The Profit Blueprint for Real Estate Brokers
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When it comes to budgeting, I often find that real estate brokerage owners and managers aren’t always taught how to earn a profit nor how to set up their budget. They’re not even sure of the return on investment they should expect or how to allocate their expenses.Big questions nag them like:How much should I spend on rent?How much should go to staff?What about my marketing investment?How much of the commissions can I expect to retain?What kind of return should I aim for?Frankly, where do I even start?I faced these same questions when I opened my own brokerage company. While designing my company and preparing for launch, these questions literally kept me up at night. My personality wouldn’t allow me to ever just “wing it.” Making it up as I go along has never worked out for me.Formulas, on the other hand, work out great. I am really good at following a recipe.My problem was I had no formula to follow. So I decided to create one. As I set about to create the recipe for my budget I had a few big things going for me:While I had never owned my own company, I had run other successful, profitable companies in the past.I had access to research on our industry and what makes companies profitable. Most of this research came from Steve Murrayu of Real Trends.I had an insider's view of the most successful and profitable companies in our industry through my membership in various CEO groups.I was determined to learn the rules from leaders of successful and profitable companies. Why not just do what they do? Why not just generate revenue like they do, allocate expenses like they do, so I earn the returns they do? And why not try to do it even better?The result was The Profit Blueprint. It gave me the formula to follow. The payoff was enormous. Namely, I could sleep at night! I was now clear about what to do. I became so excited about this formula that I told some other people about it and the next thing you know, others
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