Broker Efficiency: How to put more money in the BANK at the end of the month

Brokerages, large and small, face significant challenges they did not face 20 years ago. Profit margins have eroded and control over their independent contractors has been minimized. The consumer has taken on a much more vocal role in the process and is forcing transparency and responsiveness never before experienced. Some of these challenges are related to technology and the advancement of the internet, while others are cultural challenges that have come about through the changing broker/agent relationship.

Many brokers focus the bulk of their efforts on generating sales revenue and gross commission income (GCI), but not nearly as much time focusing on ways to improve efficiencies and profit margins. With increased expenses and aggressive competition, this is more important than ever.

"Understanding the data behind your business will help give you an advantage over your competition," says Lorne C. Wallace, CEO of Lone Wolf Real Estate Technologies. "Using reports to dive deeper into the numbers and really understand what's going on behind the scenes will show you who is not performing to the business' standards, and where you may be missing out on additional efficiencies and profit margins that could bring your business to the next level."

Brokers today face numerous issues to make their business profitable. Technology is both part of the problem and the solution. Brokers that run their offices the way they did ten years ago are a dying breed. If there is one absolute in our business world today, it is the fact that change is happening exponentially. To be successful, brokers need to reinvent their business on a continual basis. Having the right infrastructure and view into their business is a key element to allow them to navigate these changes.