Numbers, Numbers, Numbers
OK now I get into the touchy stuff. Regardless how I do this I will upset a broker or two. Not the first, or necessarily the last time I do that. We can't talk numbers that effect our business unless we talk about how we are paid. Strange how we get paid does effect our business. I am going to attempt to cover this by being as neutral as possible - regardless the numbers are still essential to being successful in this business.
How do our business numbers get messed up? Lets look at a pitfall or two associated with different splits. The famous 100% commission (now more like 95/5) is great, I loved it, as long as the closings keep coming. Two things to keep in mind; 1. What is your actual net? That's your commission less franchise fees and monthly bill and personal expenses. If your net is less than a company with a split you have some thinking to do. Secondly, are you avoiding the indentured servant syndrome? After a bad month or two are you now indebted to a point you can't leave? Easy to get yourself in that position, very hard to get out. Just be careful, letting the bill slide may be just postponing the inevitable.
What about the big guys that are 70/30 or less. What can go wrong? you know the split so all should be pretty simple. Should be and is are not neccessarily the same. Are you paying major fees for referrals? How about monthly fees in addition to the split. Is there a franchise fee and how does that effect your bottom line? Are you 70/30 or are you actually 65.8/34.2? If you don't know, isn't it time you figured it out? Look at all the other incentives and promises made - are you getting what you pay for? If you are, fantastic that is the goal.
The last is the how cheap can I get, I know, they like to say inexpensive. How about this, when you cut your expenses to the bone, leave the Realtors and associate with less than marginal producers how do you think your income will be affected? History says most of these agents are once again delaying the inevitable. Enough said.
There are other combinations and permutations, but what counts is being aware of exactly what position you are in. I know agents that have been kidding themselves for years and they can never get the time back that has been wasted. I certainly can make suggestions, but the reality is it is your bottom line. Take your time, examine your numbers, if they are just what you thought fantastic, if not, you have some serious thinking to do. They are your numbers, it is your career, here is hoping your numbers are all positive.
If I have ruffled your feathers that is OK. If you take the time to run your numbers and things are great or not so great I have accomplished my goal. Hey, there are worse things than going around with ruffled feathers.
Here is to great numbers your entire career
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