Nathan Barry argues that a 70% close rate signals underpricing or poor customer qualification. A lower rate around 20% is healthier because it means you're attracting the right fit and creating advocates instead of settling for mismatched customers.
Close more than 50%, you're doing something wrong. Not good.
If you were to ask someone, what's your ideal close rate? They'd be like, I mean, 100%.
Yeah.
And you're like, no.
Someone at the event that we were just at was like, my close rate is 70%. I said, uh-oh. And they looked at me very confused. I'm like, wait, wait, wait, wait, wait.
What do you want your close rate to be?
I want it to be like 20%. At this point, if someone's not a fit, they have that positive experience, it's actually better. So I'm okay with 20%. That still covers all the costs and then some.
If it were to creep up to 35%, you would say we're undercharging?
Raise the prices. At this point, it's great to have that other 80% becoming advocates.
Make sure they have a great experience, you can leave them with other resources that you could say, hey, it's not the right fit, take our course, implement all of that, and if at any point in the future you need help, we'd love to help you.
