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When will we see this "Brokerage of the Future"

By
Services for Real Estate Pros with Virtual Results

In a LOT of ways... Its already here.

As an Internet marketing consultant who prides himself in debunking current thoughts on what actually works and doesnt? I invest a fair amount of time with my clients across the Country..

I travel a lot. I mean, a lot.

Because I visit different regions of the country, I get to hear first-hand not only what brokerages and agents are talking about, but also the public at large. Its amazing what you can learn in a Starbucks for 4 hours with 20 $5 cards and a clipboard of questions.

Here's what I can tell you: there has been much speculation these last two years, about what the real estate brokerage of the future will look like. What you may not know, is the brokerages of the future are already here. There are several firms across the country that are rethinking the old paradigm and boldly exploring new frontiers. Here is a one example of such a brokerage, located in Los Angeles, California.

"Well, a typical day here is a bit different than what you might find at other brokerages," says Dane Findley, Marketing Director at Partners Trust Real Estate Brokerage and Acquisitions. "We believe what real estate professionals really want most from their brokerage is cutting-edge coaching and education, and state-of-the-art technology tools, so you'll see that belief reflected in our culture. This is how we spend our time and energy."

At PT, a Social Media Tutorial is presented every Wednesday morning at Partners Trust, during which Associates learn inside tips on using digital media to provide value to their communities and motivate each other to work their social media campaigns. These tutorials include everything from effective blogging tips (each agent has his/her own hyper-local blog) to how to drive your existing clients onto your 2.0 tool set.

Thursdays is Press Room Day -- an editorial story meeting where Associates exchange story ideas for their blogs, offering each other support and constructive criticism. "Each Associate is encouraged to have at least one Social Object, which is a hobby or interest other than real estate, around which an ongoing series of hyperlocal features can be built," reports Findley. "Authenticity is essential. If you want to write about the best dog parks in Santa Monica, or record video segments about your never-ending search for the perfect cup of coffee in Brentwood -- as long as it feels real and interesting to you -- we run with it."

Also on Thursdays is Workshop, when the Founding Partners gather round with their laptops and smart phones to catch-up on their social media channels, conversing on Twitter and Facebook, and leaving comments on local blogs and online forums. "Of course, we spend an enormous amount of face-time out in the field, but it's also important to build into our schedule our journalistic endeavors and social media protocols," states Findley.

Friday mornings is reserved for Enrichment Series at Partners Trust. Currently running is a 13-week group called Think Rich, designed to help Associates explore their own inner-relationships with money. Explains President Nick Segal, "we find that prosperity loves enthusiasm, so we make sure to laugh a lot around here and have a good time." This forward-thinking brokerage invests in the happiness of its Associates, and it shows in the design of the interior office spaces -- replete with water features, textiles, and eco-chic colors and materials -- even the air quality and acoustics have been considered. "Since all Associates own a piece of this Brokerage, each one feels a sense of responsibility and connectedness to the team," says Segal. "When the Associate feels good, they, in turn, provide their clients with a premium level of service. What I mean is, you can't get away with having a boring, stale office and then ask your Associates to be dynamic sales people. It simply doesn't work that way."

As a consultant for Partners Trust, I have shadowed members of the team and I've realized that one of the keys to their success has been a deep commitment, from the top-down, to their social media program. Whether or not to participate in the program is the decision of individual Associate, but the company as whole is fully committed to providing relevant and useful (and often entertaining) information to their clients in between transactions. "Well, let me put it this way," explains Findley, "it's only 11:30am, and I've already filmed one video and posted two blog posts from Associates. Every single one of the Flip cams has already been checked-out from our Concierge Station. That means that my team is out there, bringing their neighborhoods to life by sharing stories and finding the best things to do in the communities of Los Angeles."

Yes, the Brokerage of the Future is a mind-set. A comitment to teach and encourage their agent to spread their wings and move toward new technology while embracing age old social strategies.

If your real estate brokerage is doing something different, or if you know of one that is, please share what they're doing in the comments section. I always welcome success stories of brokerages that are doing new and inventive things that work. (But I may check it out and blog about it, so beware!)

