Almost a year ago I wrote a blog post titled "Wanna Own A Franchise? Think Again" and received a lot of great points and comments from people who had done just that, either successful or unsuccessful. This time, I am re-examining those aspirations but focusing on simply "being a broker".
MONEY, MONEY, MONEY, MONEY
Most sales agents I come across that have a desire to be a broker (or obtain a broker's license) do so simply because they want to make more money. Funny. I tell them, there is a reason the word "BROKE" is part of the word "BROKER". Often, it is the seasoned sales agent wanting to become a broker. This agent may be a top producer individually, or even run a team, thus they feel there is large profitability to just expand on what they have. What they often do not think is that running a brokerage (which usually means having multiple independent and successful agents) requires a true leader that is not solely motivated by money. As a broker, you are now making decisions for the better of the group as opposed to being a team leader, where your decisions are for the better of your own sales growing. You take on expenses to grow that as a team leader you never would have done, since likely it will not grow your own personal sales. Oh wait, but you (the broker) gets a % from that other top producer's sales! Yes and no. The office gets a % (you will quickly learn the difference) and if that agent is a top producer, the office will likely get a small %. It's comical really, the same agent that pins broker against broker for greater compensation as if they are the "Albert Pujols" of the real estate world, rarely looks at another top producer in the same light when THEY have to offer compensation from a broker's position. If you want to be a broker, take a fixed salary and build your concept around the fixed expenses (and yes, you can still sell to earn more).
LEADERSHIP
If you think you are a great leader, you may be wrong. When I began running my own franchise, I never looked at myself as a leader. ON the contrary, I looked at myself not as a leader, but as an idea person who could offer great ideas, systems, etc.. to help others achieve more. I looked at myself as someone who could find out about the latest trends and tools in the industry and bring that information to the successful agents so they become better. I tried to get everyone thinking independently yet focus on the good of the group. I offered the "shoulder to cry on" and "technical support person" and even the "I'll hold an open House for you because you are too busy" person so agents could be even more successful. What I did not realize was I was being looked at as a leader, and I was leading naturally. You see, I admired the skills of the elite sales agents. Skills that did not come naturally to me. So personally, I only wanted them to perform better, which made me feel a part of their success. And it worked to some degree (I think). It is very similar to being a pro sports coach. Look at some of the top coaches in sports. They typically were average players, not the best. How did they get so good? Over-preparing and knowledge due to their love of what they were doing and desire. I think those extremely talented sales agents may lack some leadership qualities because their definition of success is completely different, and how they achieve success is via a different path. A true leader's personal success always takes a backseat to the success of his organization as a whole. That success in turn defines his success.
STRUCTURE AND ORGANIZATION
All Broker Licensing Classes should require a simple question answered before a candidate can move forward: Did you prepare a business plan? If the answer is NO (yes, even for just obtaining a broker license), do not move any further and retreat! There's really no need for an actual broker's license) at least in PA and NJ there isn't). That is an indicator of how you will prepare and create a structured environment moving forward. We work in an industry where the majority get into it based on an idea, with little to no supporting knowledge or thought process of how that person will succeed. Personally, I think the real estate license requirements should be at least 2 years of a college education. We would turn out a much better product for the public, but then the licensing authority would lose out on fees and fines, and NAR would lose affiliates. Again, agents need structure and organization. Some of you can get this from a franchise, but believe it when I say the franchise will want to see your plan before giving theirs. Organizing a real estate office requires dedication and time, something agents do not like to offer if it does not result in an instant financial reward.
NOW THE FUN STUFF
Accountant. Bookkeeper. IT Specialist. HR Manager. Educator. File Manager. File Processor. Supply Manager. Equipment Manager. Consultant. Sales Manager. Marketing Director. Compliance Manager. Settlement Coordinator. Awards Recognition Director. Event Planner.
These are just a few of your new job responsibilities being a broker/owner. You may think you can hire out all of those positions, but that can be pricey. And I have a simple rule of thumb when running a business - I BETTER KNOW HOW TO DO IT IF I EXPECT SOMEONE ELSE TO DO IT RIGHT!
It really is not a joke. Prepare to be called on vacation (my first 3 years owning my office I did not take a vacation and to this day, I rarely take more than 1 full week a year), work on weekends, work late nights, etc... Things go wrong. So think of this - you have a listing appointment at 11am for a $500,000 property and your office is 1 month old. You get a frantic call that the internet is down and the copier is jamming. Oh yeah, there's a client on the phone complaining about one of your agents and is ready to talk to a lawyer. Hah, have fun being optimistic on your listing appointment, if you even get to it!
Only by creating an organized and efficient system can you mantain a positive atmosphere that can overcome even the smallest crisis. What may seem small to you likely will tick off your top agent, or even the "bottom feeder" who spends all day using your computers and electricty to browse Facebook. Sure, you can just make demands of agents or terminate them, but how will that look to the rest of the group? Will you be sincere? Professional? Or will the group perceive it in a different light?
If nothing else, think twice about what is involved in being a broker. This is only the first layer of the onion. If you have the passion and plan to move forward, best of luck as I am sure you will find success!
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