There's a "four alarm fire" happening in the real estate industry today:

What is it?

Interest rates.

Interest rates are rising extremely rapidly. Now we knew coming into 2022 rates were gonna rise. The anticipation was from Mortgage Bankers Association, NAR, Fannie Mae and Freddie Mac, etc. The consensus was 3.7% by the end of 2022.

But what has happened?

First week in January, rates went to 3.12%. Second week in January, rates went to 3.45%.

Wow — that's almost a vertical rise!

So what's the messaging here?

The messaging for our buyers and sellers is get off the fence and get into the market.

Now, why are rates rising so quickly?

Well, we know that the Fed had told us already that they were gonna raise rates three times in 2022 to fight inflation because inflation's at a 50-year high and 7% was the latest number.

So their #1 goal was to fight inflation.

They also announced they were gonna stop buying mortgage-backed securities...

I'm gonna give you some numbers that are just reality in our business that you should know. And these numbers are going to drive your success throughout your career — whether you like it or not.

Are you ready for these numbers? Here they are:

They may be slightly different for every person, but in general, across the country, here's what the numbers look like in our industry:

* For every 30 conversations you have, you'll average one closed transaction.

And I want you to remember this:

Almost every single transaction you will ever have in your career will be the result of a conversation you've had in the last two weeks. You want more closings? You're gonna have to have more conversations.

Here's another one:

* For every 10 sphere members you have in your database today, you should average one closing — assuming that you've made 20 to 50 contacts with them in the past year.

20 to 50 contacts will get you a 10 to 1 closing...

I want to talk to you about what I call the algorithm of sales. And what that means is that there's some base numbers in our industry, that if you embrace them, it can unlock unlimited opportunity.

The problem is most agents don't want to embrace them. They just want somebody to hand them a buyer or seller. Or for a buyer or seller to literally lay down in front of them so they can just start working with them.

Guys, that doesn't work.

You have to go out there and work the numbers if you want to do well.

I'm going to give you six numbers that are going to be just what I would call standard in the industry that you have to embrace for you to have success.

1. For every 30 conversations you have, you'll average one closing.

So if you want to make 300, 400, 500, $600,000 a year, you just have to figure out how many closings you need. And then multiply that number by 30, which will tell you how many conversations you need to have in...