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Run the MREA goal-setting exercise

Start from the income you want to take home and work backward to the conversations you need each day, then save the result as your annual goals.

The MREA Economic Model exercise turns a net income goal into the numbers underneath it: the gross commission you need, the transactions that produce it, the appointments and leads that produce those, and the daily contacts that start the whole chain. It is based on the model in The Millionaire Real Estate Agent. At the end, one button saves the result as your goals for the year.

Start the exercise

  1. Open Goals from the sidebar.
  2. Under Not sure where to start?, select MREA Economic Model. The card notes it is 9 steps and takes about five minutes. View all opens the Goal Setting Exercises page, which lists the same exercise.

Every step has a Continue button and, after the first, a Back button. From the second step on, a Required GCI figure in the top right updates as you change anything. Nothing is saved until the last step.

The steps

  1. Start explains the model. If you want the exercise to begin from your real numbers, expand Import from previous year data, enter last year's Total GCI Earned, Total Transactions Closed, Total Sales Volume, Total Listings Taken, Total Appointments Set, and Total Leads Generated, and select Calculate & Apply My Benchmarks. That sets your average sale price, commission rate, and conversion rates from what actually happened.
  2. Income asks What's your net income goal? Enter an Annual Net Income Goal or pick one of the quick amounts. The card below shows the monthly equivalent.
  3. Expenses is covered in the next section.
  4. Revenue asks what share of your GCI comes from the seller side. Drag Seller-Side Revenue; the cards show Buyer GCI and Seller GCI.
  5. Commission asks for your Average Commission Rate (your side) and Average Sales Price. The cards show Avg Commission / Deal and Required GCI.
  6. Transactions has nothing to enter. It shows Seller Sides, Buyer Sides, and Total Transactions, each with its volume, and a Monthly & Weekly Pace of closings.
  7. Conversion has three sliders: Listing to Contract (Close Rate), Appointment to Listing, and Lead to Appointment. The Funnel Breakdown (Annual) chart below shows how many leads, appointments, and listings the year needs.
  8. Activities asks for Working Weeks / Year, Working Days / Week, and Contact to Lead Conversion. Your Daily Playbook shows Contacts / Day, Contacts / Week, New Leads / Week, and Appointments / Month.
  9. Your Plan is the summary and the save step.

A contact in this exercise is one real estate conversation, which is what you log on the Conversations page.

The Expenses step

Choose Solo Agent or On a Team. If you are an agent or ISA on a team, On a Team is selected for you.

As a solo agent, two sliders set Cost of Sales (COS) and Operating Expenses (OpEx) as a share of GCI. Both start at 29.2%, which is the model's suggestion. The cards show Your GCI, Total Expenses, and Net Income.

On a team, the step works out what you keep after the team's share:

  • If your team leader has set your commission profile in Settings, your buyer-side and seller-side splits appear under Your Commission Splits, marked From Settings, and cannot be changed here. The exercise blends them using the revenue split from step 4.
  • Otherwise, drag Your Split (% you keep) or pick 40/60, 50/50, 60/40, or 70/30.

A Cost of Sale section appears when your account has brokerage, royalty, or fee settings, or when any of those values is above zero. It has three lines: Brokerage cut (a percentage of your share), Royalty / franchise (a percentage off the top), and Per-deal fees (one combined dollar amount per transaction). When settings exist, Use my settings is checked and the three fields are locked to the values from Settings. Uncheck it to type your own. A cap on the brokerage or royalty line is shown for context only; the exercise does not model caps, so if you expect to cap partway through the year, lower the percentage to your effective rate.

Enter your Annual Personal Business Expenses, the costs the team does not cover. The breakdown then runs from Required GCI down through Team keeps, Brokerage cut, Royalty, Per-deal fees, and Personal expenses to Net to you, and the cards show GCI Needed, Team Keeps, and You Keep.

The values under Use my settings come from your own commission profile first, then the team's defaults for new agents, then the account's commission settings. See Configure team splits and commission profiles.

Finish and save

Your Plan shows the Net Income Goal, then Required GCI, Total Volume, Transactions, Listings to Take, Appointments, and Leads Needed, a Daily Minimum Activity figure in contacts per day, and a recap of Your Conversion Rates.

  1. Choose the Year. The list runs from last year to two years ahead.
  2. If you can see your team's data, choose who this is for under Save goals for. Otherwise the goals are saved for you.
  3. Select Save as My Goals.

The page confirms with Goals saved. and returns you to Goals. The save writes your annual GCI, Volume, Transactions, Conversations, Appointments Set, Appointments Held, Agreements Signed, and Under Contract targets, and the Dashboard rings start measuring against them. Appointments set and held both take the appointments figure, and agreements signed takes the listings figure. If a goal already exists for that person and year, the new targets replace it from this month on.

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