If you missed the third part of this series you can access it here - How To Succeed In Real Estate Issue # 3.
If you are interested in what it takes to succeed in real estate, then you may enjoy the humor (and reality) of this series…
The fourth way to succeed in real estate is to…track all of your expenses and calculate the return on investment for each. As a Realtor, you often receive calls / emails with someone trying to sell you leads, websites, CRMs, systems, scripts, and more.
When you think about it, what is your largest expense? Really think about it… What is your largest expense?
Did your broker come to mind? For most agents I talk to, the broker doesn't come to mind. According to Inman News, the most common commission plan is 70/30. That means one third of your income is paid to the broker. This it typically double the cost of car payments, gas, and marketing fees combined! What do you receive for 30% of your income?
It may be acceptable to pay your broker 30% or more of your commission but you should calculate the return on investment. How much money did you make because of the affiliation with the brokerage firm?
If you are paying your broker more than you are benefiting you should re-examine your relationship.
P. S. If you are paying your broker more than $3,900 a year, send me a message to learn about a business model that puts more money in your pocket. Visit www.KeyRealtyOhio.com to learn more.