Meanwhile, in the video below, one of my clients shares with you some of our helpful tips for getting the most out of your marketing and lead-generation efforts:


Show All Comments Sort:
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON
Jim There is no question brokerages of the future will change, just like any other time in history. I feel that the consumer is more advanced with technology and information than ever before and perhaps are ahead of the learning curve than brokerage offices are. Ty
Apr 16, 2010 08:35 AM
Anonymous
Kymberly Caldwell
Great Post, my brokers are always promoting and implementing training. They are also very much in the limelight of Active Rain. I am always receptive to learning new ideas because the industry is always changing and as Gene states the old fashion personal service always works for the traffic you don't get from the web. As Missy stated not many agents are willing to show up for training. But those who snooze, lose. Kymberly Caldwell, SFR Realtor, Tri County Residential, California
Apr 16, 2010 08:38 AM
#76
Anonymous
David Findley

Thanks for your comment, Briddick, and we at Partners Trust could not agree more.  It's a point we emphsize often and support with tools to help us stay in front of our clients in a personal way.

As I'm certain is the case with many real estate professionals on Active Rain, my real estate business has been primarily repeat and referral for many years now.  If ever I find my business waining, I need only increase the level of my personal interaction with what we call our "relationship list" (our highly valued and much loved past clients and referral sources), to experience a nearly instant upswing in business activity.  While social media is one way to stay keep top-of-mind consciousness with our client base, there absolutely is no substitute for value of reaching out personally touching those who have supported our business in the past and those we would like to have the opportunity to serve in the future.

I was speaking the other day with another Realtor who recounted an experience he had with an very knowledgeable agent in a part of the country where he was considering purchasing a second home.  He's a very qualified and serious buyer.  On a recent trip to the location, he met an agent who showed him several properties.  After returning home, he continued to receive daily "auto-notifications" from the agent of properties new to the market for several weeks, never once picking up the phone, or even a pen, to personalize the interaction.  He then had an opportunity to refer a friend of his who was thinking of relocating to the same area in which he was considering the purchase of a vacation home.

Of course, his first thought was of the agent who had shown him properties in this same location.  However, because this agent had never reached out to him in a personal way, he said he simply could not feel good about referring his friend to this highly qualified agent.  Even one phone call after he left to come home could have been this agents salvation.

Another thing Jim Marks and Dane Findley (my beloved spouse) at Partners Trust drive home to us often - the number of Twitter followers, for example, one has is not nearly as meaningful as the number of people we engage on social media channels in a way that's interactive and equitable.  Just sending 140 character broadcasts to the Twitter-verse will be much less likely to further my business unless I am also willing to engage in conversation with an intention to create value for those with whom I am communicating.  Again, back to the importance of creating and maintaining relationships.  The engagement and conversation is one thing I most appreciate about the Active Rain community of professionals.

This is the most exciting time I have ever seen in the real estate industry - that from one, like many of you, who remembers when a contract was one page (oh, how we love to recount that story) and when we waited each week for the book of new lisitngs to be brought to our office, our first notification of their existence.  To be a part of Partners Trust, which not only has embraced social media with an uncommon level of commitment, but which realizes and supports deep relationships within the company and with our beloved clients, is truly a dream come true.

 

Apr 16, 2010 08:42 AM
#77
Tony Hager
United Realty Texas - Denton, TX
Broker
It's funy to me how people dream up new names to old ideas and call it niew. Social Media has been around for quite sometime, I was "social networking on AOL and Instant Mesenger and ICQ back in the mid '90's when I first got my license not sure how long before that it had actually got started so why do we call it Web 2.0 now just becuase someone came up with a different name?
Apr 16, 2010 10:22 AM
Jeani Codrey
RE/MAX Corridor - New Braunfels, TX
Director of Opportunity & Agent Development

I think that our industry is shifting MO and I am quite happy to see it happen.  Let's face it, the over inflated mega high overhead real estate offices where agents sit around on $3000 sofas eating donuts is becoming a thing for the history books.  When I opened my brokerage a little over a year ago, my business coach told me to keep overhead low, embrace form and function over fluff and be high tech.  An office isn't what you need, but providing a real estate resource center for your agents is exactly what you need.  So far, I am pleased.  I have exactly three people who "permanently" office in our resource center and that would be me, my mom (business partner) and our assistant.  We are wireless, with work stations, coffee bar, conference room, killer professional development, technology and marketing skills development, webinars,  and agent support.  The first thing I direct my sales associates to do is buy a domain name...at least one...get on Active Rain to open a blog and buy a Flip video camera.  This is where business is going and those who try to hang on to the past MO will be joining the dinosaurs in the near future.  The biggest concept for brokers to get their head around is to be brutally clear about what their value proposition is and don't stray from that.  Every model isn't for every agent and when you truly understand what you are, it takes the guess work out of who fits into the model you operate.  Love the post, love the concepts and ideas and I am excited to see this direction in our business!!!  Thanks!!! 

