JUST BE SATISFIED??
I read a blog post this a.m. written by a thoughtful ActiveRain member that sent a mixed message to me.
Adrienne Deans relates her experiences with leaving one brokerage for another in her question to grow her business and reach a higher level of achievement. Sadly, her former broker's message to her was that she should "be satisfied" with her present position and that she should simply "let things happen naturally".
Sorry to disappoint, but, in the real estate business, things don't "happen naturally".
HAVE A PLAN AND FOLLOW IT. Things are made to happen by real estate practitioners who have a plan, follow it and change their plan to adjust to changing markets. Never, in all my years in this business have I seen a real estate licensee succeed or even survive, by simply letting things happen naturally.
FOLKS ARE USUALLY LEADERS OR FOLLOWERS. I don't believe that people change that much. Unless you have actually lowered your income goals, you'll find that you'll need to work and perhaps even change direction from time to time to continue to achieve goals that we set for ourselves. Real estate practitioners who can change direction, understand and capitalize on market trends will usually find continued success.
FOLLOWERS, however, by waiting for business to come along, ignoring market trends and waiting for things to happen could soon find themselves our of resources and out of business.
As for your old broker, most employing brokers prefer agents who are "satisfied" with just enough to pay the broker a nice split, but not sufficient for the agent to want to move to a higher level and reduce the broker's split. The large real estate companies continue to dominate market share and volume but agents who remain"satisfied" waiting for thing to happen naturally will see their fellow agents' listing and selling volume continue to grow while their own does not.
THE LITTLE KNOWN REAL ESTATE BROKER "SECRET". Large brokerages thrive on two things;
- (1) market share, and
- (2) broker/agent commission splits
MARKET SHARE. Ever wonder why the heavy listing agents get the best offices, clerical assistance, advertising help, open house volunteers and invitations to the "top producers" breakfast meetings?? Even in a slow market where those listing are not selling, the top listing agent get the broker respect and support. It's 
the market share of listing that they bring to the broker. If there are 25 For Sale signs in a popular community and 10 of them are from one real estate company, that company will dominate the market for:
LIST TO LIVE? Well of course. Few new agents have not heard the advise of real estate school instructors say, "You can be at the beach and still sell homes." Listing agents can easily carry 10-20 listings, service them well and they will be paid no matter who brings the buyer. Buyers' agents, on the other hand, because of the nature and time constraints of acquiring buyer clients, showings, previewing, touring and managing offers/contracts are limited in the number of actual sales (income). The buyer's agent can only receive a commission for the buyer's side of the commission. The listing agent/broker has the potential to receive both "sides".
Why listing agents lead the market.
- Listings - The old maxim "list to live" is still taught in real estate school, CE and employing brokers.
- Signs - If one broker's For Sale signs dominate, owners will contact that company to list their home.
- Showings - Every prospective buyer who visits a listing is a potential customer or client to list or buy.
- Advertising - Advertisements in a magazine, web site, blog, newspaper or sign can lead to a sale.
- Sales - Without sales, the agent won't survive and neither will be broker.
- Commissions - For every listing generated by an agent, the broker has the potential of two "sides".
LETTING THINGS HAPPEN NATURALLY? I fear that would be a recipe for failure. Listings rarely come naturally.
- No listings means no signs with your name and phone number.
- No showings means no sales.
- No advertising limits the potential to sell.
- No sales, no commission.
- No commission, no income.
BROKER/AGENT COMMISSION SPLITS means that the "satisfied" agent will continue to have a lesser commission split with their broker. Brokers recruit new agents who may only sell 2-3 homes a year and remain at a low commission split. Every wonder why brokers continue to hold the license of agents who may close only 2-3 sales a year? Those "satisfied" agents are, to the brokerage, money in the bank. Agents who "let things happen naturally" will not usually climb the broker/agent split ladder.
SUCCESS THROUGH VOLUME. How do Buyer's Agents who do not take listings survive and thrive? By becoming a broker and receiving a commission split from every commission earned by buyer's agents with the company.
Letting things happen naturally just might mean having to get a job. Real estate commission checks just don't happen naturally. They are rewards for a good job done. You can't just put in time and collect a pay check in the real estate business.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
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Val, thanks for reblogging this. I'll leave comments on Lenn's post. Hope everything is well. I know the rainy season is just ahead for you. We'll have SNOW next week. Yuck!