A single-speaker YouTube talk advising real estate agents that many common activities (showing homes, door-knocking) are low-value and reduce effective hourly pay. The speaker analyzes commission math on low-priced houses and urges agents to refuse or reassign unprofitable clients and to focus on higher-value activities and clients to increase earnings.
The reason you're not making the kind of money that you want to make is because you're doing a whole bunch of activities that aren't worth a lot of money. Showing homes makes me think of a guy that joined our program. I forget who it was, but he door knocked and we figured out that he made $16 an hour. Door knocking so let's just do the math on it. So a $90,000 house is what, at best a $2,700 commission check. We used to charge a minimum. So another answer too is that we charged a minimum commission to every buyer that we worked with. And so if it was a $90,000 house, it was still a $5,000 commission, $2,700 total. I guess technically you could still make money, but not if you're going to look at 50 houses. So there's just an easy decision to make. Either you hire someone to look at all those houses with that person, or you just don't work with that client. And if there's like another reason to work with them, it's your father in law or something, you get to choose who you work with. So if it was me, I wouldn't work with that person. I wouldn't even advise an agent on my team work with somebody that's a $90,000 buyer who's looking at homes all around. I know that. I know how to double down on things that make me a ridiculous amount of money. So you would only work with that person if you thought you couldn't do things to make more money.
