1. Benchmarking
New for 2016

2. 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.

3. 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 ing or faxing of confidential information
Improved accuracy – no re-keying of data

4. 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.

5. 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

6. 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

7. 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

8. 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.

9. 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

10. 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.

11. Summary Report

12. 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.

13. Detailed Report - Statistics

14. Detailed Report – Operating Results

15. 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?

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

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