Why do agents move brokerages? Agents move to make more money, that is almost always the case. Up until recently that has meant moving to a brokerage with a better split or moving to a team to give you leads. Now agents are starting to understand the value of listing homes to generate more business.
How our agents make money
In a real estate transaction the average commission earned Nationwide is roughly 2.5%. Our agents list homes for only 1%, but for many of our agents almost half of their transactions are buyers which generally pay a much higher commission. Due to this fact, my average agent is making about 1.7% per transaction but doing a very large volume of transactions without buying leads.
Countless other companies in other industries understand that the path to true organic growth is finding a “loss leader” and leveraging that to boost sales.
For a cell phone company for example its new account sign ups which is why they give away phones to get people to sign up for new accounts. New account sign ups is the #1 factor for cell phone company growth. More new accounts mean those companies can increase revenue exponentially in other ways because they have a continually growing account base.
For real estate brokerage growth the #1 factor is listings. Those who list last and we list homes more often than anyone. Those listings bring buyers, more listings, stable pipelines, and long term growth for our agents and our franchise owners.