The end of the year is the time when many agents decide whether or not to stay at their current brokerage. Making the move before Chrismas time should allow you enough time to order a receive new signs, directionals, change the website, and notify all of your past clients. It is my philosophy that many agents are not at the right company but either are afraid of change or are simply unaware of the other options available to them. I have assembled some questions that you can answer for yourself to know if you're at the right place or not.
1. What is your main source of business?
This is the most important question when considering changing companies. A myth that many traditional brokerages have told their agents over the years is that the only reason clients work with is the company you are affiliated with. Evaluate your business over the past year. If 90% of your business came off of other agents sign calls or desk duty, then you need to learn to generate your own business or just stay. Leaving your company would be career suicide, unless you were to join a team that has enough business to support you. I would tend to say that for most agents, their business comes from active prospecting, past clients, and referrals.
2. How well do you adapt to learning new systems?
If you are one that struggles with change or learning new things, a change may lead to more frusteration that success. I've noticed that whenever we've hired in agents from some traditional companies, they struggle moreso than any other because they have to do more work themselves than before. Things like entering your own MLS listing, submitting your own ads to your print media sources, taking your own pictures, etc. I've always found that learning and doing for myself is empowering.
3. How much will the move cost you?
Something to consider is how much the move will cost. Signs, lockboxes, franchise fees, administrative fees, MLS fees, etc. When I joined Keller Williams Realty a few years back, I dropped a couple thousand dollars with all these things. Of course, I could have spent less if I purchased less ornate signage, etc. If the new brokerage doesn't supply you with lockboxes, you need to figure in how many you will need and then seek out the cheapest sources to get them.
Next consider your listings. If your current brokerage pays for all of your advertising, you should start making some calls to the places you'd like to advertise to get their prices for you. I've always been for advertising my own listings because I will do the best job selling that listing. Plus, I have worked hard for every phone call, email, and showing request.
4. How much more or less will you make?
Explore to see which company offers you the best compensation plan based on your income level. Some companies that offer a lower scale or flat rate are not great for everyone. I started out with a company that started everyone at a 50/50 split with the broker and on every third transaction, the split increased 5%. At the end of the fiscal year, it would reset to one level higher than I was before. I thought this was a good deal until my wife discovered Keller Williams Realty's plan.
Their plan made the most sense to me for a few reasons. First, I would call it a no-risk split with a salary cap. Their 70/30 split only required that I paid upto a certain amount (less than $20,000 annually) and then you advance to 100% for the balance of the fiscal year. Most full-time agents can achieve this goal in under 3 months, leaving them 9 months of getting all you're worth. If you didn't achieve the cap. its ok since they're not going to come to you and demand you pay the balance.
Use your last year or two to see what you could have made if you moved to see if its worth it for you.
5. What kind of training or consulting is available to you at your new place?
We all want to grow and improve and a change in companies should not be the stop of your learning. Check out what the other companies have to offer and even request to sit in on a few trainings. Find out how many courses are onsite, regionally, or on the internet. To me, this is as important as making more money since I just do not a split increase - I want to grow!
6. Talk to agents who are currently working there?
This could be tricky but if you had a cross-sale with an agent of the brokerage that you're considering moving to, invite them to coffee at Starbucks and pick their brain. The key here is to have a confidential conversation. Unfortunately, we've had agents who have had their split reduced by just talking with another company. Active Rain is a great source for discovering active agents from lots of other companies in every state. Contacting them will definately help you have a confidential, frank conversation about their personal experience.
Sincerely;
Jonathan Osman
The Charlotte House Hunter
Charlotte NC Homes, Charlotte Real Estate
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