The year is half over and you need to be a proactive agent and look at your business so far this year—how much has it cost you? How much have you earned in commission income? What is your cost per transaction? Where is your business coming from? Once you know these answers, you can finish off the year and bring more income to the bottom line. Here's how:

Spend your money where you bring in the most revenue! Doesn't that sound logical? Of course! Yet, we agents just keep spending money on things that sound like a good idea without ever really looking at our business. If the majority of our business is coming from open houses, then we should spend the majority of our resources on open houses—advertising them, sending invitations, having more open house signs, having a good drawing, etc.

How do you know where your business is coming from? Write down every address you have sold so far this year, whether it is a listing or a sale, what the sales price was, the commission that your earned, and where the business came from (past client, open house, agent-to-agent referral, cold calling, farming, FSBO's, etc.). From this list you will know how many sales you have made so far this year, and what has brought you the greatest revenue. Something will certainly standout. The only exception may be if you are a brand new agent.

You should have all your receipts for your business separated from your household receipts. At this point, midyear, you should know how much you have spent on your business so far this year. Remember to include, your car expenses, advertising expenses, MLS dues, membership dues, postage, E&O costs, computer supplies and software, marketing materials, etc. Everything that you pay out in order to be an effective Realtor. Divide the total by the number of transactions, and that gives you a cost per transaction.

Knowing your cost per transaction is going to give you ammunition to fight for your commission when it is challenged by the seller. Now you know how much you spent, and that doesn't even count what your company spent per transaction. You will have a much easier time of defending your position when you can tell how much you personally are spending.

And, when you hold to your commission line, you bring more to the bottom line.

When you spend the majority of your available funds on the areas that bring you the most sales, you will increase your bottom line there as well. You will find that you can cut expenses in some areas that are not bringing you any return. It makes so much sense, why doesn't everyone do this?

At this time of year you should also take stock of your image campaign. Are you consistent throughout your advertising? Do you use the same font? Is the format similar in each ad, brochure, flyer? You are spending money advertising yourself as well as your listings, make sure that it will give you the most "bang for the buck." Have it uniform! Agents get busy making sales and tend to let some of this slip; this is the time of year to take a look and get back on track. This will position you better in the marketplace, again increasing your bottom line by being noticed.

It's easy to do. Doesn't take long. And, oh what great results! Take a few hours now to see exactly what you have done in sales, where they have come from, what you have spent on your business, and if your marketing has a consistent look. After you know the answers, plan on spending the majority of your resources on what has brought you the most sales the remaining months of the year. Watch that bottom line grow!