Internet Lead Conversions

[RESteve]

Hi everyone,
I made a spreadsheet detailing internet lead conversion ratios and your final commission numbers.

Check it out

All the grey cells are automatically populated - you only need to modify the cells that have percentages or numbers in them without the grey background.

Let me know what you guys think.

Notes
2/21/2008 - Fixed a grey cell that should of been normal on the broker split and average selling price cells. Added commissions split with broker change to be a bit more accurate and editable average commission percentage per sale. Download link updated.

[Discover Davis Homes]

Works sweet - think it can be pretty accurate too. Now I just need to keep working on ways to increase my traffic...

[gregharaksin]

that's great Steve.

Where did you get the percentages?
what's BRA?

[rvolk75]

Good job Steve. I think the % are pretty accurate. In the formula, I had to change the commission from 3% to 2.75% to get more accurate numbers. I don't know about the rest of the country, but our %s here range from 2.5 to 3. Sometimes you find 2% and sometimes you see above 3%, but the average is around 2.75%.

Just recently, a builder started building a new construction community of 8 homes in my area and they're offering 1%. Kind of sucks.

I like how you included the conversion rate, because that's what makes you money.

Nice tool.

[RESteve]

that's great Steve.

Where did you get the percentages?
what's BRA?

The percentages I used were a base-level agent conversion ratio from the "Millionaire Real Estate Agent". I personally think conversion ratios for buyers and sellers can be way higher than that though, but what's there (the 80 and 20% is just for starters).

BRA = Buyers Representation Agreement

I use BRA's to help me with conversion ratios during the buyer process, and to solidify the working relationship with our clients.

Also - you may want to redownload - I've made some changes based on your suggestions and changes. Download link updated.

Glad you guys like it!

[Mitch]

Pretty cool Steve! I have found that if you know your numbers, you can increase business pretty good. For instance, when I first started my Internet programs 7 years ago, I had a 1 out of 50 conversion rate and about a 20% lead capture rate. There wasn't much competition back then. By knowing these numbers it made it easy to increase my business. I either had to increase my lead flow or increase my lead conversion rate from 2% to 4%. By continuing to change lead capture programs, I have been able to stay around 15% or more in lead capture. However, the best improvement was coming up with our 100MPH systems to increase our lead conversion rates to 4.5%.

My goal this year is to increase our conversion rate even more and implement more capture tools. Our lead flow, with the same costs as last year, has increased 30% so I am on track to accomplish that portion of my plan. Now I have to get my 4.5% conversion rate to increase. Since we show 18% of our leads homes, I'm pretty confident we will be able to increase our total conversion this year...of course the economy might keep us down a little...but I'm an optimist so I still think we will do a good job beating last years numbers.

Again, great spreadsheet. This should help a lot Agents who are trying to get a better handle on their numbers!

[RESteve]

I'm about to start working on cleaning up the spreadsheet a bit, and adding some numbers in there to help track your budgets for lead generation. More feedback is appreciated!

[webmaster]

Very cool Steve! I coded a much simpler one last year at (http://www.realestatewebmasters.com/...calculator.php) but I really like how you have broken it out into buyers and sellers as well as some of the additional items.

I don't know if it's the time of the year or the economy but I am having more and more discussions like this lately - in fact I wrote a blog post about it recently (which you commented on as well) that really inspired me to start looking at a more detailed set of similar tools - I also was preparing a similar post for basic PPC breakdown / justification again though, I was thinking in much more simple terms (I never thought to put a BRA on my numbers hehe)

Very cool spreadsheet.

[RESteve]

Thanks! If you want to use the formulas and setup to create a web one like you started (you inspired me to make the spreadsheet to begin with), please feel free.

I actually ended up creating a spreadsheet because I wanted to you to add stuff like that to your online tool but didn't really want to sit and explain it all. I think with the gross commission income calculated, an agent can then start budgeting for their lead generation expenses (marketing, SEO, etc.), and MREA (Millionaire Real Estate Agent) suggests I allocate 10% of GCI (gross commission income) to lead generation.

20% goes back to the business for regular expenses, then the rest comes home. I did it like that for about 1.5 years and it seems to work out quite well.

[webmaster]

Hmmm seems like we could have a new acronym

.1 x (DGCI) = YREWB

Whereby DGCI is "Desired Gross Commission Income"

And whereby

YREWB is "Yearly Real Estate Webmasters Budget"

hehe