
Annual prospects needed ________
÷ by 12 months ________
÷ by 30 days ________
= Prospects needed each day ________
Example
Example:
34 transactions
x 25 prospects
= 850 prospects per year
÷ 12 months
= 70 prospects per month
÷ 30 days
= 2 new prospects per day
Agent Business Plan 2006
Tip: Generate Active Buyer and Seller Prospects
Growth Leader makes it easy for you to attract motivated buyers and sellers who contact you directly. You can eliminate cold calling and ineffective strategies, and even capture new business from out-of-market customers. Gain confidence when you have a team of experts supporting your success with Growth Leader.
Great guide. This certainly puts hard real estate numbers into perspective. We run a short sale company in california. The only question I have is how did you arrive at the 25 to 1 prospect/sales figure? With our leads sometimes our ratio is 100 to 1.
Great guide and we have already contacted market leader to set up a consultation.