The start of 2017 has been like no other in real estate. We have just completed our cycle of strategic planning for brokers in real estate and every large broker is facing the same issues. Remember the folklore about the dodo bird. The species lived in a world that was so plentiful; it lost its ability to fly. In the end, that was its undoing. If large firms are not careful, they could walk off the same cliff.
Small Firms Are Out Recruiting Large Firms
Large real estate firms have become easy recruiting targets for small firms. The big guys have lots of business rules and lots of normalization of around commissions. They have lost a lot of their agility, and are compensating by accepting less broker dollar. Most of all, very few have adopted the requirement that managers have 40 recruiting meetings a month. This is easy to fix with focus.
Focused On Lead Generation Instead of Listing Generation
The biggest ask from real estate agents today is “feed me leads.” In truth, leads are typically buyer leads. Sure, they are nice to have. But what agents really need is listings. Large firms that leverage their historical data can design programs that drive seller lead generation. They can monopolize on new home development. They can leverage their mortgage customers, title customers, and property management customer databases to stimulate listing appointments. Large firms have so many unfair advantages that small firms only dream about.
Large Firm Messaging to the Consumer and Agent Forgets to Mention Advantages
Large firms have unfair advantages. There are so many things that they can deliver as a result of their size that empower the sales associate and delight the consumer. In fact, most brokers have been delivering their unfair advantages for years, but they forgot that they must continue to take credit for it. When you ask a consumer about real estate brands, they mention the household names. Small firms are never household names. Remind people of that.
Large Firms Are the Only Ones That Can Compete On Customer Experience
Today’s large firms (I would include franchises in this mix) have the opportunity to innovate faster at scale, wire customers into every decision, see themselves as customers do, and drive accountability at all levels.
Small firms have no opportunity to operate like this. Their only opportunity is to win on commission split and/or office culture. By the way, those are two compelling opportunities that are easily disarmed by capable large firms. Large firms need to change the game. Don’t compete on the same terms as the small firms. Use your size and power to disrupt them.
If your company has lost its definition of greatness, focus, or swagger, go find it again. The good news is that the solution is already inside of you. You did not become a large firm with lack of organizational and cultural foundation. Want us to join you on your journey, just call.