NSLI measures revenue per lead, but how you count leads matters. The speaker shows how four different definitions of an issued lead can make the same $400,000 in sales look dramatically better or worse. Only counting every lead handed to a rep reflects what the owner actually paid for it.
What is your NSLI? It's your net sale per lead issued. In real quick layman's terms, your NSLI is the amount of money your sales rep brings back every time they go run an appointment. The higher the NSLI, the more money is coming in from that sales rep. The lower the NSLI, the more they're costing you money. So We're going to talk about $400,000 net sales, right? So getting rid of cancellations, bank declines, all of that. And we're going to divide that by 100 issued leads. Okay. And that gives you a net sale per lead issued of $4,000. Okay. However, our Tower of Babel here is how do you define an issued lead? We're going to go through some examples. We're going to define an issued lead in this case as any lead that you give to a sales rep. So you get $400,000 in net sales. You ran 100 leads, gave 100 leads to salespeople. You have a $4,000 NSLI. Let's say that 10% of the time the rep didn't go to the house. You gave them the appointment, they didn't go for whatever reason. Could be a perfectly good reason. Some companies will take that off of their NSLI calculation. So we take 10% off of 100, we get 90. Thank you. We still only sold $400,000. Okay. But now we are calculating it with 90 appointments that the rep knocked on a door. So we get $4,444 and we're going to call this an NSDK, net sales per door knock. Looks better that way. Still only sold $400,000, but it's a better NSLI. But let's even dig down deeper, 'cause some companies will say, well, I don't count in my NSLI when the person's not home. That's not really the sales rep's fault. So we're gonna take another 10%, this time off of 90. So now we're at 81. Still only sold $400,000. Now we got a $4,938 net sale per parties present. But it looks good, right? We're going to go through a fourth scenario and we're going to say 10% of the time the rep didn't give a price for whatever reason. So now we're going to take 10% off of 81 and we're going to round this one up and we're going to do 73 appointments. Still only netted $400,000. But now we got a nice net sale per price given. Right? $54,087. All 4 companies in this case that track their NSLI differently, they all had the same return on investment in terms of $400,000, right? But yet all 4 companies track the NSLI differently. Now let me give you a scenario, okay? And that scenario is going to be you have 2 leads, 2 leads that came in from television. We're gonna say your cost per issued lead's $1,000 on that lead source. And you send, you have a 2:00 PM and a 6:00 PM, same lead source, same media lead, doesn't get hotter than an inbound television lead, right? The 2:00 PM, the rep goes, sells a $25,000 window job. Boom, money in the bank. The second lead, rep goes, knocks on the door, nobody's home. What's the price difference to you as an owner between those two leads? Not a darn thing. Okay. Does your P&L care if nobody was home? Nope. Sure doesn't. So why would you lie to yourself about it? So I— one of the things I want to challenge everybody here is when they— when you have somebody that's like, yeah, I have a $5,500 NSLI. My question is, how do you define an issued lead? An issued lead is any time you give it to a rep. Because that's what's in your P&L. Okay, that's the cost to you as an owner.
