This is probably the biggest misunderstanding and the biggest mistake most brokers make. It is also the number one excuse that brokers use for their own failure. Understanding this aspect of our business and planning your business accordingly will make you more profitable than ever before with a lot less grief and stress.

Number one mistake or myth: We are only going to recruit top producers. Those are the final words of a bankrupt real estate brokerage.

The Secret to a Profitable Brokerage

A profitable brokerage depends on a bunch of agents pulling in deals.

There are not enough top producers to go around. Everyone is fighting for them. They are too costly and too demanding, free this, free that, perhaps a car. You keep one or two around like a loss leader – they are a great recruiting tool. They expect the best of everything. If you are a new brokerage, why would they want to go where you are? They want the fancy offices, the latest and greatest real estate technology, big staff. Good luck if you are new or small.

04:00 – A top producer is one with 100 deals a year. Some markets consider a top producer someone with 30. Depends on what you want to look at.

A 4 deal a year agent can’t demand a big office. There are more of them, they are easier to recruit and they are more pleasant to work with. They are more profitable.

Number of agents (times) number of deals for their average production = total deals. Simple math. You want 1000 transactions per year. That’s not as difficult as it sounds. So, recruit 250 average agents.


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