What is the magic indicator for real estate success? The conversation-to-close ratio.
This ratio is based on data regarding how many prospecting conversations it takes to get a sale. It varies based on the economic climate, the experience level of the agent, etc., but it’s great at showing new agents the path to success. New agents should expect a 1-to-40 to 1-to-50 ratio, as this is the average for all agents. More experienced agents have a ratio closer to 1-to-20 or 1-to-10.
So let’s say someone contacts me and says, “Steve, I want to make 20 sales this year. What do I have to do?” That would mean shooting for a conversation-to-close ratio of about 1-to-40 (or 2.5%). For every sale you want to make, you’ll have to have 40 conversations, which amounts to 800 total conversations annually. If you can reframe that as 16 or 17 conversations per week to make your 20 sales, that expedites things tremendously. All you have to do is time block and make those conversations happen.
“This ratio is based on data regarding how many prospecting conversations it takes to get a sale.”
For my next video, I’ll share my 60-second business plan to provide you with more information on how to achieve success. If you have questions about today’s topic or there’s anything else I can help you with, don’t hesitate to reach out to me. I’d love to speak with you.
