“Simple Math, Simple Success”

With all the industry changes coming at us rapidly, the last thing we need is a complicated formula for company growth.
Recently I was talking to an agency owner who wanted to see an annualized run rate increase of $200,000 over a 12 month period of time.  In other words, he wanted to see an average monthly revenue increase of just a little more than $16,500.
Now, when someone talks about adding $200,000 to the coffer, even the best business people can get a little nervous.  That’s a lot of money.  It is a huge revenue jump.  When one takes that number and tries to develop a plan to see that increase it gets even worse.  Confusion of what to do sets in and walla…progress stops.
This month I wanted to give you a simple formula and strategy to set revenue increase goals and then a simple thought to accomplish them.

First, let’s keep in mind that you have never had an order count problem.  If you have ever had a revenue issue it is not because you had an order count problem, but a customer count problem.  Keeping this in mind then we must also consider that the smartest thing to do is to also set goals and strategies the same way.  In other words, how many additional average customers will you need in order to hit the mark.
Here is a simple formula:

Revenue desired (annualized run):     $200,000
Monthly:                                               $16,667.00
Average fee per file:                           $850
Number of new closings monthly:      19.60
Close ratio:                                          70%
Openings needed monthly:                  28.01  (closings needed divided by close ratio)
Divided by 12 months:                         2.33 additional new open orders monthly (over previous month’s)
Divided by average cust volume:        1.5 order capacity for average Realtor
Number of new cust Monthly              1.55 or rounded up to 2

In order words, if you can develop a plan to add 2 new customers monthly (new customer is someone who is currently sending their business to another title agency) you will have 24 new customers in a year.  If each can do 1.5 transactions monthly on average then they will produce 432 additional open orders in a 12 month period of time.  At a 70% file close ratio then 302.4 of those files will actually close.  Multiplied by the average fee per file of $850 this will bring you to a total of $257,040.  This number is higher because we rounded the average number needed from 1.55 above to 2.  This allows for existing customer base attrition and market fluctuations.

Here is the bottom line:  If you will break it down to the basics by asking yourself “How many additional customers are needed each month” to hit the goal?  Not revenue or orders, but customers, then you are significantly more likely to accomplish your goal.

Now, I ask you…can you get two additional people each month to start doing business with you?  I am guessing you can!  If you struggle with accomplishing this goal of 2 new customers monthly, contact us at 209-589-9000.

Darryl Turner is the CEO of the Darryl Turner Corporation based in California.  DTC organizations specialize in the advancement of companies in any economy.  Darryl is also an international motivational, business, sales, management and leadership speaker delivering more than 200 live events annually.

You can follow Darryl on Twitter at www.Twitter.com/DarrylTurner.

For more information about Darryl Turner, visit www.DarrylTurner.com or call 209-589-9000

Process vs. Profit

-Darryl Turner

In today’s rapidly changing business environment People seem to think that all they have to do are certain steps and that the magic will just happen.

Perhaps along the way they have been sold on the concept that if you build it he will come. The problem of that is the only place I’ve ever seen that work is in a movie.

The reality is if you build it you will have just built it and then you get to sit there and just look at it. Zig Ziglar put it best one day when he said “you can have the best product in the world but if you can’t sell it, you still got it”.

So as you’re following steps of process in order to build your business never forget the most important element of all not what you’re doing but why you’re doing it.

It’s like making the perfect Thanksgiving dinner spending hours preparing it then putting it on the table. Imagine what it would be like if everybody just sat there and stared at the turkey and wondered why it has not yet jumped in their mouth. All the steps of the process of been completed they just have forgotten why they did what they did.

If you want more customers than make every step of the process contingent upon the reason or the motive that you’re doing the process in the first place. Remember busyness is the enemy of business. It’s not about activity but at the end of the day will be about results.

I don’t say this because I think that we should be so results driven that we don’t have any friends and we can’t smile about the work that we do in a day. I say this because too often I see people following steps of a process but not following all the way through to accomplish the goal that the whole process was originally designed to help them to accomplish.

Let’s take making sales calls for example. To just go out and make sales calls and follow an interview process and to take people to lunch are all steps of a process but they will not get you business or at least if they do they will not get you enough to make a difference.

