That’s quite a number isn’t it?
Brokers are missing out on thousands and thousands of dollars every year. Not because anyone’s trying to take them for a ride.
Not because they are letting themselves being taken advantage of.
But because people are a bit careless. People are busy and they don’t double check their work.
Commissions go unchecked because they’re calculated by humans
People make mistakes.
Which is completely fine of course. BUT, it still means you’re missing out. Simply making sure each and every commission check that reaches you is correct will automatically increase your profit by thousands.
But, how often do you really check your commission? What about your agents’ commission?
Even if you wanted to (and let’s face it, no one really wants to manually check dozens -- or more -- of checks), you probably couldn’t for lack of time. Or, you’d run into a different problem: you’re checking so many commission checks that other tasks are left undone. Phone calls are missed and opportunities are squandered.
Which again will cost you money. So what can you do? Just accept that you’ll lose out because of administrative inaccuracies?
The value of checking commission checks
In that sense, real estate is an interesting line of business. In what other industry do you find businesses that do the work, don’t get paid what they’re owed and accept it like it’s nothing?
If you’re a plumber and send an invoice, you’ll chase the payment if you need to.
If they refuse to pay, you might end up taking them to court.
But, in real estate, this is often not the case. One fifth of payments is incorrect and almost no one checks this.
So, what can you do?
Well, in order to make sure you get paid, you’ll need to take into account CGI, splits, caps, royalties, admin fees, taxes and business expenses. It’s no easy feat, but you can do it for each and every transaction.
Automation will save you thousands of dollars
Of course, actually doing this for every transaction is a lot of work. That’s why we recommend automating this process. If you can review every single commission check that you or your agents receive, you’ll be guaranteed a handsome increase in profit every year.
All you need to do is invest some time to set up a tool to check your commission. A lot of brokers who go through this exercise spend a good number of hours setting up a spreadsheet and tweak it until they get it right.
Some of them don’t bother and as a result lose tens of thousands per year.
What you can do is this: get the Zipi Commission Validator™ and start automating commission calculations in minutes. Request a demo and start making more money.