Putting 25% of Your Revenue at Risk

Your revenue may be more connected to recruiting than you think.

Last week, the CEO of a large, high-performing real estate company gave me a peek at a metric he calls “newly recruited GCI.”

In his company, 25% of revenue came from agents who joined their firm in the last 12 months.

His comment after seeing these numbers:

It’s a given that recruiting is important for any real estate company, but I was  surprised to learn we’re this dependent on it for our short-term success.

What was even more surprising?

About 50% of the newly recruited GCI came from new-to-real-estate agents. The remaining portion came from experienced agent recruits.

The new agents really helped us with listings. Each of them seems to have one or two close family members or friends who let them list their properties. It doesn’t seem like much, but it adds up.

Try calculating this metric for your office or team over the previous 12 months.

If it’s higher than you think, this metric will help you stay committed to recruiting.

Can you stay in business if your revenue dropped 25%?

If it’s lower than you think, you may have found your next lever for growth.

Would it be possible to recruit your company to a 25% increase in revenue?