Apr 16, 2010 11:17 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

All of a sudden I want to be a broker. lol. I think the times of doing "what you're supposed to do" are gone. Thanks for the post. I have a lot to think about...

Apr 16, 2010 11:20 AM
Raymond MAASKE
BusCom Real Estate Services - Okanagan Valley, BC
Commercial Real Estate
Thanks for the tips!!
Apr 16, 2010 12:15 PM
Anonymous
Ernesto Rijavec

GREAT POST!  I want to add my 2 cents.  Here's a brief history of my company operating out of Florida.  Check it out!  

 

“Why would you start a real estate company during the worst period of the last twenty years?” I have lost count as to how many times I have been asked that question. Both industry professionals and novices insisted on an answer. I have come to believe that the more people think you are crazy, the more likely it is that you are a part of something special. It is always a good time to start a business so long as it is creative and innovative. Sandals Realty is both, and it directly addresses the following:

The role of the BROKERAGE has drastically changed over the last ten years, due to the overwhelming migration to the web and to wireless technology. Agents are connected, clients are connected, and the BROKERAGE is no longer the source of information exchange between them. This is a fundamental shift, and the industry has been sent scrambling for a solution.     

The History of Sandals Realty

Sandals Realty is a product of a changing industry.  In early 2006, two young Brokers, a developer, and a real estate attorney decided to challenge conventional wisdom by creating a unique Brokerage concept that was unlike anything else before it. Together, the group inspected and scrutinized every aspect of traditional real estate brokerages and found them to be (in many ways) incompatible with the way real estate agents (and clients) performed their daily activities. 

They found that while the wireless and internet revolution had been adopted by REALTORS and CLIENTS, it had not yet been embraced by real estate companies, or BROKERAGES. This insight was the catalyst for the creation of Sandals Realty. After exhaustive research, the group had reverse-engineered a real estate brokerage that would address the major shortcomings of the old methodology and formulas, while embracing the timeless values of best practices and responsible business. Among the many innovations was a revolutionary three tiered commission structure that allowed agents of differing experiences to CHOOSE the ONE PLAN that best fit into their business.  It was named AgentChoiceâ„ , and it instantly struck a chord.

They also refined the office layout. Instead of the traditional “bull-pen” they opted for open space, round tables (so agents and their clients could collaborate on the inevitable web search), robust wireless technology, live networking events, café-style working environments, and private board rooms. No one actually gets a desk of their own (they aren’t in the office anyway). This allows the new model to recruit drastically more agents than was previously possible, and thus, offer superior commission plans. This illustrates the law of large numbers, and it is the basic theory behind the concept. More agents, less fees, more transactions, sustained growth, and increased market share.   

The result is an extraordinary new concept that (simultaneously) achieves better commissions, redefines workspace, increases efficiency, produces happier agents, and suggests a solution for the problems facing the BROKERAGE industry today.         

In 2007, in the midst of tremendous growth, the company decided that in order to bring this unique concept to all of the REALTORS® in North America, it would have to be offered as a franchise.  So the process began. 

By 2008, Sandals Realty had attracted and recruited more than one hundred and fifty quality agents, during a period in which the market and other traditional brokerages were in complete confusion and disarray.  It had become clear that this would be the direction for the industry in the coming years.

In 2009, the company continued to make strides. Recruiting well over 250 agents and selling the first three franchises. And with the addition of more corporate and franchised units in 2010, as well as a proprietary professional social networking site for REALTORS®, the growth is expected to accelerate quickly in the coming months.

End-Note

As we continue to influence this major shift toward the new era of real estate, we write our story, and re-write old formulas with a sense of humility and wonder.  We are committed to reaching every coast, every town, and every market across North America and collaborate with REALTORS® as we embrace this new and exciting environment teeming with opportunities, innovations, and synergies.

