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From Realtor to Broker: determining the model

When Realtors get the indie itch, the most difficult decision faced today is which real estate model to follow. There are three main options, or a combination of the three, and this very personal decision is a major part of your future success.

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An integral part of your brand’s story

When you are a Realtor with the itch to be an indie broker, one of the hardest decisions you will make is in what type of brokerage you want to build. Realizing this early on is going to end up being an integral and huge part of the rest of your story, so pay attention!

There are many number of brokerage models to look at in this choice. From mom and pop (literally, I’ve seen brokerages who are two people working out of home, a drop box for mail pieces (paper) and still have ONLY a home phone to call!), to 2-8 agents, 15-30, or the “let’s recruit anyone with a heartbeat” model with lots of overhead and expenses.

Option one: a traditionally named team

Are you planning on building a team brokerage approach where your own name is the brand (Smith Realty)?

Pro: If you already have a well known name in your area, you could easily expand on a full team and have total control of the company. No one else can build a team within your brand because it’s YOUR brand. If done correctly, there have been extremely successful companies built which produce sales like a well oiled branding machine with 1-3 local locations.

Con: This model can only take you so far, generally speaking. Remember, if the county next to you (or neighborhood) doesn’t know you, expansion may be harder and you’re climbing an already steep hill with opening a new place AND trying to show people why they should work with YOUR PERSONAL NAME. For me, Amanda Lopez Realty or Lopez Realty, just was not even an option for probably obvious reasons – it doesn’t roll of your tongue at all!

Option two: a niche brand

Do you have a specific niche that you will brand (green, über corporate, service focused, modern homes, new construction, condos, a local neighborhood name)?

Pro: while your market may be smaller, you could potentially “own” that niche and be the most sought after expert who no one else can even compete with!

Con: You run into past friends, family, clients, and fellow agents. They say to you “Hi! Its been so long! How’s real estate going?? You sell condos in that one building downtown right? I just bought a million dollar single family a few blocks away!” You: “Congrats! I do sell condos, but I’m also a licensed agent who sells all sorts of homes…”

Option three: breaking the mold

Do you have a vision of a completely different type of brokerage that you feel so strongly about and creating a name that could be scalable and taken to any market and succeed with the right tools? Perhaps there is a little bit of each of these models you like and dislike. That’s ok too! Always think outside of the box!!

Pro: You can spread your wings, not worry about convention and have no potential limits. If branded correctly or with the right timing and people around you, by creating something unique and different, you can create buzz, you could attract agents and clients that also believe in your brand and make them brand ambassadors. The sky is the limt with potential growth.

Con: You are REALLY starting from scratch!! You will most likely need a branding consultant, conduct market research, and maybe even spend more time and money into “inventing” your new company’s business model. You can easily fail if you don’t truly nurture that teeny tiny baby of a brand the right way!

Making your choice

There are plenty of franchise opportunities, brokerages that are unconventional and cutting edge, smaller boutique agencies as well as tradional companies who offer larger splits to allow you rights to brand yourself under a more corporate umbrella of safety and expenses being paid. But maybe there’s a mix somewhere you can find to fuel you as well as create something you have time and passion to grow.

There is no right or wrong. Ultimately, it’s your dream. Your passion. Go for it!

Amanda Lopez is a real estate broker and founder of Style House Realty in Baltimore, Md. She has worked in the real estate industry for over 6 years and prior to that studied advertising, branding and web design. Refusing to believe the real estate industry had to be bland and boring in design and appeal to everyone, she set out to bring some style and technology into the mix. Amanda can most likely be found with coffee that got cold, great shoes, her mind in the sky and her evernote app open.

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18 Comments

18 Comments

  1. jay Great Falls

    March 5, 2012 at 4:18 pm

    if you go indie like I did or are leaning that way you might consider a franchise or license to use a broker’s corporation and/or domain. That can be easier than starting from scratch. However franchises are expensive.

    I’m very interested in licensing out JustNewListings.com Realty out to new markets and the broker could add their IDX to a PR6 google juiced website to get property showing requests fast as part of their lead generation….justnewlistings.com/north-carolina/wilmington.php for example. I’m adding that IDX feed in 6-8 weeks.

    This model could make for a LOCAL broker dominating organic search engine rankings rather than trulia, zillow, homes or realtor.com.

    If anybody is interested find me on my website or linkedin or google+

    So sick of these 3rd party sites beating us at local search.

    j

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Business Entrepreneur

Is this normal (you wonder about your business)?

(ENTREPRENEURIALISM) It can be lonely not being able to openly ask potentially embarrassing questions about your business – there’s a way to do it anonymously…

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facebook

Entrepreneurialism is wildly rewarding – you are fully in control of the direction of your company, and you’re solving the world’s problems. But it’s also isolating when you’re not sure if what you’re experiencing is normal.

