How Financially & Operationally

Sound Are You?

“If you fail to plan, you plan to fail”- Unknown

How do you dream in business?

Build a Vision

Brainstorm

Document it in a Plan

Build a Vision

• How much do you want your business to grow?

• How do you want to get there?

Brainstorm

• What areas can I affect? GCI or expense or both?

• How can I affect those areas?

• What goals do I have for the year to affect those?

Document it in a Plan

• Formal budget of your goals

• Formal monthly reviews of results with team

• Manage against your plan to make adjustments

Where do you want your business to grow?

How do you want to get there?

• Increase GCI?• Agent Recruitment?

• Increase Listings• Auction Services?

• Enhanced Marketing Solutions (EMS)?• Reduce overhead expenses?

Increase GCI

• Change commission rate by 1%• Addition of agents• Increase Listings• Auction Services

• Enhanced Marketing Solutions (EMS)• The Warranty Group

Change Gross Commission Rate by 1%

• Average GC rate across the entire UC network is 4.4%

• The top 100 UC offices average 5.7%

• The bottom 100 UC offices average 4.6%

Addition of Agentswww.joinunitedcountry.com

Increase Listings

The top 100 offices in United Country carry an average of 250 listings a year which equates to 50 listings per agent. (average 5 agents)

The bottom 100 offices in United Country carry roughly 18 listings which equates to 6 listings per agent. (average 3 agents)

Auction Services

Enhanced Marketing Solutions - (EMS)

• 75 % of offices that engage with EMS team win the listing they may be trying to win.

• 95% of those are seller funded projects.

• 80% of the projects that they engage an EMS project sell the property either traditionally or via auction.

• Office branding

Reduce Overhead Expenses

• Agent costs – Do you pay for all the technology fees for agents or make them pay for it?

• United Country Royalties – How do you pay your splits with agents?

Marketing Activity or # of Prospects Percentage AnticipatedProspect Source(1) expected in year(2) to closing(3) Income $

Postcard or Mail Farming(4) 5 5.00% Note (5) $3,125Meet/Greet and Networking 150 0.50% $9,375

Floor/Phone Duty(6) 50 10.00% $62,500Referrals (not paid) 7 15.00% $13,125

Repeat Clients 4 20.00% $10,000Web Site Leads(7) 100 0.50% $6,250

Other $0Total---------> $104,375

Enter your average transaction dollar amount ------------------------> $250,000Enter the average commission percentage for a transaction ----> 5.00%

Your average transaction commission is-------------------> $12,500

Enter your split for agent. For 50%, enter .5, etc.---------> 55.00% $6,875Royalty to UC 8.00% $1,000

Average To Broker $5,625

(1) You can add activities or prospect sources in the blank lines and formulas will work. You can change type titles as well.(2) Make a conservative estimate of how many of each type of prospect you'll deal with during the year.

For mailers, enter responses. Ex: You'll mail 12000 pieces with 1/2% response = 60

(3) Enter numbers for any percentage cells as a decimal. Ex: 5% is entered as .05 and 1/2% is entered as .005(4) For mailers, calculate your exected response like this:

Mailing 1000 pieces/month = 12,000 pieces. Expect 1/2% response = 60(5) For mailers, .02 = 1 closing out of 5000 pieces mailed. Remember this isn't responses, it's closings.(6) This is only the number of prospects that you think you'll actually work with out of all visits and calls.

(7) Suggest that this is the number of email addresses you gain from your (or your broker's) site in a year.

Pay UC After Agent split

Marketing Activity or # of Prospects Percentage AnticipatedProspect Source(1) expected in year(2) to closing(3) Income $

Postcard or Mail Farming(4) 5 5.00% Note (5) $3,125Meet/Greet and Networking 150 0.50% $9,375

Floor/Phone Duty(6) 50 10.00% $62,500Referrals (not paid) 7 15.00% $13,125

Repeat Clients 4 20.00% $10,000Web Site Leads(7) 100 0.50% $6,250

Other $0Total---------> $104,375

Enter your average transaction dollar amount ------------------------> $250,000Enter the average commission percentage for a transaction ----> 5.00%

Your average transaction commission is-------------------> $12,500

Royalty to UC 8.00% $1,000Enter your split for agent. For 50%, enter .5, etc.---------> 55.00% $6,325

Average To Broker $6,175

(1) You can add activities or prospect sources in the blank lines and formulas will work. You can change type titles as well.(2) Make a conservative estimate of how many of each type of prospect you'll deal with during the year.

For mailers, enter responses. Ex: You'll mail 12000 pieces with 1/2% response = 60(3) Enter numbers for any percentage cells as a decimal. Ex: 5% is entered as .05 and 1/2% is entered as .005(4) For mailers, calculate your exected response like this: Mailing 1000 pieces/month = 12,000 pieces. Expect 1/2% response = 60

(5) For mailers, .02 = 1 closing out of 5000 pieces mailed. Remember this isn't responses, it's closings.(6) This is only the number of prospects that you think you'll actually work with out of all visits and calls.

(7) Suggest that this is the number of email addresses you gain from your (or your broker's) site in a year.

Pay UC Before Agent split

Average Savings to Broker per Transaction

(based on two scenarios)

Pay Agent first then United Country $6,175Pay United Country first then Agent $5,625Savings per transaction $ 550

Reduce Overhead Expenses

• Agent costs – Do you pay for all the technology fees for agents or make them pay for it?

• United Country Royalties – How do you pay your splits with agents?

• Outside websites or support?• Marketing – What percentage do you spend on

outside marketing?

Outside Marketing Spend

Most offices are spending 3-6% on outside marketing expense.

Does this money being spent make sense?

What benefits are you getting from this?

Where are most of your sellers/buyers coming from?

Reduce Overhead Expenses

• Agent costs – Do you pay for all the technology fees for agents or make them pay for it?

• United Country Royalties – How do you pay your splits with agents?

• Outside websites or support?• Marketing – What percentage do you spend on

outside marketing?• Utilizing all of the Home Office staff potential• Rent – How much do you spend on rent?

Rent

• 50% of offices are spending roughly 10-20% of their commissions on rent based on survey.

• 35% of offices are spending more then 20% on rent which is too much.

• Negotiate a longer term on lease to lower payments?

• Find a smaller space – more and more agents are mobile so is a big space necessary?

Reduce Overhead Expenses

• Agent costs – Do you pay for all the technology fees for agents or make them pay for it?

• United Country Royalties – How do you pay your splits with agents?

• Outside websites or support?• Marketing – What percentage do you spend on

outside marketing?• Utilizing all of the Home Office staff potential• Rent – How much do you spend on rent?• Signage for agents• Payables Terms with Vendors?

Formal Budget

• Do you prepare a formal budget?

• How often do you review against this budget?

• Do you use software to help you review this?

• Do you share with your team?

“If you fail to plan, you plan to fail”- Unknown