In our research of interviewing tens of thousands of realtors we have discovered that the number one reason that they do not use a service provider such as a mortgage company, a title company or a home warranty company would simply be because that individual did not ask them for the business. They’re going to state that the people made sales calls on them, they visited they, dropped off desk calendars, they even offered to take him to lunch but they did not ask for any business.

When discussing this with people within the industry we ask them the question of why they did not ask for the business and their answer most often is “they know why I’m there”!

Well I have to tell you that I love this answer because it brings up another question and the question comes from me. I look at salesperson in the eye and say “they may know why you’re there but it appears as maybe you have forgotten…am I accurate”?

So when asking the question “what’s more important process or profit?”, the answer to that question is simply one word, yes.

In other words they’re both important and the one that becomes the most important today is the one that you might be weakest at implementing. If you’re great at process but not closing the deals then profit becomes more important.

If you’re great at remembering why you are there and always asking for an order but not following a process, then that makes you pushy and focusing on process or comfort level of your prospect becomes most important.

At the end of the day the answer is very clear, be balanced.

So what’s more important process or profit?  Well, go back to the part about  Thanksgiving and ask yourself this; “if you’re hungry what must you do”?!

You can do this!

Darryl Turner

www.darrylturner.com

“Process Vs. Profit”

To CFPB or not to CFPB.  

That isn’t the question!

Now that Y2K is behind us and the 2010 HUD is a term you likely haven’t heard in a few years, it is business as usual…?!

Oops, now we have our new Y2K.  We have the CFPB.  Is it real?  Do we need to act and act properly?  Does this apply to me?  Am I at risk if I am not ready?

The answer to all the above questions is an overwhelming, YES!  But, how about these questions;  Will it one day be behind us?  Or this one; Should I keep building my business while dealing with our modern day Y2K?

Again, I say YES!!!!

Lets face it, we are more of a reactive industry than a proactive one.  That means we tend to put out fires instead of preventing them.  It hasn’t been too far in the past that someone would have been heard saying, “we have an order count problem this month”!  The scary news is that it will certainly happen again.  We will hear that again and even sooner for some that do not heed the advice in this video and article.  That advice is:  KEEP BUILDING YOUR BUSINESS!

Nobody has ever had an order count problem.  Order count is a result of customers and their activity.  So lets face it, anytime someone feels that they have an order count problem they are not actually seeing the problem, but the results of the problem.  Low customer count or customers not doing well in their business is the actual problem that must be solved.  The solution?  MORE CUSTOMERS!

So, we do need to take CFPB serious.  We do need to comply and do everything we are supposed to do.  However, if you don’t want to feel like, one day soon, you have an order count problem while your competition doesn’t appear to, then keep in mind that one day relatively soon, you are going to need your customers and you are going to need to have been building your business and company while all this was going on.  Don’t be caught up in the mono-vision business focus so much that you have literally stopped what even brought you this far, BUSINESS!  

COMPLY with requirements, FIND new customers and revenue daily, PLAN for a time beyond today and BELIEVE that this too shall pass!

To CFPB or not to CFPB, that isn’t the question!  

You can do this!

-Darryl Turner

How to Hire People That Will Help Your Company Grow / How to Hire the Right People

Darryl Turner

 

Hiring is a dilemma that every business, especially small businesses face. With employee turnover rates as high as ever, it is important to hire the proper people. Today I am going to be discussing how to hire people that will help your company grow.

The most important trick to this is being honest with yourself. What do you struggle with most? If you do not understand marketing as much as you should, you should be looking for marketing people, if you are not good at responding to phone calls, you should hire a receptionist. This answer may seem obvious but “How to hire the right people” is a far more complicated question.

Employee turnover rates seem to have increased drastically with each generation. The #1 and #2 reasons for employee turnover are management and dissatisfaction with the job at hand. Assuming you are a great manager, we have to discuss reason #2. Make your interview around the job position. It is important to create an interview that will not only tell you about the person’s experience and sensibility, but will help you understand the type of person that they are.

