In the case of real estate agents or teams, Cost of Sales refers to:įor demonstration purposes, let’s say Cost of Sales for our $300,000 GCI adds up to 12-percent, or $36,000. Using our $10 Million in production example, 30-percent of $300,000 is $90,000, which leaves you with $210,000. In our real estate budget template, we allocate a total of 30% of your GCI is for your operating expenses. Once the Gross Commission Income is determined, the next important metric is your Total Operating Expenses. If you generate $10 Million in closed sales, the GCI will be $300,000. In most cases, your Gross Commission Income is 3-percent of your total production volume. Here are the Four Key Metrics that apply to every successful real estate budget: Gross Commission Income (GCI)
For example, having a fixed percentage of expenses regardless of how much income is generated is ideal for determining how much you spend on lead generation, staff, and other costs. Four Key Metrics of a Production Growth Budget Scheduleĭata is great for real estate agents because it helps eliminate a lot of the guesswork associated with growth.
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