The Brokerage Model Has Changed

25 years ago, we launched a real estate brokerage in Apollo Beach, FL. We had a handful of agents, 1 office and big hopes and dreams. Today we are Century 21 Beggins. We have 10 offices across the Tampa Bay area, over 400 of the top agents in the business, and have conducted over 55,000 transactions. The brokerage model has changed over the last 25 years and it continues to transform every single day. The biggest change, is the value a broker brings to their agents. It's confusing. We talk to agents daily. Recruiting agents is the backbone of any successful brokerage. The most common emotion we see in the agents sitting across from us is confusion. If they have talked with 4 brokerages, they have been given 4 completely different pitches that push 4 different commission models and of course each one is better than the other. Here is the truth, they are exactly the same. As a broker, we can speak from experience. From the 100% models to the caps, and everything in between, they tend to shake out the same. You will make roughly the same amount of money regardless of whom you choose. The broker is your partner. As business partners, you each play a role. The variance in the models simply define the role you will play. There are over 400 items that need to be completed in a real estate transaction. In a 100% model, you will do all of those things. They may provide you a desk, office or printer which they cover in their transaction/desk fees. In a traditional 70/30 or 80/20, you will do less of those 400 things. Now, if you are able to focus in on the things your good at and outsource the things your bad at to your business partner, you are setting yourself up with the leverage and opportunity to do more transactions. This COULD allow you to make more money. However, most of the time, financially speaking you will shake out about the same. So how do you pick? Culture. Support. Self-awareness. Self-awareness. The third one is the most important. In our opinion, it's the deciding factor. Why? It defines what you need. If you know that you want to coach both of your kid’s baseball teams, have the weekends off and still perform 15+ transactions a year, you CAN'T go with a 100%. You won't have the support you need. If you have a book of business that is 100% referral based, don't mind working 6-7 days a week and have the current income to pay the monthly fees, a 100% could be the best fit. If you are starting out, need the constant support, need the variable costs so that you are not dishing out cash every month, etc, then a traditional model may work best. The punchline is, you need to understand what you want. What you REALLY want. Not what you THINK you should want. Then make sure you love the culture. If you are going to build your business with a partner, you should like them. Then know, that if you work your face off, trust in the process, and stay self-aware, you will win, regardless of the logo that sits on your business card.