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 Agents

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 ProspectsPercentageAnticipated Prospect Source(1)expected in year(2)to closing(3)Income $ Postcard or Mail Farming(4)55.00%Note (5)$3,125 Meet/Greet and Networking %$9,375 Floor/Phone Duty(6) %$62,500 Referrals (not paid)715.00%$13,125 Repeat Clients420.00%$10,000 Web Site Leads(7) %$6,250 Other$0 Total >$104,375 Enter your average transaction dollar amount >$250,000 Enter 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%$6,875 Royalty to UC8.00%$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 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 addresses you gain from your (or your broker's) site in a year. Pay UC After Agent split

Marketing Activity or# of ProspectsPercentageAnticipated Prospect Source(1)expected in year(2)to closing(3)Income $ Postcard or Mail Farming(4)55.00%Note (5)$3,125 Meet/Greet and Networking %$9,375 Floor/Phone Duty(6) %$62,500 Referrals (not paid)715.00%$13,125 Repeat Clients420.00%$10,000 Web Site Leads(7) %$6,250 Other$0 Total >$104,375 Enter your average transaction dollar amount >$250,000 Enter the average commission percentage for a transaction ---->5.00% Your average transaction commission is >$12,500 Royalty to UC8.00%$1,000 Enter 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 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 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 $6,175 Pay United Country first then Agent $5,625 Savings 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