Sure, there’s Google, news networks (like ours), and professional connections to help you navigate, but sometimes you just want to know if something simple you’re seeing is normal.

Is Instagram Stories really where it’s at? Probably not if you’re a consultant.

Is it normal for an employee to attempt to re-negotiate their salary on their first day? Nope, but how do you keep the desirable employee without being bullied into new terms?

Do all entrepreneurs spend their first year in business as exhausted as a new parent? Sometimes.

You have questions, and together, we can share our experiences.

We have a brand new Facebook Group that is already wildly engaging, active, and you’d be amazed at how selflessly helpful people are – and we invite you to be one of them.

Want to anonymously ask a question about something you’re unsure is normal or not?

Click here to submit your question, and we’ll select as many as possible to discuss in the Facebook Group!

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Business Entrepreneur

Amazon on a collision course with politicians as they strengthen their monopoly

(BUSINESS) E-commerce has come a long way in the last decade, specifically led by Amazon, but are their controlling ways putting them on a collision course with regulators?

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amazon

In March, Amazon stopped replenishing weekly purchase orders for tens of thousands of vendors in a move that has stirred up some trouble. The tech giant has once flexed its power over first-party sellers over their platform. And it’s not the first time.

Amazon originally sent out to vendors as an automated message citing the hold up in orders as a technical glitch. The following day, vendors were told the change was permanent. The affected vendors were categorized as making $10 million or less in sales volume per year and not having managers at Amazon. Vendors selling specialized goods that were difficult to ship were also a factor.

The effects can have remarkable effects on the market as Amazon’s algorithms decide who is able to sell what to whom via their near-ubiquitous platform. According to John Ghiorso, the CEO of Orca Pacific, an Amazon agency for consultation and manufacturers representatives, the decision is driven by financial data such as total revenue, profitability, and catalog size.

In a response from an Amazon spokesperson, the change was made in order to improve value, convenience, and selection for customers. The mass termination of purchase orders and the delayed response from Amazon herald the transition to the One Vendor system, putting vendors in an exclusive relationship with Amazon. This system will merge the current Seller Central and Vendor Central.

Amazon’s message is loud and clear: they will do what’s in their best interest to mitigate the market for their convenience. One may be reminded of the anti-trust lawsuit against Microsoft in 2001.

The lack of warning didn’t do them any favors either.

While smaller businesses need to change for Amazon’s program, first-party business will revolve around larger brands like Nike with whom Amazon is maintaining a relationship.

Despite the streamlined platform Amazon is going for, the company wields power over vendors and customers alike. Capitalism is one thing, but monopolies are a whole other ball game, and politicians are finally paying attention.

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Business Entrepreneur

Culture Codes is the guide you need for company culture questions

(BUSINESS ENTREPRENEUR) One of the biggest sellers of a company to a prospective employee or customer is their culture. Culture Codes has compiled some the biggest companies cultures in convenient decks for you to study and align with.

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culture codes

Organizational culture is a hot button of conversation. While a variety of definitions exist, one way of defining Culture is the way businesses exist – a summary of values, rituals, and organizational mythology that helps employees make sense of the organization they work in.

Organizational cultures are often reflected in Mission, Vision, and Value statements of organizations.

What many entrepreneurs or new organization struggle with as well, is how to create a culture from the ground up. What kinds of statements and values do they advocate? What are areas of focus? Who are our competitors and what can we do to create a service, product, or quality advantage?

Building a strong culture can be challenging, but a good place to start is looking at the best cultures around.

A new resource by Tettra, Culture Codes, has everything you could want to know on different companies their cultures available for you to study up.

Over 40 companies employing over 280,000 employees have created culture decks and collected core values and mission statements. Companies like Spotify, Netflix, LinkedIn, and NASA have all contributed information.

This information is great for young companies or entrepreneurs to start building a schema about what kind of culture they want to create.

Or existing established companies can look towards peers and competitors and help decide what statements they want to engage culture change on.

For job seekers, Tettra can help potential employees gauge if they are a fit for an organization, or discover that maybe an organization they dream about working for has a culture they may not jive with. And perhaps most valuably, transparently showing off your culture and allowing it to be compared means that organizations can better compete in the talent market.

Recruiters should be obsessed with talking about culture – because it keeps people in the door.

The reasons why people leave employment: work/ life balance, poor treatment, lack of training, or relationship issues with a supervisor or boss; in many ways are a by-product of organizational culture. If you want to compete in the talent market, make culture a selling point and show it off in everything you do.

Even consumer’s benefit from learning about an organization’s culture – values that indicate a commitment to excellence in ethics make consumers feel good about supporting an organization.

It pays to have a good culture. I encourage you to head over to tetra.co/culture-codes and see how companies like Etsy are keeping it real, every day.

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