Nothing poses a threat to competitive advantage quite like inertia.
Companies that stubbornly cling to tradition and fail to evolve with the times often find themselves out of business. The conventional real estate brokerage firm is a prime example of the inertia factor. Is your firm open to all the possibilities of a changing industry, or is it going the way of the dinosaurs?
If you’re a determined agent, salesperson or associate broker, you could be enjoying complete freedom to innovate on the job. You could be in charge of your own schedule. You could be customizing your own dynamic brand to individual clients.
In addition to all of that, you could be pocketing 100 percent of your commissions.
Yesterday’s Business Model
Traditional brokerages were once advantageous for the support that they provided. Agents coasted along on their quality training programs, effective marketing strategies and solid leads. The split-commission model was agreeable to agents because these services, along with other benefits like advertising and signage, were of value to them. Now, though, even well-intentioned firms struggle to keep their promises to agents.
More and more top producers in real estate are leaving their brokerages for greener pastures. Instead of responding with incentives to attract sharp candidates, firms are succumbing to inertia. They are scrambling for resources and settling for mediocre talent.
Part-timers usually fill the gaps. Since few of them have the long-term vision to develop themselves professionally or focus on real estate as a career, no one is willing to invest in their training. Industry turnover rates are high. With so many people coming and going, leads are scarce or of such low quality that they’re hardly worth pursuing
When professionalism declines and brokerage firms find themselves trailing the competition, they are forced to deeply discount their services. Even agents who have negotiated good splits suffer the consequences.
In short, most brokerage firms aren’t providing much bang for the buck these days. Split commissions, marketing charges and miscellaneous fees rarely pay off in support services anymore.
In light of ever-evolving technology, the conventional brokerage model seems even more antiquated.
There is little reason to waste time and money on a commute to the office when so much can be done remotely. Given the increased functionality of cellphones and tablets, salespeople are far more reliant on their own devices than on outdated office equipment. It hardly seems fair that agents and associate brokers bear the cost of buying, operating and maintaining personal devices for conducting company business.
Unless agents feel safer within a rigid structure or get excited about sales meetings, there’s really no need for them to work in a brick-and-mortar office. Agents are just as productive conducting business from their own homes or favorite coffee shops.
Failure to embrace new technology is a marked symptom of inertia.
The Brand of the Future
One could argue that the benefit of a recognizable brand offsets the many disadvantages of the old system. We at eRealty Advisors Inc. disagree. Confident, entrepreneurial agents market themselves as individuals and create their own unique brands.
Consumers are increasingly picky about the companies they do business with. It’s not enough to merely sell someone a first-class plane ticket or the latest and greatest TV. The market is saturated with businesses that are capable of doing that.
Potential customers want to engage on a personal level with their favorite brand. They want to be aligned with the company’s mission and values. They want a meaningful experience when they purchase anything from a pair of sneakers to a five-bedroom house. They want a longtime relationship with the brand that they select.
Nowhere is their desire more evident than in real estate. Nothing is quite as personal as buying or selling a home. Throughout the process, clients want to strongly identify with their salespeople, agents or associate brokers.
Brokerage firms can hardly afford the time or resources to individually market each representative. One may be able to brush up an agent’s image or give him more exposure, but the agent is still more or less a face in the crowd on the firm’s website. Clients expect warm, personal attention that this one-size-fits-all approach can’t deliver.
Forward-thinking agents who work independently do a better job of branding themselves and providing customized service.
They’re better at leveraging increasingly sophisticated online systems. They’re adept at using social media to leave strong, lasting impressions. They have the talent to create state-of-the-art websites with engaging blogs, graphics, videos and photographs. They have a knack for making themselves recognizable and relevant to the locals.
Knowledge, experience, referrals and outstanding service do more for an agent than a stale corporate brand name.
The 100 Percent Commission Difference
Brick and mortar brokerage firms are yesterday’s format.
At eRealty Advisors, we don’t believe that you should have to fork over a portion of your hard-earned commissions in order to succeed. You’ll keep every penny.
You’ll also have ready access to support staff and management.
Using our multiple listing service, your latest listings will be visible within hours.
Since transparency is one of our core values, you’ll never be unpleasantly surprised by hidden fees. There are no franchise costs. Our affordable yearly membership fee covers market support, a web page, and errors and omissions insurance.
If you’re ready to increase your earnings and enjoy a better balance between work and lifestyle, contact eRealty Advisors to discuss joining our team.
Seize the competitive advantage. Break out of your inertia today by reinventing yourself as the brand of the future.