This is a very common mistake that Realtors® make daily. Sometimes we fail to understand a basic calculation. Sorry, I shouldn’t say we fail to understand, and I would rather r say we don’t even; Ido that analysis. It could be just a matter of ignorance of facts.
Let’s have some eye-openers today and ask a question ourselves. Would you choose 100% of 50,000 or 50% of 200,000 if given an option? I think it’s very complicated to understand, and I confused you. You might wonder why I said it’s very complex to know, ass it’s a very simple calculation.
The simple reason why this simple calculation is complicated is that, in this calculation, our human nature comes in between. As it’s a common thought process that we are not concerned about what we are making, our concern is what others are t. And this, too, we do without understanding the complexity of the business.
Last time we wrote an article about the myth of a 50/50 split; in the end, it’s not a split model but an expense-sharing model.
Now let me expense-sharing for Letealtors®, who have been in business for almost five years and have been more. Please pick up five last five years’ income and do some simple calculations. Count all the expenses you have incurred to generate and complete that business. Please count advertisements, staging, signboards, flyers, lock boxes, cash back, office split, office expenses, family workforce, printing, stationary, etc. You will find you were left with almost 40% of what you earned, and 60% is your expenses. On top, you have to invest from your pocket for many things like staging, Sign Boards, ads, etc. Just imagine that someone has taken those troubles from you and established an economy of scale model by negotiating the best deals based on volume and passing those benefits to you by bringing your cost down by another 10% and taking the risk of spending money on his own. Isn’t it justifiable to have a 50/50 Expense sharing model? I can understand that there might be some exceptions for those who are exceptions of or doing anything in terms of the ad or other expenses. Regarding you ever realize the cost so much money you are losing by not earning up to your full potential without proper mentorship?
I have come across hundreds of Realtors® who are successful but have just been working like Realtors® for the last 5 to 10 years. They are making good money, but did you ever think about what will happen when you are not there? Their business is dependent upon their presence. If they are out, their business is zero. The agony of the situation is they have no proper guidance for building a system in their so-called big-name brokerage. If their big-name brokerages make a plan for them, their business model will fail. Their model is to hire more antipeople, pay monthly fees, and keep them under the false influence of their brand name, which merely gets them any business.
It’s time to give a wake-up call and make some calculations. Stop seeing what gross you are making; calculate your expense and see what you are getting. But more importantly, the future scope of building your system should work for you in your absence. Just do a small
Experiment and leave your business for one month and see how much you can earn without your presence; you will realize what I am talking about.
Think twice; if you have been in a system for more than five years and don’t see any future growth, consider it; it might change your life.
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From the Desk of Raman Dua…