The Profitability Business Model

Posted by Angela Hoffmann on Feb 26, 2024 12:40:00 PM



Introducing the Profitability Business Model for Broker Owners


At The Profit Centre, we've developed the Profitability Business Model, a strategic method designed to empower broker owners in building highly profitable businesses. 



This model is a dynamic hierarchy of 9 levels where one builds upon the foundation set by the preceding one. It visually demonstrates the sequential process of building a business, that will ultimately guide you to the pinnacle of the model, and achieve the goal which is greater profitability!


The Challenge of Clarity

We often find that broker owners struggle with articulating their financial and operational mission and vision. This lack of clarity can lead to misguided strategies. 

The Profitability Business Model is a path we use to help brokers build a strong and profitable business.


1. Profitability Mindset

  • Understand your business from a holistic perspective.
  • Differentiate between being a salesperson and a businessperson.
  • Grasp the dual aspects of managing profit and the five purposes of a business.

2. Clarity of Your Numbers

  • Establish benchmarks and best practices for a new brokerage.
  • Cleanse and understand existing data for established offices.
  • Create a clear operating report, termed the "Adjustment Report."


3. Budgeting for Profit

  • Develop "The View of a Buyer" for objective financial analysis.
  • Introduce the concept of budgeting for profit, not just expenses.
  • Define profit expectations based on costs and revenue per agent.


4. Financial Mission and Vision

  • Move beyond conventional goals for agents and teams.
  • Learn to create a powerful financial mission and vision for motivation.


5. Alignment

  • Align compensation models and revenue streams with your financial mission.
  • Set clear minimum production standards for each plan to achieve goals.


6. Value Proposition

  • Articulate and quantify your value to distinguish from competitors.
  • Avoid competing solely on price by clearly defining your worth.


7. Strategies

  • Develop well-thought-out strategies in five core areas: Recruiting, Retention, Productivity, Management, and Financial.


8. Measure

  • Regularly review key performance indicators (KPIs) for gap identification.
  • Learn how to compare and analyze critical numbers.


9. Improve

  • Continuously refine strategies to achieve financial mission and vision.
  • Embrace a culture of constant improvement for sustained success.

Embark on this journey with us, and together, we'll pave the way to substantial business growth and profitability.


We have only scratched the surface when it comes to the Profitability Business Model. If you're interested in diving deeper and unlocking the full potential of your business, we offer a comprehensive training program called "The 9 Levels to Greater Profitability." Discover how this program can have a significant positive impact on the profitability of your business by clicking on this link for more information.



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Topics: Brokerage Profitability, Goal Setting, Success, Mindset, real estate broker