Real Specialists’ Brendan Gibb discusses agent pain points.
When we set about creating REAL Specialists, we wanted to identify every single pain point experienced by agents and devise a model which overcomes all of those.
Having run a network of 13 traditional franchise offices in the past, it was an easy exercise for us to list out all the major pain points agents had. Some of the top issues we identified back then, are the same issues I am constantly hearing from agents who are looking to move from their existing offices.
If you’re experiencing any of the below, it might be time to consider an alternative model.
Commission split - This is the number one issue in my mind, and not enough agents realise it yet. But how can a principal ever justify charging Agent X double the amount of commission (on a dollar basis) as agent Y just because Agent X is good enough to have an average commission fee being double what Agent Y has. I would urge you to ask your principal that question, as they simply will not be able to justify it. It takes the office and the admin team exactly the same amount of time and resources to process Agent X’s listings as it does Agent Y’s. The sad thing is that what is really happening is Agent X is carrying the weight of Agent Y and paying more than his/her fair share.
Admin support - The second issue is lack of sales support staff. Some agents earn commission splits below 50% and receive virtually nothing in terms of admin support. They get so bogged down and never have the chance to actually grow their business because they’re always too busy stuck on the non-dollar productive tasks.
Data ownership - Not owning your data is another problem many agents can face. It’s common to have issues trying to take your data with you when you leave your current office. If you are lucky enough to get a copy of your database, the next issue is whether your old principal starts prospecting it in competition with you. You do the hard yards over the years putting that data in to the office CRM and in most cases your employment agreement states you do not own that very data you have put in.
Branding - This is something that is given little to no flexibility in the way agents brand themselves and their listings. They are bound by their office/franchise’s branding guidelines and there is no opportunity for them to set themselves apart. What’s worse is that I’ve seen good agents choose not to work for the best office on the best comm split they could get simply because they didn’t like the colour of the brand at that particular office.
Building a rent roll - Good agents realise the power in building a saleable asset, but it’s incredibly time consuming. The alternative is that agents can hire staff, but rent rolls are not easily scalable in terms of the staff you need to manage the rent roll and their capacity before you need more staff.
Sales meetings – Agents don’t necessarily want or need sales meetings. The traditional "sales meeting" is not the right thing because good agents don't need to be micromanaged and told how to sell. But they do need an opportunity for a sense of belonging and collaboration with a team otherwise they can become isolated and can struggle with that.
Commission and VPA minimum standards - Every now and then, an agent needs to make a commercial decision to reduce their fee to secure a good listing. It might be a strategic move to create the opportunity to list a couple of other properties off the back of it, or it may just be an excellent profile opportunity. The issue is often that agent's principal forbids them from making that decision and they lose the chance to secure that listing and therefore the other opportunities it offered.
Subscriptions and on-going fees - As an agent you are working unpaid with no guarantee of regular income. So why when an agent has no guarantee of getting paid every month, do most of the new "direct to agent" models which have popped up think it’s fair to charge agents ongoing subscription costs when they may not have been paid themselves that month? Surely they should only have to pay their fees when they themselves get paid through a property settlement?
Next article we will explore how these pain points can be overcome and how agents can make sure there are getting what they deserve, and I don’t mean just financially because there is so much more to it than just money.
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