If You Change Brokerages Will Your Sales Success Continue?

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Exploring the value of the “big brokerage name” and your own individual real estate sales success.

The debate of the value of working under the umbrella of a big name brokerage or opening your own brokerage under a “boutique” name is as old as when the first broker negotiated a plot of land for two sheep and a goat, taking home wool and goat milk as the commission.

On one hand the brand recognition value of a large real estate franchise cannot be understated. You have immediate recognition as a real estate professional when the franchise brokerage name is mentioned, whereas the boutique brokerage name may not have that type of distinctiveness about it.

Of course, individual effort and accountability factors are often over-shadowed when tied to the name brand, with the advantage of professionalism and success being more on the side of the boutique brokerage owner/entrepreneur and the reputation they have built.

In Ontario, and many other locales, a real estate salesperson starts their career at a brokerage. They must be employed for a minimum of two years prior to being eligible to take the “real estate broker course”, which then upon successful completion they become a registered broker and can open their own brokerage becoming the “Broker of Record”.

In real estate your expertise is learned under the wing of someone that has walked the same path, and yet, they have achieved what many real estate professionals do not aspire to which is owning their own brokerage.

Remember, an individual’s success is earned, not handed to them.

Client leads through the brokerage office are not arriving on your desk fast and furiously. You must network, meet and greet, market and push your individual identity to become a reputable broker. Every contact is a potential client, if not today or tomorrow, then maybe years down the road. Referrals are based on your own initiative and connectedness, not by virtue of someone else’s name.

Very often real estate salespeople shift from one brokerage to another because of lack of sales training, non-existent support through challenging times and unfulfilled promises of leads being provided while monthly brokerage fees increase. Changing brokerages and maintaining your sales volume is a good indication that it’s your sales ability and work ethic that provide the foundation for your success, not the brokerage’s name that you work for.

You understand what works for you and try to find the right employment to ensure that what you need to continue your success is available to you.

As you seek out alternatives to your current brokerage you may ask yourself:

  1. Will the promises of the new brokerage be fulfilled?
  2. Can I build my reputation under this new brokerage name?

Which leads us to the question about where your real estate career is headed. Do you see yourself still selling real estate in 10, 20 or even 30 years?

Shifting from brokerage to brokerage seeking long-term sales success may not be in your best interest.

Every real estate professional, at some point in their career, must answer the question (if not to others then certainly to themselves) “Do I have what it takes to own a real estate brokerage?”

It’s easy to find the answer, just look at your past income statements and if you’re paying too much tax compared to other professions with comparable incomes (your accountant can help you with that answer) then yes, your sales are established and your income needs protecting from the tax man.

The next answer you need is whether to open a franchise brokerage or a boutique brokerage.

The benefits of each are varied but almost always start with two questions:

  1. Does my own name and reputation have what it takes to be the sole influence of my marketing efforts of a boutique brokerage?
  2. Does a franchise brokerage offer the support and sales territory I need to continue my sales volume?

With these answers the undertaking of moving to a different brokerage, and maybe even opening your own brokerage, will become crystal clear.

You are now starting the journey to becoming a true entrepreneur by adding business owner to your list of real estate achievements.