By Robert Freedman, Realtor Magazine
Compliment for Realtor? Magazine's dealer to BROKER"By supplying top perform administration advice with thought-provoking principles, dealer to dealer bargains useful information on almost each element of our dynamic undefined. The book's easy-to-read layout, with in-depth helping fabric to be had on-line, is an leading edge method of aiding the country's agents and bosses locate powerful recommendations to state-of-the-art challenges."--Ron Peltier, President and CEO, HomeServices of the US, Inc., Minneapolis, Minnesota"This compilation of the newest Realtor? journal articles on actual property brokerage administration might be of support to agents and executives trying to find useful principles to spice up their operations. The publication costs commonly from veteran agents and executives who're making an attempt new how one can construct revenues and take on difficulties. in the book's diversity of articles may be important rules for you."--J. Lennox Scott, Chairman and CEO, John L. Scott actual property, Seattle, Washington"The editors did their homework. The velocity of switch in our enterprise is a continuing problem. no matter if you do not need to guide the cost in swap, agents may do good to check the cutting edge options (such because the employee-agent version) illustrated right here. The part on operations is especially helpful for agents of a multi-office/multi-region operation."--Steve Brown, ABR?, CRB, vp and common supervisor, Crye-Leike, Realtors?, Memphis, Tennessee"The editors of Realtor? journal do a beautiful activity of conserving Realtors? on best of all genuine property matters. No factor is extra well timed or necessary to development solid enterprise than brokerage practices."--Blanche Evans, writer, Agent information, and Editor, Realty instances, Dallas, Texas
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Extra resources for Broker to Broker: Management Lessons From America's Most Successful Real Estate Companies
Robert Freedman. This article originally appeared in the August 2004 issue of REALTOR® Magazine. Calculating Associate Compensation— The New Rules QUICK TIPS Separate fixed from variable office costs. Calculate amount each associate adds to variable costs. Match splits to costs. Factor in costs of teams, personal assistants. Don’t overpay for top performers. J anice Grupido, CRB, GRI, would like to rely on a little less art and a little more science in setting compensation plans each year for the dozens of associates who work in her offices in the Troy and Rochester areas of Michigan.
Thus, you often see brokers splitting commissions on something close to a 50–50 basis at the beginning of the year, then raising that split once associates’ revenue covers their share of fixed costs and they can assume responsibility for more of their variable costs. Looking Closer at Associate Costs Treating each associate as a separate profit center goes beyond the deskcost approach by identifying variable as well as fixed costs. Although zeroing in on precise amounts is difficult, brokers aren’t entirely in the dark about what their associates cost them.
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