 

Written by: 

Ernesto C. Rijavec, Managing Member, Sandals Realty International, LLC        

Apr 16, 2010 12:18 PM
#82
Jim Marks
Virtual Results - Laguna Beach, CA

Thanks for ALL the great comments...  some quck thoughts...

I am NOT an SM koolaid drinker.  Sm done efficiently, with a strategy and purpose as part of a total Internet Marketing works.  But SM done just for branding with out a traffic consideration or without other tools, like SEO or GA can be ineffective.  SM will never taek the place of calling expires or simply building your Sphere in traditional ways...

SM is a POWERFUL addition for recruitong and RENTENTION of your sphere..

You need to bring your ONLINE relationships offline and your OFFLINE relationships online...

Apr 16, 2010 01:06 PM
Nick Segal
Partners Trust Real Estate Brokerage & Acquisitions - Brentwood, CA

Jim, thanks for getting this conversation started. Appreciate all the responses and #62  and #65 really piqued my interest. As President of Partners Trust, I WHOLE-HEARTEDLY agree that Social Media is but a tool and not a means to an end (until we achieve one of our lofty goals of dominating, through organce SEO, the top ranking for Los Angeles Real Estate becuase of our massive amounts of content and strategic application). Our Associates must interface, directly, in person to bring the "humanity" of the process which is the ultimate "close" in this business. The perspective of the article speaks to our social media focus and yet that is but one of many opportunities to make the phone ring and get us more business. I also appreciated the comment that social media becomes a veil that associates may hide behind to keep them from risk taking and engagement. It can be very true and that is why you need associates to be both thrill seekers, polished pros and willing to learn new ways to grow their business. Social media is but one play in the book. So thank you all for sharing your insights about what I truly beleive are good works. I'm seeing direct and tangible results from our efforts and a company that, seven months in existence, in this crumby market, has turned the profitability corner for April and projected May. I'd say our USP is working just fine and growing, adapting and getting better by the breath. Cheers to all of us in the trenches. We deserve the success we create.

Apr 16, 2010 01:48 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It sounds like their agents are going to get help and training that is useful in the new real estate world.

Apr 16, 2010 04:16 PM
Anonymous
Diana Wilson

Thank you! Great ideas. THIS is the type of dialog I enjoy! My two cents: Brokerages also need to employ additional services, such as AUCTION, unbundled marketing services (check your state-specific laws), foreclosure avoidance counseling, NICHE education, etc.

In addition, the industry needs to instruct our PAC and trade associations to promote license requirements for the sale or lease of wind, solar, water and mineral rights. I am a long-time broker and an impassioned consumers' advocate. I am now working in the wind industry and I see, first-hand, the need for consumer protection in negotiating these "other" land-related contracts. These matters should be regulated and compliant to a professional Code of Ethics. For that reason, I am training licensees to transition to green jobs; but I would love to see the National Association of Realtors and lawmakers pursue new legislation that requires a real estate license for land agents in the now-exploding energy fields. The landowners of America need us, because we are ready and willing to be accountable. Canada has long required training and licensing of Land Agents. We don't have enough of them; please consider transitioning to this niche.

Let's keep the ideas flowing!

Apr 16, 2010 05:03 PM
#86
Danny Batsalkin
Keller Williams Realty - Beverly Hills - Beverly Hills, CA
Los Angeles Real Estate | 310.432.5706

Nick - thanks for the post.  I'm comment #65.  I sent you a separate e-mail on this topic.

-- Danny

Apr 16, 2010 05:26 PM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

I see the future and it is HERE. Things have certainly changed in the last 45 years and I  am just enjoying the ride.

Apr 16, 2010 05:46 PM
Fred Doleac
Fred Doleac - Bean Group - Amherst, NH
Real Estate in a Virtual World

Jim:

Virtual Homes Real Estate is an innovative company that evolved from a merger between former RE/MAX franchises and a leading Internet marketing company.  By combining experience and technology with exceptional training and support we are ideally positioned to lead our industry in meeting the needs of home buyers and sellers. 

Our company provides consumers with an interactive Internet portal that offers tools and dynamic information without commitment. Our Internet marketing system generates leads that are qualified by the inside sales team for distribution to agents working from their home offices. 

