# Numbers Game



## calvindebeverly (Sep 11, 2012)

Like all sales jobs much is dependent on the numbers of attempted sales verse actual signed contracts. I know that in real estate sales there are certain helpful number ratios such as Homes Visited/Contracts Signed.

Assuming your a hard working salesperson with good skills, good product knowlege and "lots of time", what percent would you say of homes visited would you actually get a sale?

I want to use the old method of: if I want to make 50,000 a year and I know my commision, average net on each sale ect. how many homes would I have to visit to obtain that goal.

I know there are many factors that play into that calculation but I am looking for a starter percent that would indicate if I visited X amount of homes I could figure on getting a contract on Y percent of them.

Thanks.


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## Grumpy (Oct 29, 2008)

If you close less than 20% you are probably in the wrong job or trying to hit for grand slams on every at bat. If you close more than 80% you are probably a liar or you don't track your at all.

But seriously it all depends on ALOT of variables. I know of a few subcontractors who only work for paper contractors and they do probably close 90% of the jobs they estimate since they only estimate jobs once the paper contractor sells it and the paper contractor may only use one or two subs. If you are doing hail restoration and promising a free roof the closing ratio will be much greater than if you are doing retail sales and asking people to pay out of pocket. There's soooooo much involved to be honest! 

I stopped counting closing ratio to be honest. I used to live by it, but the number doesn't meany anything when you think about it. What matters more, how many jobs you sell or how much profit you earn? The tendency when you live and die by closing ratios is to do what ever it takes to make the sale, even lowering the price. Giving a low price isn't sales. It's called messing up your industry, stop it to all of you doing it! A cheap company will close more than an expensive company, but who's making more money at the end of the day?! 

Referrals and past customers close much higher than warm leads and alot higher than cold calls. Reputation in the market is also important. 

Your question is a good one. I have a spread sheet I made and show each sales rep when interviewing them. I ask them "How much do you want to earn?" Then I input that number and it shows them how much they will have to work, then I ask "Realistically do you think you can close 50% of your leads or do you think you will have time to run 5 leads a day?" LOL they always throw out a super high number thinking it'll impress me when in reality if they were worth that number they would be employed already. $50k in my area is very realistic and easily achievable. $100k in residential is really only done by the very top guys. 

Having said that I do expect my full time sales reps to close not less than 20%, and truth be told at 20% they are either on their way in or out the door. I really expect 30% in our industry (retail) and at our pricing structure. When I last counted, I was closing more than 40% of all my leads across the board. I know that's dropped in the last year, mainly because I don't care as much as I used to.  I also substantially raised my prices when I stopped counting my closing ratio.


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