Key point — Track three ratios (ROI, lead-to-contract, contract-to-deal) monthly to identify conversion gaps and allocate marketing spend accurately. If you cannot calculate these, you are flying blind.
The pipeline stages
| Prospects | Properties from your 8020REI list |
| Leads | Owners who respond and show interest |
| Contracts | Signed purchase agreements |
| Deals | Closed transactions (assigned, flipped, or held) |
ROI
Formula: ((Revenue - Cost) / Cost) x 100
Example: $2,000 marketing spend, $12,000 deal revenue = 500% ROI (5x return).
Lead-to-contract ratio
Formula: (Contracts / Leads) x 100
10 leads, 2 contracts = 20%. This measures your acquisition skill — how well you convert interest into signed agreements.
Contract-to-deal ratio
Formula: (Deals / Contracts) x 100
5 contracts, 2 deals = 40%. This measures your closing ability — how many contracts actually produce revenue.
Review cadence
- Monthly — adjust active campaigns, reallocate spend
- Quarterly — identify trends, plan expansion, review with your CSM
Need help setting this up?
Your CSM can help you build a tracking system tailored to your business and review the numbers with you each quarter.
