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Return On Investment For Realtors

It means that the chance of landing a sale is dependent on the
number of clients you see and follow up on a daily basis.

Do you believe that the number of clients you talk to daily will
directly be proportional to the number of closings you do
monthly?

So if you do, then it means that you believe that:
MORE CLIENTS = MORE SALES

Now, let’s talk about investing.

Investing 20% of your profit back to your business.

Is that about right?

Is 20% too much to increase the sales and profits of your business?

How much to do you really need to invest back into your
business?

Let’s say you invest only about 10%.

If you are averaging $10K a month in your real estate business.

And you put back 10% of $10K, that is $1,000.

$1,000 to bring in more clients for you monthly.

What do you get for re-investing that $1,000?

If that $1,000 brought in 100-200 new clients monthly, what
would that mean?

Let’s do the math.

Let’s just say you only have 100 new clients

Market average closing is about 1%-3%

Let’s say you close 1% of 100.

100 x 1% = 1 new client

Let’s say you closed on a $200,000 home at 5%

$200,000 x 5% = Your commission is $10,000

You invested 10% to make $10K

You put in $1k and get back $10K.

That is a 900% return on your investment.

$10K x 12 months = $120,000

 

If you split a commission with a broker or

a listing agent, your commission might be

at 2.5% and your annual commission

will be at $60K

————————————————

Let’s go to the mid-range portion of the spectrum.

Now let’s say you have 200 new clients in a month.

Market average closing is still at about 1%-3%

Let’s say you close 2% out of 200 clients.

200 x 2% = 4 new clients

Let’s say you closed on a $200,000 home at 5%

$200,000 x 5% =  $10,000 commission

$10,000 x 4 clients a month = $40,000 a month

You invested 10% to make $40K

You put in $1k and get back $40K.

That is a 3,900% return on your investment.

$40K x 12 months = $480,000

 

If you split a commission with a broker or

a listing agent, your commission might be

at 2.5% and your annual commission

will be at $240K


————————————————

Now let’s go to the higher end of the spectrum.

Now let’s say you have 300 new clients monthly.

Market average closing is still at about 1%-3%

Let’s say you close 3% of 300.

300 x 3% = 9 new clients

Let’s say you closed on a $200,000 home at 5%

$200,000 x 5% = Your commission is $10,000

$10,000 x 9 clients = $90,000

You invested 10% to make $90K

You put in $1k and get back $90K.

That is a 8900% return on your investment.

$90K x 12 months = $1,080,000

If you split a commission with a broker or

a listing agent, your commission might be

at 2.5% and your annual commission

will be at $540K

The real estate business is truly a numbers game.


Learn how to play your cards right.

Do you believe that the real estate business is a numbers game?

REA ROI Calculator Screenshot

Thinking of investing in your real estate business to grow and expand?

CLICK HERE

Or call Ron at (956) 202 2962
The big question now is... 
How much do you invest in your business?
Download the FREE REA ROI Calculator that I've created for you and see your potential growth when you realize what investing in your real estate business can bring you.

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