gregb
Elite Member
- Joined
- Sep 3, 2011
- Professional Status
- Certified General Appraiser
- State
- California
Oh gee, how do i get on these mailing lists?
Is This Deal Worth It?
Every commercial broker has asked himself or herself this question at least once and maybe too many times. How much time should we put into a transaction is a better question. I have often advocated that agents calculate the hourly rate at which they need to value their time. Do this by grossing up your net income: divide the net commission income you want to earn by your percentage share and add in your overhead. This equals the Gross Commission Income required to achieve your financial goals.
Example
Net Commission Income
./. Your Percentage Share
+ Your Overhead
= Gross Commission Income
Divide that by the 1880 golden hours available for conducting transactions. The calculation is 47 weeks times 40 hours. That’s 52 weeks, minus 2 weeks vacation, 10 federal holidays and 5 days lost to personal matters. Don’t kid yourself, these are all transactional hours that you have available; time outside the normal business hours are not transactional hours.
Once you know your number, etch it into the insides of your eyelids. Do not engage in any activity that can be automated, outsourced or delegated for less than your hourly rate. You cannot make hundreds of dollars per hours doing $12 to $20 work. A commercial brokers job description is to list, lease and sell, that’s it.
Before starting any transaction, calculate the net commission and deduct 20% for expenses. Divide the result by your hourly rate and you will immediately know exactly how many hours you can put into that transaction and you will learn the answer to the question, “Is this deal worth it?” before you start.
Use the coupon code september to save 25% on any Top Dogs program or package before October 1st.
Faithfully yours,
Bob McComb, Top Dogs Commercial Real Estate Training
Creating Top Producing Commercial Agents, Fast!
Is This Deal Worth It?
Every commercial broker has asked himself or herself this question at least once and maybe too many times. How much time should we put into a transaction is a better question. I have often advocated that agents calculate the hourly rate at which they need to value their time. Do this by grossing up your net income: divide the net commission income you want to earn by your percentage share and add in your overhead. This equals the Gross Commission Income required to achieve your financial goals.
Example
Net Commission Income
./. Your Percentage Share
+ Your Overhead
= Gross Commission Income
Divide that by the 1880 golden hours available for conducting transactions. The calculation is 47 weeks times 40 hours. That’s 52 weeks, minus 2 weeks vacation, 10 federal holidays and 5 days lost to personal matters. Don’t kid yourself, these are all transactional hours that you have available; time outside the normal business hours are not transactional hours.
Once you know your number, etch it into the insides of your eyelids. Do not engage in any activity that can be automated, outsourced or delegated for less than your hourly rate. You cannot make hundreds of dollars per hours doing $12 to $20 work. A commercial brokers job description is to list, lease and sell, that’s it.
Before starting any transaction, calculate the net commission and deduct 20% for expenses. Divide the result by your hourly rate and you will immediately know exactly how many hours you can put into that transaction and you will learn the answer to the question, “Is this deal worth it?” before you start.
Use the coupon code september to save 25% on any Top Dogs program or package before October 1st.
Faithfully yours,
Bob McComb, Top Dogs Commercial Real Estate Training
Creating Top Producing Commercial Agents, Fast!
