Don’t settle for the easy quick fix single-agent model, advises Explore Property CEO, Andrew Acton, who says it’s not a good long-term strategy.
Agents who decide to operate under a single-agent model could be missing out on key future economic benefits, a leading real estate expert has warned.
Explore Property CEO Andrew Acton said that while a single-agent model – where an agent operates independently with back office support provided by a central company – could provide a quick way to establish a business, it often came at a price.
“I think of the two agent models as a ‘practice’ and a ‘business’,” Mr Acton explained.
“A practice is what the single-agent brand model is. You earn whilst you are working but there is nothing more than that and based on the exorbitant fee for these models which can reportedly be up to 30 per cent.
“I can’t see the benefit in it at all long term.
Single-agent operators also missed out on creating future brand equity, Mr Acton said, with the business only holding value so long as the agent remains in the real estate profession.
“There is no growth and equity being built under a single-agent model. You have nothing to sell and when you have a holiday the income stops,” he explained.
“How is that a smart model, you’re a slave to your own micro business, and you’re not building anything of tangible value?”
For those agents keen to step out on their own, he advised investing the time and effort in establishing a business.
“A business allows you to grow a rent roll, which is building an asset that can be sold and also provides sale listings for your own business,” he said.
That doesn’t mean that an agent has to give up the sales game altogether, but instead they should focus on future proofing their business at the same time.
“You can still sell and if you’ve got the ability to sell, I tell business owners that they should. Why not use your talents? Work at being an agent and a leader. Build a team and create sustainability and security.
“This is what all talented agents should do and operating a business isn’t difficult if you have support as we provide.”
He advised agents considering the next step in their career to seriously consider the merits and pitfalls of both agent models before deciding what’s right for them.
“I just think many good agents are falling for the marketing and hype and making a decision for a quick fix when the right path is business ownership in its proper form. If you’ve got the itch to do and be more, why not do it properly? That’s where the real long-term value and security is,” Mr Acton said.
