There are 2 ways to have more discretionary income:
- Increase your income
- Decrease your expenses
Lets consider Increase Your Income. Here are some ways you could increase the money coming into your business:
- charge more for each transaction
- do more of what is profitable, more transactions etc
- increase your average sales price
- create additional revenue streams (rental properties, flip houses, property management, etc)
During a Shift, most Agents take a deeper look at how their money goes out the door. Now is a perfect time to find ways to trim your expenses. Here is a list of 7 ways you can keep more of your income.
- First you need to take a good look at where your money is going. Have you reviewed your line items being deducted from your bank account. It is very eye-opening. Often times you will find auto-charges for services that you forgot you even signed up for. Review through your bank account for 3 months and see what charges are services you no longer use/need. Total estimated Savings: $100-$200/month
- Dig deeper into your monthly services like intenet, TV and phone services. Many times you will find that you have extra fees on these that are upcharges you didn't realize you had. Review streaming services. Do you still use all the services you have subscriptions for. Cutting out services that you don't need to could save you $5-20/mo = Total Savings/year estimated $240
- Look at your lead sources in depth. First make a list of all your closes last year and identify where each of those closings came from. Analyzye your monthly marketing spend. If you spent $500 on mailers and did not close any deals from those mailers then you can save money on that. If you discover your closings came predominantly from one source then you would want to make sure that the income you made exceeded the cost of getting that buyer under contract. If it does, then do more of that. Total Savings/year estimated: $300-$400.
- Buy your monthly prescriptions in 3 month supply or through mail-order. Total Savings/year Estimated $360/year
- Shop your insurance for your car and home. Insurance costs creep up over time and insurance companies offer better discounts when signing up new customers. Shop around. They will pull your credit but it does not use the FICO system so you can have as many insurance companies as you want run you a quote with no harm to your credit score. Total Savings/year Estimated $400-600
- Call your credit card companies and ask them to lower your interest rate. Many times they will lower it just based on your request. Even if you have not been consistent with your payments, call them anyway, you will be surprised how many will agree to do it. Total Savings/year Estimated $180/year
- Keep more of the commission you earn. If you are working for a brokerage that takes 30%-40% of your commission, look to see if being a part of that brokerage was essential to you making the commission you made. Did you attend trainings put on by that brokeage? Did you take advantage of their resources? How much would it costs you to duplicate or replace those resources or trainings directly on your own. If you didn't attend their conferences or trainings or could replace them for cheaper than the amount of money you contributed to the brokerage, look to find a more cost effective alternative. Total Savings/Year Estimated= $16,000- $20,000
Your brokerage split is one place you can make the most difference to your take-home money.
Wingman Realty offers a $5,000 out of pocket maximum (CAP) for all agents. This is one of the lowest splits in the Kansas City metro. The value you get for that split is very generous. We have evaluated all the tools and resources that our members were used to having at a big box brokerage and found ways to duplicate those tools for less. Our agents have access to virtual file compliance with Dotloop integration, a customer relationship manager with full capabilities (drip campaigns, mass text, mass voicemail, mass video, mass email, lead ponds for teams, integration with 3rd party lead generation like BoomTown, Zillow, Ylopo etc), full training catalog including several annual national conferences to choose from including Super-conference and specialized trainings for each position on your team (OSA, ISA, Marketing, Admin etc), access to a Transaction Coordinator at a low cost. Signs and Lockboxes available to rent at a low cost so you don't have to keep purchasing signs