Why do agents change?

James, I think lack of guidance & training is a reason as well as not getting that 'bone' once in awhile if you are producing.  Give a good commission split based on income generated...keep your stars happy!

People change and over time the things they see in one broker may no longer be appealing which means finding somewhere else to be. 

Personally, I wanted a 100% company that I could practice my business with no interruptions. I create my own businesss so I was not dependent for lead development. I have found found that company.

In any industry when the ease of entry is low. It's a recipe for turnover unless you offer something of real value.

I would offer making your seasoned employees Partners and JR. partners and or offer buyin options.

James- not an agent but I would suppose that if an agent is thinking of making a move it would have to be about their ability to make money; their opinions about the company and where they fit in, or the office atmosphere. 

Just like sellers and buyers there is a motivating factor. I had been an agent for 2 years and had just gotten a brokers license so I could say I was a broker. My first broker was a great guy and a good teacher but the man I called my mentor said go to the next county because that is where the action is going to be for the next ten years or more, and I did. 

I joined a brokerage at a 50-50 split which had a commercial and a residential department and a in house mortgage broker. I was prospecting and an older woman that invested told me she would like to buy commercial in a certain area. I started working like crazy and assembled several parcels and created a large parcel and the plans for what to put there. I could have sold it to a dozen investors but I felt the lady who put me on the path should have first shot and she wanted it.  Well when my broker and I went to closing there were 5 lawyers there, surprise, all sons of the older woman and they told us they weren't going to close unless we gave them most of the commissions to use in the deal. I rose from my chair and said no, it was a very good deal and I had other investors willing to buy it, so either they close or I offer it to them. My new broker told me to sit down, he was the broker and would approve the change. So at the time $6,000 a year was a great income and I was expecting $78,000 as my 50% of the $156,000 in commissions, but the broker agreed to our office getting $12,000. He didn't even have the guts to even demand 25% of what was our money and due us and he knew my other buyers statement was true.

That was my motivation, I opened a office across the street, and all of the commercial agents and a dozen of the residential agents were in my new office within days signing contracts. So when I started growing my residential agent group I looked for agents I knew were getting no training but out there working and trying. I also raised the split to 60-40 which was new territory at the time and got several producing agents that had hit the 50% ceiling and wanted more. I had a close friend whose wife was in a town up the road, and she was the office she was in, she produced 90% of a 24 agent offices income and the broker wouldn't raise her split from 50% to 55%. She wouldn't believe that some other office in town would give her a better split because most of them were still 45% to the agent. So her hubby and I rented the space next to her present office and started a realty with their last name and a large sign. After a few months she got the message and got her brokers license and bought me out dirt cheap. Her old broker had to quit buying a new car each year along with other spending and one day he saw me at a hot dog stand and started yelling and I just kept saying it was only 5%, you wouldn't give up 5% to an agent that was your business

So when I was recruiting I just kept my ears open and looked for agents with a problem. For example part timers, I started part time. I started a part time department and it solved most of the problems they faced and allowed most of them to become full time in time. I know I told this story many times but my part time department out produced the nationally well know office of full timers up the street. Another time I overheard a broker telling someone else he dumped agent A because she was doing very little business over a long period of time, and when he opened her desk drawer and found tons of leads she had gotten from ad and sign calls but still no business so he decided to let her go. So I said what an idiot that broker is, that agent is a gold mine, I hunted her down, gave her the phone desk duty and partnered her up with a selling machine, when she could actually find a prospect. Wow, what a twosome, deal after deal.

The reason most of the agents whom I see change offices in Sacramento is because they are pissed off over some minor issue in which they are making a mountain out of a molehill -- in other words, they probably screwed up somehow and expected their broker to take care of them regardless. They have the attitude of: well, if you don't do this for me, stomp little feet, I'm leaving. Or, maybe I just run into a lot of primadonnas.

Having changed offices 3 times in the past 3 years I can tell you there are always a variety of reasons.  The first time was for the company was a small family company that did not live up to its promises.  At that company I did one transaction in a year (which was not me, I generally do 6 to 12 transactions a year).  I left and went to the next because it had been taken over by a major name company here in California and needed help and I was asked to come and help bringing the long time agents up to speed on the new technology (My first real estate firm was technology based).  At this company I did 6 transactions in 3 months... The job was working and I was happy!  But,  an old friend who had founded a new company here who was an ex VP of large well know firm came to me and said they wanted to expand into our market place.  They had offices in all the major cities around Sonoma but no office in Sonoma and would I help.  I jumped at the chance even before finding out my split would be better at this company.  8 months in I'm doing just as much business and happy because the company is great with great agents all who were hand picked. 

Bottom line, I think we go where we are going to be happy, feel needed and can do business (A good commission split doesn't hurt either but it is not always the most important thing).

I left my first brokerage because they were greedy on their commission split.  They wanted 45% and a pay in of over $20,000 per year . . . this was in 1999 dollars!

What a great questions.  I think the various comments are very interesting.  It looks like there are a lot of reasons that agents change companies.  I'll be back to check additional comments.. 

Work is like a good pair of shoes, if the fix you will feel good all day.  I think the office is the same way you have to feel comfortable where you work, if it does not fit right then you will always be looking for a better fit, and that is not good for production.

The average agent changes companies three times during their career. We left our first company for one where we would make more money and receive better support. It was a business decision and I'm glad we did.

As you can imagine, I've changed companies a number of times over a 45-year career.  It has never been due to dissatisfaction with my current office, however, but rather the positive motivation of new opportunity that coincided with where I was in my life and career.  In other words, timing.

James, great post, I am also a managing/recruiting broker. It was very interesting to see the comments from everyone.

All of the "gurus" say that an office needs to provide leads to get agents (of course they are selling lead generation systems or software), our office disagrees and apparently so does every single commentor.

We would rather teach a man to fish than give him a fish, we actually call these agents welfare agents, they will always be looking for the next handout instead of looking to build a business.

Ask lots of questions during the interview process and bring on only quality agents that are not looking to be fed but rather looking to learn how to feed themselves, you will be rewarded forever.

Good luck in your efforts.

James I had to come read this because of your follow up post...SO, first time, I was there 16 years, partners retired and I wasn't ready to go it alone; 2nd time also 16 years until the main broker who was amazing (that one in a million) died and the company thereafter was forever changed, I'd still be there if he were there; third was a knee jerk reaction and a mistake; and the fourth, well it's good, but I think you find that you don't know what you had until it's gone.  I believe that you look carefully at a company when you are choosing because they are basically not going to change for you...you have to see how you fit into their company culture and where your niche' might be.  AND if the pluses are more than the minuses, well then maybe that is as good as it gets.  Money is certainly an issue if you are running a business.  AND you should not be in real estate without understanding you are running a business. 

This was very interesting.  I, too, read your second post first and came back to see the first.  I changed a year ago.  I originally worked for an office that was a "hub" for agents, but we didn't interact much as people.  I was approached at the right time, a year ago January, with more of a group-like setting.  I seem to be thriving.  :) 

Wow great read and loaded with helpful comments thanks for sharing

I have to agree with  John in comment  #43, an agent should not expect their office to "feed" them when leads.  I left a big box office a year and a half ago to work with an office that all deals under 83k are an 80/20 split.  deals aove that are 100% to agent minus a $499 fee to corp. office.  This is an agent -friendly company.  They have been growing for 10+ years now.  Currently looking to add more offices here in Mo.