3 Ways You’ll Create a more Profitable Real Estate Business in 2022

Listing Alert
3 min readDec 27, 2021


Real estate commissions ebb and flow. One month you could be closing 2 deals with an income of $10,000+. The next month you could be in limbo. By knowing how to structure your business expenses to prioritize profit will help your business grow and make more money in 2022.

There are 3 main ways that you can increase the profitability of your real estate business:

  • Optimize your lead generation and marketing
  • Cut costs
  • Set up your bank accounts to align with this goal

Optimize Your Lead Generation and Marketing

If you’re not measuring all of your marketing and lead generation efforts, you could be wasting money on efforts that aren’t producing results.

If it’s not working, you should quit it right away. Especially if you are trying to save money and stay profitable.

For example, direct marketing with flyers and postcards is nice but expensive. Are you actually building a relationship and staying top of mind with the prospects in the neighborhood you’re targeting? Or can that money be better spent elsewhere?

Religiously track the cost, goals, and results as you go into quarter 1 of 2022 to know whether your marketing and lead generation activities are truly benefiting your business.

Once you’ve started tracking your marketing metrics, you can test new tactics or modify your approach. By experimenting with new and different marketing and lead gen strategies, you can the strategies that didn’t work and replace them with new ones that drive more revenue.

Beyond marketing and lead gen, one of the age-old ways (both personally and professionally) to increase profitability is to cut costs.

Cutting Costs

How many times have you forgotten about a monthly subscription to a product or app you rarely use? There are a lot of products and services out there that agents can purchase to make their lives easier or help them market better or save time. But are you actually using all of the ones you have purchased?

Probably not. In fact, 38% of software purchased goes to waste.

If you’re paying for a lot of services or software, it’s time to look at how often you use these tools. Because chances are, you’re only using 20% of the software you’ve purchased (which makes it that much easier to cancel those subscriptions). It’s time to cut the freeloading software before the new year starts.

If you’ve found that you are utilizing your software to the fullest, you can always look at other things such as your office, or marketing budget.

“Profit First” Accounting

The Profit First system comes from the book Profit First by Michael Michalowicz. Michalowicz presented a bank account system that’s much like the old envelope system of budgeting.

In his system, Michalowicz advises creating different business bank accounts for each aspect of your business

He recommends that you have at least these 5 separate accounts:

  • Income
  • Taxes
  • Profit
  • Day-to-day
  • Savings

Each account serves its own purpose. All money the business generates goes into the “Income” account. From the “Income” account, the money gets distributed amongst the other accounts until the income account is at 0.

Ultimately the goal is to make sure you’re building profit into every deal you do. Profit will always be taken out of the income that comes in. For more information on this system, check out the Profit First website.

Finding ways to stay profitable is how you’ll grow in 2022 and sustain a long career in real estate. By optimizing your marketing and lead gen, cutting costs, and abiding by Profit First accounting, you’ll find more success in the new year and beyond.



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