Real estate workplaces are closing from coast to coast. Real estate agents are usually hanging up their licenses atlanta divorce attorneys state. The traditional bricks-and-mortar property brokerage will be hemorrhaging, and all that retains this archaic business model alive is consolidations. As offices close, some agents quit, but the survivors move their licenses to some other sinking ship, a ship that seems similar to the last one and frequently with the same name on the bow.
A big franchise office closes it’s doorways, no longer able to keep carefully the lights on after greater than a year of operating in debt. The agents come to mind sick, not knowing what they’ll do, until their savior walks in the door.
A broker from a large bricks-and-mortar across town with exactly the same franchise offers to take all of the agents in with the very same contract terms: each real estate agent pays $600 monthly and keeps 100% of these commissions. The agents sigh in relief and rapidly sign the new contracts like sheep to the slaughter.
Since the broker can’t generate enough network marketing leads for the agents, and because the agents aren’t selling enough to help make the broker enough funds on commission splits, almost any split wouldn’t make sense for the broker right now. bury old road heywood A sharp agent will charge each real estate agent a monthly cost. He laughs completely to the bank, because with 60 brokers paying $600 monthly, he’s making $36,000 per month just for living.
3 years ago I sat over the desk from the franchise broker who looked at me and stated, “Well, we’re feeding the business every month. You need to do that whenever times are tough. But we’ve been through tough times before, and we always turn out okay.” I remember thinking to myself that has been a silly thing to state from the man who told me he had no business plan, no cover marketing, no written vision for future years of his business. Sadly, that same broker merely issued a press release that he is permanently closing the doors of his bricks-and-mortar and you will be hanging his license with another bricks-and-mortar. Another consolidation.
This broker is only jumping from one sinking ship to 1 that hasn’t sunk yet. The new ship has plenty of leaks, and it might take a while for folks on the Titanic to awaken. Bricks-and-mortar property brokerages that stubbornly won’t bridge the gap to a completely home based business model will die a sluggish and painful death. It’s a very important factor for brokers to ride their very own ship down, but it is fairly another thing altogether for all those brokers to market tickets to real estate agents with promises they can’t keep.
Probably the most unfortunate thing about all this is that the brokers who think they’re doing what must be done to survive are just re-arranging the deck chairs on the Titanic. Most of them truly do not know or comprehend how precarious their fate is usually. Most of them do have a distressing feeling, plus they know something is wrong making use of their business model. Exactly like so lots of the passengers on the Titanic near the end who smiled and kept stating, “Don’t worry, everything always works out alright,” traditional agents continue steadily to greet people who have a smile and await the phone to ring. However the ship is tilting, plus they are at risk. They just have no idea what to do.
This is the great dilemma of being stuck. It’s the classic inability to think beyond oneself. Traditional brokers and brokers who have operated within a traditional brokerage model for several years struggle to think in entirely new ways. What makes this especially problematic for so many is their irritation with technology and the web. Some simply refuse to learn the technologies. I know of a top producer who refuses to adjust, and he sincerely believes he can delegate many of the responsibilities to his assistant. Few assistants are going to spend night and day studying and adapting for a boss, and if they do and depart someday, where does that leave the agent? Even successfully delegating leaves severe challenges in bridging the gap, which I will share later.
There’s been an enormous change, however, not all agents and agents recognize what is happening. Most do not comprehend that they are in the center of a significant earthquake. Therefore, they continue steadily to do what they always have done. Underlying each one of these changes is something very major that traditional brokers are missing. Just as it really is powerful forces that transfer tectonic plates deep below the earth’s surface, we have been experiencing powerful forces leading to an earthquake in the true estate world. Much like so much in lifetime, what we see at first glance is merely a symptom of a deeper and many more significant movement that is actually the driving force. It really is this driving force that many brokers and agents have not recognized.
Here is the first tectonic force that’s at the root of most these changes effecting the true estate industry: a change in consumer behavior. Granted, it is a huge change in consumer habit. It’s so big with thus many implications, a lot of people don’t comprehend it.
The full description of these changes in consumer behavior will be quite long, but here is a brief overview in the context of the true estate business. Consumers are no longer ready to be sold with obnoxious marketing and told what to buy and when to get it. Consumers are sick and tired of interruption advertising and marketing, of billboards, of ruthless salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Buyers have had it with specialized conflicts of interest. They’re sick and tired of only getting partial information upon which to base their most important decisions. Buyers want and demand freedom to control their own destiny. They don’t like being controlled. They don’t like being manipulated.
The next tectonic force effecting such dramatic changes in the true estate industry is effective in its own right, but additionally acts as a catalyst for the improvements in consumer behavior.
The catalyst that has empowered customers and is forcing these adjustments that are the death knell of classic property brokerage is… advances in technology.
The traditional brokerage business model has been totally unequipped to manage these tectonic shifts. The impression of the real estate recession has accelerated this technique to be certain, but only with time. Had it not been for this recession, the impact of the changes in consumer behavior would have taken longer, but the impact would ultimately function as identical. The recession has acted just like a diversion, however, distracting real estate agents from the real cause of their doom.
I’m reminded of the newspaper salesman who tried to sell me expensive print advertising lately. I inquire him, “Why would I market in the newspaper when it hasn’t sold some of my real estate listings before year or so? Help me out. Why should I advertise in your document?” His reply while soft-spoken and polite, had been of exactly the same mindset as many real estate agents today, “Well, you don’t desire to be left out when your competition is advertising, can you?” In response to my blank stare, he pleaded, “When business is slow, it isn’t the time to stop advertising. It’s the time and energy to advertise more than ever!” That’s when I could no longer have myself, and I broke out laughing. We used that range in sales 30 years ago. Are they still using that line? Yes, they are.
Apparently, that kind of sales pitch still works with many real estate agents and brokers, because like flies bouncing off the plate cup windows in a futile work to flee from bondage, many agents remain doing what they admit fails very well anymore. Whatever we were doing that was not working before must be done twice as fast right now. If the ship you are on is sinking, be quick about your business and jump on another ship just like the last one. Such behavior is usually insanity and a ticket to failure.
More real estate agents have filed for bankruptcy safety during the past two years than at any time in U.S. Background. And the earthquake has not ended as many bricks-and-mortar brokers are on the verge of closing their doors soon.
It’s the early adopters of home based business models and new technologies who will be the millionaire real estate agents in the a long time. Because time is certainly truncated with the accelerating pace of the growth of technology and the use of the Internet, those that pause too long to take into account doing something will be left so far behind, they may never catch up. Think about a space ship entering warp speed. Those who missed the flight will find themselves light decades behind their colleagues. This is one way it will be for traditional realtors who insist upon staying behind.
There is an answer, also it means embracing technology, new marketing methods, new tools to attain clients, and mastering the web as a powerful medium.