The One Metric That Rules the Real Estate Industry (Do You Know Yours?)

Hey guys, let’s talk about your power base and why it matters. Your power base number is a great way to measure the health of your database. In real estate, our databases generate the majority of our sales—this has been proven time and time again.

Let’s break it down with some math, because the path is in the math:

If you have a database of 200 people, how many transactions should that generate? The ratio is simple: 10 to 1. For every 10 people in your database, you should generate one sale. So, a 200-person database should produce about 20 transactions.

That’s a general guideline. Let’s make it personal. To find your power base number, take the number of transactions you’ve closed in the past 12 months and divide it by the total number of people in your database.

For example, if you have 200 people in your database but only closed 10 transactions, divide 200 by 10. That gives you 20, meaning for every 20 people, you’re averaging one closed transaction. That’s not great because we know the ideal ratio is closer to 10.

Now, if you’ve closed 25 transactions with the same 200 people, your number would be 8—much better. These numbers reveal a lot about the health of your database.

If your database isn’t performing well, it’s often not the database itself that’s the problem. It’s likely the quality of your contacts or your messaging. How you manage your database—what you put in and take out—plays a huge role.

As agents, we’re like farmers tending to a crop. Managing a database is our responsibility, and we need to measure our performance. One of the biggest mistakes agents make is throwing ideas or content at their database without measuring the results. Some things work, some don’t, but if you’re not measuring, you’ll never improve.

Let’s change that. Start by calculating your power base number now. Write it down. Set a goal for where you want it to be in 12 months, and track your progress regularly.

At the end of the year, evaluate your power base again. Did you hit the goal? Did you get to at least a 10, or better? If you’re under 10, you’re improving, but if you get it down to six or seven, you’re really excelling.

I have a student with a power base number of 6.75. For every 6.75 people in her database, she averages one closed transaction. She’s absolutely crushing it.

Use this exercise to refine your approach. Managing your power base number is a powerful way to improve your business model.

Have a great day, and happy selling!

*******
Why do Brokerage Owners, Office Leaders, Team Leaders, and Solo Agents choose Jim to be their coach?

+ 32 Years of Real Estate Sales, Management, and Coaching Experience
+ Top 1% REALTOR Himself (he has been in the trenches)
+ Opened his First Real Estate Company at 23
+ Grew his Real Estate Company to 17 Offices (largest in Oregon)
+ His Current Team Closed $1.4 Billion in Sales in One Year
+ He is a Current Real Trends Top 500 Broker

When you work with Jim there is no "team" of coaches - you are being trained by Jim and tapping his knowledge and experience.

When your office or team joins our brokerage coaching platform, every agent at your firm will tap into our training and coaching resources.

These benefits include:

20 Weeks of On-Demand Lead Generation Coaching: Access our extensive coaching program, offering daily guidance for 20 weeks, empowering your agents with proven lead generation strategies.

Extensive Downloads Library: Gain access to a vast collection of resources, including scripts, texts, emails, drip campaigns, checklists, systems, forms, and more, all designed to enhance your agents' productivity and success.

Marketing Assets: Stay at the forefront of real estate marketing with new social media and digital assets delivered to your team on a weekly basis, ensuring you have the latest tools and strategies to effectively reach your target audience.

Live Monday Coaching: Kickstart your week with our live Monday coaching sessions, where we deliver the biggest and brightest ideas in the industry. Gain invaluable insights and stay ahead of the curve.

Live Wednesday Coaching: Join our tech and marketing experts every Wednesday as they dive into the hottest real estate tech and trends. Discover innovative tools and strategies that will give your agents a competitive edge.

Live Friday Coaching: Tap into our live podcast series, where we interview some of the biggest names in the real estate industry. Learn from the best and gain inspiration from their success stories.

At eRealEstateCoach.com, we are committed to helping you and your team thrive. Productive agents become raving fans helping you attract the top talent in the industry.

Visit https://www.erealestatecoach2.com/explorecoaching to learn more.