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For many real estate agents, a logical step on their path of professional development is becoming a real estate<\/a> broker, then working as either a managing broker or a broker-owner.<\/p>\n However, unlike other industries where promotion to the management<\/a> level is generally tied to additional income, some brokers find themselves struggling to perform at the same financial level as their most successful agents.<\/p>\n For brokers who are franchise owners in a big-box brokerage model<\/a>, upstream costs can make it difficult to maintain profitability. For brokers who are indie broker-owners, overhead and operating costs can make it practically impossible, especially during the start-up years.<\/p>\n It\u2019s no fun being the broke broker, and it can keep you from offering your agents the support they need to grow their businesses and, by extension, your business. Here are seven ways to ensure you avoid being the brokest person in your business:<\/p>\n You may find that you can\u2019t secure your own income without being in production, at least initially. Make sure that you have a plan in place to feed leads<\/a> to your agents as needed or that the agents you\u2019re recruiting are experienced enough that they won\u2019t feel like you\u2019re working against their interests.<\/p>\n Make sure that you crunch the numbers on your commission<\/a> structure to ensure you can operate profitably and in a way that allows you to earn an income that\u2019s fair, competitive and aligned with market standards for your area.<\/p>\n Make sure that your marketing and branding allows your agents to secure higher volume or premium listings so that they (and you) can generate larger commissions. Provide the support and resources needed to help your agents work in these markets.<\/p>\n Perhaps you have a wide network<\/a> that allows you to develop relationships with other brokers and pursue high-net-worth clients. Perhaps you\u2019ve developed specialized expertise that would allow your brokerage to dominate a specific niche or market segment. Position yourself as an industry leader and subject matter expert, and develop your unique value proposition to enhance the reputation of both your and your firm.<\/p>\n Make sure that you\u2019re doing what\u2019s best for your agents so that they can produce at the highest possible level \u2014 and so that you spend less time on recruitment<\/a>, onboarding and retention activities. Expand your team in a smart way so they\u2019re happy to support each other instead of competing with each other for crumbs.<\/p>\n1. Determine whether you\u2019ll be a competing or non-competing broker<\/h2>\n
2. Develop a profitable commission structure<\/h2>\n
3. Focus on volume or premium listings (or both)<\/h2>\n
4. Leverage your expertise<\/h2>\n
5. Optimize your management<\/h2>\n
6. Diversify streams of income<\/h2>\n