Becoming a successful Realtor; success being defined as a Realtor that has lasted in the industry for a minimum of Three ( 3 ) years, and makes their livelihood strictly through the listing and selling of Real Estate is not an easy task.
We’ve all read and heard over the years that eighty ( 80 ) percent of those that enter Real Estate as a career fail in the first two ( 2 ) years.
So once a Realtor truly makes it; and they are paying their bills, and feeding their families on their livelihood from Real Estate how do they get stuck in the rut of being afraid to step out on their own and keep 100% of their hard earned commissions?
I know I’ve written about this on several occasions in the past, but in today’s technological world, the Realtor no longer needs the Broker as much as the Broker needs the Realtor. The days of the Broker providing phones for the Realtors use, or a computer, or copier are over. Just today my brothers Grandson ask him what a record was. The traditional Real Estate Brokerage is also that antiquated, they just haven’t realized it yet.
Realtors no longer even count on the Broker for training. There is so much free, and advanced training our there for the Realtors in today’s world, a Broker can’t even compete.
So, I have to ask. Once a Realtor achieves success on their own, why in the world would they give away 20%, or even 50% of their commissions to a Broker that didn’t provide the buyer or the seller to the Realtor? Didn’t provide the phone for communication, or the computer, and probably didn’t even provide any assistance during the sale.
If the Realtor was the one generating the leads and business through their reputation and repeat business, why then are they handing over a large portion of their commissions to the Broker? If he or she had become successful on their own, then what loyalty do they have that requires them to turn over so much of their own hard earned commissions from their own hard work, to a Broker so that the Broker can keep his or her doors open?
As we enter 2012, I believe that we will see maybe as many as 20% of the Realtors in this country look at the reality of today’s technological world and say to themselves, “ am I nuts by not keeping 100% of my commissions, when it was 100% of my effort that generated that commission”
So, how many traditional Brick and Mortar Real Estate Brokerages will close their doors this year? They can’t keep the monuments to their ego open when the Realtors expect, and will get 100% of their commissions from any number of the future Real Estate Brokerages of the world.
The big five ( 5 ) or six ( 6 ) companies currently in our industry will within ten ( 10 ) years probably be replaced with five ( 5 ) or six ( 6 ) new names in the Brokerage industry.
Today’s powerhouses in the industry will become tomorrow’s typewriters.
James A. Crumbaugh III is the CEO and founder of Allison James Estates and Homes, the leading Virtual Real Estate Brokerage in the country. You can reach Mr. Crumbaugh at email@example.com
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