If I Could Create A Brokerage Today…
The brokerage model hasn’t been adequately challenged since 1906. There is still a semi-adversarial relationship between the broker and the agent competing for a bigger piece of the pie. It’s a very good time to consider a paradigm shift in the broker/agent dynamic.
Support for Agents
The ideal brokerage would first provide effective self-assessment of your skills and temperament so that you can be most effective in your strengths and also know which areas you need to seek assistance or outsourcing.
This dream brokerage would diminish the competing interests of the broker as well as the other agents thereby creating a collaborative environment in which many more can thrive. A “1099” or competitive self-employed environment is one of the most cut-throat in which to succeed.
The broker should provide clear strategies, whether online or off, to develop massive lead generation and conversion machines. A brokerage should encourage and provide training in business development as well as in technical and legal matters regarding real estate. A team approach and/or agent equity may be effective in minimizing the competing interests.
Many agents are led to believe the brand is a strong motivator for consumers to work with you. The truth, as I see it, is that YOU make the brand. In today’s marketplace, most often consumers are drawn to you, because of your reputation as an agent and/or the information you provide to them. (websites, blogs, community information, listings, etc.) These resources are available to all, without the need for a big brand. Never lose sight of the fact that YOU are the brand. People work with you because they know You, like You, and trust You.
Professionalism in the Real Estate Industry
Look for direct access to either an experienced, ethical broker or manager, for necessary consultations. Affiliation with a company that has a tarnished reputation will certainly diminish your personal brand.
On that note, a brokerage should allow and support you in co-branding, developing your own brand alongside the company, should you ever leave. Lacking this, you are essentially building someone else’s equity at your own expense. It’s like renovating a home you’re renting. In the span of a career, many agents affiliate with more than one brokerage. When you build your own brand, investing in your own tools, you can take all your assets with you wherever you go.
Compensation for Real Estate Agents
Equitable commission splits are more a function of the services being provided. For example, if the broker is the rainmaker and you are focused on serving the client and closing the transaction, then that merits a greater portion of the commission. Otherwise, if you as the agent are developing your own business, you should get a bigger piece, as you are laying out the resources to acquire the business.
The ideal brokerage would provide effective retirement options, so agents aren’t only as good as their last deal. The agents who are most successful in providing an exit strategy for themselves usually do so by building a business through teams. But not everyone has the skill set to do that. There are many agents who are great agents, do a great job for their clients, but don’t build large teams. Some don’t even want to. A retirement strategy is something everyone would like, no matter where they see themselves in the industry.
After 27 years in the real estate business, we believe we’ve found that dream brokerage. We invite you to check out eXp Realty.