06 Oct CELEBRATING REJECTION — It’s Importance
Many of us tend to celebrate the closings, the cashier’s checks, the large wires, and the bank deposits. You see it all the time on Instagram. You are posting this big check for $25,000, which is fantastic. I mean, that’s why we started and got into this business: cash checks to get paid and all that great, great stuff. But I want you to start thinking about as you become more experienced in this business: stop celebrating the wins and start celebrating rejection — all the different steps it takes to succeed.
How do we do that?
These numbers are from the industry, aren’t final numbers, and aren’t numbers in your market, just national averages. The average fee across all states in the country is $15,000. So if you close a deal, you make about $15,000 gross revenue but not profit. A revenue that goes to the top, which is significant for you to build your business. So if you look at every closing, that’s $15,000. That’s great but not the number we want to focus on. What we want to focus on is how do we get to the closing.
To close, we need to contract first. From what I’ve seen across the country, it takes about two contracts per closing. Now, you might be in a situation where you close 100% of contracts or a position wherein you closed a quarter of your contracts, but what we see as a norm is about two contracts for one closing. That means 15,000, divided by two, and you’re getting about $7500 per contract. Not the number that we want to focus on either.
From what we’ve seen across the industry, it takes about three appointments for every contract to get signed. People who close approximately one for one appointments are good. Closing one for two to three, a little less good. One for four or five? In this case, you need sales training.
Let’s say 7500 (contract) divided by three. It means your making $2500 for every appointment. So start focusing on getting quality appointments.
How do we get appointments?
We got to have conversations. It’s great if you’re good at closing out one or two appointments; if not, wherein you’re closing about one in four or one in five. If that’s the case, I highly recommend our sales training program.
Getting an appointment takes about 100 conversations. So that means 100 conversations per appointment to have $2500, which translates to $25 per conversation.
Would you be willing to get paid $25 per conversation?
And now we’re at $25 per quality conversations. How many cold calls does it take approximately to have a quality conversation? It takes about ten cold calls to have one quality conversation, so you’re making $2.50 per cold call.
How many cold calls could you make per hour, knowing it is $2.50 per call? Let’s take a step back be a little more conservative. Let’s say we’re making $1 per cold call. How many cold calls could you make per hour? If your goal is to make 100,000 a year, you only need to make $50 per hour. To make $50 an hour, all you need to do is make 50 cold calls an hour, eight hours a day. Could you do that?
What I’m trying to imply is I want you guys to understand celebrating the rejection. It feels good cashing a big check, even on a skinny assigned contract, celebrating as we get across the finish line. But we don’t celebrate getting appointments. We celebrated when we first started, thinking about the real possibility, but we stopped at some point.
Celebrating rejection, the small things, the painful things. Every No, you guys heard gets you closer to Yes.
To do the math, we know that every No is worth $2.50. Knowing that, are you willing to put in that price? When you first got into this business, when you first got heard about wholesaling, when you first got into real estate, you were excited by financial and time freedom. Are you ready to pay the price and sacrifice to accomplish your dreams and goals?
I hope this helped get you the mindset you need to get into cold calling. Cold calling sucks, but it’s worth it. Right? Now maybe you need to fill in the gaps a little bit. What do I say to a prospect? How do I overcome stalls? How to overcome objections? If that’s the case, we got two options, Active Listening 2.0 that you can pick at Amazon, or our sales training program.
Remember why you started. Many people who come to me say, well, I don’t want to do this and that. I don’t want to door knock and cold call. Keep doing what you’re doing. If the pain of living with your existing situation is tolerable, whether a boss that doesn’t listen to you, bills piling up, not spending time with your family is what you want, don’t change and continue with it.
But if you want to change and have a better life, there’s no excuse now because you know what it takes. The best way to get started is to have quality conversations. You could invest in training, which is what we talked about a moment ago.
An alternative is to seek a mentor working within your market who knows how to do this. Learning the processes and the scripting without costing you a dime but not making as much per deal. Who cares? It costs you nothing.
I want success in life and everything I do, so I model success. To model, success is to find what works. And once you find what works, replicate it, copy it, put it in your business. All this rejection is good because you’re getting closer to the next one.
Everyone always says sales is a numbers game, but they never tell you what the numbers are—breaking it down on a mathematical level. We now know the numbers. Now, all you have to do is to execute toward those numbers.