We have been waiting for this moment for almost 2 years!
We have officially logged over 10,000 dials to realtors and clients! 4,872 dials to our clients and 5,180 dials to real estate agents, to be exact. This is an important milestone because we can finally use the data to make predictions and forecasts of production. The 6 Money Making Activities have always been at the forefront of all our sales activities and DAT makes it possible to hold your team accountable for engaging in those activities.
Why is this a big deal?
Great question! If you look at the entire sales process, there are only a few activities that we can control. Everything starts with dials and talk to’s, which is what DAT tracks. In the past, it was almost impossible for us to measure appointments and dials until we had an open credit pull in the borrower’s file, and even then, it wasn’t a good representation of the activity necessary to get those appointments. DAT was created to give us all earlier indicators of success and to ensure we stay on track with MMAs.
Let’s do some Sales Math.
By now, most of you have seen Rene’s presentation on “Sales Math” where he shows 5 numbers (1, 1.5, 2.5, 5, & 25) and distills each of them down to a value. Here is a quick overview if you forgot:
- If you want 1 loan, then you need 1.5 applications (66% conversion ratio).
- If you want 1.5 applications, then you need to meet with 2.5 people (60% conversion ratio)
- If you want 2.5 meetings, then you need 5 leads because about 50% of your leads will meet with you.
- If you want 5 leads, then you need to “talk to” 25 people because for every 5 people you talk to, you’ll generate 1 lead (20%)
In that equation, assuming the average commission is worth $3,000, then we can derive the value of each milestone. The values are as follows:
- Loan = $3,000
- Applications = $2,000 ($3,000/1.5)
- Meetings = $1,200 ($3,000/2.5)
- Leads = $600 ($3,000/5)
- Talk To’s = $120
For some of you, the average commission is much higher, what do these numbers look like for you?
How it all ties together
Let’s have some fun with our new data on Realtor Dials. Here is what we know…
- We have tracked 5,180 dials
- Realtors answer the phone 61% of the time which is much higher than we ever expected!
- Of the 61% who answer 31% set appointments and 24% give you leads.
This means a lot, but here are some of the initial observations we see. Let’s use some real numbers. Try to follow the sequence and logic.
- If 61% of the 5,180 agents we have dialed answered, that means we spoke to 3,160 agents in the last couple months. That in and of itself is exciting.
- If 31% of the 3,160 agents we have spoken to set appointments, then we have set 980 realtor appointments. Wow! That’s not even the exciting part though.
- Of the 3,160 talk to’s, 24% have given leads which translates to 758 leads
In summary, we have generated…
- 5,180 dials
- 3,180 talk to’s
- 980 Realtor appointments
- 758 Leads
How it all ties together
Let’s make some assumptions based on the following information:
- Average loan amount is $200,000
- Average commission is $3,000
- It takes 5 leads to close one loan (20%)
- A “good” Realtor is worth .5 loans per month (6/yr or $18,000)
- A “great Realtor is worth 1 loan per month (12/yr or $36,000)
- It takes 10 realtor meetings to find one “good” realtor
Now the Math is Simple.
- 758 leads should translate into 152 loans!
- 152 loan x $200,000 = $30,334,080 in volume!
- 152 loans x $3,000 = $456,000 in commissions!
- Every dial it is worth $88 ($456,000/5,180 dials)
- Every talk to is worth $144 ($456,000/3,160 talks)
- Every lead is worth $601 ($456,000/758 leads)
- If you want to make $100,000 then click 5 times a day…every day
- If you want to make $500,000 then your clicker number is 25
- Remember, this happened with less than 100 users (we have 111 now)
- Even if I am 50% wrong the numbers are still amazing
- Even if 50% of the people lied about their numbers it is still game changing
No More Excuses
If you have not registered for DAT, got to www.myalterra.com and register now.
Watch the video below on how to register.
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last updated: 10/19/17
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