My Math Wall: Adding in The Commission Math
Apr 23, 2023We're now standing in front of the commission math board. Let's start with the formula.
As you can see here on the board formulas, how many listings to get X amount of dollars, this is where you would put your financial goal.
Once you have your financial goal, you can then go your goal number divided by 30,000.
In your case, you would put your average sales check here. And that's going to give you your number of sales.
After you know your sales number, the number of listings you need to sell, you can then times it by two, and that will tell you how many homes you need to list. And that is based on the 50% closing rate. If your closing rate is higher, you can adjust your math, once you have your financial goal figured out.
There are many other numbers that you can figure out. But one of the really important numbers that you're going to want to know is how much is each door worth to you.
Remember, when I said earlier in the course, whether they say yes or no to you at each store, it really doesn't matter. You're getting paid for every door you hit regardless if that's the door that hires you.
Let me show you the math of how that works out. Let's continue using the same examples from last time. Our goal is $400,000.
If we look over on this side of the board, the goal of $400,000 was 5400 doors in the year, you would take your goal of $400,000 and divide it by 5400 doors, that's going to give you $74 . We've rounded it up to 75.
That means that each door is $75 Whether they say yes or no whether that is the door that hires you or not, you're getting paid when you knock it as a friendly reminder, you can always adapt these numbers to fit your average paychecks.
If your paychecks are not an average of $30,000 like they are in our city, then you're able to put your number here.
Make sure that you're putting your numbers into the math so that you have an accurate goal to hit. When you see the commission math, animalistic math broken down and laid out like this isn't a compelling reason to get out and hit those doors.
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