Ask questions that will help you know whether the new hire is somebody who is detail oriented and prefers routine or somebody who likes to think big picture and constantly wants something new to work on. Hire that person accordingly.

Sometimes I will literally ask, “are you more detail-oriented or a bigger picture type of person?”. If I am hiring for a receptionist position, I want to hear detail-oriented. A bigger picture mentality gets bored very quickly with a position as repetitive as a receptionist. It is a very important position, but you need somebody who is comfortable with routine.

If you are in an industry that involves sales, Darryl Turner Corporation can help you take your business to the next level. We provide high-level coaching on business concepts and bottom line analysis for owners. We also provide world class sales training and accountability to your sales reps.

 

How to Hire people that will Help Your Company Grow (part 2)

Know what you need help with.

I’m not perfect and neither are you!

With everything that gets thrown on us in business and our personal lives, the quest for perfection seems to occupy our mind way too often.

No matter how hard we try, we will never be perfect however we can always perform at a higher level.

What we always need to remember is the difference between perfection and excellence. The difference is simple; one of them is possible.

So as setting expectations go, be careful how you set them. As much as you would like you and your staff to be perfect the answer is to strive for excellence. The difference again, is that only one is possible.

When we strive for perfection the only outcome is constant and uninterrupted disappointment. When we strive for excellence we can always decide to do things without compromise.

A lot has changed in our business over the last 10 years, that’s why excellence is our goal and perfection is something we shouldn’t think so much about.

This week if you think about all of your goals and all of your objectives, be very careful to be fair with yourself and your staff and continue to strive for excellence or to operate without compromise and do not focus on being perfect.

You can do this.

Darryl

 

BUSINESS OWNERS: make sure to visit https://www.darrylturner.com/coaching/ to learn more about our sales training program. We have helped our clients earn over $400M in revenues. Make sure to fill out the form above to receive more great posts like

How to Hire People That Will Help Your Company Grow, How to Handle Distressed Employees, How to 3x your sales amount, and more. 

How To Find Success in the Real Estate Title Industry

By Darryl Turner

Most people in the world today define success based on what someone has or what they’ve accomplished. I’m here to tell you that I don’t believe success has anything to do with what anyone has and I don’t believe it has anything to do with what anyone has accomplished. I am a firm believer that success has everything to do with what we have overcome in life.

There are opportunities that come at us every day and there are obstacles that come at us every day as well. Success is determined by the obstacles that we can overcome, not just simply the opportunities that we can grab ahold of.

If you’re listening to this right now and watching this video it is because you have overcome market conditions. These are the same market conditions that other people were not able to overcome. This doesn’t necessarily make us special, it just means that the market isn’t what puts people out of business, and the market isn’t the determining factor of whether or not we are successful.

The people that were in this business in the mid to late two-thousands are some of the same people who are gone today stating the market put them out of business.

The truth is the market never put anyone out of business because you were in that same market and you are still in this business. So it’s not about market or economic conditions, it’s about the unwillingness to change fast enough.

One of the only ways to overcome anything is to change. When we change, we modify our future and we modify our destiny. Since success isn’t what we achieve it will be based on what we overcome, and success comes from a willingness to change.

As you look at your business and move forward, consider all the things that need to be different. Make a list of those things and begin checking them off one by one, not because you got tired of looking at the list but because you made what needed to be different, different.

The future is bright but we have to be willing to make changes. You’re watching this video today because you are ahead of those who decided not to change in the last decade.

You can do this by continuing to grow, by continuing to be successful and by continuing to overcome the obstacles that come your way.

-Darryl Turner

 

The #1 best way to find success in the industry is to have the right coach. Somebody who not only guides you down the path of success in the industry, but a coach that holds you and your employees accountable. Fill out this quick form to inquire about a free 1-on-1 coaching session with Darryl Turner himself.

 

 

Learn more about how to find success in the real estate title industry by visiting our site and getting a free coaching session here: https://www.darrylturner.com

Don’t forget to follow our social medias for inspiration, quotes, and updates on what is going on in my life: http://www.twitter.com/darrylturner

“How to find success in the real estate title industry”

 

 

 

 

 

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