The Bottom Line - Is It All It Should Be?

I find it unfortunate in the real estate industry how many agents don’t take a look at their business as a business. Maybe it’s because most agents come to the industry from previous jobs where they never had to “run” the business therefore they continue to work as if they are employed, i.e treat it as a job and not a business.

In order to be successful as a real estate agent it takes more then just selling homes. Many agents are very successful at doing that. Some agents and team leaders have created a huge business generating many sales and receive numerous awards for their achievements. I see postings in Linkedin all the time of agents receiving awards for being the top producer in their brokerage. Nobel achievement no doubt, however, having a high number in volume doesn’t always reflect a good bottom line.

We must always be conscious of the fact that we are in business and as business people we need to always be conscious and working on a good bottom line. With that said, I would hope that every agent takes a good look at their business on a regular basis and makes decisions that creates a larger and more profitable bottom line.

NAR tells us that a brokerage only clears about 3.8%, meaning once all is said and done, all the bills are paid, expenses are accounted for and reconciled, the final number is 3.8% of the total volume. That’s the profit or bottom line and a very poor one I might add. I haven’t seen an article from NAR of how that looks for teams. I’d say it’s probably pretty close. For an independent agent it’s probably even worse whereas agents are terrible with tracking their numbers. Most have no idea if their business is profitable or not. The agent gets a good commission, creates cash flow, however, if you never take into consideration all the expenses it took to generate the business you may be a little disappointed.

So I pose this question to you . If there was a way to put an additional 15-20% on your bottom line without doing anything different then what you are doing now would that interest you? Meaning no additional advertising, keep doing what you are doing now, no more or less admin expenses, Those that do take the time to watch the numbers - how would that increase in profits change your business? How much can it affect your life style?

I’m not going to go into the details here. This article is simply to open your eyes to the fact that where you are right now in your business may not be the best for your bottom line. I’d appreciate the opportunity to help you improve that bottom line and thus put more in money in your pocket. Just drop me a message and let’s see if I can help you out.