Phil Risher walks through a lead goal calculator to figure out how many leads you need to hit your revenue target. If you want to double revenue from $1M to $2M, you might need 52 more leads per month. The calculator shows how changing your close rate or deal size shrinks that gap.
If you're looking to grow your business and you're not sure what it's going to take to get you to the next level, in this video I'm going to break down how you can grow your business and what exactly the exact numbers is going to take for you to grow your business to whatever level that you want to do. So let's get right into this. Let me share my screen here. And this is a lead goal calculator. This is a template. I put the link down below. There's no gate or anything to put in your information. All you can do is just go here, make a copy or download it. Basically what this does is this what we do with our clients when we're going through and looking at some of their numbers and we're trying to come up with some forecasting of what we're going to shoot for targets in the coming year, coming months, that kind of stuff. So let's just look at this on a year over year basis. So you can go here, your current numbers, let's say your final revenue and you could do this for just a month. Let's say that you, let's say you did a million dollars in business and your average transaction value. There's a bunch of ways you can get this, but you could take your number of jobs and divide it by your total revenue. Or, or you could just break down. If you do a lot of jobs that are all the same price, you can put that in here. So your average transaction value, let's say is $1,500. Then it's going to do the math for you. It's going to divide these two together and say, okay, that's how many jobs that you are, that you completed annually. It's going to say how many jobs do you need to book per month? And so, or how many jobs that you did per month. And then it's going to tell you your average lead close ratio. And this is what you're going to put in here is if I gave you 10 leads, how many of those are you going to close? So this is saying 40%. And then it's going to tell you how many leads that you need in order to get to this number of jobs booked and this number of annual jobs completed. And so it's going to tell you the number of jobs that you need. And then it's going to, or the number of leads that you need and it's going to tell you the number of leads that you need per month. So why is this important for businesses A lot of times businesses look at this number, they may know this number, but a lot of them don't know how many jobs per month or how many jobs that they completed annually or even how many leads that they need. And so what this allows you to see is, okay, let me zoom all the way out and figure out how many leads do I need and then how can I generate more leads for my business? So there's a couple ways that you can manipulate these numbers, though. If you're looking to grow next year or next month or whatever, you can increase your average transaction value. So instead of doing $1,500 for your annual goals up here, maybe you increase it to $1,750. Well, then guess what? You don't need as many jobs to get to that point. You can also increase your closing percentage. So instead of doing 40%, you could do 60%. And then guess what, you don't need as many leads to make up for these numbers. So these are your current numbers. Let's put this back at 40%. Now, this is going to be your, your next year, whatever your goals are. So let's say you're doing 1 million and you want to do 2 million. Well, 2 million. All right, so you could go here and you could increase your average transaction value to 1750. Maybe you're going to be increasing your prices or adding more things. So then it's not just a clean double your number of jobs because it's your average transaction value is higher. And then you're going to need to see how many jobs you need to do for a month. Your average lead to close ratio, this is going to be 70%. Let's say you increase that. And now you can see, let's take this down a little bit, all right, from 40 to 50%, your leads. So this is going to tell you how many leads that you need per month. So in this model, you need 139 leads per month. In this model, you need 190 leads per month. And so if you take your leads per month, the difference of this is you need to increase your lead per month by 52. So if you're looking to grow your business, what you need to do next year, you need to increase your number of leads by 52 per month. So in January, you need 52 more leads, February, 52 more leads. And so as a marketing person, we're looking at how can we get more leads for your business? And that's what we talk about on this channel is like, how can we grow the business using digital marketing. And so there's a bunch of different ways. The first one is if you're not retargeting your customers, you're not doing email newsletters or offers to your past customers. Could you get 52 more leads by doing that? Potentially, depending on the size of your database, can you run more ads like Google Local Service ads or these pay per lead models like Yelp or Google Local Service Ads or Thumbtack or Angie to increase your leads that way? Can you actually track your leads on a monthly basis? Because maybe there is an opportunity where you're getting all these leads, but you're not actually keeping track of them and you're just losing out on leads. You're just calling them and they're not answering and then just move them over to the next thing. Can you track your number of jobs that you're booking? Maybe you're not keeping track of this number. And just by increasing, just by tracking the number of jobs that you're booking, you're actually increasing your booking rate. Because now you have a goal that you're shooting for to actually book. Instead of 56 jobs a month, now you're shooting to book 95 jobs per month. So now that everyone's on the same page, you're actually booking more jobs because you're converting better. Can you do search engine optimization? You know, there's a million things that you can do, but what this will allow you to do is to figure out what that number is, and then you can work backwards to figure out how you're going to do that. And it's very liberating to get to this point which says, okay, I want to grow my business from a million to 2 million. What do I need to do? I need to get 52 more leads or I need to increase this or I need to increase this. So if this is helpful, like I said, I'll put the link down below, you just click on it, you can download it or make a copy, and then you can start growing your business. If you're looking for other videos on how to generate more leads or grow your business, that's what we talk about on this channel. So be sure to like and subscribe and we'll see you in the next video.
