Broker provide leads to his agents?

Question

I joined a small office this summer and slowly realized that the broker does not do much for the office to provide any leads or new business. We have relationships with some property managers that we do rentals here and there but these listings are not exclusive so basically any office could get them.

There are 3 agents in the office but only one agent who has been there the longest seems to get all the leads since he has been there for awhile. My broker does not really advertise anywhere to get new business and walk-ins are non existent.

I understand real estate is a business that you need excel on your own but I think I do need one needs some sort of support from the office who he pays 50% commission on deals.

Is this normal? Im trying to get a perspective from others and see if I need to change office or not. Thanks

David Hunter · Answer

Sounds like the first time I got into the business back in 2005... My first day at the office the broker said, "here's your desk and phone, good luck."  hahaha

With that, never-EVER count on anyone to get you leads except for yourself.  Start marketing.  Find areas to farm and send postcards via the USPS's Every Door Direct Mail (EDDM).  Make phone calls if you're not afraid to pick up the phone.  Do open houses.  Advertise online.  And... not sure how well this will work since you're in such a small office but... ask the other agents in your office that are doing good business if you could get any leads from them.  They may have buyers/sellers/renters that they just don't want to work with or aren't in the price ranges they want to work with.

Nick Paul · Answer

@Frank Jones

If the brokerage you are currently with is at 50/50 splits and isn’t providing any incentives to justify that type of split, I’d look into what other brokerages in your area are offering.

There are many variables that play into commission splits offered by brokerages. If you don’t feel you are receiving any value by being with your current company, then begin to look elsewhere.

Does your office broker offer any mentorship, education, office space, CRM, access to database, marketing, etc.? Based on your post, it doesn’t sound as though you are getting much for the 50/50 split they operate on....but if they are offering value for that split, I’d make sure you are making full use of it. I’d also still go sit with several other offices and see what they have to offer.

Frank Wong · Answer

Yes, most brokers do not provide leads.  All the leads are usually generated by agents themselves.  Some of the larger firms with a bigger footprint the broker will give leads to the top producers in the office.

You should look for a bigger firm to work for with a few big producers in the office.  They may not actually give you leads to start off but if they see you are producing they will pass some over.  Bigger office = more opportunity.  You can also piggyback on the listings in the office.  Perform all the open houses for all the top agents.  An easy way to get free leads. If the house is a good listing I would get a minimum of 7 new buyer leads and maybe 1 seller lead per open house.

Frank J. · Answer

@Nick Paul that is exactly my thought.

Yes, he offers office space but Im never there. He is very old school and too cheap to spend on any marketing. I worked at another boutique office for 2+ years prior to this one and they provided leads regularly, spend money on advertising so thats why Im concerned if this place is a good fit.

If I am doing all the work and the broker is getting 50% for just sitting in his chair it doesn't seem very fair.

Frank J. · Answer

They closed down.

I think at 50% and doing all the work + paying for ads myself is not worth it.

Tyler Roicki · Answer

Sounds like you had a better thing going on at the prior place you were at. What brought on the change out of curiosity?

Frank J. · Answer

But then whats the point of working for an office? I can just get the broker license and do it on my own and keep 100% of commission.

Derek Jones · Answer

I personally don't see offices providing leads as much value. Highest converting leads are soi or referrals and brokerages aren't handing those out.  They are spending money on google ppc, facebook or zillow ads which is anywhere from 1-6% conversion ratio.  So every 100 leads I might close 1 or 6 of them over time.  We are our own business, independent contractors (unless you are an employee of redfin or similar) and as such it is on us for business.  The brokerage should be there to give us tools and support to get our own business and be successful on our own.

Frank J. · Answer

The previous broker I worked for did provide leads all the time because he saw as if I was making then he was too with very little effort. I know quite a few other offices that do provide leads to agents. I mean whats the point of the office broker if he just takes 50% of your hard work by doing nothing. This is not the 90s or early 00s anymore. Offices have to offer some kind of value to their agents to keep them otherwise they will lose to competition like Compass.

Broker provide leads to his agents?

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