MREA Business Plan Guide
The proven framework to achieve your real estate income goals
مقدمة
The MREA (Millionaire Real Estate Agent) Business Plan is a powerful framework developed by Gary Keller to help real estate professionals achieve their income goals by breaking down the business into manageable, measurable components. LyncHub's system integrates these proven methodologies to provide you with a live, interactive calculator that quantifies the activities needed to achieve your financial targets.
This guide will explain how LyncHub calculates your MREA plan, provide examples, and offer tips to help you achieve your goals.
How LyncHub Calculates Your MREA Plan
LyncHub's MREA calculator operates on two primary models: the Economic Model and the Lead Generation Model. These models work in a reverse-funnel manner, starting from your desired net income and working backward to determine the number of leads you need.
Step 1: The Economic Model
This model determines the Gross Commission Income (GCI) you need to achieve your desired Annual Net Income Goal, factoring in your Cost of Sales and Operating Expenses.
Inputs:
- Annual Net Income Goal: Your target take-home profit before personal taxes.
- Cost of Sales Percentage: Percentage of your GCI that goes towards agent splits, referral fees, etc. (MREA standard: 30%).
- Operating Expense Percentage: Percentage of your GCI that goes towards salaries, marketing, rent, and other overheads (MREA standard: 30%).
Formulas:
Example Calculation
Input: Net Income $100,000, COS 30%, OPEX 30%
- profit_before_opex = 100,000 / (1 - 0.30) = 100,000 / 0.70 = 142,857.14
- annual_gci_goal = 142,857.14 / (1 - 0.30) = 142,857.14 / 0.70 = 204,081.63
Steps 2 & 3: The Lead Generation Model
This model takes your annual_gci_goal and uses your conversion rates to calculate the number of closings, appointments, and leads required.
Inputs:
- Annual GCI Goal: (output from Economic Model)
- Average Commission per Closing: Your typical commission earned per transaction side.
- Seller Side of Business (%): The percentage of your closed units that will be seller-side transactions.
- Seller Appt-to-Listing Rate (%): Percentage of seller appointments that result in a signed listing agreement.
- Listing-to-Sold Rate (%): Percentage of signed listings that result in a closed sale.
- Buyer Appt-to-Agreement Rate (%): Percentage of buyer appointments that result in a signed buyer agreement.
- Buyer Agreement-to-Sold Rate (%): Percentage of signed buyer agreements that result in a closed sale.
- Lead-to-Appointment Rate (%): Percentage of leads that convert into appointments.
Formulas:
Step-by-Step Guide to Using the Calculator
LyncHub's business plan setup is a wizard-style interface that guides you through these inputs, with a live calculator updating on the right side.
Step 1
النموذج الاقتصاديEnter your income goals and expense percentages to calculate your required GCI.
Step 2
مزيج الأعمالSet your average commission and business mix between seller and buyer transactions.
Step 3
معدلات التحويلAdjust your conversion rates to see how they impact your required leads and appointments.
Step 4
مراجعة وحفظReview your complete plan and save it to launch your customized MREA dashboard.
MREA Plan Calculation Examples
Let's illustrate the calculations with specific inputs and precise outputs.
Important Note: The values will be calculated with full decimal precision as per the Python code. The LyncHub UI might round these for display (e.g., to whole numbers for leads/appointments), but the underlying values retain precision.
Standard MREA Profile
Inputs:
- Annual Net Income Goal: $100,000
- Cost of Sales (%): 30.00%
- Operating Expenses (%): 30.00%
- Average Commission per Closing: $7,500.00
- Seller Side of Business (%): 50.00%
- Seller Appt-to-Listing Rate (%): 75.00%
- Listing-to-Sold Rate (%): 75.00%
- Buyer Appt-to-Agreement Rate (%): 75.00%
- Buyer Agreement-to-Sold Rate (%): 75.00%
- Lead-to-Appointment Rate (%): 5.00%
Calculated Outputs:
| هدف إجمالي دخل العمولة (GCI) السنوي | $204,081.63 |
| Total Closings (Units) | 27.21 |
| Seller Units | 13.61 |
| Buyer Units | 13.60 |
| Seller Listings Needed | 18.14 |
| Seller Appointments Needed | 24.19 |
| Buyer Agreements Needed | 18.14 |
| Buyer Appointments Needed | 24.19 |
| Total Appointments Needed | 48.38 |
| Total Agreements Needed | 36.28 |
| Total Qualified Leads Needed | 967.60 |
High-Volume, Low-Cost Agent
Inputs:
- Annual Net Income Goal: $200,000
- Cost of Sales (%): 20.00%
- Operating Expenses (%): 25.00%
- Average Commission per Closing: $5,000.00
- Seller Side of Business (%): 60.00%
- Seller Appt-to-Listing Rate (%): 80.00%
- Listing-to-Sold Rate (%): 80.00%
- Buyer Appt-to-Agreement Rate (%): 80.00%
- Buyer Agreement-to-Sold Rate (%): 80.00%
- Lead-to-Appointment Rate (%): 7.00%
Calculated Outputs:
| هدف إجمالي دخل العمولة (GCI) السنوي | $333,333.33 |
| Total Closings (Units) | 66.67 |
| Seller Units | 40.00 |
| Buyer Units | 26.67 |
| Seller Listings Needed | 50.00 |
| Seller Appointments Needed | 62.50 |
