OpinionMarketing

Why focusing on profitability is the wrong approach

The three situations when real estate agents should let go of profit and concentrate elsewhere
  • There are three situations when you need to make gross commission income more important than profit to get the profits you want.
  • Focus on revenue when: you’re a new real estate agent, when you have no pipeline for future deals or when the market is bad.
  • There are only two goals in business: revenue and profit. And successful professionals know when to focus on one over the other.

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This article is a follow up to reading Kelly’s Hager’s great article on profitability. I highly recommend reading it because you’ll learn (or be reminded) that: Focusing on the process, instead of the outcome, is beneficial toward reaching your goal. The work you do today sets up your career and income in the future. If you want to reach a goal, you must think backward and reverse engineer how to get there. Good strategic planning takes time. Now, as an entrepreneur who's built three profitable brands, I see two errors that are common among many business owners and professionals, not just real estate agents. First, you do not make more money by spending less. You might keep more money by spending less, but you absolutely do not make more. This is slightly semantic -- however, if you are saying this in your mind, you are feeding yourself a wrong message. Therefore, I won’t go into detail on this concept. Second, and this was a key learning I had i...