For brokers today, developing a brokerage model could be a career coal, with many agents dreaming of putting their personal stamp on the real estate industry.
Kase Ellers, Luxury Home & Residential Marketing Specialist / VP of Brand Development at Mainframe Real Estate, wrote in Forbes recently that one of the biggest challenges that many new brokers face is that they become narrow-minded when designing their ideal business model.
“No matter your age or experience level, ego can play a role, which in some cases can be detrimental to the success of your startup.” Ellers wrote.
Five keys to success, according to Ellers, include gaining perspective.
As you start your career, you probably dreamed you’d already have cut the ribbon for your own office. That may not have happened, but your career path has provided perspective.
“I’ve spent the last dozen years participating in the development of several real estate firms and oversaw my current brokerage’s rebrand in 2015,” Ellers said. “The perspective I gained after working for various firms in the area was instrumental to my being picked for this task.”
Second, forming relationships is key.
“Spend an exceptional amount of time speaking with trusted top producers at different offices. Develop relationships with them,” Ellers said. “Ask them why they love their brokerage and how it plays into their success.”
As a broker, you also should know what you want before you commit to a compensation structure. Ellers noted that you can easily research how various business models work. Some larger brokerages have a cap that agents pay each year. After the cap, they receive 95 percent or more of their commission.
For national franchises, brokerages provide resources if a broker employs a large number of agents. This may not work for everyone.
“Understanding all of the real estate business models out there before committing to one for your brokerage is imperative,” Ellers said. “It’s not that some models are inherently bad and some good, but rather that one model in specific will more effectively help you reach your goals.”
It also is important to remember that brands are more than just logos.
“Where many brokers fall short is not spending the time and money necessary upfront to perfect all the elements of their brokerage,” Ellers wrote. “Anyone can develop a logo, but building a brand is a completely different animal.”
As a result, it is important to consult with branding specialists to ensure success.
Lastly, set the bar high and be the broker that agents aspire to be.
“The more your business evolves, the more you start to see that being a superstar agent requires a lot of leadership,” Ellers noted.
Even as a non-competing broker, agents will still want to know you have their backs when it comes to contract time and you have the skill to teach them how to do things the right way, from prospecting and other issues.
“At the end of the day, there is no brokerage model that is better than another,” Ellers said. “However, there are definitely leaders who attract talent and others who don’t. Be innovative and bring value.”
Moreover, if you can become an agent, you can attract good agents to your brokerage.
“Take all these tips to heart when planning out your brokerage model and you’ll be on track toward creating an unbeatable brokerage brand,” Ellers concluded.