Hitting your sales goals is advantageous for any business. But, do you know exactly how many leads you need in order to crush each goal? VP of Marketing, Josh Stike walks you step-by-step through our leads generator workbook to ensure that you not only hit, but crush your sales goals.
To succeed in any business you have to get client leads. As Gary Keller famously wrote in the Millionaire Real Estate Agent, “Every professional has two jobs: the profession that they work in and lead generation.” But, how do you know exactly how many leads you need to get for your business in order to hit your sales goals? That’s exactly what we’re going to walk through today.
Hi, I’m Joshua Stike, VP of Marketing here at ReminderMedia, and today we’re going to walk through three steps to help you figure out how many leads you need to get for your marketing in order to hit your sales goals. But, first go into the description of this video, download our leads workbook, and follow along with us as we go.
Step number one.
Step number one is going to be to reverse engineer your revenue goals. So once you figure out how much money you want to make per year add in your operating expenses and overhead that’s going to be your revenue goal. Then figure out where your revenue sources are coming from. For our example we’re going to use real estate so that’s going to be coming from transactions. Add in your average commission and what your average sale price will be for your home and that will tell you exactly how much you need to be bringing in every month in order to hit your annual goals.
Step number two.
Step number two is going to be to identify your marketing KPIs. Now in our workbook we’ve used Facebook ads as an example for our marketing. So the KPIs that are going to be involved in Facebook ads will be: number of views, number of click throughs on our ad, number of website visitors. Those website visitors need to fill out a form to convert to a lead for our business then we’re going to pick up the phone and call them and try and get the listing appointment. After we have the listing appointment, we’re going to try and get the listing taken all the way through to the listing sold. Now each one of those steps is going to have a conversion rate which leads me to number three.
Step number three.
Plug in your own conversion rates for each stage in your marketing funnel. Work back through and figure out what your conversion rate would be on a Facebook ad, or what your conversion rate would be on a listing ad taken to a listing ad sold. We’ve used some industry averages as well as some of some of our own examples, but for this specific example we want to make 500,000 in GCI, that’s our Gross Commission Income.
So, in order to make that with an average commission of 3% and an average home sale of $200,000 we know that we need seven homes sold per month. From those seven homes sold we’re going to need to get eleven listings. From those eleven listings taken we need to get thirteen listing appointments scheduled and then if we start working that backwards through our marketing funnel we’re going to need two hundred and sixty website leads for our business which ultimately has to have forty-four thousand impressions on our Facebook ad. Now I know that sounds like a lot of impressions, but if we look at what the average and cost per impression would be you can get as cheap as twenty-five cents per impression which means you’re spending $1,100 to generate seventransactions in a month which is ultimately going to be $42,000 in GCI for your business.
So, in conclusion download our workbook, make it your own, take our sheet that we’ve set up for you on Facebook ads and duplicate that for your other marketing efforts you don’t want to spend all of your marketing budget in one place so you would go back through and add a sheet for postcards, you would add a sheet for door-knocking, you would add a sheet for FSBO cold-calling whatever your lead generation efforts are create a new sheet for each one and enter in the conversion rates for those.
So, guys download the workbook, put it into use today, most importantly take action!