You are viewing our site as an Agent, switch your view below:

Agent | Broker     Reset Filters to Default     Back to List

[Video] How Profitable is Your Brokerage Compared to Your Peers?

March 27 2018

Brokers, do you want to triple your profits without raising fees or even needing to bring on new agents? Then we've got a killer strategy for you.

Recently, RE Technology teamed up with iBroker and the Profit Centre for a live webinar all about broker profitability. Attendees learned the single most important metric for driving higher profits and how brokers can drive profitability with the right metrics in hand.

Did you miss the webinar? No worries... we recorded it for you! Check out the video below to catch up, and see our notes below for more information and to learn more about a special offer for RE Technology readers!

Webinar Guests

  • Carlos Matias, CEO of GryphTech and creator of iBroker
  • Peter Mueller, CEO of the Profit Centre
  • Moderator: Victor Lund, CEO of RE Technology

Video Timeline

0:00 - Moderator Victor Lund introduces the topic and panelists.

5:15 - Increasing profits. Carlos Matias talks about iBroker's background and how the platform makes it easier for brokerages to manage transactions and commissions. Matias says that iBroker teamed up with Profit Centre because they were also focused on brokerage revenue and profitability.

8:35 - What makes us iBroker and The Profit Centre different? Both companies, background.

11:00 - Peter Mueller talks about the two sides of the coin to managing profitability. There's the sales side that everyone's familiar with (lead gen and conversion, recruiting, retention, productivity). Then, there's the other side: financial and operations management (planning, budgeting, cash flow, KPIs, processes, skill building). Sales drives volume; Financial/Operations management drives returns on volume. Mueller says if you focus on financial/operations management first, sales will follow.

15:25 - Five purposes of a business: Make profit, Leverage time, Differentiate, Professional fulfillment, Have something to eventually sell (create equity).

21:50 - How to define profit. For illustrative purposes, Mueller introduces the scenario of a brokerage with a single office and 30 REALTORs. Mueller says that looking at income statements and balance sheets doesn't tell you a story. It helps your accountant mitigate your taxes and balance your books, but doesn't tell you how to operate your business.

25:14 - Mueller shows a sample income statement for the scenario above and explains how Profit Centre normalizes accounting data to better compare apples to apples.

27:35 - Mueller on a brokerage's most important metric for profitability: Gross profit per Realtor, per year. What data pollutes the accuracy of this number?

32:28 - Mueller gives an example of two coaching clients to illustrate above scenario. Client A has 50 agents and Client B has 224 agents. Client A has fewer clients, lower gross income, and lower production per agent, but more net profit. The issue isn't driving more volume, it's driving returns on volume. Client B has much lower profit per Realtor.

36:15 - The Killer Strategy. Mueller introduces the profitability strategy he learned from a coach while running his own brokerage. It all starts with a goal: increase overall gross profit per Realtor (GPPR). His goal was to go from $7K GPPR to $10K GPPR. He shows the numbers breakdown.

40:15 - What you measure gets improved. Mueller dives deep into the numbers of this strategy. Ask yourself: How many Realtors are already over your GPPR goal? How many are under? Mueller explains how he tripled his brokerage's net profit in one year with 10 fewer Realtors without raising fees.

44:32 - The nuts and bolts of the Killer Strategy. Mueller explains the five-step process he undertook. He implemented it immediately with new hires and at contract renewal with existing agents.

50:23 - Matias takes the mic and talks about how back office management is made easy with iBroker. The platform integrates with DocuSign, QuickBooks, dotloop, SkySlope, and iFranchise. Matias gives an overview of iBroker modules, and explains iBroker's data flow--how transaction data to moves iBroker to Quickbooks or iFranchise.

56:38 - iBroker's special offer for RE Technology readers. Get your first three months free with annual commitment--plus iBroker customers get 30 percent off QuickBooks Online. Request a demo at GoiBroker.com or call 1-833-8BROKER. Our readers can also get a discounted Profit Centre Broker Profit Analysis or Team Product Analysis for $995 ($2,995 value). Visit theprofitcentre.comtheprofitcentre.com to learn more.

1:00:35 - Question and answer segment.

A Special Offer for RE Technology Readers

Get 3 months of iBroker for free (a 25% discount) with an annual commitment, and 30% off Quickbooks Online as an iBroker customer. To get started, request a demo at GoiBroker.com or call 1-833-8BROKER. Our readers are also eligible for a discounted Profit Centre Broker Profit Analysis or Team Product Analysis for $995 ($2,995 value). Visit theprofitcentre.comtheprofitcentre.com to learn more.

Next Steps