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Articles that will help you learn how to Create your Own Path to Success in the Real Estate Industry!

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Nine Principles of Designing Profitable Compensation Programs

iBroker and The Profit Centre - Compensation Programs

Before designing a compensation program it is important to first identify who your customer truly is before you start recruiting. I believe that many Brokers do not have a defined outline of the REALTOR® they want to attract. Given the challenges of recruitment, Brokers tend to be seduced by the physiological win of a new heartbeat as opposed to being focused on acquiring the right REALTOR®. The result is often the development of compensation programs designed to attract them on price.

When Recruiting, Stop Selling Price

Often when I ask a Broker to role play and try to recruit me as an agent, I find the following fundamental challenges in their approach:

  • They do not have an agenda.
  • They do not ask any (or enough) questions.
  • They try to tell me too much, which is overwhelming.
  • They focus on price primarily.
  • If they discuss value, it is not focused on what I want or how it benefits me.

Let's tackle the first observation.

Put Prospects at Ease with an Agenda

It is important when meeting someone for an appointment that you create an environment that puts your prospect at ease. An agenda does this. Here is what I recommend the agenda look like:

  1. About You
  2. About Us
  3. Your Value Proposition
  4. Unanswered Questions
  5. Mutual Decision

In articulating the agenda I would suggest it sounds like the following:

A Profitable Brokerage Starts with Clarity of Your Vision and Goals

The clarity and commitment to your vision and goals will ultimately pave a path to your destiny and your success. The problem is that typically they are not clearly defined.

How to Triple Profits Without Raising Fees

This month, Peter Mueller, CEO of The Profit Centre, and Carlos Matias, CEO of GryphTech and Creator of iBroker, held a popular Broker webinar to share what every broker needs to know about running a profitable business. Leveraging decades of industry experience, they discussed how to analyze financial and operational metrics to effectively inform business strategy and how to implement a killer strategy proven to increase profitability.

The Dangers of Erroneous Reports: Understand How Your Data Was Derived & Interpret It Correctly

How Clean is the Data Upon Which You are Basing Decisions?

In order to run a profitable Real Estate Brokerage, one needs to know and truly understand the metrics involved in running one’s business.

At the Profit Centre, we strongly believe that THE most important metric in the brokerage business is Gross Profit Per Realtor® (GPPR). It is instrumental in defining your Gross Profit per Realtor® Objective (GPPRO), a fundamental business metric.

Through my experience working with over a thousand brokerages in varying capacities over the last ten years, the ability to access key information and more importantly clean information is critical in making sound financial and operational decisions.

As part of our service offering, we often recommend complementary services that are necessary in order to operate at a high level. One of these is iBroker by GryphTech, a powerful back office management solution. We highly recommend iBroker to provide the clean foundation necessary to create profitability.

Over the years I have come across several glaring errors and erroneous methods in other back office management software that have derailed a broker's ability to manage and operate his/her business effectively. The risks are high, and it is important to have a solid foundation to work from to be successful and profitable.

8 Key Metrics Every Brokerage Should be Tracking for Revenue Growth

When it comes to business planning and measuring performance, real estate brokers often focus most of their effort on developing the sales side of their businesses. Revenue growth, albeit a very important metric, is only one indicator of overall business performance. There are other key metrics that should be tracked ongoing to effectively inform business strategy and be set up for long-term success. For some, this can be an overwhelming process as they are unsure what to track and how.

GPPR - The Most Important Metric of Your Brokerage and Why It Can Be Elusive

Gross Profit per RealtorIn order to run a profitable Real Estate Brokerage, one needs to know and understand the metrics involved in running one’s business. One of these metrics, which we consider to be the most important metric, is the GROSS PROFIT PER REALTOR (GPPR) metric. This metric is critical to obtaining your Gross Profit per Realtor Objective (GPPRO).