Pop-Up Brokerages

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Education & Training with The Lones Group, Inc.

The Lones Group, Inc.

Pop-Up Brokerages

This past year I have seen some interesting changes and trends in the real estate industry. One is a rise in what I call pop-up brokerages.

I define these as a real estate brokerage that has decided to open multiple locations in an entirely new market area in a very short period of time. Many of these new companies try to offer a new take or twist on the traditional real estate brokerage. Some are offering turn-key technology solutions in hopes of luring the agent who is overwhelmed and looking for a quick fix to their poor tech skills. Others are trying to lure agents through profit sharing or creative compensation plans. Many of these companies are trying to lure, sell, or entice agents to join their brokerages by dangling a new, bright, shiny carrot in front of them.

Remember that you can't run a brokerage of any kind without the money to cover the costs of the services they are offering, so if it seems too good to be true, it probably is.

Agents beware! Before you rush out and jump on any new brokerage's bandwagon, you had better cool your jets and do your homework. Without thorough investigation into what is truly being offered you may be getting nothing more than a smooth sales pitch.

A client of mine recently made a move to one of these brokerages because she was offered a one-stop technology solution. They also had an attractive compensation plan. Fast forward three months and she tells me it was one of the worst decisions she has ever made. The technology solution she was offered did not live up to the claims made about it and she was left in a worse position than she was in before.

I am not saying that change can't be a good thing for your business, but I am saying that you need to read between the lines, do your research and ask other agents who have made the move before you. When you decide you need a change you need to STOP before you JUMP. Too many agents allow emotion to guide their decision making and when it comes to changing brokerages you must rely on facts and not just emotion. Don't just speak to the person who is trying to recruit you, of course they are going to put their best foot forward. Gather information from a number of sources.

Real estate is a business where ultimately you are one hundred percent responsible for your success or failure. Anyone who entices you with a promise of a quick fix or instant income when you join their brokerage is not being honest with you. Your business will thrive or die wherever you are. I know agents that are top producers in offices with only one location and very little market share. I also know agents that have switched brokerages four or five times looking for their magic "real estate business building" pill. It's not that easy, this business requires good old-fashioned exceptional client care, the ability to brand yourself and connect with clients and the determination to keep improving your processes and systems.

The next time your phone rings and the person on the other end is flattering you and dangling a shiny carrot in front of you, STOP and assess. Determine whether you really need to make a move to another company or if you need to take action right where you are!

 

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

The Lones Group, Inc.
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Topic:
Real Estate Best Practices
Location:
Washington
Tags:
broker
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brokerages
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real estate
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changing brokerages
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Ambassador
3,840,596
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Denise- agents beware...the grass isn't always greener on the other side, is it?

Aug 29, 2018 06:36 PM #1
Rainmaker
510,393
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Have not heard of the popup brokerage and ... it sounds quite sketchy!  Beware the agents who jump in--and the clients!

Aug 30, 2018 08:01 AM #2
Rainmaker
977,360
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Folks in sales do make quick financial judgements which they regret later. I've seen these brokerages and it's always sad to see folks spend money switching and then switching again.

Aug 31, 2018 01:45 PM #3
Rainer
475,414
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Every opportunity should be investigated and validated before being implemented. Unfortunately, many let their emotions determine their participation without any due diligence and later regret their actions. 

Aug 31, 2018 10:58 PM #4
Rainer
144,094
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

I am working on the decision now. I thought I had my mind made up and then my daughter did an internet searchc and found poor reviews for the company I was thinking of joining!

Nov 16, 2018 08:10 PM #5
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Denise Lones

CSP, MIRM, CDEI - Real Estate Coaching & Branding
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