Running Your Own Business As a Licensed Real Estate Professional

Part 1 - Key Concepts

Over the past decade, the Real Estate industry has experienced a number of dramatic changes. One of the most significant changes seen is that the responsibility to develop your effectiveness, business base and profitability as a Salesperson, has, to a large extent, been passed from the Broker office to you. Simultaneously, the services that were once available through an affiliation with a National Franchise organization have diminished. As a result, you, the Salesperson, have been left to manage your own business, and to implement the skills necessary to ensure an extended and successful real estate career.

Another significant change is the status of "Independent Contractor" that evolved from the 100% Commission System. This requires that you, the Salesperson, not the Broker office, have control of the commissions earned. Many salespeople have opted for this arrangement and pay the Broker office a fee for the various services offered. As a result, the Salespersons revenue has improved, which is great! However, the down-side is that your individual costs have escalated to such an extent, that it is now difficult to make a profit and stay in business long-term, unless sound business principles are implemented and followed.

My observation of Realtors through years of coaching within the real estate industry, have shown that energy, enthusiasm and expectation are often in place, but the principles of good business control are often erratic and poorly implemented. I am sure that you know of a Realtor who has had high volume sales but has still faced bankruptcy. By contrast, some Realtors are known for more moderate production and yet last forever! It's all a matter of how you manage your opportunity to do business and achieve a good bottom line profit.

Achieving this bottom line is not a matter of luck. It is the application of 3 important practices...

  (a) Keep Revenue up.
  (b) Control Costs.
  (c) Build and maintain a client base.

Sounds simple? It's not. In Part 2, we will begin looking at these three key areas of practice. Stay tuned!

Coach

Next week: Part 2 - Revenue

Coach's Newest Series...

Coach's Newest Training Program, Running Your Own Business as a Licensed Real Estate Professional, begins Monday March 29th—see you then.

The Man We Call Coach

STAN PENNY is considered, by many, to be one of real estate's most respected ambassadors and trainers. His broad and extensive knowledge of the industry has been acquired from a number of different positions that he has held, working with both Brokers and their Agents.

Prior to a career in Real Estate, Stan was involved in retail marketing with a national department store organization. As a catalogue district Sales Manager and department Store Manager, he was schooled in solid business disciplines such as planning, market development, client service, and personnel management. This experience has served him well throughout his real estate career.

Stan’s career in real estate was successful from the start and he ranked amongst the top producers in his franchise organization. This was followed by the successful ownership of two real estate companies and the management of two companies with up to 80 salespeople in very competitive markets.

Succeeding as both an Agent and a Broker, Stan continued his real estate career by staff positions with a national franchise organization as Member Services Director and National Training Director. These positions put him in close contact with both Brokers and salespeople in the development of their companies and businesses.

Stan's special strength and satisfaction was in challenging and developing people to perform at their very best. His practical approach and sense of humor endeared him to many. His training seminars across the continent were always well attended and accepted with enthusiasm. He deservedly earned the affectionate title of "Coach", the name which describes him the best, for he has been mentor to many realtors in our industry.