Like it or not, the last quarter of 2017 is upon us. The side effects of this phenomenon often include nausea, panic attacks and hallucinations about rewinding the clock.
If you set big goals at the beginning of the year it is not uncommon to find yourself off target at this point.
Now, you may be on target and if so good for you, keep it up.
If you are not, the good news is that is all it means is you’re not on target at the moment. It doesn’t mean you have to change or shrink your goal or give up on it all together.
It’s time to make sure that your game plan for the next 3 months lines up with where you wanted to be starting off the year.
Below is a process you can use to get clarity on what it will take to make your goals happen in the 4th quarter and break it down to simple and achievable targets.
Step 1: Subtract the number of homes you have sold already from your annual goal to find the GAP.
Ex. If your annual goal is to sell 50 homes and you have already sold 19 this year your formula would look like this: 50-19=31(GAP)
Forget about the annual goal number for now and focus on the gap. Whats done is done and you have made progress toward your goals so its important to reflect that in your target.
Step 2: Assess your active client pipeline
For this step simply take a look at the active clients you are working with (buyer & seller) and assess how many of them will buy or sell before the end of the year (keep in mind that for the closing to occur in this calendar year they will need to be under contract in time for the closing to take place before year end)
Ex. You currently have 8 active listings and expect 3 to sell in time to close this year. You are actively working with 4 buyers and expect 2 will pull the trigger anytime.
Expected sales from pipeline = 5
*your pipeline projection should be conservative
Step 3: Subtract your pipeline from the gap
In our example we had a gap of 31 sales and a pipeline projection of 5. The formula would look like this:
This number (26) is your year end target.
By this point you should already be feeling some relief by shifting focus to a number that is far less intimidating and much more achievable than your annual goal (26 vs. 50).
It’s about to get even better.
Step 4: Break your Year End Target down to monthly and weekly targets
Monthly: Divide your year end target (26) by the number of months (3) remaining to get under contract and still close this year.
Example: 26/3= 8.6 (Monthly Target)
Weekly: Divide your year end target (26) by the number of weeks (14) remaining to get under contract and still close this year.
*Since we are not in the business of selling “partial” homes, always round up. So in this example the targets would be:
Monthly: 9 under contract
Weekly: 2 under contract.
These numbers are where you want your focus as you head into the 4th quarter. They should drive your attitude, actions and results.
Simply knowing the number, however, isn’t going to make it happen. We need to know how to make it happen.
By following this next part of the process you will likely find that it is far easier than you think.
Step 5: Assess you activities to date
This is about looking back at your year so far to see what will need to change moving forward to close your gap and reach your goals. As you probably know by now there is a direct correlation between our activities and our production.
To sell homes requires lead generation of some sort. Whatever methods you use simply find the percentage of the activities you have actually done vs. what needed to be done.
For example, if you follow the common rule that you should lead generate for 2 hours every day, that is what needed to be done. That’s the 100% benchmark.
If you actually only did 1 hour every day then you would be at 50%.
Activity target/activity actual = activity performance %
This is where the magic really happens. Even though we broke the target down to a pretty manageable monthly and weekly target, it can still feel a bit out of reach. That is because we are basing it on what happened in the past… our past activities, our past skill level, our past database etc.
The reality is those variables should constantly be changing. You should be learning, improving your skills, growing your pipeline and database.
It’s true, if you don’t change the activities moving forward you won’t close the gap and your production for the rest of the year will be relatively flat.
If, however, you decide that your goal is worthy of making some shifts in your focus and activities, you will be playing at a whole different level.
For example, if you have sold 19 homes in the first 8 months of the year (2.3/month) and your lead generation activity performance percentage during that time was 30% you will see that by simply increasing to 60% you can expect to generate an additional 2.3 sales each month. Still a long ways from 100% but totally a reasonable adjustment to make.
In our example we know that we need to get to 9 sales per month asap to reach the goal so even with increasing the lead gen 30% we are not quite there.
Lead Follow Up
So let’s take a look at lead follow up. What percentage of your leads this are you doing consistent follow up with? Now, lead follow up is not a one and done process. There are countless studies and stats out there that clearly show the number of leads you convert to clients is directly correlated to the number of contact attempts you make.
So let’s say you call most of the leads you get three times before losing track or giving up on them.
If we are at week 32 in the year you can determine your Lead Follow up Performance Percentage as follows:
3 contacts/32 weeks = OUCH!!! That’s a 9.375% Lead Follow Up Performance
As low as that may seem, it is all too common in our industry. Effective and consistent lead follow up is a game changer.
Say you decide to fix the lead follow up and improve your follow up to 28%.
When you apply that to your past sales number of 2.3 per month you will see that simply by making that adjustment you can expect to add another 4.6 sales each month. However, this math is funny and you will likely find that the increase in results is actually higher than the increase in activity.
In this example just making those incremental improvements to your lead gen and lead follow up activities will likely get you to your goal.
Active Client Referral Leverage
There is one last key area that can make this really easy for you.
Here we will look at the referrals you get from your active clients.
They all have the opportunity to send you referrals as they naturally come across other people with real estate needs while it is on their brain.
If out of your 19 sales you received 2 referrals then your active client referral percentage is 10.5%.
If you get really purposeful on asking your current clients for referrals and increaser your percentage to just 21% you can expect to generate an additional 5.6 sales by the end of the year… and that’s if you only do it with your year end target people.
Adding it all up:
*reflecting 3 month results
Lead Gen Increase Result: 6.9
Lead Follow Up: 13.8
Active Client referrals: 5.6
Past sales Average: 6.9
TOTAL SALES (3 months): 33.2
So you can see that by making those adjustments you would not only reach your goal, you will blow it out of the water.
The only question left to answer is if the change in activity would be worth it to you. Would you be willing to make the needed shifts in action to hit your mark or would you be ok if you end up a little short at the end of the year.
The way I see it, there is a challenge either way, in shifting activities and staying focused or in dealing with the disappointment of missing the goal and wondering if it could have been different.
I hope you use the examples above to see how it relates to your goal and numbers. I hope you will take the time to see how achievable massive gains can be and lastly I hope you turn it up and GO FOR IT!