This math will work for 20 million, 30 million, 40 million and so on. It scales. At 10 million though, you can probably do much of this on your own. After that, your challenge begins when you have to find other talent to convert your leads. If it’s just you, you know your skill level at conversion (from the point of lead to appointment, appointment to contract, contract to close). At higher volume, your challenge should be less about “leads” and more about talent.
Here’s the math.
Let’s say your average price range is $300,000.
To close $10,000,000 in Volume, you would need to sell 33.33 Houses, so let’s say 34
Now, we said the entire 10 million will come from web leads right? Let’s assume you convert 1 out of 100 leads. This would mean 1% from the point that lead registers (let’s say they register for more info on a property, or to access your IDX listings) to close. This would include those “Fred Flintstone” leads we all love. If you know you convert higher because you have proven math, go ahead and increase this. Averages show real estate agents don’t typically convert at higher than 1%. This is because the systems, scripts, and follow up required to convert.
So how many leads then do you need to close 34 homes at a 1% Conversion? – 3400 a year. That’s 283 leads a month. That’s less than 10 leads a day. Totally do-able.
Now, let’s assume the website you use captures at a rate of 3%. This means, out of 100 people who visit your website, 3 become a lead.
To generate 3400 leads a year from the internet, you would need 114,000 visitors per year. That’s less than 4000 visitors a month and about 313 visits a day.
Sounds massive right? What if I told you ONE of my blog posts generated more than 100,000 visitors for the year. Just one page on my site did most of the heavy lifting.
Now, if you know this math proves to be true, your next question should be, how do I get 114,000 visitors? Your focus then must be on web traffic. It’s the first domino that will knock over all other dominoes. The one thing – Traffic!!!!
There are many ways to generate traffic to your website.
1.) Organic SEO – Search Engine Rankings through natural, unpaid advertising. Earned in rankings
2.) Direct – Meeting people and giving them your .com address, Word of Mouth
3.) PPC – Paid Advertising – Ads on Google, Facebook, Other social Channels and Search partners
4.) Social Non Paid – Tweets, Shares, Groups Etc.
Want to learn more? Check out Top Blog posts on Internet Lead Generation from the year and begin your journey to millions of dollars in closed Volume from the internet.