9 April 2023Take a serious look at your brokerage model and ask yourself five very important questions: Is the brokerage running at a loss? The market is cooling and any company running at a current deficit is headed for potential trouble. Does the company have a plan to support you and your business in a down market? Are you getting the service and support you need? Access to support and staff is one of the largest determining factors in agent retention. Whether you are a seasoned agent or fresh out of school, the brokerage staff is your key to growing and thriving. Does your company offer value-add items and programs? Be sure to list out paid and free. There is usually a baked-in price for a system, and it is perfectly fine to pay for something that has a good return on investment. Critical items are: Client Relationship Management systems, marketing, training, leads (referral, relocation, bank or corporate asset, paid, portal affiliation), social media and website hosting, networking / mastermind events and divisions such as luxury, commercial, military network, ranch and land, etc. What is your exposure to risk? Legal compliance and risk are ingrained in real estate operations. As your real estate business grows, the potential legal risks increase. Does the company have a superior compliance program, low deductible Errors & Omissions (E&O) coverage and on-staff legal counsel? What are the company's plans for increasing market share, profitability and agent count? How can you build a bigger business if your brokerage is not growing with you? Be mindful of the impact that the loss of one, or a few agents, would have on your firm. Are seasoned power agents moving to the company, and if so, are they getting special financial treatment that the average agent does not get? Paying incentives to acquire agents is not sustainable. Net growth determines future profitability.At the very top of the market, many startups or thin-margin companies rapidly appear to partake in the easy money. That ship has sailed. With price points being reduced by up to 30%, the thin margin ventures are struggling. Ask your brokerage again: how are they positioned to support you today? Is your current brokerage, or a prospective brokerage, built for this market?Down markets are opportunity creators, so in addition to asking the right questions, you need to change your mindset to see the possibilities. Sowing the right seeds now will reap untold benefits in the future, and partnering with the right brokerage is the critical first step. Sowing the right seeds Sowing the right seeds now will reap untold now will reap untold benefits in the future, benefits in the future, and partnering with and partnering with the right brokerage is the right brokerage is the critical first stepthe critical first step
< Page 8 | Page 10 >