There’s an saying, a business that doesn’t take stock of it inventory will so be out of business. This morning I performed an analysis check up on my loan signing business. While the business volume has dropped, my average currently earnings are up from averaging per order of $127. The analysis shows my earnings are a 3:1 ratio to the current market. Here’s an example, this coming Friday I have a refinance signing assignment that pays $185. Over the pass week, I have ignore signing orders, where the average fees ranged between $50 up to $85 (so the average fee range is $67.50). Let’s do the math (let’s keep it simple) if I earn a $185 on an refi assignment that take 4 hours from acceptance, perpetration, up to completion (includes round trip travel, scanbacks, and dropping documents) this comes to an average earnings of around $46.25 per hour. If I accept assignments at an average market fee of $67.50 and it takes the same amount of time, my earnings would be $16.87. Here’s the kicker, it takes 3 signing orders to equal one signing order at $185, which means my total work time from acceptance to completion goes up from 4 hours to a total of 12 hours. Of course all this is hypothetical! Our inventory is our time, supplies, and other operational components. Taking stock of my loan signings business (including RON assignments), my signing earnings per hour comes out to be $133 per assignments/per hour is $33.33. Take stock of your business, determine its profitability and how long your business can survive or thrive.
$185.00 Net?
Or you have to deduct costs like:
ink
paper
Travel (Car usage) Gas included
and little extra expenses,
I’Am curious to see the exact profit on this kind of assignments…
Because I think if you got $185.00 net, you probably were offered more than that…
Yep…doing the math is the most important thing we can do for ourselves in this biz.
Just keeping it real simple, the numbers are based on gross. Everyone’s net profit will be different due to variable expenses and other factors. Just the items you mentioned fluctuate on a constant basis. Heck in Florida, my homeowners insurance has thrown a “monkey wrench” into things, that is just one more reason for having a diversified business model.
As a NSA it is easy to figure a profit, If I take a signing in my area from a Title Company, if the ALTA document states: " Notary Fees" $300.00 I usually get it, but if I take it from a SS intermediary they offer on average half, $150.00, deducting expenses I can get $100.00, more or less, that simple.
And for having a diversified business, as a Hispanic man I am able to do construction jobs as a Plumber, electrician, and other skills acquired through life, I started as a Notary Public to help people in my community, but when I learn the Notary Signing Skills, I was able to make money using only my seal and a pen, and I meet lots of nice people, RON and other things like that I don’t do it, not interested…
You’ve performed a very well thought out analysis. I did last year and decided that due to market saturation of NSAs, changes in the RE Market, I’ve put RE transactions on the back burner. My notary services are now a value added service to my Tax Practice.
I understand where you are coming from. I have been an NSA for about a year. I have learned that a lot of signing services will try to pay you the lowest, but you should always negotiate a higher fee prior to accepting.
Concur 
percent with @mannie1950 
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Calculating one’s PROFITABILITY can be a daunting task & certainly shouldn’t be glazed over lightly . . .
While the thought is appreciated, there are many items that were EXCLUDED from the calculation noted in the original post that must be included PRIOR TO speaking of profitability and hourly rate.
There are many items to consider within Overhead calculations. Here are a few to get started:
• gasoline
• turnpike fees
• ferry expenses
• parking expenses
• paper
• toner
• telephone expenses including cell phone equipment and monthly service fees
• Notarial stamps for Jurats, Acknowledgements, Notarial Name, Commission Expiration, etc.
• advertising and marketing costs; i.e., Google ads, yellow pages ad, website, business cards, or brochure
• rent and utilities
• office equipment and furniture; i.e., work chair, work desk, reliable dual-tray printer, trustworthy scanner, etc.
• binder clips
• pens (inexpensive for one-time use)
• stationery and supplies including stamps & envelopes
• business insurance
• business-related meals and entertainment
• professional association memberships
• annual background checks
• annual certification expenses
• travel costs to & from signer locations (i.e., create a generic by county list)
• travel costs to & from FedEx/UPS/USPS, etc. (i.e., choose your favorite location OR the closest that will provide you with a receipt)
• legal and accounting fees
• tax preparation fees
• Protection equipment; i.e., COVID-19 masks, hand sanitizer, wipes, etc.
AND MANY more!
Individual overhead would also include the cost of fringe benefits; i.e., medical insurance, disability insurance, retirement benefits. Also, remember to include quarterly income tax payment to federal & state (as appropriate) and self-employment taxes.
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If calculating all this accurately to determine PROFITABILITY and the ACTUAL HOURLY RATE after expenses seems to be a bit overwhelming, reach out to your tax advisor and ask for guidance in this regard.
Also, for a detailed example BREAKING DOWN the elements of a calculation, please see this post:
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