Many “industry leaders” predict a future where the real estate business is dominated by large teams and even larger brokerages. This makes you wonder if you can still make it as a solo agent in 2020.
If working solo seems daunting, you have 2 options:
You could form a team. That requires a lot of energy and money, because you will have to invest in advertising, technology, and systems.
Or, you could join a team and let the team leader worry about all of that.
What’s Your Real Goal in this Business?
Is it how many transactions you close in a year?
Or, is your goal to become profitable and make more money?
The larger you grow, the thinner your margins.
That’s true for mega brokerages who operate like landlords for Realtors to hang their licenses. These brokerages charge low fees and offer no real oversight to their agents.
It’s also true for teams. A national survey found that the profit margin of a typical team is 10% or less. You’d have to earn $1 million in commissions to make a $100,000 profit.
I checked the MLS to see how many teams actually sell more than $35 million in volume to earn $1 million GCI.
I believe it’s less than 30.
What You Need to Thrive as a Solo Agent
Leverage: There are many ways you can gain leverage in your business.
Use technology to streamline your processes. Hire an assistant for closing coordination, marketing and to do the boring paperwork. Implement marketing systems that get more clients to call you, so you don’t have to prospect every day.
Specialization: Dominating a niche is the safest way to thrive in today’s competitive environment.
You must become the expert in one niche. You must dominate that niche. You must be better than anyone else in this niche.
This could be a geographic area, a certain type of property, a specific type of client you serve.
If you dominate a niche, you automatically become the go-to agent everyone wants to work with.
Support System: You must work in an environment that supports your business model. You must join a brokerage that helps you grow and provides the coaching to make you successful.
Obviously, a body shop style mega brokerage can’t provide a personalized service to its agents. A dedicated boutique office like RE/MAX 24/7 will be a much better choice.
The Home of the Full-Time Solo Agent
Most brokers don’t offer any support for solo agents who want to grow from $2 million in volume to $4 million, $7 million or even $10 million.
It’s definitely possible for an individual agent to sell more than $10 million and earn $300,000 in commissions.
If you want to find out how, call or text me at (614) 395-7375.