Realtor friends, many of you are setting or have already set your business goals for the year, typically revolving around the number of clients you’ll serve or number of homes you’ll sell. That’s great! And yet while the number of closings you have will ultimately determine your income for the year, there is a more important metric to focus on than closings: appointments kept.

Rethinking Goal Metrics: Appointments Over Closings

The common sales target for Realtors is the number of homes sold. This is known as a lag indicator. Closings are a result of numerous activities and efforts put in over time. Said another way, closings are not directly within your immediate control. But what we can control are the lead activities that lead to closings.

Lead Indicator #1: The Power of Appointments

In real estate, your income is found in the number of appointments you keep. These are your “lead indicators,” the first dominoes in a chain that leads to a closing. For a deep dive into lead vs lag indicators, check out this Lockbox lead vs. lag indicators blog post.) Booking appointments is where the magic happens. This is where you initiate the process that culminates in successful transactions. As you set your 2024 goals, shift your focus to how many appointments you plan to keep, rather than how many closings you aim to achieve.

The Magic Ratio for Success

Here’s a practical guide: for every closing you want to accomplish, aim for setting between two and three appointments. This ratio is a reliable indicator of your potential success. If your target is to sell 20 homes in the coming year, you should be looking at scheduling at least 40, probably closer to 60 appointments for the year. Essentially, this breaks down to securing at least one appointment every week with someone new who is interested in buying, selling, or investing in real estate.

For more seasoned, experienced agents, that ratio will be better. But the fact remains that we must go on more appointments than the number of homes we want to sell.

Focusing on this approach sets you up for success in hitting your annual sales goal. This is a more actionable and controllable strategy, as opposed to aiming for a certain number of sales, which is the end result of various factors, many of which might be beyond your immediate influence.

Refocusing 2024 Goals

As we kick off 2024, let’s shift our mindset from the number of homes we aim to close to the number of appointments we need to book (and keep!) to reach our goals. This approach is not just about meeting numbers; it’s about building relationships, understanding client needs, and creating opportunities for successful transactions.

Remember, every appointment you set is a step toward a future closing. It’s about laying the groundwork for success, one meeting and one relationship at a time.