More on the Virtual Culture
In my ongoing series about the Real Estate business in the Virtual Culture, I have focused on what we have experienced and seen since opening our doors on January 3rd of 2008.
I had a fellow Broker say to me just this last week that we should be very proud of ourselves in that we not only introduced a brand new business model to the Real Estate Industry during the worst crisis in 70 years, but that we are still open, profitable and growing.
We envision during 2010 spectacular growth, not just because of our business model, but also because we believe we’ll have the ability to start hiring and training new Realtors in the Virtual Culture.
Our requirement will be that the new Realtor has video conferencing ability and that they check in by video conferencing once a week for the first 12 weeks for training. We intend to have the best and most extensive training in the marketplace.
We will also in the near future be doing most if not all our closings on line, and again probably by using video conferencing. The more you think about the potential, the capital savings and the smaller carbon footprint, technology is bringing to the Real Estate Industry, the more you realize that we really have no need for the large Brick and Mortar offices.
I was at an event this past weekend and I had the chance t visit with several Realtors. One of the Realtors, an old timer like myself was remincing about the old days when he could take floor time and expect to get a walk in or a phone call. He went on to tell me that all he wants, is for things to go back to the way they were.
I shared with him, that isn’t going to happen. For all intent and purpose, floor time now is on line. What I mean by that, is in the latest statistics that I saw, some 87% of buyers are now selecting the homes they want to see on line, and tells me they are also selecting their Realtors before they ever arrive to look at those homes.
This is the future. Realtors want 100% of their commissions and as independent contractors they should get it. That leaves the Brick and Mortar Broker in a very dubious position. Technology has now made it possible for the Broker to give the Realtor 100% of their commission and not be burdened with the Brick and Mortar expense.
Because of the saving that we experience without the Brick and Mortar environment, we have the ability to share with the Realtor our success. We have created an annuity type of business model and we also share that with our Realtors.
It is built into our expenses and as a result the Realtor doesn’t have to count on the corporate office to turn a profit in order to share in our income. Our Realtors with very little effort can create $10,000 a year or much more of a passive income that never goes away as long as the Realtor stays with the company.
The Realtor may retire and continue to receive the annuity as long as their license remains with Allison James Estates and Homes, or they go inactive. Even then they may still recruit, and continue to build their annuity.
All in all, I have found the Virtual Culture to be a polar opposite of my past experience with Brick and Mortar offices. I’m happy; our Brokers are happy and even more importantly our Realtors are happy.
James A. Crumbaugh III is a Real Estate veteran who has been in the industry for more than 35 years. A year and a half ago he sold six office, 200 agent company that was a $300,000,000 volume franchise operating in Southwest Florida. Over the years, Mr. Crumbaugh has been recognized many times as a Top Recruiter, Top Manager and Top REALTOR. He brings a level of expertise to Allison James Estates & Homes that is rarely found in the industry.
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