I have spent the better part of the last 15 years training and supporting real estate agents in South Florida. And while I know several agents who make a very nice living helping home buyers and sellers, the real wealth comes from owning your own real estate business.
Why successful agents continue to pay high fees and percentages of their commissions to someone else does not make sense to me (especially when we make it so simple and affordable to start and operate your own brokerage). These successful agents are helping their owners build value in the owners’ businesses while the agents’ value comes only from their ability to continue to generate transactions.
“I still do 20 or so transactions a year, but with my brokerage, I make money even when I do not have any transactions”, a local broker/owner recently told me. “And now that my agency is generating revenue from my agents, I could sell my business if I wanted or needed to – and probably get a few million dollars for it.”
Building something of value and creating a legacy are certainly great benefits of owning your own real estate brokerage. And while building up your agent count may take some time, there are immediate benefits to opening your own brokerage. A friend of mine (let’s call him Jim) who just recently opened his own operation explained why the decision for him was an easy one.
“I figured out what my income was, and what my costs were, and discovered that when I opened up, even if I did the same amount of business that I had the year before, my income would increase,” Jim explained. “And if I recruit just one or two productive agents each month, within a year my income increases exponentially. It didn’t make sense financially for me not to open up my own operation.”
Being profitable from the beginning is much easier nowadays. At one time, real estate business owners’ biggest investment was in obtaining, building out and furnishing the office. Today, except in rare and specific situations, there is little foot traffic for real estate businesses. And today’s technology allows agents to work from their cars and homes, which means there is little need for large, expensive commercial space with offices and desks for every agent.
I have seen owners oversee 50 – even 100 – agents, out of executive space with an overhead of less than $1,000/month. How much space, and what kind of space, a business needs depends on the expected clientele and the business model. But the point is that many successful agents could hire an assistant, open up their own office, and be more profitable very quickly while building up a business of value.
At Sellstate, we provide all the support new owners need to open and manage their own businesses. We provide all the administration of fees and transactions, provide technology for every agent, and help the owners develop systems to recruit agents. We manage a simple and effective revenue-share program to make it easier to recruit and retain productive agents. Our franchise owners have a dedicated support team to help them at all times. And our franchise fees are the lowest I have seen in the industry.
If you have even considered one day leveraging what you do to build something of value, let us show you how simple and affordable it can be. If you have never considered it, maybe you should. Click [HERE] to get a free copy of SCALE IT, YOUR GUIDE TO BUILDING A COMPETITIVE REAL ESTATE BROKERAGE, and let us provide you some additional information on how we might help you. There is no obligation and no pressure – just helpful information.
Why have you not looked into opening your own real estate brokerage? Let me know what you think.