Anyone up for a good debate?
Let’s face it. The real estate market is different than it was 5 years ago. Even ten years ago. Certainly more different than it was twenty years ago. If you hang around a veteran agent long enough you will hear about how “back then” we didn’t have the fancy MLS or lockboxes or the internet. I know I certainly appreciate the conveniences of today. The fact is things have changed, yet the profession is resistant to change.
Each of us is in charge of how we spend our days. We are all independent contractors, correct? No one tells us the hours to work, what meeting we must attend, or how many open houses we must hold. If we want to take a 2 month vacation, that’s our prerogative. And if you’ve been in the business for any length of time, you know that if you choose to take that route, your business will quickly dry up. Each Realtor experiences a direct proportion to how much they work and how much they make.
So why should our brokerage keep so much of our hard earned money, if it is up to US to produce the business? As Julie Ferenzi, a Realtor in Plainfield, IL stated in her blog post, a brokerage is kind of like a fancy wrapper. It is the AGENT that makes the difference.
The traditional brokerage is soon a way of the past. Today’s Realtors must quickly adapt to the new technology changes, and if their Brokerage is slow to change, then the agent must be the one to make the change.
But how do you know when to make the change?
· 
The Experiment: Make a list of all of your deals over the last 2 years. Highlight those that YOU produced through YOUR efforts (blogging, referrals, your website,etc) and highlight those that the BROKER produced (walk-ins, corporate website). I have been with name brand, national brokerages. I did this experiment. Guess what? I couldn’t justify spending the amount of money that I was spending by putting a fancy logo on my business card.
If you make this list, then eliminate the money you made as a direct result of being with your brokerage, let’s say – Keller Coldwell 21-Max.
Now take only the commissions that YOU earned as a result of YOUR work in procuring the lead and total them. If you were on a split, adjust it so that you are now showing 100% commission on those deals. Also add back in the monthly office fees you paid over the course of the year that go directly to your broker.
Did it make up for what you lost in the commissions that you had as a result of being a Keller-Coldwell 21-Max agent?
What you have done is compared what your salary could have been if you were on your own versus what you made being affiliated with Keller Coldwell 21-Max.
If you did the above experiment (and this really only applies to agents that have been in the business longer than 2 years), then most of you will see that the amount of business you received as a DIRECT RESULT of being a certain brand name agent is not that large. Most of my business is through referrals, website, blogging, Active Rain and social networking. Yours needs to be too.
Here are a few other points to consider when deciding whether or not you need to change brokerages:
Walk-In Traffic. You might think, “Well, what about walk-in traffic? Won’t I be missing out on that”? The answer depends on your part of the country. I will only speak for MY area. In the 3 years I was with NATIONAL, BRAND NAME COMPANIES, I can attribute a VERY SMALL percentage of my business to walk-ins. In fact, I found that in those settings, leads were given to “favorite” agents. They were NOT distributed evenly. Chew on that. And to go along with walk-ins, I would offer that every single agent experiences “walk-in” traffic – on your website. Consumers will now go ONLINE before ever stepping foot in a real estate office. They are “walking in” to YOUR WEBSITE. If you are not making it VERY EASY for consumers to find you, then you are missing out on this very valuable traffic. Guess what? You don’t need a big fancy logo next to your name to be found on the internet! Your broker needs to know AND utilize sites like Active Rain, Facebook, Twitter and blogging.
Networking & Relo Business. You may ask, “Well, what about networking with the agents in my office? What about the office tours”? Really? You get business from going on tours with your competitors? Tours are great, but why can’t you preview on your own time? Remember, you dictate how you spend your time. If you’re a member of Active Rain, you can network any time of day, in your PJ’s even – and with 140,000+ agents and members of the real estate industry. You’re building up one heck of a referral network too. Remember those RELO departments that take 35%+ of a cut when they refer you a client? Remember how difficult it was to get on those “lists” to get a cut of the RELO business? You don’t need it when you network online the smart way. The NEW way. Things are changing.
Home Office vs Traditional Office Setting. The main place for most agents to do their business is sitting in our driveways – in our cars. With a drastic number of agents working from HOME, not an OFFICE setting, why do we need to pay high monthly overhead fees to a broker when we don’t spend any time there except to meet a client of attend a monthly meeting?
Commission Splits. Now, more than ever, there is an increased need for Realtors to retain as much money as possible. Many agents are experiencing a job loss of a spouse and that puts the pressure on the Realtor spouse to produce closings in order to pay the bills. It’s more important to retain as much of OUR money as possible – not given to a broker so that we can have a nice logo next to our picture.
· 
Training. Think about it – while many national brokers offer great training, the same training is available to any agent who wants it. Brian Buffini? Craig Proctor? You don’t have to be a RE/MAX or Coldwell Banker agent to benefit from their knowledge or programs. In my area, title companies provide some top-notch continuing education that is made available to whoever wants it. Real estate schools don’t discriminate either. You don’t need to pay extra to a broker for the education. It’s the AGENT that makes the difference – not the broker.
· 
Internet Presence. Guess what? In my area, you don’t have to be a RE/MAX agent to have your listing appear on Remax.com. You also don’t need to be a Keller Willilams agent to have your listings appear on Ebby.com. Or Realtor.com. Many of the biggest real estate websites that are visited by consumers will populate listings from the MLS (that ANY agent can belong to). You don’t need to pay extra every month to your broker in order to have great internet presence. All of my listings still show up in the same places. In fact, I choose to pay only $5 per listing and my listings populate to an additional 25+ websites. I am an independent contractor and I choose how to market my listings. The agent makes the difference.
Realtors – you must keep up with the changes. You deserve more of the money you work SO HARD FOR. By providing the best in customer service, and the best, most up to date home marketing for your sellers, you will succeed. You don’t need a fancy logo or “Diamond, Million Dollar Circle of Fame” title next to your name to say you’ve made it in this business. Ask what your clients want. They want an AGENT (not broker) who will work hard and represent them to the best of their ability.
**Side note to my local Realtors: If any of this made sense to you, then know that d + b real estate is looking for independent like-minded agents that embrace today’s technology. We offer an attractive commission split with NO monthly fees. Our office is located in Beautiful Downtown Historic McKinney which provides a convenient and attractive place to meet clients.
To my fellow agents affiliated with the larger franchises – this blog was not meant to bash the larger brokerage models. There are brokerages that work for each Realtor out there and we are simply another choice. We look forward to working with you!
Comments(22)