News and advice
Why you should never lose sight of your GCI
Volume AND GCI are important KPIs right now.
In a recent article in Elite Agent, written by Ray White’s Mark McLeod, he took the position that volume is more important than GCI when the market is down. And there’s no denying his advice, volume is always important, and top performing agents should always be striving to increase volume, regardless of market conditions.
However, if you’re only focused on volume, you’re also at risk at making poor short-term decisions, like dropping your commission to win a listing (something I recommend you avoid doing at all costs).
I also agree with his point of view that opportunity abounds in the current market, and if the volume in your key areas has dropped, you need to dig deep, work hard and find the volume to compensate.
But, and this is a very big BUT, GCI is just as important – it’s a critical metric to your personal success. Because of this, you must monitor both GCI and volume.
As the saying goes, revenue is vanity, profit is sanity. And in real estate terms, the same goes for volume vs GCI.
Your GCI and what YOU take home is sanity.
What’s the point of increasing your work load to increase your volume only to see half, or more, of that hard work fill someone else’s pocket?
A simple comparison – why you should care about GCI
Look at the table below, which shows the impact of a better GCI split to your take home pay, this is based on the average franchise comms split vs and average split when you partner with UrbanX).
It’s clear from the above, a better GCI split has a massive impact, without needing to increase volume. And, when you increase your volume, the impact on YOUR income is significant.
How to increase volume: The 20:1:20 Strategy
Just like during the GFC, everyone is being distracted by bad news and ignoring their core activities. To stay focused, keep to the 20:1:20 strategy (an approach that grew my marketshare significantly):
- 20 meaningful new connections every day (taking as many calls as needed to get there)
- 1 meeting secured from those 20 connections
- 20 meetings per month.
From those 20 meetings, you should secure 3-4 listings. Growing listings by that number per month will provide a solid foundation for turnover and if you do a good job, you’ll continue to gain referrals off the back of each sale.
How to increase your GCI split.
The single biggest metric that will impact your income is the percentage of your GCI you keep.
There’s no sugar coating it – building your volume will boil down to the time and work you put in. So why not get the full reward? And despite what you’ve been told, this is a variable you can control.
If you’re established, have a great reputation and are ready for more now is the time to consider making a name for yourself. By doing so you’ll unlock your full earning potential and will have full control of your future.
Ready to really make a name for yourself? Build your own brand and partner with UrbanX today.
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