Growing ROE in a Brokerage

At the core of every great business is culture and identity. In the sales industry, strong cultures are not accidental; they are intentional. I would submit that there are three non-negotiable components of a high-performing sales culture. First, a commitment to continuous learning. Second, a willingness to share knowledge openly with others. And third, accountability to clearly defined goals. When an agent understands the balance between systems and processes, they gain something powerful, the ability to create consistent, repeatable outcomes driven by high-value activities. Once that foundation is in place, success becomes teachable, scalable across a team and throughout an enterprise. Without systems, accountability, and shared standards, agents and leaders aren’t running predictable, well-managed businesses. They’re running advanced hobbies, driven by personality rather than performance. Soft skills matter. They attract clients and build rapport. But at the end of the day, this is a business, and businesses require discipline, structure, and the ability to demonstrate and prove value in the market. Running a profitable real estate brokerage is challenging. Building one with true, provable equity is even harder. Under the traditional transaction-based brokerage model, most real estate companies carry little to no transferable enterprise value. In many cases, the cash value of the brokerage itself is effectively zero. By contrast, traditional businesses often trade at multiples of six to seven times earnings because they are built on predictable, repeatable systems rather than individual production. This raises a critical question for brokerage owners: How do we establish and grow equity—and generate a return on investment—similar to traditional businesses? The answer lies in moving beyond transactions and toward enterprise thinking. Equity is created through proprietary systems, operational discipline, and a culture of consistent performance that does not rely solely on any one individual. When results are predictable, measurable, and replicable, the business becomes scalable—and therefore valuable. In short, the culture you intentionally design and reinforce is what ultimately drives equity in your brokerage.