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Updated over 1 year ago on . Most recent reply

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314
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Brandon Carlson
  • Real Estate Consultant
  • Glendora, CA
95
Votes |
314
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Brokers: How do you recruit realtors to your brokerage?

Brandon Carlson
  • Real Estate Consultant
  • Glendora, CA
Posted

Hi BP:

I have been a Real Estate Salesperson for roughly three years. I am in the process of taking courses to take my broker's exam. My goal is to become a Broker in the next four months. With that being said, how do you attract/recruit agents to your firm? I asked myself that same question and why I joined the firm I'm with now. The reason was because I have a friend who works in the same office and I knew it would be beneficial to have them and the broker for support. 

Below are my reasons why a Real Estate Salesperson would join a brokerage. 

- Training

- Commission Splits

- Office fees (desk, printer, E&O, etc)

- Marketing

- Brand Awareness 

- Community Presence 

Thanks

Most Popular Reply

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17,478
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30,165
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,165
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17,478
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied
Quote from @Brandon Carlson:
Quote from @Russell Brazil:

Every brokerage (like any agent too) has their own value proposition to agents. For some it is lowest cost. For some it is highest service. For others it is well established brand.

You should understand though, that brokerage is an incredibly low margin business. Most good agents with good sales make more money than their brokers. 


 Thank you, Russell, for your input. What costs would you say are the main contributors that reduce the company's margins? 


 Let's take a typical situation with a high split agent, and your brokerage is a franchise. Of the 100% of the commission, 90% goes to the agent, 6% goes to the franchise free and only 4% of the gross commission becomes money to the broker....to cover staff, office space, marketing, e&o, liability insurance, technology, and all the other costs.

Many brokerages actually operate at a loss, and the brokerage becomes a loss leader to feed their other businesses such as title, lending and insurance where profit margins are not as thin.

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