Brokerage owners tend to compete with big companies by trying to be everything for every agent, and they end up hiring many agents, and it becomes difficult to maintain them.
Why do you want to start a brokerage?
This is the first clue to attracting agents to your brokerage. The answer to this question is (MVV) mission, vision, and values.
Knowing and setting the right mission for your company will help you draw a particular type of agent. This is because it communicates to the crowd the goal of your company. Agents who match the mission and vision will come to you for recruitment.
To maintain those agents for business growth, you will have to understand the services and the compensation models.
To build a brokerage with new, newer and low-producing agents and make it thrive, you will have to accept agents who are trying to start their careers and are looking for an opportunity they can exploit. Hire those agents and train them to be better and produce more.
When other agents from bigger companies see how far you have come from and where you started with a challenging group of agents and you have managed to shoot to the top in a competitive real estate area, they now start building trust in you. From there, you upgrade from attracting low-producing agents to mid-level agents and start forming teams and higher-producing agents.
When you consider adding newer agents, you will have to know the services you will have to provide to them and the compensation idea that will be favorable to them and beneficial to the brokerage.
To attract mid-level agents, you should have a plan for how to support them. Here is the support you can provide for mid-level agents that will attract them.
Brokerage Services Description Cost
Transaction Coordination Contract-to-closing file management $300-$600/transaction
Showing Service Fee Fee charged monthly or per listing $20/month or $75/listing.
Signs and Lock Boxes Sign rental and installation $75-$150/listing
Open House Signs Rented and/or installed $50-$100/listing
Listing Marketing Listing marketing packages $300-$600/listing
Individual Property Website Individual property website $50-$100/listing
Listing Presentations Professional, quality printed listing presentation $25-$50/listing
Just Listed/Just Sold Cards 100 cards printed and mailed (includes postage) $100-$200/listing
Listing Photography Professional listing photography, drone photography $150-$
These agents have a 5 year experience and can transact 10-20 deals a year. What they lack are understanding, resources, and time. They search for brokerages with foreseen fees and ward them for their loyalty.
Time to recruit top-producing agents and teams. Recruiting this type of agent is not the same as recruiting middle-level agents. This is because they have already formed their CRM and rely on their own processes, system, and employees.
This agent is attracted more by a good compensation structure, more opportunities, and recognition. The compensation plan should enable them to increase their production without accelerating expenses and grow their team without fear of risk.
They want to be able to run their businesses and run them under your shade. This will create a huge impact on your brokerage since these agents will have no reason to work for you and work with passion.
