Real estate agents under $250,000 GCI can't afford to replace themselves because their budgets are too tight. Once you hit $500,000 GCI, you have enough margin to hire someone and step back from production. The math: at 30% payout on $250k, you're only taking home $75k.
On those same tokens, what's your advice for teams that are starting, but like Sandy alluded to, I don't want to show another home or like they're just really not quick, but really, really wanting to get out of production. So all these things where your leverage sounds really enticing, you know, what's your advice for, you know, getting through that period and making decisions that are right for your business and not necessarily, you know, what everybody else says, yeah, it's based on income.
So the reality of it, if you're, if you have less than 250,000 of GCI, you're really limited on the decisions you can make, right? You've only got 10% to pay an admin. You've only got 10% for marketing, you know, 10%, 15% maybe for some other stuff. And the rest of it, you need for yourself to live your life and support your family. If you're 250 to 500, you've got some different decisions to make. The truth of the matter is that you can't give up production until your gross margin is high enough where you could replace yourself. And we do see that. We do see agents with 250 GCI that want to get out of production. And it's like, how are you going to get out of production even if you're at 30%, you know, payout on the 250, that's 75. Right. And that, and that's like mrea, if you could achieve 70% gross margin. So you really need to be at the 500 to pay 30% is 150, which is 350 left, you know, and you've got 150, so you can make 200. So it's just a numbers game. And that's just the reality of it. You've got to achieve that 500k GCI in order to have more of a pot to make decisions with, you know, so if you're going to replace yourself in the listing side, you've got to bring in 4 to 500 GCI to replace yourself at 15 to 25%. You know, the amount of money you give up has to be able to be supported by the GCI that you had. You can't. You really, it's not possible to do 200 yourself, personally have your team do 300 and for you to replace your income because you're bringing in such a small gci, if that makes sense.
