{"id":4659,"date":"2010-03-31T11:14:17","date_gmt":"2010-03-31T16:14:17","guid":{"rendered":"https:\/\/bhgrealestateblog.com\/?p=4659"},"modified":"2024-12-30T14:35:00","modified_gmt":"2024-12-30T19:35:00","slug":"effective-management-of-average-broker-commission-rate-abcr","status":"publish","type":"post","link":"https:\/\/bhgrecareer.com\/bebetterblog\/effective-management-of-average-broker-commission-rate-abcr\/","title":{"rendered":"Effective Management of Average Broker Commission Rate (ABCR)"},"content":{"rendered":"<p style=\"text-align: justify\">Relatively small changes to ABCR can result in significant changes to GCI and profit.\u00a0 In the example below, please note that the increase to ABCR is only .2{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c}, yet the impact upon profit is an increase of $80,000. All other drivers (sides, Average Sales Price [ASP], {0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} Retained etc.) have remained constant in the model, so the only characteristic that has been manipulated is ABCR.<\/p>\n<p style=\"text-align: justify\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-4667\" src=\"https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/03\/BrokerCommRateBlog.jpg\" alt=\"\" width=\"429\" height=\"258\" srcset=\"https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/03\/BrokerCommRateBlog.jpg 429w, https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/03\/BrokerCommRateBlog-300x180.jpg 300w, https:\/\/bhgrecareer.com\/bebetterblog\/wp-content\/uploads\/sites\/11\/2010\/03\/BrokerCommRateBlog-100x60.jpg 100w\" sizes=\"(max-width: 429px) 100vw, 429px\" \/>It may be difficult to find the data required to measure ABCR against your competition, however your sales agents effectiveness in\u00a0explaining your company\u2019s value proposition greatly impacts your ability to maintain margin.\u00a0 Highlight all products and tools that differentiate your company\u00a0as well as all listing statistics that show where you outperform the competition (e.g., closed sales price versus original asking price, average days on market, etc.).\u00a0 This will allow your clients hard data with which to compare your fee structures to that of your competitors.<\/p>\n<p style=\"text-align: justify\">Although each company must independently establish its own policies,\u00a0one effective technique may be to\u00a0require management approval to list homes\u00a0at or above a\u00a0predetermined commission rate. It is very important to establish listing parameters that maintain the integrity of\u00a0compensation structures while holding agents accountable to perform at those standards.<\/p>\n<p style=\"text-align: justify\">Focusing on the following measurements (with special focus on listing-side transactions) will help maximize ABCR:<\/p>\n<ol style=\"text-align: justify\">\n<li><span style=\"text-decoration: underline\"><strong>Study ABCR differences between branch offices (Multi-office companies)<\/strong><\/span><strong>. <\/strong> Barring no other specific explanations, this could highlight managers and agents who are effectively communicating the company\u2019s value proposition.\u00a0\u00a0Then, help other offices and agents to deliver the value proposition with similar effectiveness.<\/li>\n<li><span style=\"text-decoration: underline\"><strong>Rank sales agents by ABCR<\/strong><\/span><strong>.<\/strong> Ranking by ABCR will highlight whether your ABCR is driven up or down by only a few agents and allow you to focus appropriately.\u00a0 For those that fall below your expectations, coach them in the effective delivery of the companies value proposition. In most cases, the differential is connected to this skill set.<\/li>\n<li style=\"text-align: justify\"><span style=\"text-decoration: underline\"><strong>Analyze your listing data to measure ABCR performance<\/strong><\/span><strong> <\/strong>(measure with and without certain outliers such as one-time exceptions, new construction, referrals and the like).\u00a0 Also compare ASP, units, and absorption rates and establish changes to performance parameters based upon those results.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Relatively small changes to ABCR can result in significant changes to GCI and profit.\u00a0 In the example below, please note that the increase to ABCR is only .2{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c}, yet the impact upon profit is an increase of $80,000. All other drivers (sides, Average Sales Price [ASP], {0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c} Retained etc.) have remained constant in the model, [&hellip;]<\/p>\n","protected":false},"author":141,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,61],"tags":[811,841,1351,3041,5611,5761,12791,16161,23541,24151,25411,31351,33091,37601,45021,45041],"class_list":["post-4659","post","type-post","status-publish","format-standard","hentry","category-brokerage-operations","category-commentary","tag-abcr","tag-absorption-rates","tag-agents","tag-average-sales-price","tag-broker-commission-rates","tag-brokers","tag-effectiveness","tag-gci","tag-leadership","tag-listing-data","tag-managers","tag-performance","tag-profit","tag-sales","tag-value","tag-value-proposition"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Effective Management of Average Broker Commission Rate (ABCR) - Better Homes and Gardens Real Estate Be Better Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bhgrecareer.com\/bebetterblog\/effective-management-of-average-broker-commission-rate-abcr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Effective Management of Average Broker Commission Rate (ABCR) - Better Homes and Gardens Real Estate Be Better Blog\" \/>\n<meta property=\"og:description\" content=\"Relatively small changes to ABCR can result in significant changes to GCI and profit.\u00a0 In the example below, please note that the increase to ABCR is only .2{0a8e414e4f0423ce9f97e7209435b0fa449e6cffaf599cce0c556757c159a30c}, yet the impact upon profit is an increase of $80,000. 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