Don’t Be the Next Blockbuster
Broker Summit, Journal Industry Award Recipient
March 3, 2020
Desert North Realty
2019 Designated Broker of the Year
There are many trends in our industry that we talk about daily. For example, the effect of low inventory and how it is driving appreciation, the influx of new people moving to our state, or how technology plays such a huge role in our decision-making in just about every facet of this business. All these trends are currently taking place and are significant. However, the start of what I believe will be the biggest trend going forward is taking place at this very moment. That trend is how technology has put the agent in a position to be more important than the brokerage itself. We can see the evidence daily. Walk-ins are further and fewer apart these days, leads can be generated for as little as a few dollars each through social media and there are a plethora of platforms out there to help agents wrangle their leads and past customers. The paradigm is changing and the agent’s role is becoming more of an advisor versus the gatekeeper.
Many years ago, it was critical for agents to align themselves with a brokerage that had a great brand. One that could provide foot traffic, floor time, or spent large amounts of money on marketing and advertising that increased the opportunities for the agents to capitalize on the exposure created by the broker. Since the brokerage provided so much opportunity, they could justify charging commission splits that favored the brokerage. Just like many other companies, they maximize their profit by minimizing the agents, creating a catalyst for change. The average real estate agent has adapted so well to this change, they can provide a better result for their business than the brokerage can provide for them. The fact is the agent is no longer dependent on the brokerage like they were in the year’s past. The evidence can be seen in the increasing presence of the 100% shops. One can’t blame an agent for wanting to increase their bottom line but is there a way where both the brokerage and agent can benefit together? Yes. I believe the new model championed by the largest cloud-based real estate firm in the country has proven the effectiveness of providing the opportunity to “profit share” and be part of a movement in our industry. By embracing this new paradigm, the agent feels incentivized to enthusiastically promote the power of the collective whole and “ride for the brand.” When you provide an agent the opportunity to earn an excess of 100% of their commissions, grow with the brand, and ultimately obtain a vested interest, you have a winning formula.
Change is difficult and I have been given the advice, “if it ain’t broke, don’t fix it,” by several successful real estate professionals. However, in our industry, change is constant and those who do not embrace this change will be missing an opportunity to grow their businesses. Those who do embrace the change will experience the adage of “a rising tide lifts all boats.” Explore how you can provide your agents an opportunity to grow their businesses at an exponential rate, all while riding for the brand with enthusiasm.