The truest statement in this industry for a Broker / Owner is “ All of my problems can be solved by recruiting” Understanding who the agents now are and what they are actually doing is paramount for a successful brokerage office. You may have heard me talk about some of these same points in bits and pieces in other videos. That’s because it’s IMPORTANT. I’ll keep telling you in different ways until it sinks in.
How many of you did over 100 deals last year?
How many of you are going to do at least 100 deals this year?
It can be done.
What you want is a couple of hundred other people listing and selling houses for you.
You will have a love hate relationship with your agents.
You’ll hate the nonsense and BS they put you through.
You’ll love the money you’ll make from them.
AGENTS ARE A COMMODITY.
Average agent does 7 deals in a year. Typical agent does 3 deals in a year. How do you live on that? Let’s think in terms of sides. There are two sides to every transaction. That means if they are full time this is taking 260 hours per side. What the hell are they doing? They are not honest – they are PART TIME.
- 55%, according to the IRS, are part-time.
- 11% will work less than 20 hours per week.
- 30% of agents work 20-39 hours per week.
- 60 % CLAIM to work 40 hours per week. Lies.
07:45 What do Agents really earn? You may be shocked.
- The median income from “Realtors” is $35,700
- For “Sales Agents” – these are the general licensees – $26,600 ($17,200 after taxes)
- Brokers did a little better with a median income of $49,100 ($31,900 after taxes)
- 81% of all Sales Agents are independent contractors and pay their own business expenses.
- 7 out of 10 Realtors still work on splits. Why? Because they only get 3.5 deals/sides. You can’t afford to be in most of the 100% shops that charge a fee.
09:00 Do your agents really like you, or do they just pretend to like you? Of course, they hate you most of the time.
10:50 More about Agents. This is from a poll. Keep in mind this is not a true cross section of 100% of the population, this is the 20% who had nothing better to do than to answer a stupid poll. Makes the numbers just a bit skewed. This is true of ALL polls.
- 14% claim to have a personal assistant – but not really (shared or office staff)
- Typical NAR member is 54 years old – 51% are female
- Only 4% of realtors are under 30 years old
- 5% are 30-34 year olds
- 17% of agents are 65 years old or older
- 40% have a Bachelor’s degree (but which 40%?). This is typically the younger set of the group.
14:45 Agents & Technology
- The average agent spends $500 – $2000 per year on technology (this includes their iPad, iPhone but they write it off as a business expense).
- 63% of Realtors have a website (free with franchises, etc.)
- 27% generate ZERO leads from their website!
- 10% have a blog (of that less than 5% post daily)
- 10% claim they generate 25% of their leads online. Which 10% – probably the top producing 10%.
RIO Genesis is committed to bringing you the un-franchise solution: the best tools, training and technology without the headaches, restrictions and cost of a franchise. We are your partners for real estate success.