Updated 2.4.26
Sometimes people are like, I don’t. home builder consultant wouldn’t even know what to right now. So you don’t, like, really write these things out on an annual basis? Let me talk to you about how I would write a goal for the year, and let me grab another image to show you that I think will be helpful.
Hang on one second. Well, this one up.
Okay, so here’s kind of how home builder consultant would kind of create those goals. Achieving a large annual income goal is the direct result of structuring a daily schedule around specific high value income producing activities. So on the left hand side here, sales goals often fail not due to market conditions, but because daily behaviors don’t change. This blueprint connects your annual income goal to the daily activities required to achieve it.
Emphasizing execution. Basically. So what I find is the best way to create goals is to start with an annual income goal that you would like to achieve. And I would like both of you to, pull out a sheet of paper. This blank.
And this is not anything you need to necessarily share in this setting. You’re welcome to share it with me individually if you like to, but you don’t have to necessarily share it with each other. But home builder consultant would like you to write down what your annual income goal is. So what you want to make in 2026. Now, Ashley, I am going to use you as an example.
I will not use specific numbers, but I’m going to use you as an example. I know that you had an income amount that you felt like you really wanted to be able to make. When you first started with me, that you had told me, that was a pretty low number, honestly, compared to where you’re headed, right? Like, well, I’m over, I’m over it.
So that makes me happy. Yeah. In just a few months you’ve surpassed the the year goal, right. So, and I think that that’s good. It just means you exceeded your goal. Do you know what’s terrible about not having a number is that if we set no goals, then, we achieve nothing. Right. It’s like even when you get there, you don’t even have a good feeling about it.
I mean, didn’t you? home builder consultant remembers the day you surpassed what your annual goal was and you were like.
You were so excited. You called me, you texted me. You were like, this is amazing, right? It feels good. Yeah. So I was like, you know, I was working seven days a week the other way, so this is much better. Yeah, exactly. You’re hitting goals beyond what your expectations of what you were capable of were, right? In just a short period of time.
And and the future looks really bright because you’re just you’re just now figuring it out. Yeah. And honestly, you’re still six months from really having it all figured out, you know? So you’re just going to keep getting better. So I would write that number down and then the next step is so the annual is first. And underneath that we’re going to follow this kind of this chart on the left hand side here.
This funnel on the left hand side here. The next step is calculating the number of homes that need to be sold in order to hit that goal. And what you’re just going to do is figure out you can reverse engineer this, figure out what the commission is per home. And I would say, Sandy, for you, your average sale price of a home will probably be around 550,000 would be my guess.
So you can calculate what your commission would be on that. And then you’re going to divide the total dollar amount by the number of, homes that it would take.
So it would be safe to do with the new community. Mine would be like 700. Do you think that would be safer? Yeah, I think yours is going to be around 700. So I’m just going to use a round number. I’m just going to make really vague general statements about this. If I’m, maybe in my average sale price of a home, let’s say is 250,000.
I’m just going to do some math on screen because math is hard. Here comes from my calculator of awesomeness $250,000 home. And let’s say that home builder consultant gets paid 1% of that. Then my average commission would be $2,500, right? So if that was my world, if I sold $250,000 homes, made 1%, then my average commission would be $2,500. And if I wanted to make a $120,000, I would divide that by 2500.
And that would mean I would need to sell 48 of those homes to make $120,000. Okay. Does that make sense? I’m going to set a,
I’m going to set a crazy goal for a minute just to do the math one more time. If I wanted to make $200,000 in my average commission with $7,000, I would take 200,000 divided by 7000 and I would get the number rounding up. I would say it’s 29. The homes. So I need to sell 29 homes, as my average commission was seven grand to to make $200,000.
So that’s kind of how the math works. Does that make sense? And if I really wanted to break that down to the nitty gritty, I could say that, the number of homes per year I can divide by 12, and that will give me the number of homes per month that I need to sell.
And if I wanted to go one step further, I could divide that by four and come up with the number per week. Right. So I think monthly is a better way to look at it, and sometimes quarterly, because it’s our world is up and down and you can have no sales for a month and then have twice as many as you needed in a month, in a month, the next month.
I mean, so it’s very kind of up and down, but over time it’s it’s kind of equals out. So, so I would say that’s kind of how you break down how many homes you need to sell per month. Now the next step is determining the number of appointments required in order to sell that many homes. Well, this all depends on what your closing ratio is, right?
How many customers have you toured that turned into a sale? And I know this is difficult for you, Sandy, because you don’t know, but actually, you could figure this number out. You can figure out what your closing percentage is.
I need to do X number of appointments to get a sale. If it’s I need to have four appointments to get one sale and the number of sales I want in a year, let’s say is 20. And I know it takes me four appointments, then I need 80 appointments.
Right. In order to get 20 sales, whatever those numbers are, you can you can backdoor engineer these numbers. Now you can go even further and you can break it down into, well, to get an appointment, I have to talk to a certain number of people to get an appointment. What’s my closing ratio on getting an appointment?
And that’s a there’s a number there, right? I personally feel like you guys should probably book 80% of people. You talk to for an appointment.
If you use my sales script, you will. You use my phone script. You will book 80% if you tactfully use the script. My inbound and outbound, phone scripts book 80% historically. And I used to track it. I used to track it with 23 salespeople and hundreds of leads. And that was the number. Now, that doesn’t mean everybody got 80%.
Some people were more, tactful at using it than others. Some people were better at it than others. In order to book a lot of people with a script, you have to sound like you’re not reading the script and you have to stick to the script. And those are hard things for some people to do. You can’t sound like you’re reading it.
So that’s kind of how that works. You can’t control closings, but what you can control is your daily activities, meaning conversations, follow up and appointments. On a side note, Sandy, home builder consultant knows that there was a lead that came in while you were gone that Scott was going to try and reach out to you to book an appointment for you for the weekend.
I would start going after that person on your own and not leave it to Scott to follow up with that person. I think he got an email. I didn’t get it and he said the phone number was so good. Okay, I would just verify that yourself and not believe it. And then I’ll ask Jordan to double check and make sure of, why you didn’t receive it, but we’ll fix that.