DOSS: Top 3 Ways REALTORS? can “RECESSION PROOF” their business?

The current real estate industry is experiencing varying degrees of turbulence throughout the country, with some markets faring worse than others. One thing is for certain, one way or another, everyone is adapting to a cyclical industry that's playing by a different set of rules. The Federal Reserve raised the federal funds rate seven times in 2022 and is expected to raise it further in 2023. The last time the federal funds rate surpassed 6.5% was in June 2006, causing the largest homebuying generation, Millennials, to pause and feel uncertain as they have never experienced interest rates this high in their adult lives. As the number of real estate agents in the country outweighs the homes available for sale, most agents are feeling the pressure on their bottom line. However, there are some low-cost or no-cost strategies agents can adopt to cope with an industry that is expected to worsen before it gets better.

#1 Tighten Up Your Social Media?

Other than the investment of your time, real estate agents can leverage free social media platforms to enhance their visibility in front of their audience. From Facebook to LinkedIn and Instagram to TikTok, Realtors should ensure that their social profiles are well-curated and include all relevant contact information so potential buyers, renters, and sellers don’t have to work to patronize your business. It is also crucial for every Realtor to have a free Google Business Profile page, which makes it easier for potential clients to locate them when they search for "Find an Agent Near Me." Agents can ask colleagues, family, friends, and previous clients to provide testimonials on their business profile page as they actively contribute to helping you build your online presence. Consistently posting pictures and updates showing that you are actively practicing real estate allows prospective clients to vicariously get to know you and better understand your business before they contact you to become their agent.

WHY??

During a pandemic(s) and recession(s), the data shows that people spend much more time on social media platforms. By taking a multi-sensory approach(posting pictures, podcasts, and videos), this is the best time to become the source of information in front of your audience.?If you aren't doing it, your competitor is!

At DOSS...

We are committed to training our agents and equipping them with the necessary tools to maximize their exposure. For instance, we provide sessions on how to use ChatGPT to help them create compelling biographies on social media platforms such as LinkedIn. Additionally, we teach our agents how to find affordable designers on websites like Fiverr.com, enabling them to create professional banners that make a great first impression.

#2 Organize & Contact Your Database

Surprisingly, over 70% of agents across the country do not have a Customer Relationship Management (CRM) system, which serves as the central nervous system of their business. During times like these, it is crucial that agents consistently and routinely contact their database to reassure them that they are available to assist them during these uncertain times. There could be hidden opportunities within a warm network of co-workers, family, and friends that could help drive your business. Investing in a CRM system can cost anywhere from $50 to just over $100 a month, depending on the provider, as it could prove to be the best investment you ever make for your business. Creating a consistent strategy to call, email, and text your entire database can yield significant results. Be authentic and show your contacts that you genuinely care about them and their families, and that you are available to help them if and when needed.

WHY??

Every top producer in the industry understands the importance and significance of a CRM for their business. They recognize that consistently growing, contacting, and maintaining their database is crucial for uncovering opportunities to serve their existing clients and those whom their contacts know, like, and trust. When leveraged correctly, this source of business could easily account for more than 50% of your annual revenue.

At DOSS…

Recognizing that cost is the primary reason why most agents don't have a CRM, at DOSS have developed our very own proprietary solution. Our objective is to ensure that every agent at our digital brokerage has access to a CRM to better manage their database. Our artificial intelligent solution empowers our agents to be more efficient and effective, at the same time removing the cost barrier that prevents most agents from purchasing this much-needed tool.

#3 Lower Your Cost

During times like these, it is crucial for every Realtor across the country to reevaluate their business costs. In most cases, broker fees and splits represent the biggest expenses in this line of work. Big businesses often make adjustments to their operational cost during cyclical times in anticipation of downturns. They cut costs by laying off employees and scaling back on advertising and marketing budgets, among other measures. If multi-million and billion dollar businesses adjust their costs to remain profitable, why shouldn't you? As a Realtor, you are operating a business and should be exploring ways to lower your costs. This might include reducing your monthly fees, seeking a better compensation plan, and a more favorable cap. If you can achieve this without compromising the quality of service you provide to your clients, then agents should consider changing brokers? Doing so could free up funds that could be reallocated to other budgets, resulting in an increase in your bottom line.

WHY??

Smart businesses are always on the lookout for ways to reduce costs and increase revenue, especially during turbulent times. Realtors, in particular, possess more power than they may realize. They have the unrestricted right to select a Broker that suits their business needs, particularly in a cyclical industry like real estate. It is essential to find the right business partner who can offer you precisely what you need and want at a price that you are willing to pay to conduct business under their brokerage. You owe it to yourself to search for and find the right brokerage that compliments your business goals and objectives.

At DOSS…

We have developed a Flex Model that comprises of five distinct compensation plans tailored to meet our agents' individual needs. We reject the idea that one-size-fits-all when it comes to compensation. We understand that each agent is unique and at different stages of their real estate journey. With the current market conditions, our most in-demand compensation plan is the Flex Agent plan. Under this plan, agents are not required to pay a monthly broker fee, and they receive an 80/20 split, a $10,000 cap, and with a $45 E&O fee per transaction. Based on the national average home sales price, an agent on this plan should reach the cap at around 4.5 closings. This implies that for the rest of the year, they will receive 100% of their commission, less a $95 franchise fee and the $45 E&O fee, totaling $140. Furthermore, we offer a comprehensive suite of technical tools, including our proprietary CRM, for an annual tech-fee of $425.

For more information: [email protected]

DOSS: BETTER. FASTER. SMARTER.?