So how do you transition from regular high street agent to high flying broker, like a boss? Well, first it’s without a boss. You’ll be bossing it yourself which comes with a good deal of hardship, though it's getting progressively easier. Back in the (not so good) old days you had to have a high street shop for any seller to trust you with their home, which meant investing a life altering amount of cash to set up on your own. Fast forward to today and the shop is no longer a requirement and the cash required is an order of magnitude lower.
This means:
1) You can now operate independently without the need to invest heavily in the traditional setup.
2) You are your own boss so no more presenteeism in the office, asking if you can go on holiday, or to golf or… yes you get the idea.
3) You can keep the majority of the commission yourself without a cap - you can take it as far as you like.
4) Your clients can receive a far better, more personal service.
This all comes at a cost of course. There’s no guaranteed monthly wage and you’re not an employee. Welcome to how the majority of the rest of the agency world operates.
OK so how’s it done? Here’s a step by step guide to what we have learned over the years running Moveli, and helping dozens of agents transition from the high street to become successful brokers.
1. Choose the right brokerage for you:
There are a few out there, all of which are relatively new to the UK market. We won’t go into our opinions on them, but it’s fair to say they all have their own strengths and weaknesses
Things to consider are:
a) Commission: What are the splits, what would it cost you to operate with your broker of choice (it’s usually around 45%-85% of the deal that you will keep). Currently commission levels in the UK are fairly high comparative to the rest of the world in order to entice agents across to the new way of working. Remember if it costs you very little in commission to be part of the brokerage then surprise, surprise… you aren’t going to get much in return. Things such as marketing, admin support, investment into software and brand etc etc. Try not to get wowed out by the highest commission offered, even the lower end should be a massive upgrade to your earnings.
"Take the massive and free advantage of an established and growing brokerage brand to back you up."
b) Brand: You’re a great agent, choose carefully what flag you want to pin above your door. What market do you operate in and what markets in general does the brokerage operate in. Who are the other brokers on the platform - do you respect them? Some will give you the option of running your own brand within their system. Great if that’s your thing but then remember brand power is extremely valuable. You’ll be starting on Square 1 with just you against all of the most powerful brands in the business. Plus there is little guarantee that the ‘brand' you build has any saleable equity as it’s built within a platform, without you it will likely be worthless. Instead of spending time and money building local brand yourself take the massive and free advantage of an established and growing brokerage brand to back you up.
c) Support: Here it pays to get very specific answers on what exactly you are going to get. Brokerages range form zero to a fair amount of admin support, marketing and training. More admin support means more time to call clients, more marketing support means more leads, more training means it’s more likely you will ultimately succeed. It’s quite easy to think it can all be done on your own when in reality support from the brokerage's back-office team can make the difference between success and failure, or success and massive success.
"If it costs you very little in commission to be part of the brokerage then surprise, surprise… you aren’t going to get much in return."
2. Budgets and timing:
You should expect it to take about 6 months before you make any money. So it’s important to ensure you have your finances in order and that you can afford to take the jump. Timing on the markets seasonality can help too. You should budget some expense for marketing, it can be done on a shoe string but that requires far more leg work (and probably shoe string, literally).
3. Where to base yourself?
Many agents have significant experience in markets where they don’t actually live. In our experience working where you live trumps any network you may have developed in around your current patch. Put simply it would be our advice to launch yourself into your home market. Of course the beauty of many brokerages is that, unlike franchises, you are free to sell property wherever you like. So in practise you can still utilise and network you have developed outside of your home market if you get a lead there.
4. Market, market, market:
You’ll hopefully have a ‘little black book’ of contacts. Though in our experience that often isn’t good enough. You’ll need to supplement this with consistent, high quality marketing. It’s easy to think that the phone will start ringing like it does in your high street office (if you are working from one still). The truth is it won’t. You will have to work very hard and use every lead and contact possible whilst still networking like a madman. On top of that you should be marketing regularly to your core market. The formula for successful estate agency marketing in our experience is: Consistency x Quality x Volume = Return. Be sure to understand what marketing support your chosen brokerage offers as it’s a massive piece in the puzzle.
5. The trough of despair:
We often tell our agents that you will start excitedly full of promise. Then at some point in the future, usually around month 5 or so you may enter the "Trough of Despair” especially if you haven’t already generated enough velocity to escape its event horizon. This is a fairly well known term in the start-up space, where the initial fuel is exhausted and you are running on empty. It’s at this point you will be tested by the universe/god (fill where applicable). Those who can summon the willpower to push through this phase with an even more vigorous focus on networking and marketing, working leads and just doing a killer job for their clients will be those that succeed as a self-employed broker. After this point it generally just gets easier and easier.
"Our most successful brokers are as enthusiastic about dropping 1000 listing or sold flyers as they were on their first sale as a free agent."
6. Don’t stop marketing:
Yes you are doing deals, making money and, let's face it, probably playing a fair bit more golf than you used too. But that is no excuse to stop the marketing and lead generation. Our most successful brokers are as enthusiastic about dropping 1000 listing or sold flyers as they were on their first day as a free agent. You need to make the most of every marketing opportunity that is available to you. Think of your personal equity in the minds of potential sellers as a giant oil tanker. It takes a lot to get it moving but once going its momentum is tremendous. The last thing you want to do is take your foot off the gas for any period of time.
7. Welcome to your new life:
Well done. You’ve made it and transitioned to becoming a successful broker. You’ll be earning more, with more free time and more possibility for further expansion as you take on assistants, or perhaps move into higher tiers of property sales. Based on our experience it’s most unlikely that you will ever return to high street agency. Instead you will be part of a new breed of agent. The world is your oyster. As more brokerages start and continue to improve you are in the best position possible to assess the market and decide which you wish to reside in.
If this all sounds too scary for you then consider the scarier prospect of staying where you are for the next XX years. Is it more risky not to take the risk? I know that I for one have never looked back after going out on my own.
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