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July 23, 2014 at 12:00 AM
Yes, metrics are boring, but knowing your numbers is critical to achieving success.
Perhaps you want to increase your income by 25 percent—or 75.
In either case, there are certain questions you should be asking yourself:
- What is my average annual commission per client?
If you sell different products/services, you might ask:
- What is my average annual commission per client buying product/service A?
- What is my average annual commission per client buying product/service B?
Here’s an example: Mary sells widgets to both individuals and companies. Over the past 3 years she has sold to 300 individuals and 114 companies.
Her average commission for selling to an individual was $375, while her average commission from selling to a company was $1,050. Last year she earned $107,050.
Mary wants to increase her income by 22 percent (or $23,500) this year for a gross income of about $130,000. Because she knows her production/commission numbers, she knows exactly what she must do to reach her goal: sell to an additional 28 individuals and 12 companies.
