# Mathematics Of A Mortgage Broker’s Newsletter: 350 List, 60 Transactions

I’m going to use myself as the example.  Numbers are based from:

1. 350 people who open my newsletter
2. Monthly Newsletter Editions 18 to 30 (2014)
3. I’m a Mortgage Broker

DIRECT CLOSES FROM 350 PERSON DATABASE

Over time, 350 people on average are opening up my newsletter on a regular basis.

Basic math would say,  if I close 1 client from an individual newsletter, my closing ratio would be: 1 / 350  or .29%.

A .29% closing ratio would be considered horrendously bad in the mortgage business.  The good news is the math we are using is also horrendously wrong.

We forgot too factor in the life cycle of the product we are selling.

As a mortgage broker, I know the average person will deal with their mortgage every 3.5 years or 42 months.

This implies, that 350 People / 42 Month Mortgage Need = 8.3  People are dealing with their mortgage in any given month.  For rounding let’s use 8 people.

So, if I sent out my newsletter and I get 1 client from it, my real closing ratio is 1/8 or 12.5%.

If I close 2/8, it’s 25%
If I close 3/8, it’s 37.5%.
If I close 4/8, it’s 50%
etc.

These ratios are not bad.  They are actually awesome.  Once you realize how much closeable business is in your list each month, you can then properly gauge the success of your newsletter and predict what you can expect in the future.

Key Point:  From 350 people who open my newsletter, 8 of them are dealing with their mortgage this month.  Next month there will be another 8.  After that, another 8 and so on.

REFERRAL CLOSES FROM 350 PERSON DATABASE + DATABASE GROWTH

Let’s not forget referrals.  I have 350 people that I’m top of mind with.  On average, each month, I get 10 referrals from my database.

From those 10 referrals:

1. I will close 20% on average or close 2 mortgages
2. Add 10 new people to my database.

Key Point: I get 10 referrals a month from a 350 person database. Next month I will get another 10 referrals.  After that another 10 referrals and so on.  My database grows organically or by itself :).

WHAT MY OVERALL 2014 MORTGAGE BUSINESS LOOKED LIKE

Overall, my Mortgage Business has evolved into these 2 questions:

1. What percentage of mortgages from my readers will I close this month?

2. What percentage of mortgages from referrals from my readers will I close this month?

For the year 2014, the break down for me looked like:

3 Deals/Month direct from newsletter +
= 5 transactions per month x 12 months
= 60 Transactions

I did 60 transactions in 2014 from a database of 350 people.

The awesome part is my numbers will only get better:
1. Closing direct  readers will only get higher
2. More referrals will only get higher
3. Database will only get larger

2000 TO 2015

What would of happened if I applied this when I started my sales career in 2000.    From  2000 to 2012 I met at least 120 to 150 people each year.  My database today would be at least 1500 +.

Let’s remember, not just a database of 1500 people, but 1500 people who like me, trust me and have gotten to know me over 15 years through my newsletter.

A 1500 person database like that, has around 35 mortgage closes occurring each month.  That’s a million dollar a year mortgage business.