You can look at your During Unit two ways:
At the most basic level, it should satisfy your CORE objective: to deliver the product or service you promised. If you’re a real estate agent, for example, your core objective is to sell the house you have listed. But why limit yourself and put a ceiling on the profits you could be making?
Yes, your During Unit’s job is to deliver whatever you do, but also… to identify all the opportunities for additional profit centers (to enhance and complement your core offering)… so you can stack them on top of your base transactions.
These are your STRATEGIC objectives.
And for a real estate agent, the strategic objectives are:
- To find the buyer for the house yourself,
- To find a buyer that buys a different house than the one you have listed,
- To get another listing in the same neighborhood, and…
- To get a referral from the seller.
But then, once you know what these opportunities are, The next thing you want to know is their impact on your overall revenue. And the metric that tells you that is the “listing multiplier index.” I developed it specifically for real estate (hence the name), but you can use it for any type of business just as easily.
Here’s how I calculate it:
First, I multiply the total number of opportunities we’ve identified (five in the example above) by 10. That’s our total score: 50. Next, I take the last 10 listings the agent has had… and calculate how many of the 5 opportunities for each listing he was actually able to accomplish.
Did he get the listing sold? Did he find the buyer? Did he find a buyer that bought another house? Got another listing? Got a referral? I’m looking for is… from a pool of 50 opportunities (10 listings x 5 opportunities each); how many points did he score?
Once we know the score, we divide it by 10… and that’s our multiplier index. Most real estate agents ended up with a score of 10 or 15. This means their listing multiplier index was only 1 or 1.5. That means is… every time they get a new listing, their current system yields 1.5x transactions at best.
But think about this:
Now you know exactly where your multiplier opportunities are. What’s more… you know exactly which ones have room for improvement, which ones you’re hitting successfully…. and… which ones you’re ignoring completely. Imagine you fine-tune your system to a point where… you start scoring the full 50 every time!
What do you think would happen then?
That’s right! The multiplier effect would kick in, and your revenue would skyrocket! Just think… for every new listing you add to your system, you end up with 5x transactions! That’s 5 times the money for the same amount of work.
Not too shabby, would you agree? 🙂
Over to you now…
Can you identify all the strategic opportunities hiding in YOUR During Unit
that could multiply your profits?
Let me know!