Don't Get Stuck at the Last BlockBuster

Last summer we took a family trip out west and one of our stops was in Bend, Oregon.

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While we were there we visited the only Blockbuster left in the world.

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It was a weird feeling.

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In the 90’s and early 2000’s they were everywhere. Over 9,000 Blockbuster stores existed at the peak. In 2002, the market cap value of Blockbuster was over $5 billion.

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A couple years earlier, Blockbuster had the chance to buy Netflix for $50 million. The CEO struggled not to laugh them out of the room.

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“Neither RedBox nor Netflix are even on the radar screen in terms of competition,” said Blockbuster CEO Jim Keyes in 2008.

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Then something happened. The Netflix DVD by mail business grew and then later their streaming service grew even faster.

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All of the sudden it became inefficient and unnecessary to go into a physical brick and mortar shop to get your movies.?

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The Blockbuster CEO said Netflix was not “even on the radar screen” for one big reason. Netflix owned very little real estate. They didn’t have a single store. On the flip side, Blockbuster had tens of thousands of employees nationwide and even in some other countries. In this sense, Netflix was not on the radar screen.

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But they were about to be on every other screen in America – through the power of technology. No brick and mortar stores were needed.?

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Two years after its CEO made that statement, Blockbuster went bankrupt.

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A decade after being valued at $5 billion and having the chance to buy Netflix for $50 million, Blockbuster was sold for $300 million and a few years later disappeared, except for the lone store in Bend, Oregon.

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Netflix went on to build a market cap value of over $150 billion.?

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Now it feels weird to see a brick and mortar movie store. When my wife Keri and I saw the last Blockbuster in person, it was like we took a time machine to the past.?

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The same thing is happening to real estate brokerages.

With the rise of cloud brokerages (where eXp is the clear leader), real estate agents no longer need a brick and mortar office to run their businesses.

The agents that have made the move are now enjoying massive benefits:

• lower costs and commission caps
• collaboration and coaching with larger communities of successful agents
• massive rewards for growing the company (instead of paid recruiters or franchise owners reaping the benefits of growth the company rewards the agents that grow the company).

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If you are stuck at a Blockbuster brokerage here is some good news.

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Keri Shull and I are building a fast growing group of agents at eXp. By plugging you in to the leading platform in cloud brokerage you get:

• low caps for you and your team
• access to the eXp referral network and lead sources
• the ability to earn stock awards and build recurring income through revenue share

As a member of our group you also get:

• coaching and training programs that we used to build a multi-billion sales team
• done for you agent attraction sites
• training on how to recruit
• access to HyperFast Agent events

If you want to learn more about how we can help you take the next logical step in your real estate career send me a text at 703-638-4393 or?click here to book a call