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