The Economic Model is from The Millionaire Real Estate Agent. I like to think of it as business math. You start with your goal of closings or income and you work backwards based on your conversion rates to end up with the number of appointments you need.

It is a simple formula for you to know a few things...

1- How many appointments you need to go on to hit your goal.

2- What your conversion rates need to be (appointment to agreement, agreement to closing)

3- What your average GCI should be to hit your goals.

With my Economic Model Calculator, you can look at it from 4 points of view:

Solo Agent Economic Model

This is the simplest version. It shows what you need to do if you are not on a team and you don't have anyone that is selling for you. It will show you how many appointments you need to go on so you can focus on generating that many appointments for yourself.

Team Economic Model

Similar to the Solo Agent Economic Model, this will show you how many appointments are needed from your team. The big difference here is there is an added section so you know how many agents should be on your team so you can hit your goals.

Team Agent Economic Model

You can see the economic model for an agent on a team. You use most of the same numbers, but there is an added split with the team. This will break the numbers down if you are on a team or have agents on your team.

Database Economic Model

This is something that I like to do to make sure I have the amount of people I need in my database to hit my goals. It takes the conversion rate from database to close (aka how many people do you need in your database to have 1 closing). Start with what you know and let it tell you if you need to focus on upping the number of people in your database (increase lead generation) or the conversion ratio (increase your touches and follow-up).