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How quickly should you get sales in geographic farming?

Expectations

Assuming a farm with at least 700 or more addresses, an average 5% sales each year, and no dominant agent, here are the expectations you should generally have (note:  if your farm is smaller or your turnover rate is lower, adjust the following expectations proportionately):

If you are targeting a high trusting community:  expect your farm to cash flow in the first 6 months and start harvesting a profit in the second 6 months.

If you are targeting a low trusting community:  expect your farm to cash flow in the second 6 months and start harvesting a profit in the third 6 months.

Once you start harvesting a profit, expect the harvest to increase every 6 months until you reach about 30% market share of all sales in your farm.

How do you determine the trust level of your farm?

The trust level of your farm is the degree to which they trust you enough to respond to you.  We’ve found a fairly accurate way to measure it is by looking at the click-through rate (CTR) — the number of QR codes being scanned — when we mail direct response cards to identify sellers.

If the CTR is around 0.5% (3 to 4 prospects when mailing 700 postcards) or higher, it typically means your farm is a high trusting community.  If the CTR is less than 0.5%, it typically means your farm is a low trusting community.

If you have a high trusting community (and you let us know) we typically will increase the frequency of the direct response cards in your first year to help you harvest more sales early on.  However, if you have a low trusting community (and you let us know), since sellers typically don’t respond to the direct response cards as much, we will usually increase the frequency of the other postcards that show off your expertise to build up their trust in you.  Then, as your farm gradually shifts into a high trusting community we can increase the frequency of direct response cards to harvest a few more sales.

First year vs subsequent years

For high trusting communities, many of the early-on sales will likely come through the direct response cards.  However, starting around the second year and once your farming community perceives you as an expert, we typically see agents getting the majority of sales from sellers calling them directly rather than from scanning the QR codes.