 

This system attracts agents that rely on qualified lead generation, technology and training to develop their careers .Our suite of web based tools and training program assists the agents in lead management and conversion. Our proprietary real estate CRM (VH LeadCentre) is a web based tool that manages all business opportunities for agents.  The Virtual Office model minimizes expenses for agents and the company facilitating growth in all markets.

 

Our expansion model outside our service area is to partner with agents and Brokers in their local markets.  This affiliate program provides the opportunity to utilize an Internet marketing system, technology platform, training and support to grow their business. 

 

 

Apr 17, 2010 01:28 AM
Rick Hendershot
BlogEasy for Real Estate Agents - International, IT

 Jim,

Thanks for the very interesting post. Obviously lots of us are interested in this topic. The comments and conversation is great.

I find it most interesting that so many view the way PT is approaching things as essentially just a different way to provide "training". IMHO this is missing the point. What is being advocated here is not that agents learn new tricks, but that they undergo a very significant shift in their understanding of how to reach and influence people.

As I see it, the old paradigm for agents involved two simultaneous tracks: a) networking face to face in the community, and b) advertising using traditional static media.

The use of social media does not in any way imply that traditional networking is unimportant. In fact it reinforces its importance and actually suggests that traditoinal advertising be replaced by something very similar to traditional networking.

Traditional advertising as we have known it for the last 50 years or so has been relatively effective and surprisingly easy. Run a bunch of ads and you're good to go. The more ads you run (in the right places) the more exposure you'll get and the more business will follow. There is still a role for advertising of this type, but it is an increasingly specialized (and limited) one.

The revolution, or "cultural shift" as Dane calls it, is happening because static advertising is very rapidly being replaced by dynamic, participatory "social media". Many  who dabble in social media continue to think of it as just another type of advertising. They think if they copy their ads into Facebook or Twitter or Youtube (or like a few have done in the comments here) they have entered the wonderful world of social media.

Not so. You enter the world of social media when you start interacting with others. The big question is "How should I interact?" - which is to ask, "What is the best way to get results from my participation?"

In spite of what many gurus seem to suggest there is no obvious answer to this question. As far as I can tell, effective interaction may involve "content" as Dane suggests, or it may just involve engaging in a lot of small talk with your new friends. The good news is that you can get involved without spending a lot of time or money. The key is interaction - which makes it much more akin to traditional networking than to traditional advertising.

My own personal experience is that if you don't understand the participation thing your use of social media will indeed be a waste of time.

 

Apr 18, 2010 12:31 AM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Jim - it's great to hear that as the industry that I have been a part of for some 36+ years there are brokerages that get it and are changing to keep pace with the advances the consumer expects of us. I really like the closing sentance of Ricks post (#96) just above me here ..... you have to participate or you are wasting your time

Apr 19, 2010 09:12 AM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

Hi Jim,

Great post. Our company is doing some very interesting things albeit we are in the Manufactured Home Industry. We have recently launched a new page on our existing www.onthelevelcontractors.com website, http://www.onthelevelcontractors.com/permanent-foundation-manufactured-home/hud-certified-foundation-systems/for-sale-by-us, whence we are now offering private homeowners and RE brokers and lenders who specialize in Manufactured Housing the opportunity to post free adds on our "For Sale By Us" page in an attempt to further optimize our nationwide online exposure in this market.

It will also put us in touch with many new RE professionals and individual homeowners across the country. We are already a nationwide company with a very strong website presence that generates literally thousands of hits every month and feel that our online presence will help the many RE professionals and homeowners who don't quite have the same online presence that we do. I'd like to look at our approach as a form of "Piggy Back online marketing." I'm sure I can't take credit for coining this concept but I'm confidant it will work for us and anyone who wishes to take advantage of our offer.

At 64 years old with a very savvy wife and partner of 37 years, a 30 year old daughter who has made our whole website presence a tremendous success and a 27 year old son who thinks outside the box I truly believe in the whole concept of social networking/marketing. We have also launched an On The Level FaceBook page and plan to make a very aggressive run on this site as well as others in the near future.

Thanks again for some refresing insight.

 

John DL Arendsen

Apr 20, 2010 03:20 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years
Thanks for passing on what one company is doing to support RE 2.0.
Aug 28, 2010 06:42 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I saw the future and it is now.  That is how I feel about the social media.

Aug 28, 2010 08:06 PM