Recently, RE/MAX International ran a print ad called, "Brand Matters." The phrase "Brand matters" appears three times throughout the sparsely worded centerfold ad of the October Real Estate Professional Magazine. Apparently, the ad is trying to sell the idea that "brand matters." After I read the phrase for the third time, I thought, "does brand really matter?"
RE/MAX is a great franchise. (I used to be a franchisee.) There are other great franchises, too. Coldwell Banker, Prudential, Keller Williams and Century 21 are some examples.
Pittsburgh has a few other brands that aren't franchises, including Howard Hanna Real Estate, Northwood Realty and Achieve Realty (my company).
These are all great brands.
However, none of these brands sell real estate. Not one. Do you know who sells real estate? Real estate licensees do. That's it. Nobody else.
Consumers don't drive down the street and say, "there's a Howard Hanna listing - it must be special!" Consumers don't care about the brand name on the sign.
If you ask a typical real estate licensee where their business comes from, they'll answer, "it comes from my sphere of influence ie. family, friends, repeat customers, word-of-mouth customers." They never say, "I got a customer who saw the RE/MAX Long Drive Championship and called RE/MAX International who referred the caller to me."
My point is that the only brand that matters is [insert your name here].
Let me give you another example: in the Northern Pittsburgh suburbs, where I concentrate, you can name the top agents without using their last names and everybody knows who they are: Kevin, Linda, Carol, Arlene, Judi. In my neighborhood, the name is "Mary Ann." THAT'S branding!!!
The typical consumer knows these names and recognizes them as a brand that is separate and distinct from their brokers' brands. In other words, as a friend of mine - who is the CFO of a large Cranberry-based company - recently asked me, "who does Kevin work for?" My response was, "EXACTLY!"
The interesting thing is that RE/MAX International essentially taxes their agents to promote their brand nationally and internationally. RE/MAX Agents must pay a monthly amount to support the National Ad Fund. This is not a voluntary contribution. Their ad suggests that this involuntary contribution is the "one reason" why their agents are "so much more successful than others in the industry
RE/MAX International believes that RE/MAX agents benefit by virtue of the national and international branding. I disagree.
In my opinion, if agents spend money promoting anything other than themselves as a brand, they're wasting their money.
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