We have to determine what our goal is when we are in BNI? What is the sales or revenue target that we are expecting to achieve when we join BNI. It is important to get the intended result fixed in order for us to know how we can decide on the steps and procedures to achieve the result that we want.
Before setting a goal of how much we need to achieve through BNI, we will have to work from our target collection of our business. Surely, every business will have its target collection, being the targeted sales or revenue for every year. Just like our BNI yearly membership, we will need to fix our yearly target of our intended result to be achieved during our tenure of membership. To know how many percent % of the total targeted collection will be the amount of revenue or sales that we would like to achieve through BNI.
We will look into this aspect by making assumptions.
Assuming that our yearly collection of our business is RM2,000,000 per year, and we are expecting to achieve 30% of our overall sales through BNI. That is to say, we are looking to achieve RM600,000.00 per year in BNI.
Next, we have to be aware of the types of referral we have or received in BNI. We have to identify the average amount of the sales transaction that we received. If our average transaction is RM20,000.00, we will need to have 30 transactions in a year to achieve the targeted collection of RM600,000.00.
However, we have to estimate the conversion rate of the referrals that we will receive. How many referrals will successfully convert to our business. What is the success rate? Assuming the conversion rate is 50%, we will only have 1 business out of 2 referrals. Based on this estimation, we may need at least 60 referrals per year in order to match with the 50% conversion rate.
Since we have at least 50 weekly meetings per year, we will need at least 2 referrals per week to reach 60 referrals per year.
If we will only get 2 referrals per week after we have done 8 one-to-one sessions with our members, we will need to do 400 one-to-one sessions per year to achieve the outcome that we are looking forward to!!
To simplify the above as follows:
Sales Target for Overall business per year - RM2 million
If average transaction per referrals is RM20,000
30% out of overall sales to achieve in BNI - RM600,000
Number of transaction/referrals will be 30 per year to achieve RM600000
If the conversion rate is 50%, we need to have at least 60 transactions/referrals
Number of referrals per week will be at least 2 (after rounding up 1.2 from 60 divided by 50 weeks)
Number of one-to-one will be 8 if we will only get 2 referrals after we have done 8 one-to-one.
In short, for the entire year, we need to have 400 one-to-one sessions to achieve our ideal result.
Of course, the abovementioned calculation is merely a prediction, and it may not be the exact case for everyone. It is not a form of guarantee, but it merely serves as a guideline in order for us to predict and forecast the amount of effort (i.e. one-to-one session) that we need to do within a year during the tenure of our members.
Being in BNI is about farming and not about hunting for business.
Trust always takes time.
Always remember to sell THROUGH the room, NOT sell IN the room.
JJ Phang is currently the Executive Director of Melaka Region.
JJ Phang formally served as President (02), Network Education Coordinator (01), Mentor Coordinator (01), Membership Committee (02) and Event Coordinator (04) of BNI Smart Biz, Hall of Fame Chapter. JJ Phang was also the Director Consultant of BNI Extreme Chapter, Melaka Region.
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