What you’re missing about scaling your real estate business 😳 #realestateteam

When I got into business, we're going to have a budget. We're going to have P and L like all this stuff, right? And I knew nothing about it, but I knew I needed it. And I also learned an economic model. I knew that in order to have an opportunity to step out of production, the profit margin needed to be healthy. Actually, before that, the gross profit margin needed to be healthy. The cost of sales, what you pay out to the agents needed to be a certain number. Otherwise you can't really scale in the expense category. You're going to be limited. I always shooting for a 60% gross profit margin, a net profit margin. That number has changed over the years. There was a year where we were at 35%, 37% net profit margin, and that was not in production. But then we decided to scale a little more aggressively, and now we've dropped that down to 25%. And that is our goal. That's where we want to be.

We're talking profit margins and business models. With Antoine Thomas on episode 59 of Real Estate Team OS.