The Work From Anywhere Agent

38. Simplifying My Process to Focus on What Really Matters

• Alexa Rosario

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Ever had one of those 'aha' moments where numbers suddenly make sense in a way they never did before? That was me today, diving headfirst into the math of real estate. This episode takes a different angle on math as not just a necessity, but a powerful guidepost towards meeting annual sales goals.

I've always been math-averse, but learning to interpret key performance indicators (KPIs) has been a game changer in my approach to client onboarding and conversion. Realizing that I don’t have 12 months but really just about eight to generate leads for this year was eye-opening. This understanding of timelines—from warm lead to consult, consult to close—enables a more strategic focus on when and how to enhance my lead generation activities.

In today's episode, I break down the crucial metrics: the journey from consultation to closing, the conversion rate of consults, and the ratio of warm leads needed to book a consult. Get ready to discover how pinpointing these metrics can provide clarity and keep you aligned with your real estate goals. Listen in to rethink your strategies and use KPIs to transform how you manage client pipelines.

As we wrap up, I invite you to continue the conversation in our Business Systems for Realtors Facebook group. Let’s explore how these insights might refine your strategies or even shift your perspective on closing deals this year!

Alexa:

Before we jump in today, I have to apologize in advance, because we're talking about math, and if you guys are anything like me, I was never a math person. I can multiply pretty much any number times 0.03. But beyond that, like math was never my specialty. And yet I find that the more that I lean into my KPIs and really understanding how the numbers work together to tell a story is, the easier that it becomes to stay on track for my goals, and so I know that there is a lot of different models around this, but I found that the one that works best for me is understanding how many is three very simple ones. Number one is how long does it take to get from consult to close? For us that number is 93 days, and so understanding that if we sign on a client today, we're not going to get paid for 93 days later on average right, we actually tracked this down to from the time somebody enters the pipeline as a warm lead into when they schedule their consult, and then from there we looked at their what we call their live date. So for sellers, obviously that's going live on the market. For buyers, that is when they actually start shopping for property, so in some cases, that's like they have a lease that's ending and they're not ready to start shopping yet. All those things. Then from there, how long it takes them to go under contract and then contract to close. And so, for us all, in, from the date that they enter the pipeline as a warm lead, it's 118 days, and then, once we sign them on as a client, that's 93 days. So those run concurrently. Now, for us, what that really did for me was to show me, based on my goals, the last day that I have to sign on a client, the last day that I have to add somebody into my pipeline if I want them to close this year is August 3rd, which means that, like it's not that we have 12 months to lead generate, we really have eight months to lead generate in order to actually fill the pipeline for the rest of the year. And then we have to sign on our very last client for September 29th in order for them to close this year. Right, because again, we're talking about that 93 day lag. Now, that doesn't mean that we stop lead generating at the end of the year. It just means that we're building our pipeline for 2025. And so, if you think about this. A lot of agents get really, really like hustling in the fourth quarter and then they're like, well, why is nothing closing? And then you end up not being able to buy your family gifts for Christmas, right, but if we focused on in second quarter that that those transactions were actually setting us up for the fourth quarter, that's where we'd go. Oh okay, I know exactly what I need to do.

Alexa:

The second number that I really pay attention to is what percent of our consults close. Now, to be clear, this is not the same as what percent of consults turn into a client, right, because if we go from that number, in my business that's actually about 80%. So four out of every five clients that we sign on end up closing. That one out of five is like their plans change, they decide to stay in the property, the financing doesn't work, whatever it ends up being. But that number, from consultation to close, is 62%. So for every 10 consults that I do, six of them will end up closing. Now, that gives me a really good idea of how many consults I need to do in order to hit my goals. And then the last one is how many warm leads do I need to set a consultation, and for me that number looks like about one out of five. For every five warm leads that enter my pipeline, one of them is going to end up booking a consult. Now, that doesn't mean that the other four are never going to end up booking. It just means that in terms of the timeline, in terms of falling into that 93 days, only one out of five is going to do that. The others are still going to get nurtured. That's what the database is for, but that one out of five is the one that I'm looking for. So from that then we can start setting some real numbers in terms of goals. Right, if I want to do 12 transactions for the year, then I need about 97 warm leads for the year.

Alexa:

Based on, if you were to use just my numbers, if you wanted to do 24 transactions, that's about 195 warm leads. 36 transactions is almost 300, so 291 warm leads, and 50 transactions is a little over 400 warm leads. And so when we think about like okay, let's get really, really technical about this, then the question becomes like, how many warm leads do we need to be adding to the database? How many warm leads do we need to be finding every single week? Now that doesn't mean that it needs to be a new person. It means that it can be a referral. It can be someone from your database that you've reactivated. It can be a new lead. That came in In my mind. A warm lead is someone who says, yes, I want to buy or sell real estate in the next 12 months. Okay, and so from there we take those breakdowns, and so 12 transactions for the year is about two warm leads per week. 24 transactions is about four warm leads per week. 36 is about six and 50 transactions is about eight warm leads per week.

Alexa:

So when we think about, like, okay, what do I need to do today in order to do my job and make sure that I hit my goals, if we can focus on what we call the leading indicators, the early indicators of making sure that we're going to be successful towards our goals, and we just focus on that right, forget about all the other stuff, we just know, as long as I bring this many warm leads into my pipeline every single week, I know that I'm going to be on track for my goals and that, as long as I do my follow-ups, that this is going to become very, very predictable. But, like I said, the trick here is that we have to make sure, if we're playing catch up, that we're accounting for the fact that we only have until really August 3rd to do the lead generation for that. Okay, so now let's say so. The date that I'm recording this is March 5th, right? So you might be listening to it a little bit later. You might be listening to this a lot later. It just kind of depends.

Alexa:

Now, if we were to think about, from today, we have about 22 weeks until August 3rd, right? So it's not that we have enough time. That if let's say, for example, we wanted to do 36 transactions for the year, it's not six warm leads per week. It actually ends up increasing because we have a shorter time period. So if we were to look at that 36 transactions goal, then that would actually come out to about 13 to 14 warm leads per week. If we were to break that down for the others, right, for 12 transactions, it's about five warm leads per week, because now we're not looking at a whole year of lead generation, we're really looking at six months of lead generation. Essentially, 24 transactions would be like nine warm leads per week and 50 transactions would be about 20 warm leads per week, right? So from here we can get really intentional about saying, if there's nothing else I do in my business except add these new people into the warm or hot stage in my pipeline and make sure that I follow up with them on a recurring basis, that's going to put us on track for our goals.

Alexa:

And so when I always say, like the funnels and all the other stuff is extra, but it doesn't replace the conversations and the relationships, that's never been our goal here. It's been to facilitate the conversation, to make the conversation better and more effective, but it's not to replace it. But at the end of the day, it all comes down to the relationship, right? Like content and relationships, they work hand in hand. High tech, high touch, right. So high touch is actually being in relationship. High tech is all the things that work to support those conversations. So think about the technology is to make your business run better so that you can have more time and more presence when you're in conversation. So that's the episode for today. I hope you have an awesome rest of your day and, as always, please join us in the daily Facebook discussion and the business systems for realtors Facebook group and I will see you in the next episode.

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Alexa Rosario

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