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few years back I sat with one of our top sellers. On paper she was a superstar—closing over $20 million in volume annually, winning awards, and earning the admiration of her peers. Yet a deeper look revealed a different reality: her six‑figure commissions were being siphoned off by marketing, lead‑gen, assistant salaries, and new tech tools, leaving little profit. The lesson hit both of us hard: chasing volume alone is a mirage; real success comes from sustainable profit.
Most agents enter real estate for the love of homes, people, and the excitement of a deal, not for spreadsheets. That reality doesn’t absolve brokers from teaching them to run a business. Celebrating volume without profit can build castles on sand. Therefore, a broker’s most valuable role is to guide agents toward financial literacy and sound business habits.
At RedKey we implemented a simple, powerful shift: after every closing, agents allocate portions of their commission into three separate accounts—Taxes (to avoid April panic), Savings (to cushion slow seasons), and Investments (retirement, real estate, or professional growth). It’s not flashy, but it transforms agents who once felt broke between deals into ones who feel in control and see profit grow.
Best practices for brokers to educate agents:
* **Tell relatable stories** – Numbers can feel abstract. Share real examples of agents who sold big but earned little versus those who built steady wealth quietly. Stories resonate where spreadsheets fall short.
* **Normalize profit conversations** – In sales meetings, ask about profitability, not just volume. Celebrate agents who save 20 % of income or cut $1,000 in monthly expenses through smarter systems. This sets a new benchmark: volume matters, but profit matters more.
* **Provide practical education** – Invite a CPA to discuss tax strategies, a financial planner to outline retirement building, and offer simple profit‑and‑loss templates. Short, repeatable sessions often have the biggest impact.
* **Encourage quarterly expense reviews** – Technology, leads, and marketing are essential but can spiral. Prompt agents to ask: “What’s truly delivering results? What’s draining resources?”
* **Lead by example** – Share your brokerage’s budgeting process—how you evaluate marketing spend or build reserves. Transparency models the behavior you want agents to adopt.
The producer I first met now still closes impressive volume, but she also maintains reserves and a healthy profit margin. She no longer feels like she’s on a hamster wheel; she credits the shift to learning how to run a business like a business. Brokers have the chance to do more than help agents sell homes—they can help them build stability, security, and freedom. When agents are financially strong, their businesses thrive, brokerages prosper, and the industry as a whole benefits.
