Understand the importance of tracking the right numbers and how it’s the real key to sustainable success in the real estate industry.
I’ve seen a lot in real estate, but there’s one thing that still drives me crazy. Ever wonder why the top agents at real estate conferences brag about massive sales and huge teams? It sounds impressive, right? But here’s the harsh truth: those numbers don’t always mean they’re making money.
Here’s the problem: we’re celebrating the wrong numbers. Most agents focus on GCI (Gross Commission Income) or how many agents they have on their team. But these numbers can be misleading. It’s possible to have millions in GCI and dozens of agents, yet still, barely make a profit. Why? Because GCI is all about revenue—not what actually ends up in your pocket.
Imagine this: you’re running a big team, bringing in top-line revenue. But after paying expenses, agent commissions, and other overhead, your profit margin could be shockingly low. In fact, you could even be operating at a loss. Now, that’s not the kind of business anyone wants to run, right?
“If you’re only paying attention to flashy numbers, you might end up following advice from someone who’s not actually profitable.”
So, what should you focus on instead? Profitability. This is the number that shows how well your business is truly performing. It’s not about how many agents you have or how much revenue you generate. It’s about how much you keep after everything is paid. You’re in business to make money, not just to look good on stage.
The next time you’re at a real estate conference or mastermind, try this: ask the top producer not just about their revenue but about their profitability. Follow up with another key question: “How much of the production is driven by the team leader?” The reason is because when the team leader closes deals, it boosts profitability—no commissions are shared, and all revenue goes straight to the bottom line.
If you’re only paying attention to flashy numbers, you might end up following advice from someone who’s not actually profitable. And that’s a path you don’t want to take.If you have questions about keeping up with your numbers in your real estate business, I’d be happy to help you and provide you with all the resources so you can consistently track your numbers well.
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