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2010-04-02 15:18:17

You Can't Save the Dinosaurs

 

Lately I have been involved with several webinars conducted by the very best leaders in the Real Estate Industry. I have also had the Vice President of one of the largest firms in the United States fly in to spend time with me, to learn more about the Virtual Culture.
 
All these webinars and the visit by the Vice President of the large company involved the same theme.
 
HOW DO WE SAVE THE CURRENT REAL ESTATE COMPANIES?
 
The problem is that they can’t save these companies. The brick and mortar companies are dinosaurs. They are as outdated as the horse and buggy. You may be able to prolong their life, but you can’t save them.
 
Think about it for a moment. Who does the brick and mortar office benefit? Not the Realtor. The only Realtors that like coming into an office are the Realtors that like to eat donuts drink coffee or can’t stand to be around their spouse. Most Realtors now have a more than adequate home office.
 
The brick and mortar office doesn’t benefit the customer. Customers now know what homes they want to see before they pick out a Realtor, as a result of the internet.
 
So who does the brick and mortar benefit? Only the Brokers ego.
 
I’m not a tree hugger, but even I can say that a brick and mortar office is not required to do business with today’s technology. It’s just plain environmentally irresponsible at best.
 
The only issue for the Virtual Realtor is, WHERE DO I MEET THE CUSTOMER?
The answer is overwhelmingly simple. Since the Realtor gets to keep 100% of their commission in the Virtual Company, they can afford to rent space or a conference room for only $40 a month in a REGUS office suite or similar company. Or they can use Starbucks, a Title Company, bank or multiple other venues.
 
So why are all these companies trying to save a dinosaur? You can’t pay rent when you give a Realtor 100% of their commission. You can’t pay franchise fees when you give a Realtor 100% of their commission, and all Realtors in the next few years will demand and get 100% of their commissions, including new Realtors.
 
So again I ask why everyone is trying to save a dinosaur rather than moving into the future. We have now been in business for over two years and have experienced over a 300% growth while all other companies were stagnate, dying or died.
 
I believe the answer to the question, WHY IS EVERYONE TRYING TO SAVE THESE COMPANIES is rather simple. Everyone is afraid of the future. It’s an unknown to all these companies and Brokers. They don’t know where to begin to create a VIRTUAL CULTURE REAL ESTATE BROKERAGE. It’s easier to stick their head in the sand rather than deal with the massive paradigm shift that has enveloped the Real Estate industry. The Realtors get it, that’s why they are flocking to a brand new business model. It’s the Brokers that don’t get it.
 
In 10 years, every Real Estate firm in the country except for boutique offices in resort areas will cease to exist if they insist on staying with the old ways of operating out of a brick and mortar environment. Technology guarantees it. Let me ask you the reader. Do you really think that technology will go backwards and force the Realtor back to the brick and mortar environment? Do you really think that the new Realtor of the future will accept paying a franchise fee of 5% to 7% off the top of every commission and then spilt their commission with a Broker?
 
I don’t think so.
 
The future is here and the Brokerage firms that don’t accept that fact will drown and disappear, never to be heard from again.
 
You can’t stop progress!!!!!!!!!!!
 
James A. Crumbaugh III is CEO of Allison James Estates and Homes and may be reached at jcrumbaugh@allisonjames.net

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