Maximizing Agent Profit with a Discount Real Estate Broker

How Agents Can Make More Money Working Smart

Discount real estate brokerages are here to stay. Most agents view discount real estate brokerages as a threat to themselves and their industry. It is interesting how a real estate agents production can play a part in how they view the discount real estate brokerage model.

The “mega agent” class that only makes up a very small percentage of all Realtors is not as threatened because even if a few deals are lost to their more value oriented competition they are still doing extremely well. All of the other agents that haven’t yet created that empire of business can feel threatened by the new model of doing business because they simply cannot afford to lose several deals a year.

I believe that your average producing agent looks at their current landscape of competition realizes on one side of this new battlefield is the Mega agents in their office who they haven’t fared well against and on the other side is a new breed of brokerage with value focused full service agents and they are caught in the crossfire feeling the squeeze.

What is the REAL Objection?

If you asked a non-Mega “traditional” agent why they are opposed to this new breed of discount realty brokerage, you will get a variety of answers mostly centered around “quality of service”. Truth is, newer companies like 1 Percent Lists are offering TRUE full service for only 1% listing fee. These agents always assume there’s a catch but there truly isn’t .

Home sellers are saving millions of dollars every year by leveraging new brokerage models like 1 Percent Lists. The “dirty little secret” is that the agents working for these new discount brokers are seeing a higher level of income and better work-life balance. I suspect that “quality of service” isn’t the real reason why agents are afraid of the new breed of brokerages. I think many of them just don’t understand the potential of them.

The Value Proposition

Assuming every agent is client focused and simply wants the best outcome for their sellers then a lower commission for listing homes is obviously better for their clients. Where I believe these agents get lost is they believe they will work harder for less money which simply isn’t the case. What these agents are failing to consider is just how hard they have to work to get a deal.

What is the best month of the year to sell your home? What is the best week of that month?

If you are charging the same fees as ALL of your peers and (be honest here) you are basically doing the same thing. You do a CMA, take professional photos, put the listing in the MLS, put a sign in the yard and may hold an open house (to pick up a couple buyers). This puts you on par with ALL OTHER REAL ESTATE AGENTS in your area. You are all providing the same service, for the same price. You must rely on your glowing personality, good looks and sales skills to get the listing. To get more deals, you are forced to outspend other agents or simply outwork them (or both).

If you provide the exact same real estate services as your competition, but at a fraction of the cost, would you ever loose another listing presentation? Do you think your past clients would recommend you? Do you think that home sellers would search you out?

Most agents never consider the fact that their time spent doing lead generation would drop TREMENDOUSLY and the total number of transactions would rise PRECIPITOUSLY which would make agent profit rise DRAMATICALLY.

After all, many people look at how much real estate agents cost. Imagine if you could show them that, but choosing you, they not only get the same great service, but they also save thousands of dollars in the process.

This simply cannot be overlooked. Customer loyalty to full service discount real estate brokerages and their agents is through the roof.

Here is the scenario for the agent:

  • Put in a lot less work on lead generation and client loyalty
  • Acquire a lot more clients (especially listing clients) than ever before
  • Have an extremely high client satisfaction level
  • Create buyers from a large listing pipeline (no more lead purchasing)
  • Spend more time doing deals rather than trying to find them
  • Typically enjoy a much better commission split.
  • Have home sellers search you out
  • Earn more income by doing a higher volume of deals

The simple question is if it was possible for an agent to accomplish that scenario would they reconsider their position on discount real estate brokerages? Would they actually consider using that model for themselves?

The Dreaded Commission Question

Most real estate agents dread the part of the listing presentation when the client asks about the commission. Most successful Realtors have honed their skills at explaining how they are “worth” it. They explain how real estate commission works and how the money gets split up. They use analogies about doctors and ask the seller if they would work for less at their job…You know the drill.

If you are listing the home for 1 percent of the sales price while still offering “the going rate” for the buyers agent, you LOVE IT when the commission question comes up. Most likely, you are sitting in front of that homeowner because they sought you out for that lower commission on the listing side!


Our model makes our agents so much money, that they are currently purchasing real estate franchises from us!

If an agent could truly charge less, grind leads less, follow up with past clients less, work less, and make more money… would they change their point of view?