Every business has a sales funnel, and every successful business owner knows his/her sales funnel inside and out.
A funnel, of course, starts off wide at the top, and then gets more and more narrow until the small opening at the bottom. Here’s my interpretation of the real estate sales funnel from top (widest part of the funnel) to bottom (narrow).
4th: Appointment Conduction
6th: Under Contract
7th: Closing/Commission Check
IMPORTANT NOTE:Every client must go through the entire sales funnel. Steps cannot be skipped. However, some people in some situations may go through the funnel faster than others.
Each step in the sales funnel exists to get to the next step:
Activities exist to generate leads. Leads exist to generate appointments made. Appointments made exist for an appointment conduction to occur. Appointment conductions exist to create a client. Clients exist to put them under contract. Homes which go under contract exist to close the property where you accomplish your client’s goal and accomplish your goal of generating a commission check.
NOW, something that is missed frequently in the sales funnel is that a real estate client does not fall out of the narrow opening at the bottom of the funnel never to return. Once you have a closing/commission check, that client now becomes a past client (your #1 lead source) and re-enters the sales funnel.
But, as with all things, knowing about the sales funnel is only half the battle. You must also have process and systems in place to ensure each step is never missed, happens over and over, is duplicatable, and is scaleable inside your real estate business.
So make sure you know your funnel, are paying attention to it daily, are mastering it, and are creating processes and systems to ensure each step is never missed and that all steps are duplicated over and over.
Now that you have gained some awareness of your sales funnel and its position in your business, analyze and see if you can find any steps on which you are falling short and can improve. Get those steps dialed in and continue to grow your business!