Alisha Alway Braatz in Bend, OR, gives us some food for thought regarding brokerages.
In today's INMAN NEWS REPORT there is an article entitled "Roadmap to Recovery". I suggest all Realtors go online today and go to: http://www.inman.com/reinventing
After reading the article, answer the questions that follow, for yourself. Here is my response to the second question:
2. How will the business model or business practices of the title, brokerage or lending industries change in the future?
This past month the unthinkable happened in our resort town of Bend, OR: two long-standing name brand brokerages constricted out of the Bend marketplace. I was one of the unlucky agents to find myself interviewing with new Principal Brokers...and highly questioning the validity of the Brokerage business model. To survive in today's market you must be nimble and sure-footed, with a firm grasp on where your market is coming from, and what your sellers are expecting from you in the new media generation. The Brokerage model fails because its focus is "THE BROKERAGE" not the individual agents that must create their own momentum, separate from that of the larger corporation. I believe the New Model to emerge will be a grand throw-back to the ages of true network marketing, paired with the new generation of media capitalization as my generation lives on the web. Monthly desk fees, coupled with the enormous "nut" to crack at Brokerages, simply doesn't jive with capable, entrepreneurial, well-adjusted business Brokers of 2009. What would happen if the crème-de-la-crème in each city formed their own network and readjusted their business to revolve around a collaboration of product, clients, and marketing aimed at specific target markets? That, my friends, would be a revolution.
I'd love to hear what other Brokers have to say on this subject.
I don't think the brokerage model fails, I think individual brokers fail. All I have to do is look at any major broker, like Prudential for example, and see significant differences between individual Prudential offices. More than that, though, there are too many people who are willing to work for the brokerage instead of for themselves. For example, I see people at conventions wearing a "Prudential Realty" shirt when they should be wearing a "John Doe, Realtor" shirt. Big difference.
There are good and bad brokers, just as there are good and bad Realtors, good and bad attorneys, etc. Gosh, even good and bad home inspectors -- LOL.
Russel - Excellent points and I tend to agree with you. The broker makes all the difference.