All posts by Paul Salley

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What is the Lifetime Value of a Lead – provided by Real Trends.

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Calculate the lifetime value of your client. As a real estate sales professional, you likely get paid by commission. This commission is the culmination of hard work, marketing your services, securing your client, promoting the property and negotiating the sale. So it stands to reason that you would put a value on that client equal to the commission you earned on the transaction, right? Wrong. Your client is worth more to you than that. The value of that client shouldn’t be based on one transaction; it should be based on the relationship you have going forward, over its lifetime. According to the REAL Trends 2016-17 Online Performance Study, the Lifetime Value of a Real Estate Client (LTV) is a real, calculable figure that takes into consideration several factors: Age of client Average years in a home Repeat business Referrals Adwerx built a free calculator to figure this out. Try it: http://www.adwerx.com/ltv_calculator LTV is the total inflow of cash resulting from your relationship with a client over the entirety of that relationship, not just a single transaction. So, the investment you were prepared to make in one client just changed. And here’s the catch: this calculation can make or break your…

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