YouTube video (Real Estate Team OS, episode 59) featuring Antoine Thomas discussing why many real estate teams struggle with profitability. The core claim is that teams often have excessively high cost of sales driven by overly-generous commission splits (commonly 70–95% payout), leaving little profit to reinvest in agents or operations; the episode promises solutions.
Here's one of the most common problems of real estate teams struggling with profitability.
This is a blanket statement, but the biggest problem that I think real estate teams have that are not that profitable. Their cost of sales is too high. Their splits are just bad. Some team leaders and some people who are starting to build a team or people who have been building a team for years and are like, dude, I. I don't know if I can get out of production or, man, we're not that profitable, like. Or my production is keeping the lights on. Like, well, what are you. What's your splits? Most people are paying out, like, 70, 80, 90, 95%. And it's like, whoa. Like, what are you reinvesting back into your agents? Are you reinvent? Like, what are you? Well, we're trying to, but we don't have the profit to do so. And it's just kind of been this way, and it's nothing. We don't see no end in sight.
Antoine Thomas shares solutions on episode 59 of Real Estate Team OS.