Industry News

Keep more of your commissions

10 ways agents can increase profits

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In today's tough market, you have to make every penny count. While how much you earn is important, what really matters is how much you keep. When you ask how much most Realtors earned in 2009, most report their gross commission income (GCI), which is how much they made before expenses. Profitability, however, is determined by how much you keep after expenses. If you want to keep more of your hard-earned commission dollars, here are 10 ways to do it. 1. Begin by calculating your net hourly rate for 2009 Take the gross commission amount that you earned and subtract all your business expenses. (If you are in the U.S., take the net income you report to the IRS.) Next, divide it by 2,000 (i.e., 40 hours per week for 50 weeks) to determine your net earnings per hour. (This is your after-tax, hourly rate of profit per hour.) If it's greater than the minimum wage, seriously consider delegating part of your business to a minimum-wage earner. When you spend time doing minimum-wage ...