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Setting The Right Prospecting Goals

Written by on Thursday, 30 August 2012 7:00 pm

Selecting the right level of daily prospecting is essential to your success. When you begin the discipline of prospecting, the number of contacts you make daily is really, at best, an educated guess. Because you haven’t been prospecting, you don’t really know your sales ratios for contacts to leads, leads to appointments, appointments to committed clients (signed listing agreements or signed Buyer representation contracts), or committed clients to closed transactions. These ratios are essential to be able to know the activity level necessary to reach your goals.

I find one of the most stressful things for Agents, especially if they had a banner year previously, is the start of a new year. The vast majority of them have no real idea how they achieved their banner year. Because of the lack of knowledge of their sales ratios, it’s as if they are operating via Braille. Stress and tension rises because they come to the realization early in the year that they have no plan, and they don’t know how to make more money, let alone, the same amount of money they made the previous year.

I had a client who lived that vicious cycle for years in his career before he came to be my client. After working together for a while, as we began a new calendar year together, he then knew his business sales ratios and had a solid numbers-based business plan. He told me a month into the new year that, in the past, he had always dreaded the new year. He had always felt like a fraud because he really didn’t know how he was going to achieve more. The truth is he had been sitting on the same production plateau for six years before we met. He increased his business income over $200,000 that first full year of coaching.

He said something profound that day that I will never forget. "Knowing my sales ratios, prospecting daily, having a numbers-based business plan, and showing up everyday to work is an easier way to live!" He had spent the previous handful of years trying to cover his tracks. My dad always told me when I didn’t do well in school, "You had to work harder to get a poor grade than you would have to get a good one." Both of these men were right. When selecting your prospecting goals, start small. Prospecting is about the building of momentum and consistency. It’s about establishing the habit of controlling your time, emotion, and the distractions of your business to do it daily. We merely need to build a backlog or pipeline of leads that we can extract transactions from on a regular basis.

I would suggest, if you want to take your business to the Champion level, that you apply the 5-5-5 System each day. The 5-5-5 System is five past client calls, five lead follow-up calls, and five new prospect contacts each day. This would be a minimum standard level for a Champion Agent for business growth. This will take you about ninety minutes a day to complete. The key adjustment is if you have more than five lead follow-up calls that need to be made, based on the motivation and number of leads, be sure to make them all.

Prospecting will generate some new business for you right now, but it will mostly produce leads. These leads need your attention and effort as well. I frequently get asked, "How can I do more transactions next month?" or "How can I catch up to my goal for the month, quarter, or year when time is short?" The answer.... focus on your leads. These are the people who are closest, in terms of time and connection, to doing something with you. Call them all, even the ones who seem a few months away. True motivation can change quickly.

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  About the author, Dirk Zeller

Individual news stories are based upon the opinions of the writer and does not reflect the opinion of Realty Times.