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hey there now that 2018 is coming to a close I've got a question for you
have you prepared your success roadmap for 2019? Have you prepared your success
roadmap for 2019 ... and if you have, oh my gosh are you going to enjoy this
video!
Hey it's Michael Krisa here the executive editor with agent inner circle
from AgentInnerCircle.com and welcome to this week's video and it's about
planning your your roadmap to success for 2019
Now perhaps you've got an income goal of say one hundred and fifty thousand.
How many deals do you have to do, how many listing appointments,
what's your gross income, what's your net, what's your overhead? If you don't know how
to answer those questions, how are you going to know how to hit your goal? Well at
the end of this video I'll share with you a link that you can use to download
your success roadmap and in the corresponding article the link will be
there as well. Download that roadmap and then follow along with this tutorial and
I'll walk you through exactly how to use it. Once again it's Michael Krisa here
the executive editor with agent inner circle from agent inner circle comm I
know you're gonna enjoy this and more importantly it will help get you from
here at the end of 2018 to reach your income goals for 2019 so in your success
training system guide you want to turn to the page that is the critical rate of
sales worksheet okay hopefully you've got that open in front of you the
critical rate of sales worksheet is a simple way for you to find out what your
fixed costs are your variable costs and how much money you net per transaction
that you do whether it's a listing or a buyer and then how many transaction
sides you need in a given year to reach your income goals so let's walk through
this one-pager real quickly so at the top you can see that you put in your
income goal for the year and then figure out what that is per month and then you
go to step one you want to calculate your total fixed overhead per month so
what you want to do is enter in the amount of money that you want to net
plus what your expenses are that you have to pay like your office rent
utilities phone MLS etc etc if these are annual then you can easily break that
down into a monthly basis all of these numbers in the blank spaces are based on
monthly rates then what you do is you total up your overhead per month which
includes again your fixed expenses or your operating expenses and how much
money you want to net so in this example in order to make a hundred thousand a
year you'd have to make eighty four hundred dollars a month and if you have
four thousand in overhead every and that could be higher or lower
depending on you know what your expenses are that means that your fixed overhead
for this month would be twelve thousand four hundred it's what you want to net
plus your expenses so that's step one step two you want to calculate your net
profit per transaction and this will get you what's called a contribution margin
how much of each commission that you get will go towards paying for your fixed
overhead so you can see there's a blank fill in the blanks what is your average
gross Commission take the average price of a home that you sell and multiply it
by the average percentage of Commission so in this example we're using a six
thousand dollar Commission then you want to subtract any variable costs that you
have for if you pay a split to a broker and a marketing costs that you incur v'
to sell the property and if you're working with a buyer are there any
expenses or costs incurred with working with a buyer to help them buy a property
what you have left is a total contribution margin so you take the
gross Commission you subtract your variable cost and then you get your
total contribution margin in this example it's six thousand dollars - two
thousand dollars for variable costs that gets me four thousand dollars net for
each commission that I make remember this is an average so in the third step
you're going to use these two numbers from the first two steps step number
three you want to calculate the number of transaction sides to meet your
earnings target and it that's just a simple calculation just take step one
and divide it by step two so you take your total fixed overhead divide that by
your contribution margin so twelve thousand four hundred dollars divided by
four thousand and you'll get the total sides that you need to reach which is
three point one or roughly three deals per month which is roughly 36 to 37
deals per year based on this example of wanting to get
a hundred thousand dollars per year so you'll want to fill out the form for
yourself and then you'll move on to the last part of the success targeting
system which is identifying which of the categories of systems that you want to
use to reach your income goals or argit's on the last page of your success
targeting system is what we call the personal money map now this is a way for
you to identify based on your income goals and targets which markets you
should select in which system categories that you should focus on in the three
steps ultimate system so at the top you want to put in your net income goal for
this year the number of transactions that you hope to do each year and each
month based on the critical rate of sales worksheet that we just talked
about then you're going to calculate the number of leads that you need to meet
your goal so as an example if your income goal was a hundred thousand
dollars per year like we just calculated and depending on the type of home that
you sell you probably need roughly 36 closed sides per year or again on
average of about three per month now to calculate the number of leads we're
going to use an average of 20 and it really depends on the quality of the
lead that you get and how good you are at actually taking that lead and
converting them so for example if I'm getting a lead from somebody that
already knows likes and trusts me I'll referral I'll need less than that 20
target in our step to systems where we're leveraging the opportunities that
we already have for example our buyers and our current sellers then again I'll
probably need less than 20 because those leads are coming from a reliable source
and step one type leads that we've generated from our marketing efforts
basically called traffic that we don't know that's responding to postcards and
the different systems that we use that'll be a lower quality lead and more
likely closer to this twenty target that we're using so using our target of
$100,000 net to achieve that we've already calculated that we have to
average out about three closed transactions per month and we've also
given an estimate here that it will take twenty leads per closed transaction so
if you take three per month multiplied by twenty you're looking at sixty leads
you have to generate sixty leads per month or an average of two leads per day
now let's talk about that for a minute how are you going to generate that many
leads what you want to do is select from different target markets now your best
market will always be your power list those are your friends family past
clients people that know like trust you and that's where your referral
leads are gonna come from at least the highest caliber of leads that you're
going to get now usually the bigger the contact list the more referrals you'll
get but we've seen agents that have lists anywhere from 100 to 200 members
on their power list and they're averaging 20 to 30 referrals a year so
it really depends on the relationship the quality of that list and the
relationship you have with them and that's where step 3 comes in the
relation marketing building systems they build the quality of your relationship
and they also help you build the size of your power list then the third target
market or a broad category would be new leads and there could be subcategories
to this for example for sale by owners expireds strategic farm area you want to
write down how many ads that you want to do and the number of promotions to the
different target markets and the number of mailings to strategic farm areas the
number 5 here is a very easy way to do a marketing plan for the year you just
list out where you plan to get business based on the 3 step system so we've put
the categories all 131 marketing systems that are available to you and we've
broken them down into three categories step one step two and step three systems
but then below that are subcategories to either generate brand new leads people
that you don't know yet from step one step two is about generating
transactional leads and step three is all about generating referral leads so
the second half of this personal money map is just a marketing plan that you
can use to go through the systems on the members website and just make a note of
which ones you'll want to use and project how many transactions you'd like
to do over the course of the year with those systems then at the bottom if you
want to make a personal commitment to yourself you can sign it and date it and
then pull this document up every month and definitely at the end of 12 months
to see if you're on track or if not how far off track you are so you can make
corrections
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