Tracking performance metrics is one of the most important things a business owner can do to gain valuable insights into their brokerage or team’s performance, identify areas for improvement and make informed decisions that drive growth. Unfortunately, many team leaders and brokers don’t track effectively or focus on suboptimal metrics, which can lull them into a false sense of success and lead them in the wrong direction.
While metrics like topline sales or agent count can be important, they don’t provide a clear picture of your business’s revenue or profitability. For example, a brokerage may have a large number of agents, but if they’re not making sales, the agents don’t generate topline revenue. A brokerage may have high topline sales, but if they offer splits that are too generous, those sales don’t generate revenue for the business.
On the other hand, tracking the right metrics, such as agent conversion rate, lead conversion rate, revenue on ad spend, revenue per agent and income per agent, can provide unparalleled clarity into your brokerage or team’s performance. These enable the ability to identify your top performers, evaluate the value of different lead sources, optimize your advertising budget, reward high-performing agents, and ensure that agents are paid fairly and competitively.
Tracking these metrics is crucial to drive growth and profitability for your business and stay competitive. By measuring these key performance indicators, leaders can have valuable insights into performance and identify areas for improvement to drive their business forward.
This article was written by Eric Bramlett from Inman News and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.