Okay, let’s look at the commission math in detail. 

THE COMMISSION MATH

How many doors to get your first commission paycheck?

Here, we will assume 50% of listings turn to sales. We’ll also assume a commission rate per sale of $30,000. This is a number we’ll keep using in examples. Later, you can adjust your personal math to match your city and area.

Using these formulas, you can reverse engineer and figure out how many listings, appointments and doors are needed to reach your earning goals! 

The FORMULAS

How many listings to get $XXX,XXX?

Your REVENUE GOAL DIVIDED BY COMMISSION ($30,000) = # SALES NEEDED 

YOUR # SALES NEEDED x 2 = # LISTINGS NEEDED

# LISTINGS NEEDED x 2 = # APPOINTMENTS NEEDED

# LISTING APPOINTMENTS NEEDED x 100 = # DOORS NEEDED TO KNOCK

EXAMPLE 1:

Let’s say you want to earn $100,000 in a year. How many sales and how many listings do you need? 

$100,000 / $30,000 = 3.3 sales
3.3 sales x 2 = 6.6 listings (let’s round that up to an even 7 because you can’t sell half a house)

And how many appointments do you need to get those 7 listings?

7 listings x 2 = 14 appointments

And how many doors do you need to knock to get those 7 listings?

14 appointments x 100 = 1400 doors

EXAMPLE 2: 

You want to earn $400,000 in a year. How many sales and how many listings do you need? 

$400,000 / $30,000 = 13.3 sales

13.3 sales x 2 = 26.6 listings (let’s round that up to an even 27 because again, you can’t sell half a house!)

And how many appointments do you need to get those 27 listings? 

27 listings x 2 = 54 appointments

And how many doors do you need to get those 27 listings? 

54 appointments x 100 = 5400 doors

Okay, that was a lot of numbers. Let’s think about them for a moment. To summarize, you get 27 listings in this sample year. From that, you get at least 13 sales. You knock 5400 doors. All of those doors may seem like a lot, but let’s break it down. Remember, there are 52 weeks in a year!

5400/52 weeks = 104 houses per week! That’s it! 

Remember at the beginning of this video, I said I tell agents to aim for 100 doors per week? Now that makes more sense, right? When you look at the math we just did, 104 doors per week puts you steadily on your way to a $400,000 revenue goal!

Hit 104 doors consistently for an entire year and this math will play out for you! 

Another way to look at it is this. 

$400,000 / 52 weeks = $7692 per week 

When you knock 104 doors per week, your earning potential is almost $7,700 per week! Not bad, right?!  Are you curious about the value of each knock? I LOVE this math. Let’s look at the potential return on every door knock! 

$400,000/5400 doors = $74  

Each door knocked on, whether or not it is answered, is worth $74!!! Isn’t that inspiring?!  

When you break it down, you realize that each time you knock on a door, it doesn’t matter if it’s a yes or a no. EVERY door will ultimately put cash in your pocket through the future sales you win in that community.  

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