Did you start out this year with an idea of what you wanted to make, or how you wanted your real estate business to grow? Often we start out the year with the best intentions, and then get to a point where we “coast” through the slow season.
We’re here to help! We have a FREE download of a plan to help you figure out your “Critical Rate of Sale.” What do you want this year to bring you? Knowing this number will help you chart a path for 2019. This resource will help you create a “personal” plan-of-action for the year that’s specific to you. This way, you’ll know exactly how many transactions you need to make each month, to reach your income goals.
Let’s get started, you can download the worksheet below!
What’s Your Critical Rate of Sale?
Download the worksheet here (we’re using the second page in the article):
This worksheet helps you see how you can reach your target income goal for the year. “Critical Rate of Sale” means how many transactions you’ll need to make monthly to reach that goal.
First, fill in your income goal at the top of the page. Divide by twelve to see how much you’ll need to net monthly, and fill that in.
STEP 1: Calculate Your Overhead
The compensation target is the monthly income goal, from the top of the page. Fill that in. Then, add your fixed operating costs per month. You may need to use another sheet of paper or a spreadsheet to total your costs. The TOTAL at the end of the first month is your fixed overhead, per month.
STEP 2: Calculate Your Net Per Transaction
Step 2 tells you how much of the commissions you receive that you actually get to pocket. Fill out your average commission, then subtract the broker fees, marketing, and any costs that you spend to get your commission. You’ll come up with your “total contribution margin.”
STEP 3: Calculate # of Transactions to Meet Your Goal
Use the two numbers you’ve just figured out from Steps 1 and 2, to come up with the average number of deals you’ll need to make each month to meet your goal.
The rest of the download helps you figure out how many leads you’ll need each month, and also talks about systems that are available in our 3-Steps Ultimate Real Estate Success System, but you can plug in any systems you’d like to add to your marketing for this year. It could be Facebook Ads, a monthly newsletter, strategic alliances with other business, postcard systems, etc. You can find a lot of ideas for marketing on a budget right here, on our Agent Inner Circle blog. Next week, we’ll be sharing a special Marketing Calendar template for you to help you plan your strategy this year. Watch for it!
What new marketing systems will YOU be using this year? Share with us in the comments below!