Calculating For Sales Success

In sales, it’s important to understand how much effort you need to put in to achieve your income goals.

One way to do this is by understanding the conversion rates for each step in your sales process.

For example, if you know how many emails it takes to get an interview, how many interviews it takes to close a sale, and how much revenue each sale generates, you can start to predict your future income based on the amount of activity you put in.

Calculating for sales success

Let's take a look at some hypothetical sales numbers to illustrate this concept:

  • 20 emails convert to 1 interview, or 13 phone calls convert to 1 interview
  • 5 interviews convert to 1 close
  • 1 close generates $350 in revenue

Using these numbers, we can calculate how many emails, phone calls, interviews, and closes are needed to generate a specific amount of revenue. Here are some examples:

  • For example, to earn $55,000 in revenue in a year, you would need to close 157 sales. To close 157 sales, you would need to conduct 785 interviews (157 x 5), which means you would need to have 15,700 emails sent out (785 x 20), or 10,201 phone calls (785 x 13).
  • If you want to focus on increasing the number of phone calls you make, you could aim to make 30 calls a day. This would result in 2.3 interviews per day (30/13), and if you close 20% of those interviews, you would close 1 sale every 12 days (5 interviews / 20% = 1 sale, 12 days per sale). To earn $55,000 in revenue, you would need to close approximately 140 sales per year (55,000 / 350), which means you would need to make 690 phone calls per sale (140 sales x 5 interviews x 13 phone calls).

By understanding the conversion rates for each step in your sales process, you can start to set realistic goals for yourself and adjust your activity levels accordingly.

Whether you choose to focus on increasing the number of emails you send, the number of phone calls you make, or the number of interviews you conduct, it’s important to have a clear understanding of how each step contributes to your overall revenue goals.


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