I love cost of sale.
Our business is run as lean as possible (to yield the most possible profits…) and one way that we do this is by making MOST of our “business expenses” actually “costs of sale” … meaning that if for some crazy reason a deal doesn’t close, we only pay out a wee bit o’cash.
Often, we get asked how our team “works” … so here is a breakdown of how WE (currently) use “Cost of Sale” in our “Rock Star” real estate team:
Our Team
Buyer Agents: They only get a check if they make the deal happen. Motivation to work hard to make things Rock and Roll.
Listing Manager: Small “fixed” expense for each listing that gets initiated, and a percentage of the commission when the listing sells. Motivation to aggressively price and promote our listings.
Short Sale Advocate: Small monthly salary and “dain bramage fansaction trees” for each deal closed. Motivation to schmooze the banks and get these puppies CLOSED.
Lead Coordinator: Paid purely at time of successful close. Motivation to keep Buyer Agents accountable throughout the entire process.
Transaction Coordinator: Paid purely at time of successful close. Motivation to NOT let a contract fall apart.
We believe that we have some of the BEST talent in the local industry – super motivated, productive, successful (and held accountable). … and one of the reasons that they ARE so awesome is because they are nicely rewarded … but they EARN it, just like we do … at time of close.
I love cost of sale.
