Track five to six numbers to run a real estate business: gross commission income, salesperson costs, gross margin, lead generation, overhead, and net profit. At $1.5M GCI with $500k in salesperson spending and $500k overhead, you take home $500k. Scale that to $3M GCI and your take-home climbs toward seven figures.
You understanding your numbers is critical to be able to make any strategic decision as it related to the conversation that we were having with Michael Wigan. Okay, so that's the one part of it is that there's roughly five numbers we need to know. It's your top line gci, how much are you spending on your salespeople? What's left over is your gross margin and then what you're spending on lead gen, what you're spending on people and, and what you're spending on. So six, maybe six numbers and what you're spending on overhead and everything that's left over is your net profit. So in the example where it's 1.5 top line, you're spending 500,000 on your Salesforce, 500,000 on your operating expenses, and you're taking home 500,000 to coach and mentor at that point. And so it's a different job profile than a typical agent or traditional real estate. Team leader is probably doing about 50% of the production on their own in that example. And so as you fast forward that example to 2.1, it's 7000-007000-00700,000. When you advance that to 2.4, it's 800,000. Take home or profit and the math becomes pretty 2.7 is 900 and then 3 million. That's when you have a seven figure income and you're running a business that's completely leveraged and all is good in the world.
