It’s no secret that we’re in a tougher market. And as we face a changing market we’ve seen increased commentary about where agents should focus their efforts and what metrics to track.
Recently, it’s been suggested that volume is the only metric to monitor in a down market and that agents should view this as more important than their GCI.
There’s no denying the advice, volume is always important.
Top performing agents should always strive to increase volume, regardless of market conditions and if the volume in your key areas has dropped, you’ll need to dig deep, work hard and find the listings to compensate.
However, if you’re only focused on volume, you’re also at risk of making poor short-term decisions, like dropping your commission to win a listing (something I recommend you avoid doing at all costs).
But, and this is a very big BUT, GCI is just as important – it’s a critical metric to your personal success.
As such, you must monitor both GCI and volume.
As the saying goes, revenue is vanity, profit is sanity. And in real estate terms, the same goes for volume versus GCI. So why not have both?
Your GCI and what YOU take home is sanity. What’s the point of increasing your work load to increase your volume only to see half, or more, of that hard work fill someone else’s pocket?
A simple comparison – why you should care about GCI
Look at the table below, which shows the impact of a better GCI split to your take home pay.
It’s clear from the above, a better GCI split has a massive impact without a reliance on increased volume.
And, when you increase your volume, the impact on your income is significant, with hundreds of thousands of dollars available to you every single year.
For some agents, they may be happy to take a less attractive GCI split, factoring in other things that are provided to them such as software, training and support.
What stage you’re at in your career will also play a large role in what you need.
But with our industry becoming more competitive, and platforms like ours (UrbanX) offering a genuine alternative with higher commission splits and all the tools, software and support an agent needs to succeed, again I ask the question, why not have both?
Whatever you decide, below you’ll find some tips to drive volume and GCI.
How to increase volume: The 20:1:20 Strategy
Just like during the Global Financial Crisis, everyone is being distracted by bad news and ignoring their core activities. To stay focused, keep to the 20:1:20 strategy (an approach that grew my market share significantly):
- 20 meaningful new connections every day (taking as many calls as needed to get there)
- 1 meeting secured from those 20 connections
- 20 meetings per month.
From those 20 meetings, you should secure 3-4 listings. Growing listings by that number per month will provide a solid foundation for turnover and if you do a good job, you’ll continue to gain referrals off the back of each sale.
How to increase your GCI split
The single biggest metric that will impact your income is the percentage of GCI you keep.
There’s no sugar coating it – building your volume will boil down to the time and work you put in. So why not get the full reward? And despite what you’ve been told, this is a variable you can control:
- you can negotiate a better split with your boss (if you don’t ask, you don’t get)
- you can look to change who you work for, or
- you can choose to work for yourself.
So, if you’re established, have a great reputation and are ready for more, now is the time to put that reputation to work for you.
Use it to increase your volume, use it to strengthen your name and use it to increase your market share.
And if you’ve been considering really making a name for yourself and taking the leap of establishing your own agency, now is a great time to do it.
By doing so you’ll unlock your full earning potential and take full control of your future.
Are you an agent looking for more? Learn more about UrbanX here