Cost per closed deal

[Philip Klinck]

Not including your referrals. Just your marketing. How much does each deal cost you to get in total.

Example: If you do 10,000 mailers a month consistently and close 2 deals a month as a direct result of the mailers. Then you just divide the cost of the mailers by the deals you got.

[Dev Horn]

You're asking about AGENTS, and we work with many investors who are also agents or brokers. They can either "buy" or "list" properties that come to them as leads.

Motivated sellers leads convert at about 1 in 20 (5%) for investors (deals done) but as many as 6 out of 20 (30%) can be listed.

If you're doing direct mail, use these cost benchmarks:
- Mailing list - 8 to 17 cents per record (depends on source)
- Postcards - 35 to 55 cents each
- Letters - 80 cents to $1.10 each

Your last assumption is profit per deal (for investors). If you are a wholesaler it may be $2K to $5K; as a rehabber it might be $10K to $20K. Buy and hold is a whole different thing/calculation of course. And I'm not sure about average profit from a listing (for an agent) - maybe someone will share a good number for that....