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What are you getting at you brokerage?

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We are seeing more trends with Real Estate brokerages offering 100% real estate commission models. The main question is, what are you actually getting for your 100%? In most cases you are getting absolutely nothing.

Sounds appealing, right? Keeping all your commissions?

Anything that sounds too good to be true, likely is! To get a 100% commission deal, you are paying out of pocket for all expenses which will include: monthly company dues, EO insurance, desk fees and admin fees. These often times easily exceed $1,000 a month in additional costs.

Beyond the cost to be active at the brokerage each month you will want to account for all software and web based systems you will use, a website, all marketing, professional photos for listings, lawn signs, lockboxes, brochures, technology and administrative assistance. If you need it to run your business, you need to budget for it and prepare to spend out of each closing.

All of these items are feasible and can make sense to pay for and handle yourself depending on the volume of business you are planning to handle. Keep in mind that you will need to allocate time to designing Facebook ads, ordering signs and writing your own contracts.You take full responsibility for paying for and maintaining each system that you need to operate!

For an agent who only wants to sell a nominal amount of homes per year it can make a lot sense to do these items yourself! If you want to grow and sell more year over year, you may need a different option to be able to leverage your time and in turn allow you to sell double or triple the amount of real estate. When you are working towards growth, partnering with a broker who can offer you built-in systems at a percentage will actually allow you to sell more real estate and make more money.

Outline your goals and focus on which model can get you there with the highest amount of income earned.

100% models can be great, but if you are following my journey or the journey of my agents and want to replicate similar success in your own business, you will likely want outsource 99% of the admin work and leverage your time wisely.

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