I had the privilege last night of hearing Jeffrey Ma speak. He's the MIT grad who wrote the book "Bringing Down the House" which was turned into the movie "21." It's the tale of how the MIT team used statistics to win millions from casinos around the country. Don't quit your day job; the gig lasted several years but the casinos are advanced in catching card counters! Ma's message is that numbers can be used in your daily business life to win. As a one-percenter, you should know this. But just in case, let's review.
Say you want to earn $96,000 in 2010. That's $8000 per month or $2000 per week; $400 per day. Calculate your average order size. Say it's $5000 and you earn 10% commission. How many orders do you need to sell to meet your desired income? I hate math...but I like making money! You need to sell 4 orders a week. I know you're a one-percenter, but check your closing ratio. Let's hope it's at least 20%. So how many pitches do you have to make to achieve 4 wins? Simple: 20 actual proposals will get you there, or 5 per day. Can't be done? Now you're playing the numbers. What can you do? The answer: you need to either increase your order size or increase your closing ratio.
The bottom-line is ignoring the numbers won't get you there. Or just saying you want to make more money won't help you to achieve your goals. You have to figure out the data to translate into your success. Need help? Email me!
No comments:
Post a Comment