Every so often, it’s good to ask yourself one very key question. That would be “What am I doing to make my brokerage profitable?”
It’s very easy to get complacent and assume all is going well. Meanwhile, your brokerage could be making a nosedive to the bottom.
What’s more, “how is my brokerage doing?” is a complicated question to ask. It seems like there are so many factors at play that are affecting profitability. So how do you figure out how to make your brokerage profitable?
It may seem like a daunting task, but don’t worry. There are just four main areas you need to focus on. Pour your energy into these four areas, and you’re guaranteed to see your brokerage’s profits rise. That’s why I tell my clients to focus on the ARTS: Attract, Retain, Train and Systems. We’ll take a bigger look at them below. So read on and learn more about the four areas that will make your brokerage profitable.
-Attract The Right Agents
It seems like a bit of a no-brainer when you think about it. If you want to increase profitability, then you need the right agents.
Now, what’s “right” for your brokerage depends specifically on your brokerage. An agent might look ideal on paper. Does their personality mesh with your office chemistry? What’s right for your brokerage is up to you to decide.
Once you know what kind of agents your brokerage needs, focus on how to attract them. You’re going to want to focus on getting out and meeting agents you want. You’ll also need to focus on making your brokerage appealing to new talent. Whatever steps you take, make sure they’ll help you meet your goal. Once you’ve found the right agents, you have the foundation of a profitable brokerage.
-Retain The Right Agents
Finding the right agents is just the first step. You want to make sure you can retain them for the long haul. If you want the right agents to stick with you for good, you need to think like one of your clients. That is, you need to make your brokerage the most appealing option.
Think back to when you were a new agent. Ask yourself what you looked for before joining a brokerage. Then make sure your own brokerage meets those standards. Is your commission structure fair and competitive? Does your office have a top-notch support staff? Are you, as The Leader, ready and available for advice, guidance, and mentoring? The cycle of success of a brokerage is the brokerage supports YOU, YOU support the agents, the agents support the clientele, the fees from the clientele support the brokerage…
This is also a good time to take an honest look at your current agents. Are there any who bring poor energy to your team? I’m not only talking about agents with low productivity. There are real estate agents who can be abrasive and negative. If you have anyone like that at your brokerage, they can make your brokerage less appealing to other agents.
-Train To Raise Productivity
Productivity always leads to profitability. You, as the brokerage owner, can do a lot to influence your agents’ productivity.
It takes a lot more than sending your agents out in the field, then waiting for the results. You don’t want to wait until someone is underperforming to speak up. Use your meeting times to train your agents to use their time effectively. Yes, “work smarter, not harder” is an old cliche, but that’s because it’s true. You need to train your agents to raise productivity as a whole. (I suggest coaching your top 20% agents one-on-one and the lower 80% in group format)
Make sure your agents are hitting their weekly prospecting targets. Check how much time and money they’re spending on marketing themselves and their listings. Look for reasons why certain listings aren’t selling. Above all else, train your agents to make good use of their time. It’s your responsibility, as brokerage owner, to make sure your agents know how to work productively. This brings us to the fourth and final area of ARTS…
-Systems To Support Agents And Their Transactions
Have you put the right systems in place to support your agents? Not only your agents, but their transactions as well?
No man is an island, after all. If you think your profits have gone stagnant, take a look at your systems. It could be your agents aren’t getting the support they need to do their jobs. Agents should be able to list, sell, and process a transaction with as little friction as possible while maintaining proper compliance. If your brokerage isn’t supporting, then your profits will suffer.
Take an honest look at the systems you have in place now. Do you have an efficient transaction platform? Is it easy to use so agents can easily edit and upload documents? Can they obtain e-signatures on documents? Do you have simple, effective compliance monitoring? Do you have a pulse of the financials of your company? Do your agents’ commissions come through quickly? If your answer is “no” to any of those, it’s time to give your systems a revamp. When your agents can process transactions effectively, be more productive, and manage your expenses effectively the better your profits will be.
There you have it: the ARTS approach to building a profitable brokerage. Focus on these four areas and systemize them as much as possible to make your brokerage profitable.
“Well Bill”, you might be saying, “that’s great, but where do I take it from here?” Maybe you know your systems are broken, but you don’t know where to begin fixing them. Or you’re not sure how you can train your people to be more productive. You might not even be sure what kind of agent you’d like to attract.
Well, even the best brokerage owners need help from time to time. I’ve helped owners like you solve issues that were affecting their profitability. Using the four-pronged ARTS approach, I can build you a road map that will let you navigate through problems. Working together, we can make your brokerage as profitable as it can be.
So why wait any longer? If you want to make your brokerage more profitable, then give me, Bill Foss, a shout. Let’s identify your problems, and send your profits through the roof.
In case you can not view this video here, please click the link below to view Strategies to Make Your Real Estate Brokerage Profitable on my YouTube channel: https://youtu.be/pynfNfQKTUU