Mark Evans DM breaks down a simple metric: divide your monthly marketing spend by deals closed to find cost per deal. If you spend $4,000 and close 2 deals, that's $2,000 per deal. Compare it to your average profit. If each deal nets $10,000, you keep $8,000 after marketing.
$4,000
2 deals/month
$2,000 per deal
$10,000 per deal
$8,000 per deal
Let's say if the guy or gal is doing two deals a month, my first question is always, how much are you investing in marketing every month? And they're like four grand. And how many deals a month are you doing? 2. So on average, based off of the raw data, that the average cost per deal is costing you $2,000. And then I'm under the assumption, because we would know this number, what's your average net profit? 10,000. So you're netting eight grand per deal. Perfect. So I spend four to make 20. That's a pretty good model. It's a pretty good, simple KPI to look at. That's the difference between thoughts and goals.
