Regardless of what everyone likes to say, real estate is not and never has been a team sport! Not at the “agent” level anyway – where we were all trained. But now we are “Brokers” with an entire office to manage and we can’t do it alone. Now we do need a team, and that team is our staff. The brokerage model as well as staffing requirements, roles, and real estate office management have changed quite a bit over the years and in this two part video, we delve into the differing staff roles and organizational structure of a modern profitable brokerage. Catch up on Part 1 here.
The Transaction Count Equation
If you’re a working broker, think in terms of units – transaction count.
Staffing costs: Think in terms of units – transaction count. That’s where our dollars come from.
You became a broker because you were probably a top producing agent doing 30 – 50 deals a year on your own. If you are not doing at least 20 deals per year, it doesn’t mean you won’t be a successful broker. That’s what you’re here to learn. Let’s put it terms of units.
A manager is going to cost you about $30,000 to $50,000 per year. With bonus, they may make close to $100,00 – but that’s based on sales. If they are making that much, you are also making a lot more money.
An OA makes about $10-14/hour. You want to bonus them too so everyone is tied to your business. They benefit when the business does well. That’s when you get the best people.
Change your way of thinking.
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FreeBrokerSchool.com is a resource to give brokers the advantage in running their offices. Hey – they know how to sell properties well, but they don’t always know all of the ins and outs of running a successful real estate brokerage. These videos are designed to give you the inside scoop from industry leader and success tornado, Mike Krein. You can’t take notes fast enough when he starts giving tips. These videos allow you to watch one nugget topic at a time, digest it and implement it to add to your success.
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