Agent Path to Profitability Worksheet

Number of Transactions Required to Reach Desired Profitability

Average Sales Price of homes in your area

X average % sales commission per end/side of

= average sales commission in your area

Average sales commission in your area per end/side (1)

X your split of ________%

Minus average Transaction Fee

Minus average Regional Development Fee

Minus standard expenses (if any, e.g. E&O)

= your average net

Average monthly overhead expenses (advertising, dues, etc)

Add Desired Monthly Profit

Subtotal (add 3 and 4)

Divided (5) by your net per end/side (2) for number of ends/sides required per month to reach desired profitability

Residual Income

Average sales commission in your area (line 1)

X 10% residual

Desired residual income per month

Divide (7) by (6) for number of sides/ends needed finalized by your sponsored members per month

Average number of closings per month per agent (board data)

Divide number of sides/ends (8) you need for desired residual income by (9) .

Breaking Down the Numbers

To determine the annual net income you want to generate, multiple line 5 of the Path to Profitability Worksheet by 12 to get your desired annual income. Use the calculations below to give you an idea of the activities you need to complete to reach your goal. Substitute figures as they relate to your market and goals.

Annual Net Earnings Goal (line 5 of the Path to Profitability Sheet x 12) $_________________________

@ $___________________ per transaction = _______ Transactions (sides/ends)

Since taking more listings is the recipe for success in real estate, the ratio should be 60/40 (listings sold/buyer sales) = ________ listings sold / ________ buyer sales

2/1 This ratio means for every 2 listings you take, you’ll sell 1. Therefore, to sell _______ listings, you’ll need to take ________ listings.

2/1 This ratio means for every 2 listing appointments you go on, you’ll list 1. Therefore, to take _______ listings, you’ll need to go on ________ listing appointments.

5/1 This ratio means for every 5 leads you generate, you’ll get an appointment. Therefore, to book ______ listing appointments, you’ll need to generate _______ leads.

12/1 This ratio means that for every 12 people you talk to (contacts), you’ll get a lead. Therefore, to generate ________ leads, you’ll need ___________ contacts.

Based on the fact that you will take 4 weeks of vacation this year, that leaves 11 months left for business. Since there are approximately 20 working days in a month, that leaves 220 working days for the year (11 months x 20). When you divide the ________ contacts into 220 working days, that equals ___________ per day to whom you need to reach out

The Exit Commitment

We are building a company by design that honors production and success. We will stand out as a company of quality, high standards, ever increasing in market share and standings. We are a company of quality over quantity.

My commitment as an EXIT Realty agent is to offer my office production, positive contribution, and an optimistic attitude. I attend all meetings and trainings, embrace EXIT’s technology and marketing tools, and network more than any other brand. I defend our brand to all others and promote to my professional community the message “When you join our team, you will do better”.

EXIT is a company of entrepreneurs, helping each other build our businesses, become more successful, and have a greater feeling of self-worth. By doing so, together we become mutually vested in our collective goals. This company creates a win/win environment of which we are very proud, and I do my best to be part of the successful solutions necessary to excel.

It is EXIT’s company goal to be the most productively successful Real Estate Company on earth. Through our training, residual program, and affiliations, EXIT strives to be The Smartest Real Estate Company.

Keys To Success:

Your success factor in the real estate industry can be broken down easily into the four simple steps you see below. There is no particular order of importance as each one is equally important in your quest for achieving outstanding results this year.

1 GOALS 95% of your success is the reason why you are doing it. Desire ignites your subconscious mind, and your subconscious mind determines your results. The other 5% is how you do it. If your why is big enough, the how is easy.

2 PLAN Without a “plan of action”, you have no direction, no sense of accomplishment. To successfully drive from one point to another, you need directions, and you refer to these directions consistently to reach your destination. To achieve success in real estate, you need a map to provide you with that sense of direction. And you can follow this map and track your success along the way.

3 SKILL Having, or developing, experience is par for the course. Whether you’re a new agent or a veteran, improving your skills each year and looking for new ways to become more efficient in your activities contributes to your success. It’s not always about making more money. You are considered successful if you can find new ways to achieve the same results, but in a shorter, more efficient timeframe. Allow yourself to grow through learning and implementing new strategies

4 ACTION A vital part of constructing a Business Plan is being able to implement it. Simply creating a Business Plan doesn’t make you successful. Acting on it makes you successful. Do not be a full-time planner and a part-time worker. Plan your work, then work your plan.

Consider, if you will, that these four keys to success are like legs on a table. If you removed one of the four legs, would the table still stand? Of course, but how stable would it be? Moreover, if you leaned on the side with the missing leg, the table would fall, correct? Well, just as in the table example, if you completed three out of the four keys to success, you too would get results in real estate. However, your career would not be stable. If the market changed or the interest rates increased dramatically, it would be like leaning on the table. Your career could fall.

To have a strong, stable and successful career, you need to have all four keys in place.

Wheel of Life (exercise)

Directions: On the following page is a Wheel of Life. This will be a representation of your life, as of today, not what you want it to be. Each piece of pie represents one of eight areas of life. Rate each area of life on a scale of 0 – 100% (0 being the center, 100 being the outer rim), by sectioning off each piece and shading it in. For example, if your financial life was rated at 50%, then you would draw a curved line halfway up the pie and fill it in. The result would look like a half a piece of pie. If your family life was 100%, then you would simply fill in the whole piece.

Remember, this is supposed to be a representation of your life as of right now, not five years from now. Do not sugar coat your life, making it seem better than it truly is. Be honest. You have to know where you’re starting from to know where to go. Feel free to adjust the titles of each pie piece to suit your life.

Visualization (exercise)

Directions: Find a quiet location for this exercise and set aside 30-45 minutes without interruptions or distractions. Find a comfortable place to sit that will allow you to keep your back straight (sitting on the floor, on a straight back chair, etc). This allows you to sit comfortably but remain alert. Do not have anything in your hands (notepad, pen, etc). Close your eyes and focus on your life five years in the future. Remove all other thoughts or concerns, and only allow yourself to think about your life five years from today. Dream about how much you’ll be earning; about how your dream home will look; about how much you are worth financially; about your physical being and your health; about your family; and about every other area of life as outlined in your Wheel of Life. This exercise should take exactly 15 minutes, so be prepared to clock it with an alarm. Remember to remove all other thoughts.

Once the 15 minutes are up, open this Business Plan to page 7 which is titled, “Where will you be in the next five years?” and write down everything you just visualized in the space provided. Make sure you do this immediately after you visualized it, as you need to record your dreams when they are fresh in your mind. Write down as much detail as possible. The more detail you write, the more you can see it. The more you can see, the easier it is to achieve it. These are your true goals and aspirations for the next few years. Do not lose sight of them. Refer to them often. Make them real.

Where will you be in the next five years?

My New Plan – Business and Personal Goals

From your Wheel of Life and Visualization exercises create at least 2 goals you would like to accomplish for each area of life and write them below. For the Business section, list general goals and use the following Business goal chart to break down the numbers.

2023 Personal Goals

Physical Family Business

Financial Mental Social / Fun Contribution Spiritual

General goals here. Add details in chart on page 10.