Welcome to Week 24: The Three Kinds of Brokerages
At ROOST we see three kind of real estate brokerages in the world. The first are what we call Transaction Based Brokerages, the second are Legacy Brokerages, and the third are Referral Based Brokerages.
Spoiler alert! – We are partial to number three.
Transaction Based Brokerages are the ultra-low cost offices that invest very little in their agents or their company and expect very little in return. Because they charge their agents a minimum fee, often in the form of a transaction fee with each closing, they need a lot of agents in the mix to make the business model work.
It’s a numbers game with many well know firms employing thousands of licensees that individually do very little business. This business model may be good for the broker owner, but it does nothing to support their agents or the industry.
Legacy Brokerages are often former industry leaders. Some are well known national brands and others are locally owned or regional firms. Legacy Brokerages generally charge high fees in the form of a split, but fail to offer the value or the services that would justify their costs. As the business changed, they stayed the same, trading year over year on a diminishing reputation.
Referral Based Brokerages are designed to transcend the rather low expectations people have of Realtors. Referral Based Brokerages, like us, focus on building and sustaining profitable relationships, adding value to the marketplace far beyond the information available on the internet or HGTV, and helping agents enhance and refine their skills and abilities as sales people and real estate professionals.
Referral Based Brokerages aspire to be leaders in the industry, as well as trusted partners to their agents and clients. If you would like to learn more about what it is like to work in a Referral Based Brokerage, check us out at www.CareerWithROOST.com.
For a free copy of the full book, A Real Estate Agents Guide to the Good Life, email FreeBook@ROOSTRealEstateCo.com and we will send you one. Or download a free e-book version here: www.CareerWithROOST.com