I’ve got to share this with you. It’s always motivating. When I review it, there was a study done several years ago of Harvard graduates. So in 1979, a large group of graduates from Harvard was interviewed. And there are three different categories. 84% of them had no specific goals. 13% had goals, and there had been that written down. And then 3% had very clearly written down goals and plans to accomplish them. So we went back 20 years later, like, where did these people end up? And what’s the impact of having goals written down? So 13% of the class who had goals were earning on average, twice as much as the 84%, who had no goals at all? Well, that’s pretty huge. But it gets better. Because the 3% that had clear written down goals, were earning on average, 10 times as much as the 97%. Put together, out of everybody, which is this huge, so gosh, it’s the results say that when you have clear written down goals and a plan to get there, you’re gonna earn more money, you’re gonna hit your goals, whatever your goals are if they’re related to revenue, or profitability, or whatever those are. So please use this as a motivation to write your goals down for 2022 If you don’t have them already, then having monthly goals is where we’re headed. And then to be able to break those down. And I want to, you know, it gets tricky with basement waterproofing, and you’re selling different services, and how do you measure an average job and all that kind of stuff, I want to walk you through those things.
Now, the reps outrunning the lead. Now here you have, you know, name, address, phone number, LG problem, someone speaks English. And the issue that you could serve in, you get to run it. Another one is another company gets behind you, and they sell it and close it before you’re able to send a rep out there. Those are probably the five most common reasons why leads reset. And there’s, you know, from there, there are endless reasons why. So you’re going to be scheduling more leads than you actually do in demos. 50% is extremely low. Like quite honestly, there was a major issue in a company, if you’re if you have 50%, that you just totally wasting money, unless you only have like, which you don’t but you know, telemarketing leads canvassing leads to like Facebook leads, if that were the case, that you’ve set might be there. But chances are, you’re probably having a lot of internet leads, you’re spending money and Angie, you have referrals coming in. And those leads come into way higher, something like you know, 75%, that’s probably a good goal to shoot for. that closing percentage, you got to be able to track these numbers. I sometimes talk to contractors, and I’ll say do you have any idea what your net closing percentages? And I’ll hear things like, Oh, dude, I close like 50 60% 80%. And I usually don’t argue with the person that the time in the context of the call. But like, I know, there’s no friggin way that there’s close it like 60 or 70%. They’re just not doing it. They’re only counting that situations where like, the stars aligned, and oh, well, I’m not counting all those and those in those in those in those?
Okay, well, you kind of got to figure out what’s fair to consider your net closing percentage, and you have to draw the line if you have, you know, if it says to you running leads like you’ve got to be consistent. If you’re only comparing yourself to yourself, fine, no, no problem. When you start adding reps, now you have to have rules to say like, alright, that’s considered a presentation, this is considered not a presentation. So now you can kind of start comparing things, when you have five reps, you get into all sorts of or 10 reps, you get into all sorts of interesting situations where reps want to count leads differently because they know they’re being held accountable for their closing percentage. So unless they can close them unless it was a really solid presentation, they’re figuring out a way to try to figure out a way to make a modification as to why they couldn’t do a presentation. So how many leads do you need to hit your monthly volume goal? So lets I think this is one more math formula. Hang in there with me. So if your monthly goal is 250,000, and you know, your average sale, in this case, is 12,500. All right, you know you’re extremely low, lead to demo, raise 50%. And you’re only going to close 20% of those. The 200 divided by 100 for the ones that aren’t there and everything now you have 100 presentations and the close 20% of those you end up with, you’re going to need 200 leads a lot of leads. So what is your average conversion rate that leads the book to demo, I said 50% and talked about this. So if that’s an area that you could focus on and get on the phone right away, follow up with them. Use Email, use tax, whatever you got to do to rebook those leads, that’s money sitting on the table of cash, you finally have a homeowner with an eligible problem and they need service. You got to jump on those leads like this is money sitting around you can’t be like, Oh, they canceled. I don’t know. I was dealing with calls somewhere else. No, like you got to jump on those leads. You need someone to follow up. Divide your lead target goal by your conversion rate. So 200 leads talked about 50% That could be way higher, like 75 you have 100 demos. So that means 100 times. You are your salesman. your sales reps. There’s 100 presentations that were made, let’s say in the month of January, right? So that’s that second, the last line number of demos to give 120 sales average sales. 12,500. So, 3 million is your revenue goal.2005 hires your monthly goal, average sale 12,500. Net close 20% number of leads booked 200. Devils to give 100. And the number of sales per month is going to be 20. Hopefully, that provides you with an actionable example!
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