As the industry transitions into a more challenging market, agents’ commission structure is again coming to the forefront of the conversation as listings and sales begin to slow down.
With most agents giving away 50 per cent of their commission working under a big brand, right now is when you need to consider if working under the traditional model is the best option for you.
When you start your career as an agent, a franchise can provide the support you need to build your career and work towards becoming an established agent.
However, as your career progresses, and you begin to build your reputation and trust, the need for the traditional model and giving away so much of your commission starts to diminish.
I’m sure there will be a number of agents reading this who have thought about starting their own business at some stage or aspired to do so but haven’t for a number of reasons.
But fear is generally what holds them back, questioning if they could start their own business and generate enough listings to keep themselves profitable.
The best way to work this out is to look back over your last 12 months of sales and work out the answer to one simple question.
Where did all your listings come from?
As an established agent, you will quickly realise that you are generating these listings off the back of your own reputation and hard work.
People know you in your local area and want to list with you, because of your experience, leaving a small percentage, if any, that have come from your office.
Once you are at this point in your career, it becomes clear that you have outgrown the need for the traditional model, which begs the question, why are you still giving away so much of your commission, when you are doing all the work?
With a great deal of uncertainty about what the future looks like for the property market, now is the time for you to consider the benefits of building your own brand and keeping more of everything you earn.
If you have come to the realisation that you are already generating the majority of your listings, imagine what you could achieve by launching your business and standing out from your competition under your own brand, powered by UrbanX.