Productivity & Profitability not the same thing

By
Real Estate Agent with Keller Williams

I just returned from an intense two day clinic that focused on the leadership council agents in my office.  It was exciting to devote time to the development and support of their real estate business, since they give so generously of their time & talents for the good of the entire office.  One of the best discussions centered around the fact that Realtors are frequently guilty of viewing Productivity and Profitability as the same thing, and that simply isn't true.  Keller Williams has an incredible agent economic model and budget tool that help agents determine their own profitability based on their own gross commission income and expenses.  It even offers a typical chart of accounts with recommended percentages for each expense category!  The tools offered for running a financially sound business of your own at Keller Williams are incredible.  The make it so easy to be in business FOR yourself but not BY yourself!  If you're an agent struggling to determine if you are actually making any money, then I'd love to show you how to use these practical tools - no obligation to be a Keller Williams agent, just a chance to review your business with the best tools available! 

Comments (3)

Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

We have made some adjustments to become more profitable its looking really good for 2009.

Feb 12, 2009 10:35 PM
Sonja Babic
Sonja Babic/PRIME Realty NC, LLC - New Bern, NC
New Bern NC, PRIME Realty NC, LLC

I think we all had that lesson last year and this year is shaping up to be much better in part becausethe adjustments. In business as well as in personal finances.

Feb 12, 2009 11:32 PM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Hi Anne, tools such as spreadsheets with the formulas embedded in the cells for expenses readily show whether we are running the business at a profit or not. Adjustments can be made for targeted percent for marketing and other expenses. Without metrics, and agent is flying in the dark as far as profitablity or not. Great thoughts as always.

Feb 12, 2009 11:38 PM