| Buyer Agreements Needed | 33.33 |
| Buyer Appointments Needed | 41.67 |
| Total Appointments Needed | 104.17 |
| Total Agreements Needed | 83.33 |
| Total Qualified Leads Needed | 1,488.10 |
Niche Luxury Agent (High Commission, Fewer Units)
Inputs:
- Annual Net Income Goal: $150,000
- Cost of Sales (%): 35.00%
- Operating Expenses (%): 30.00%
- Average Commission per Closing: $15,000.00
- Seller Side of Business (%): 40.00%
- Seller Appt-to-Listing Rate (%): 70.00%
- Listing-to-Sold Rate (%): 70.00%
- Buyer Appt-to-Agreement Rate (%): 70.00%
- Buyer Agreement-to-Sold Rate (%): 70.00%
- Lead-to-Appointment Rate (%): 3.00%
Calculated Outputs:
| هدف إجمالي دخل العمولة (GCI) السنوي | $306,122.45 |
| Total Closings (Units) | 20.41 |
| Seller Units | 8.16 |
| Buyer Units | 12.25 |
| Seller Listings Needed | 11.66 |
| Seller Appointments Needed | 16.66 |
| Buyer Agreements Needed | 17.50 |
| Buyer Appointments Needed | 25.00 |
| Total Appointments Needed | 41.66 |
| Total Agreements Needed | 29.16 |
| Total Qualified Leads Needed | 1,388.78 |
Team Lead with High COGS (Splits)
Inputs:
- Annual Net Income Goal: $250,000
- Cost of Sales (%): 50.00%
- Operating Expenses (%): 20.00%
- Average Commission per Closing: $8,000.00
- Seller Side of Business (%): 50.00%
- Seller Appt-to-Listing Rate (%): 75.00%
- Listing-to-Sold Rate (%): 75.00%
- Buyer Appt-to-Agreement Rate (%): 75.00%
- Buyer Agreement-to-Sold Rate (%): 75.00%
- Lead-to-Appointment Rate (%): 6.00%
Calculated Outputs:
| هدف إجمالي دخل العمولة (GCI) السنوي | $625,000.00 |
| Total Closings (Units) | 78.13 |
| Seller Units | 39.07 |
| Buyer Units | 39.06 |
| Seller Listings Needed | 52.09 |
| Seller Appointments Needed | 69.46 |
| Buyer Agreements Needed | 52.08 |
| Buyer Appointments Needed | 69.44 |
| Total Appointments Needed | 138.90 |
| Total Agreements Needed | 104.17 |
| Total Qualified Leads Needed | 2,315.00 |
Focus on Conversion Improvement
Inputs:
- Annual Net Income Goal: $120,000
- Cost of Sales (%): 30.00%
- Operating Expenses (%): 30.00%
- Average Commission per Closing: $7,000.00
- Seller Side of Business (%): 50.00%
- Seller Appt-to-Listing Rate (%): 90.00%
- Listing-to-Sold Rate (%): 90.00%
- Buyer Appt-to-Agreement Rate (%): 90.00%
- Buyer Agreement-to-Sold Rate (%): 90.00%
- Lead-to-Appointment Rate (%): 10.00%
Calculated Outputs:
| هدف إجمالي دخل العمولة (GCI) السنوي | $244,897.96 |
| Total Closings (Units) | 34.99 |
| Seller Units | 17.50 |
| Buyer Units | 17.49 |
| Seller Listings Needed | 19.44 |
| Seller Appointments Needed | 21.60 |
| Buyer Agreements Needed | 19.43 |
| Buyer Appointments Needed | 21.59 |
| Total Appointments Needed | 43.19 |
| Total Agreements Needed | 38.87 |
| Total Qualified Leads Needed | 431.90 |
Tips and Tricks for Meeting Your MREA Plan
The MREA model is all about levers. By understanding how each input affects the output, you can strategize effectively.
Increase Your Net Income Goal
النموذج الاقتصاديالإجراء: Adjust the Annual Net Income Goal higher.
Impact: This will directly increase your required GCI, units, appointments, and leads.
Tip: Be ambitious but realistic. Break down a large annual goal into quarterly or even monthly targets to make it less daunting.
Optimize Cost of Sales & Operating Expenses
النموذج الاقتصاديالإجراء: Lower your Cost of Sales Percentage and/or Operating Expense Percentage.
Impact: Even small reductions here can significantly lower the required GCI needed to hit your net income goal.
Tips: Negotiate better splits, streamline referral agreements, audit your spending, and leverage technology to reduce overhead.
Increase Your Average Commission per Closing
توليد العملاء المحتملينالإجراء: Increase your Average Commission per Closing.
Impact: For the same GCI, a higher average commission means you need fewer total closings.
Tips: Focus on higher-priced properties, negotiate higher commission rates, or specialize in a niche where commissions are higher.
Balance Your Business Mix
توليد العملاء المحتملينالإجراء: Adjust your Seller Side of Business (%) ratio.
Impact: This shifts the proportion of seller vs. buyer units and impacts the number of listings/agreements you need.
Tips: Understand which side of the business has higher conversion rates for you and which offers more leverage.
Improve Your Conversion Rates
توليد العملاء المحتملينالإجراء: Focus on improving any of your conversion rates.
Impact: One of the most powerful levers. Even a few percentage points improvement can drastically reduce the number of leads needed.
Tips: Invest in sales training, implement robust CRM systems, pre-qualify leads, and provide exceptional service.
Increase Lead Generation
توليد العملاء المحتملينالإجراء: Work to acquire more Qualified Leads.
Impact: This is the most direct way to fill your funnel if your conversion rates are stable.
Tips: Diversify your lead sources, invest in targeted marketing campaigns, consistently ask for referrals, and engage in prospecting activities.
Interactive MREA Calculator
Experiment with different inputs to see how they affect your business plan.