In one of my private groups on Facebook today, I was reading a thread about switching brokerages. One of the members, who works for a consulting group and is not an agent, disclosed some very surprising information that I thought was worth discussing. They conducted a survey of over 4,000 agents who switched brokerages. Unfortunately, the survey conducted that was mentioned in the group was proprietary, so it cannot be shared in the group or here, but some of the results were. What it told me is that switching brokerages is not about the money.
The survey found that over 75% of the agents who switched brokerages decided to leave because they felt that they were no longer a valued part of the brokerage. Only 7% indicated that money was a reason to switch. This includes desk fees, splits, etc. On the flip side of this, it was stated that money was the number one reason given broker for the switch. Agents indicated that they didn't want to hurt anyone's feelings, so money was the easiest excuse to give that would not cause hard feelings.
A brokerage is not about money. It is about culture.
The appeal of 100% commission is understandably strong. Why should you work to pay someone else's bills when that extra commission could be going into your pockets? Brokerages need to offer value to agents to justify commission splits. If you are working for any type of commission split, what is the brokerage offering you to make that split worthwhile? It is the culture of the brokerage - the friends, the technology, the support, the systems, the training, and the education - that make the commission split worth it to agents. These are seldom things that 100% brokerages provide.
Many new agents go out into the world of real estate thinking that because they passed a licensing exam, that they know what it takes to sell a home. As most of us here on Active Rain know, this is simply not the case. Most real estate licensing exams teach you the bare necessity to not get sued right off the bat. My licensing materials and exam didn't even show me a contract. It was all about laws and theories.
There is a reason that many top producing real estate agents are still with brokerages: It's not about the money.
A brief look at some of the top producing agents in the United States shows that most are with big brokerages - RE/MAX, Century 21, Keller Williams, ERA, Coldwell Banker... If these people are such mega agents, what in the world are they doing with these large brokers and paying big splits? Easy - It's not about the money. It's about the culture.
When I got licensed initially, I knew that I didn't know everything. I knew that I needed help, and a lot of it. I interviewed at several offices and many of them had low caps, low commission splits, and promised the world. I decided to join Keller Williams because education is one of their top priorities. It wasn't about the money. How could I make any money if I didn't know what the heck I was doing? The Keller Williams education was top notch and helped me get to where I am today. In fact, it is where I stay today because education is not just for those who are new to real estate. Keller Williams offers education for agents at every single level. Just when you think you are no longer a rookie, they have another class for you to take to move your business to the next level. If you are looking to build a team, they have education for that. If you are looking to supplement your income by investing in real estate, they have education for that. If you want to become an educator, they have education for that, too. All of this education is available, but never mandatory. In Keller Williams, the culture is to help the agent become successful in any way that they can.
Keller Williams provides education, support, technology, and best practices to ensure that you will be successful and happy right where you are. Culture can change and what you need at different times in your career also can change. Keller Williams attempts to provide what you need, when you need it.
Time For The Truth: Is it about the money?
If you are considering a switch, perhaps Keller Williams is a good fit for you. Every office and every brokerage is different, so I encourage you to ask around, interview not only the broker/team leader, but also people in the office. Find out why people are at that office and what the true culture is like. But before you do, look deep into your soul and decide is it about the money or is it something more?
If you would like to find out more about what Keller Williams has to offer, I'd be happy to speak with you no matter where you are located. If you are in the Dallas area, my team is always looking to recruit strong candidates who can provide top notch customer service. Give me a call at 214-601-4192 and let's talk about the Keller Williams Culture.
Have you switched brokerages recently or are you considering a switch? Is it really about the money or is it more than that? Are you not getting what you need at this point in your career? I'd love to hear what you have to say in the comments below.
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