The Costly Mistake Agents Make When They Scale

By Andy Mulholland

He has a background in leading a top real estate team for over a decade and an understanding of the critical role of clear financials, Andy, along with his wife Ellyn, a seasoned real estate CFO, co-founded Simple-Numbers.

In my recent interview with Christian Stubbs from Onyx Homes, we discussed how most team leaders believe they’re running a profitable real estate business because their numbers look good on paper. Revenue is up, expenses are tracked, and the profit and loss statement shows a positive bottom line. Yet many still feel like they are making less money than they did as a solo agent.

That disconnect usually comes down to clarity. When you’re a solo agent, simple bookkeeping works because the business depends entirely on your production. You track expenses, look at net profit, and move on. You’re not making high-level decisions, and you’re not trying to build something that runs without you.

Everything changes when you shift from solo agent to business owner. At that point, the goal is no longer just to sell homes. The goal is to build a business that can operate without relying on your production. You may still choose to sell, but the business should not need you in every deal to survive.

This is where many team leaders get into trouble. Most continue using basic bookkeeping that was never designed for a real estate team. They’re not tracking the true cost of sale, especially their own production. Because the owner does not pay themselves a commission split like their agents, all of their personal production flows straight to the bottom line. That makes the business look profitable even when it is not.

In reality, the owner’s commissions are covering payroll, marketing, and overhead. The business is not generating profit on its own. It is being subsidized by the person running it. When you look at the full business view and account for the real cost of sale, the truth becomes clear. Many teams are barely breaking even. Some would lose money if the owner stepped out of production. In those cases, there is no business. There is only a demanding job.

This matters because growth without clarity leads to frustration and burnout. Clarity allows you to see whether your business stands on its own and what needs to change to make it sustainable. If your business only works because you never stop producing, then the numbers are lying to you.

Stop letting unclear numbers hold your business back from real growth. It’s time to work with a bookkeeping partner who understands how real estate teams actually operate. We help you see your true cost of sale, understand what is really profitable, and build a model that works without relying on your production. Schedule a strategy call today and take the first step toward a business that runs profitably, even when you are not in production.