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.
The key to long term financial independence is multiple revenue streams and a business that can succeed without you doing all the business. It has to work for others too.
Do you know how much every agent in your market produces? Of course you don’t, it's impossible to know. It is not enough to simply start a brokerage with a superior value proposition and do more deals for yourself if you want to have a thriving brokerage business because if you don’t successfully tell your success story and repeat that story for others then agents will not see you as a viable option.
It is not enough to simply be successful, you have to shout your success to the world. You have to prove to the public and to the other agents in your market that this is a viable business that will make you happier and financially stronger. That success must spread to other agents at your brokerage and you have to publicly tell those successes in a very professional way.
1 Percent Lists has mastered this tactic and the training and team to create this message for you is available to every one of our brokerages and agents.
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.
It's all about gci
Agents typically only move for one reason and that reason is a higher GCI. Our average agent makes more than their peers and it's not even close.
The typical real estate agent nationwide makes about 40% more than one of our agents per deal but our agents do TONS more deals than they do without buying leads. We routinely see agents join and do 300% or more production immediately.
Given an average sales price of $428,700 and an average commission of 2.5% an agent that does 5 deals a year makes 53,587.50 in gross commissions.
Our rookie of the year in 2021 did 63 transactions in her first year earning about 1.7% per transaction which at the same price point generates 489,137.70 at the same price point. This was a brand new agent!
Our top SOLO agent did 103 transactions in the same year which at that same price point is 750,653.70 in GCI.
