Attention Brokerage Owners: Are You Headed For A Loss On Your Money?

What a winter!

During the past few months, have you been identifying and organizing priorities for your business? What about for your cash?

For instance – recruiting, retaining and growing productive agents OR financing a request(s) for a commission advance. Which is the best use of your capital in this changing market place? Which yields the best return for you and your business?

Let’s look at a possible scenario when an office does commission advances internally –

* 25 in-house commission advances per year

* $25 – 30,000 or more outstanding to agents (this spring alone)

* $4 – 5000 is your annual gross profit from this activity

* 3 – 4% cost of borrowing

* administration costs (until these funds are repaid)

* 1 deal down (with or without an agent departure) = Bad Debt + a Loss against gross profit

* High Risk

* No guarantee of return

When you advance commission today internally for your agents you may be left “holding the bag” (an empty bag at that).

Take a look at your numbers and your office and agent situation today. Maybe outsourcing your commission advance service is the best answer for you?

Just a couple of thoughts – hope they help!

May your agents’ deals be double-ended.

Happy selling,

Joe