You’ve heard this one before: You need “track and measure your business” and “run your business like a math equation.”

You get it: Business is math.

For a lot of people, a key objective this year is to track and measure more in efforts to make sure that they know what’s working in their business and what those lead indicators are.

I want to share with everyone what you absolutely need to be tracking as a real estate agent—and the subcategories that give you even deeper insight into your business. 

Now, here’s the thing. If you’re super-analytical, you’re probably tracking everything, including how long it takes you to brush your teeth. I get it. You want to be more efficient. 

If you’re expressive—and there are a lot of expressive real estate agents—you’re probably tracking just enough to know what’s going on, if you’re tracking and measuring at all.

So, I want to be really direct here. I’m going to tell you things you must be tracking and then some of the indicators that our team tracks to give you some serious clarity on your business.

How many appointments are you going on?

This is the number one indicator for your business. Everyone should be tracking this. If you’re not going on appointments, you can’t sell houses. So, the more appointments you go on, the more likely you will sell more homes. 

But, those appointments don’t come from nowhere. It takes a lot of lead generation and follow-up to land an in-person meeting. 

So, you also need to track the number of two-way conversations—people you’re talking to that are thinking about transacting. And that can be—

  • Two-way texting
  • Two-way emailing
  • A video exchange

By tracking the number of conversations you have, the number of appointments you set or book, and the number of appointments that actually happen, you’ll be able to determine a couple of key ratios:

  1. Your conversations-to-appointments set
  2. Your appointment show rate: how often the appointments happen. 

How many appointments are you converting?

Once you get past running the appointment, you want to look at the conversion numbers. From those appointments, track and measure the following: 

  • How many offers are you writing? 
  • How many offers are getting accepted?  
  • How many listings are you signing from listing appointments?
  • How many listings are you selling?

We’re tracking the whole funnel. So, now you have…

  • Your conversations-to-appointments ratio
  • Your appointment show rate
  • Your offers written-to-buyer showings rate
  • Your offers written-to-offers accepted rate

If you get one offer out of three accepted, you have about a 30% acceptance rate. 

Tracking on the listings side

With listings, those ratios will look a bit different: 

  • How many listings are you signing from listing appointments?
  • How many of those listings are selling?

You may have a 50%, 60% or 70% listing sign rate. And 95% of those listings actually sell. 

Now, all of a sudden, you’ve got all these key things to track and measure. Here’s what you do. 

Calculating your appointment goal

Say your goal is to sell 50 homes in 2023, and you want 20 listings and 30 buyer sales. Your listing sign rate is 50%. That means you must go on double the number of listing appointments (in this example, 40), assuming you’re selling 100% of your listings. 

Now apply the same idea to the buyer side. If you get one out of three offers accepted, and you want to sell 30 different buyers’ properties, that means you’ll have to write 90 offers to meet your goal. 

Now you’ve got some clarity. But remember, not every showing results in you writing an offer. Let’s say every four showings you go on, you write an offer. Four times 90 equals 360, and you now have your appointment goal. 

That’s how you reverse-engineer all this. It clarifies the actions you need to take in your business. 

If you want to get really granular, you can track—

  • How many phone calls you make
  • How many texts you send
  • How many emails you send
  • How many showings you have to attend to get to an offer

Tracking and measuring is the opposite of flying blind

Most realtors are running around like chickens with their heads cut off. They’ve got no plan, no calendar, don’t know their numbers, and don’t even know where their business comes from. 

If you track these indicators and put them into software, a spreadsheet, or whatever you’re using, it will give you clarity on your business. 

So, again, the key ratios are:

  1. Conversations to appointments set
  2. The percentage of appointments set that actually happen
  3. Offers written-to-number of buyer appointments
  4. Listings signed-to-number of listing appointments
  5. Your listings signed ratio
  6. How many appointments you need to go on to close a sale

If you track all that, you can plan your week and month out in your sleep. And that’s how you have clarity on your business and take action.