How to calculate time cost per seller call

Defining the scope of "per seller call"

When calculating the time cost per seller call, you are looking at the total time investment associated with engaging a single seller on the phone. This is more than just the duration of the actual conversation.

It includes all direct and indirect time spent to initiate, conduct, and follow up on that call. The goal is to get a realistic picture of your effort per interaction.

For example, if you made 20 calls to 20 different sellers in an hour and spoke to 5 of them, your average call time should factor in the full hour against those 5 conversations.

Tracking your actual call time

Start by consistently tracking the direct time you spend on calls. Use a dialer that logs call durations automatically, or manually track it if you are calling directly.

Record not just connected calls, but also time spent dialing, listening to voicemails, and waiting for connections. This is all part of the direct call effort.

Do this for a defined period, such as a week or a month, to get a good sample size. Consistency is key for accurate data.

Factoring in follow-up and prep time

The work does not end when the call does. Include time spent preparing for calls, such as reviewing lead details or property information before dialing. You might also pull comps or research property history.

Crucially, factor in follow-up time. This includes making notes in your CRM, scheduling next steps, sending follow-up texts or emails, and reviewing call recordings.

Even a quick 5-minute call might require 10-15 minutes of prep and follow-up. This indirect time adds up quickly and must be accounted for.

Including administrative overhead

Consider the administrative time associated with managing your leads that eventually lead to calls. This can include importing leads, cleaning data, or setting up your dialer queue.

While it is harder to directly attribute to a single call, you can allocate a portion of your weekly or monthly admin time to your overall call volume. Suppose you spend 4 hours a week on general lead admin, and make 100 calls.

This means about 2.4 minutes of admin time per call (4 hours * 60 minutes / 100 calls). This helps capture a more holistic view of the effort.

Using this number to refine your strategy

Once you have a calculated time cost per seller call, you can use it to identify inefficiencies. Is your prep time too long for the value you are getting from calls?

You might find that leads from a particular source require significantly more time per call to qualify, suggesting a lower quality or different approach is needed.

This metric helps you prioritize your efforts. If some leads consistently yield longer, more productive calls, you can allocate more time and resources to those types of leads.

This is not financial advice; consult with professionals for your specific situation.

Hypothetical example for clarity

Suppose over a week, you spent 10 hours on direct calls (dialing, talking). You also spent 5 hours on call prep and 5 hours on follow-up notes and scheduling. That is a total of 20 hours.

During that week, you spoke to 100 unique sellers. Your time cost per seller call would be 12 minutes (20 hours * 60 minutes / 100 sellers).

If you estimate your time is worth a hypothetical $50 per hour, then each seller conversation costs you $10 (12 minutes / 60 minutes * $50/hour). This gives you a clear number to work with.