A few years ago, I couldn’t figure out why my sales were up and down like a rollercoaster. It was only when I learned an important ratio that everything became clear. And the ratio is this – 20:5:1
It means that for every 20 prospects, five will lead to a presentation and, of those 5, I will get one sale.
This is an average and backed up by consistent research. And it is much more than a set of numbers!
You see, when I landed that one sale, I thought I still had 19 prospective clients. But of course I didn’t – not if it takes 5 to get a sale.
I actually only had 15 prospects left because invariably 4 other prospects would fall off with every sale made.
In sales, we get into an up and down income pattern when we miscalculate the number of prospects we truly have or when we don’t consistently refill our prospect base properly after making a sale.
Action – Now, your figures may vary slightly. Perhaps it is 18:3:1 or 25:7:1. It doesn’t matter. But it is important to know your own ratio so that every time you do sell your product or service, you know how many prospects you’ll need to bring in to keep your sales AND your paycheck from going up and down like a rollercoaster!