Heading into 2024, business owners and agents will have to examine expenditure in order to maximise what they get to put-in-their-pocket. 2023 saw the cost of living and doing business increase, and listings and managements became more hard-fought for.
This meant there was a bigger bite into the traditional industry success metric of GCIs and our incomes didn’t go as far – and 2024 won’t see that change. It’s times such as these that it makes sense to be more excited about what you keep NCM (Net Commission Me) rather than GCI. Sure GCI is a wonderful vanity metric because it sounds so BIG but it’s not what pays your bills and enhances your lifestyle.
Founder and CEO of One Agency, Paul Davies has highlighted a clear distinction between sales and profit. His mantra has long been “It’s not what you make, it’s what you keep that counts”. It was a driving influence on the design of his flat fee model when he created the One Agency brand in 2008.
For over 15 years he has encouraged business owners and agents to keep their focus on their profits, and not just look for more sales in order to improve their disposable incomes.
Paying closer attention to your profits means evaluating your ongoing expenses. Taking the time to determine what’s essential versus what’s ‘nice to have’ is a great way to reduce outgoings thereby instantly boosting profits – your NCM.
One of the biggest impacts to increased profit an agent or business owner can enjoy is to switch to a flat fee model. And One Agency network members do just that– increase their profits substantially by making the switch, without working longer or harder. This is THE reason One Agency was created in the first place.
According to Mr. Davies, one benefit of putting profits ahead of sales is that “no matter what’s happening in the real estate market, your business will be sustainable”.
It really is possible to sell fewer homes when the market is tight yet have a healthier bank balance. And, if you do win more listings, even better — you’ll earn more revenue and get to keep a higher share of that as your take-home income.
In addition to switching to a flat-fee model like One Agency, here are 4 other tips to make 2024 a more profitable year.
1. Review subscriptions and services
Since 2020 there has been a proliferation of prop-tech apps and outsourcing solutions. Many agents and business owners will find that they’ve subscribed to numerous tools, apps, and services.
You may well find that many of the apps and services you’ve subscribed to are either rarely or not being used at all. In some instances, you may even find that you’ve subscribed to more than one app that serves the same function. Alternately by better using the benefits and features of some apps and services you may be able to reduce other traditional expenses.
2. Check your debt
If you have business loans, speak to your broker about what can be done with these debts.
As many borrowers are chasing breaks on rising interest rates by refinancing with other providers, a lot of financial institutions will fight hard to retain your business.
3. Reconsider your office space
Consider whether you really need an office in a high-profile position.
If not, consider moving to lower-cost premises in alternate locations, working from a luxury shared office space, or even a home office.
4. Pay less for utilities
Comparison sites for finding better deals on insurance, electricity, internet, and phone plans can also reap savings that make the effort of searching and switching worthwhile.
If you would like to have a confidential conversation about how you can boost your profits in 2024 we’d welcome your call.
Paul Davies is the founder and CEO of One Agency, which has more than 150 businesses throughout Australasia. During his 50-plus years in the industry, Paul’s biggest single insight is: it’s not what you make, it’s what you keep that counts.
If you love what you do but want to make a change – either to keep more of what you earn, shift to a more lifestyle focused operation and reduce running costs; I invite you to contact me at One Agency and discuss confidentially how our model, (less than $1000 + GST per month regardless of your GCI) may be just the answer to breathe new life into your career and future proof yourself.
“It’s not what you make, it’s what you keep that counts.”
‒ Paul Davies, Founder and CEO
Revised edition: Written by our Founder and CEO Paul Davies with a foreword by leading real estate coach and trainer Tom Panos, ‘How To Profit In Real Estate Business Ownership’ is compulsive reading for established and aspiring agents looking for a way to achieve success and maximise fee retention.
As founder and CEO of the fastest growing real estate network across Australasia, I offer real estate professionals an opportunity to reap the financial rewards of going it alone with the security and clout of an established brand. Talk to me and my team about your options.
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One Agency is a revolution in real estate, empowering both individual real estate professionals and established agencies to take control of their future and bring an entirely new level of service to clients.
