I do this report so that you can get a realistic idea of what it takes to close deals, how much money you will spend, and how many sellers will cuss you out before one will sign your contract. You get the idea.
I was pretty excited to pull the reports this year and see how it compared to the 2014 lead generation statistics. Its very interesting to see how things change from one year to the next.
So here’s the hard cold facts from an entire year of business (2015) with facts about every dollar spent, every call received,and every action documented. I have even more data to share with you this year. Enjoy!
I spent an average of $1202.25 in marketing dollars to close every transaction. (compared to $571 in 2014). WOW this is the biggest shocker to me! This means that the competition is much greater this year than it was in 2014, and we have to spend alot more money to get to the closing table.
We mailed out a total of 85,727 pieces of mail in 2015 and got an average response rate of 2.98%.
It took 38 leads to get 1 seller under contract. ( compared to 52 in 2014).
My cost per lead was $17.61 (compared to $26.00 in 2014)
My average profit on every closed transaction was $9,750.27 (compared to $5,833.55 in 2014)
The average purchase price with my seller was $52,743.06 compared to $44,727.00 in 2014
The average purchase price with my buyer was $64,059.72 compared to $53,600.71 in 2014
My best performing Marketing Campaign was from the VACANT HOUSE Mailing List and in Second Place was my WEBSITE. (same results in 2014)
On average, it took me 42 days to convert a seller lead into a contract/new transaction. (compared to 51 days in 2014).
Out of 36 Closed Transactions, only 1 of them was Owner Occupied.
The average PatLive live call cost me $3.00 (every time a seller calls in)
Every lead that called in was worth $137.90 – even if they hung up on me! so Im ok to piss a bunch of sellers off. Ever seller that calls and hangs up on me means that I’m one step closer to a yes!! WOO HOO
And there you have it. The facts pulled directly out of my Godfather CRM account. These numbers are very helpful in having an understanding about what’s going on in your business.
Just like I said last year, YOU should know what’s going on in your business, as well!
Be sure that you’re keeping track of your marketing dollars, your leads, your closings, days on the market, and all of the metrics that you see in this report.
If you need help organizing your real estate business, learning how to create devices to track the performance of your business, and how to run your business like a REAL business, then you should consider joining the MOB!
We focus on learning and implementing ways to keep our business running consistently and at the highest level of efficiency. Check it out now