For
many
real
estate
agents,
a
logical
step
on
their
path
of
professional
development
is
becoming
a

real
estate
broker,
then
working
as
either
a
managing
broker
or
a
broker-owner.

However,
unlike
other
industries
where
promotion
to
the

management
level
is
generally
tied
to
additional
income,
some
brokers
find
themselves
struggling
to
perform
at
the
same
financial
level
as
their
most
successful
agents.

For
brokers
who
are
franchise
owners
in
a
big-box

brokerage
model,
upstream
costs
can
make
it
difficult
to
maintain
profitability.
For
brokers
who
are
indie
broker-owners,
overhead
and
operating
costs
can
make
it
practically
impossible,
especially
during
the
start-up
years.

It’s
no
fun
being
the
broke
broker,
and
it
can
keep
you
from
offering
your
agents
the
support
they
need
to
grow
their
businesses
and,
by
extension,
your
business.
Here
are
seven
ways
to
ensure
you
avoid
being
the
brokest
person
in
your
business:

1.
Determine
whether
you’ll
be
a
competing
or
non-competing
broker

You
may
find
that
you
can’t
secure
your
own
income
without
being
in
production,
at
least
initially.
Make
sure
that
you
have
a
plan
in
place
to
feed

leads
to
your
agents
as
needed
or
that
the
agents
you’re
recruiting
are
experienced
enough
that
they
won’t
feel
like
you’re
working
against
their
interests.

2.
Develop
a
profitable
commission
structure

Make
sure
that
you
crunch
the
numbers
on
your

commission
structure
to
ensure
you
can
operate
profitably
and
in
a
way
that
allows
you
to
earn
an
income
that’s
fair,
competitive
and
aligned
with
market
standards
for
your
area.

3.
Focus
on
volume
or
premium
listings
(or
both)

Make
sure
that
your
marketing
and
branding
allows
your
agents
to
secure
higher
volume
or
premium
listings
so
that
they
(and
you)
can
generate
larger
commissions.
Provide
the
support
and
resources
needed
to
help
your
agents
work
in
these
markets.

4.
Leverage
your
expertise

Perhaps
you
have
a
wide

network
that
allows
you
to
develop
relationships
with
other
brokers
and
pursue
high-net-worth
clients.
Perhaps
you’ve
developed
specialized
expertise
that
would
allow
your
brokerage
to
dominate
a
specific
niche
or
market
segment.
Position
yourself
as
an
industry
leader
and
subject
matter
expert,
and
develop
your
unique
value
proposition
to
enhance
the
reputation
of
both
your
and
your
firm.

5.
Optimize
your
management

Make
sure
that
you’re
doing
what’s
best
for
your
agents
so
that
they
can
produce
at
the
highest
possible
level
—
and
so
that
you
spend
less
time
on

recruitment,
onboarding
and
retention
activities.
Expand
your
team
in
a
smart
way
so
they’re
happy
to
support
each
other
instead
of
competing
with
each
other
for
crumbs.

6.
Diversify
streams
of
income

Add
additional
services
to
your
brokerage’s
offerings,
from

property
management
to
consultation
and
investment
services.
Pursue
strategic
partnerships
with
lenders
or
title
companies.
Start
a
real
estate
school
or
use
your
professional
expertise
to
develop
your
own
real
estate
investment
portfolio.
The
more
ways
you
make
money,
the
higher
your
income
and
the
better
protected
you
are
in
the
face
of
market
adjustments.

7.
Draw
on
the
expertise
of
others

Work
with
a
tax
strategist
and
employ
a
fractional
CFO
to
ensure
that
you’re
making
smart
decisions
with
every
dime
that
goes
in
or
out
of
your
brokerage.
Make
sure
that
you’re
doubling
down
on
the
activities
that
generate
revenue
and
delegating
the
support
tasks
to
others
so
that
you
can
use
your
talents
in
the
best
way
possible.

Your
financial
success
depends
on
your
agents
—
and
vice
versa.
Make
sure
that
you’re
creating
a
business
where
everyone
can
succeed,
including
(and
especially)
you.

Troy
Palmquist
is
director
of
growth
for

eXp
California.

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