Why Celebrate Volume or Units?

I've often heard from mortgage brokers who own their own "brokerage" that they used to make more money when they had a small team focused on serving their own clients. Real estate brokers have told me the same thing. So, if that's the case, why do they set goals for volume or units to the detriment of profitability?

The main reason for this is that head offices earn revenue based on volume. They drive their network volumes through incentives like awards, designations and cash bonuses. In some cases, these organizations only care that the sales people earn a decent enough living to want to keep going. Agent profitability isn't their chief concern.

Any business book will tell you the metrics measuring business success. There are many, but the most basic for small business owners and agents are profitability and wealth accumulation. Being a force for good (social and otherwise) can bring passion too. Just be sure to build in profit so you can support causes dear to you. (See Me vs US for a great article on this.)

Don't get wrapped up in chasing a volume or unit goal.

Focus on profitability alongside your unit and volume goals. You have to close deals to earn revenue so set targets for them. But don't lose sight of the need to be in the business long-term, and the profitability & wealth accumulation required for future (maybe tougher) years. Many "top producers" leave the market in tough years (which can be related to market or personal reasons) because they don't have a cushion or the profitability to weather a storm.

Brokerages will tell you that volume or units are the only ways for them to compare their agent success. Before chasing a volume or unit goal, make sure it fits with your profitability goal too.