Benchmarking New for 2016

Confidentiality Your information will be kept strictly confidential. Only aggregated & anonymous information will be shared. No comparison will be made without sufficient data to ensure anonymity.

2016 Individual Input Forms An individual Google Sheet has been created for each brokerage. A unique link will be sent to each broker/owner in early Feb. You can share the form with your bookkeeper by forwarding the link. Better control One version of the form You can see all edits made You know who has access to the form All input sheets are linked to a database at Head Office Better security – no emailing or faxing of confidential information Improved accuracy – no re-keying of data

Easier to Complete No need to provide information we already have Annual agent counts will be taken from our records Other demographic information will be requested We will do the normalizing Just answer a few questions at the end of the form and we will do the math. We can help with your form while you watch the changes being made.

Demographic Data Royal LePage - Benchmark Input Form for 2015 Brokerage Name Here # of Realtors working in teams & partnerships # of Teams and partnerships Office size (sq ft) Total amount of space occupied by the business (leased or owned) # of locations Not including kiosks and agents' home offices # of kiosks # of agents on work-from-home plans

Income Statement - Revenue Financial Information for 2015 (Jan-Dec) Net Income Before Taxes Please enter the amount printed on your income statement Revenues Gross Commissions, excl. outside brokers Remember to remove the amounts payable to outside brokers Agents' commission (cost of sale) Commission paid out to agents All fees charged to agents Monthly fees, deal fees, etc. Interest income Including interest and fees from agent advances Mortgage Property management Franchise fee revenue (net of expense) If you charge agents more or less than your royalties to Royal LePage Other revenues Net Revenue $0.00

Income Statement - Expenses Operating Expenses Manager's compensation All managers' salaries, bonuses & other benefits Other employees' compensation All amounts for non-management employees Premises Rent, taxes, building insurance, utilities, maintenance & repairs Communication Telephone lines, answering service, internet, long distance Advertising All advertising for agents & the brokerage (net of recovery) Selling expenses Signs, forms, licenses, dues Training Training for managers, agents & staff Recruiting & retention Sponsorship & donations Events & Awards Other office and administration Office supplies, copier rent & maintenance, bank charges, etc Insurance E&O, content insurance Legal & accounting Bad Debt Total operating expenses $0.00

Income Statement - Earnings Operating Earnings $0.00 Non-operating expenses Depreciation & Amortization Loan interest If you have bank loans or other interest-bearing debt Other non-operating items Include all personal and other expenses that are not directly related to brokerage operations Net Income before taxes Statement is Valid. Please complete the information below.

Income Statement - Normalizing If the owner sells real estate Owner's commission included in Gross Commission Owner's commission included in Agents' Commission If you also own the building occupied by the company Rent amount included in Premises above Market rent for the space occupied Rent income included in other revenues This does not include charges to agents for their office space If the owner manages the brokerage Owner's compensation included in Managers' comp Market value of services provided by the owner If there are personal or other non-brokerage expenses charged to the business Total unrelated expenses included above

Better Information For You Summary report with traffic light indicators With high-level analysis Detailed report similar to the previous year Guidance for reviewing your reports Network-wide summary information More structured broker sharing session at Leadership Conference in Nashville.

Summary Report

High-level Analysis Revenue per agent at $15k is lower than the median of $16k and the best in class with $21k. You may have consciously positioned your brokerage as a slightly more affordable option to agents. It could be that your brokerage had more low-producing agents paying low fees than the rest of the companies in your group. Operating Expenses While discretionary expenses are lower than the norm for this size brokerage, it would appear that the overhead is too high for the number of agents in the brokerage. The space per agent is also significantly higher than the median and best in class which implies that there is room to grow the agent base.

Detailed Report - Statistics

Detailed Report – Operating Results

Guidance for reviewing your reports Here are a few questions to ask yourself while reading your benchmark report. Revenue Am I getting on average the revenue per agent I thought I was? How many agents pay less than the average net revenue? How many agents pay less than the average operating expense per agent? Should I consider other ancillary revenue sources? Premises Have I optimized the use of space to accommodate the maximum number of agents? How many more agents can I recruit? Do I need to downsize? Should I consider moving to a more affordable location? Staffing Do I have the right mix of internal staff and contracted services? Do I have the optimal mix of full-time and part-time staff?

Network Benchmarks – Profit per Agent by Size and Region $70,000 $423,000

National Benchmarks – Net Commission per Agent by Size & Region Range (in thousands) 1-24 $ 8 - $90 25-49 $10 - $27 50-99 $ 9 - $21 100+ $ 8 - $20 Range (in thousands) West $ 8 - $27 SK/MB $11 - $20 Ontario $ 8 - $20 East Coast $11 - $27