Wednesday, July 25, 2018

Real Estate Franchise or Your own Agency. What is best for you in 2018 ?

Running your own real estate agency or purchase a franchise of an already established real estate business is one of the biggest decisions any realtor is going to ask sooner or later. Here are some insights: 

What are the benefits and drawbacks of maintaining an independent brokerage?

Choosing to go the independent route has both pros and cons for brokers.

The main benefit is being completely autonomous, and you can control the development of your own brand, find your own clients and you don’t have to pay any franchise fees.

This sounds super great, but being autonomous means that everything towards your success is entirely on your shoulders.

All those business steps (training, marketing strategies, recruitment, retention and growth), everything is up to you.

And believe me, this is a big task in a tough economy and a competitive property market.

Trying to keep up can leave you feeling burned out and the investment required to stay ahead can end up costing you much more than a franchise fee in the end.

What are the benefits and drawbacks of a real estate franchise?

As you might expect, this can depend a lot on who you choose to partner with when choosing one franchise or another.

With the right brand, you can tap into the power of a national system, but hold on to the great things you are already doing in your local market.

Yes, affiliating with an established real estate brand usually means sharing your individual brand with the brand of the franchisor, but, in most cases this will benefit you, because the brand of a good franchisor will be more powerful and far-reaching than that of an independent agency.

You will still do business with the people who know you, but you will be able to reach more people who don’t know.

Control of your business typically remains in your hands, depending on the policies of your franchise agreement.

A system in place like Real Estate Sales LLC or Weichert Real Estate Affiliates Inc. for example, was created by experienced real estate investors , for real estate new investors or people that want to become agents and do not have time to drive around the city to look for properties.

They offer full training, systems, sales and marketing tools that have been used successfully by many realtors across the United States of America.

These training and tools are available for you to plug into your business to help you grow.

Our experience is that most brokers welcome this as part of the other benefits they receive by affiliating.

Of course there are inevitably franchise fees, ranging from 6 to 10 percent depending on who you sign with.

In the end, you must weigh the opportunity to improve and grow your brokerage vs. the time and dollar investment it will take to do it on your own.

Ask yourself these questions:
·      Can I get where I want to be on my own?
·      How do the costs compare?
·      How long will it take me to do it myself?
·      Am I happy with my work/life balance?
·      Am I effectively competing in my market?
·      Can affiliation help me stay ahead?
·      Can it help me reach my goal faster?

See more About Me. I also tweet on Twitter and post on Google+. Make sure you take a look there too as I am going to quickly post answers I found online. Yep, I am asking lots of things online :).



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