When it comes down to it, we are all independent contractors and like small business owners in many ways. I run into a lot of agents who only focus on gross volume, income, and commission splits as financial indicators of their career. In reality, there are seven key variables to consider that will affect your bottom line when it comes down to deciding where you will practice real estate. Here are those seven things to pay attention to when looking at brokerages:
1. Commission splits. This is a fairly obvious one. Different brokerages have different splits.
2. Occupancy cost. Some brokerages charge expensive desk fees, some have cheap fees, and some have no fees at all. Neither is right or wrong, but it’s important that you understand what kind of support you’re looking for.
3. Brand recognition. This is a little less tangible, but still very important. A company with strong brand recognition in your market will make it easier for you to do more business.
“Do a thorough job at researching and vetting brokerages.”
4. Administrative support. A brokerage could have compliance officials, service coordinators, or even full-time transactional support. When you have a brokerage who focuses on the basics, you can spend more time on the dollar-producing activities that will grow your business.
5. Lead generation. Do they provide leads or not? Do they offer scripts? Both are important questions to ask.
6. Technology. Some charge for the best tech, some provide it for you, and some don’t provide it at all.
7. Leadership and accountability. It has been proven that coaching programs affect an agent’s bottom line as much as anything else. Some brokers provide this kind of support on their own, while others will point you to a coach and still others won’t offer anything at all.
The answers to each of these questions will affect where you practice. Make sure you do a thorough job at researching and vetting brokerages before you make your decision. If you have any other questions about any of these variables or how it could affect your bottom line, give me a call or send me an email. I look forward to hearing from you.
