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A Simple Formula to Determine a Healthy Profit Margin

Do you ever feel like your production is the only thing keeping your real estate business afloat?


You’re not alone.


Many team leaders think they’re profitable because the numbers on paper look good. But in reality, they’re not seeing the profit margins they should. Today, I’ll show you how to uncover the truth about your team’s profitability.




The real problem with profit margins. Many real estate team leaders rely on bookkeepers and CPAs to understand their numbers. But here’s the thing: most of these professionals don’t really understand how the real estate business works. They don’t factor in how much the team leader’s production is driving the bottom line.


If your business depends heavily on your production, it’s a warning sign. What happens if you need to step back or reduce your workload? Will your team still be profitable, or will everything fall apart?


“With this formula, you’re no longer guessing because you'll know if your business is as strong as it seems—or if changes are needed”


The formula you need to know. To fix this problem, I’ve developed a simple formula. This formula tells you exactly what your profit margin should be based on your production. It’s easy to use and gives you clarity about your financial health. Here’s why this matters:


  • If you stay at your current production level, our formula shows how to run a healthy business.

  • If you step back from production, you’ll know how to keep things profitable.

  • If you scale back your workload, you’ll still maintain a thriving business.


With this formula, you’re no longer guessing because you’ll know if your business is as strong as it seems—or if changes are needed. I will help you ensure you are calculating your expenses and profits correctly to ensure your real estate business is on the right track.




  • Go Beyond Bookkeeping. Learn how Simple-Numbers will help you get a grip on your real estate business financials. Book a Consultation

  • Free Real Estate Chart of Accounts. Review our recommended P/L accounts for a real estate sales business. Download Now

  • 5-Minute Business Budget Tool. Get clear on your annual financials with our simple, and easy to use 5 min budgeting tool. Download Now

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