What Surprises Us About Recruiting Agents.
#1. The mindset of brokerages - who works for who?
We see other brokers asking agents in our community to come work "for" them. Well, when you work "for" another brokerage that means you are accomplishing your broker's dreams. You are viewed as an employee.
When we choose to partner with each other at Momentum, our goal is to help you achieve your dreams. We work for you, you don't work for us. A win in our book is you hitting the goals you set for yourself, whatever they may be. You are not an employee and do not come work for us. You are an entrepreneur who chose to be in the real estate sales business. This is not just a job. You are betting on yourself. The difference in these perspectives is extremely important.
#2. Agents not doing the math.
Brokers know that 95% of agents in our market don't get past $6M in sales volume per year (85% don't surpass $3M in annual volume) and they strategically set their split/capping system up where they take the lion-share of the agent's revenue at the start of their journey, and have it reset annually - with monthly fees along the way. The broker has minimal risk, while the agent experiences minimal dollars to re-invest in their business and their life. From a financial standpoint, the agent and brokerage are not true partners, because the brokerage created the system in their favor before the agent entered it. Now, I understand a brokerage is a business, though read this paragraph again.
Several agents to our surprise are avoiding - at a huge detriment to themselves - the math involved or are believing perspectives from others who have separate motivations. Agents are loyal to their brokers (that’s nice, but what does that have to do with your business plan?) and some have fear of change. Though, what is more scary is not achieving financial success for your family. To put it frankly - what is more important - your family’s bank account or your broker’s bank account? As my good friend Bruce says, “You can’t go to Publix and pay for groceries with loyalty.” There’s a big difference between loyalty and blind loyalty at the agent’s own detriment. And, your relationship with your broker should always transcend your association with the brand.
There's only two reasons why agents don't hit their goals - 1) they don't generate enough qualified leads and/or 2) they choose (knowingly or not) to put themselves in a financial model that will not allow for financial success to occur for themselves. On point 2) - that's because there's a natural cap to what one can achieve due to time constraints due to the natural functions of an agent.
#3. Agents not identifying the right tribe and paying the price for it.
Each dollar and skill built compounds over time. That's why being in a tribe that focuses on the same goals of growth is infectious. At Momentum, we are partnering with people who want growth, and not partnering with agents who just want to hang their license or who are not interested in personal or business development.
What you learn with Momentum you get to carry each year moving forward. And, unlike other brokerages, you don't have to pay $1,000+ per month in coaching to learn the systems, scripts, and skills from the top agents across the country. You just get them. And you get access to them in a way where you don't have to reinvent the wheel.
#4. Lack of leadership - have your leaders accomplished what you want to accomplish?
Several of the brokerages we observe were created by MBAs or by investors who are primarily hands off - and some are created without the owner(s) having actually sold real estate themselves. There's no problem with this - just recognize that you are going into business with someone who has not accomplished what you want to accomplish. This increases your risk - how are they going to lead you to success when they haven't accomplished it themselves? Many are disconnected with the reality of the market, afraid to acknowledge it, and are not willing to change. These are commonly referred to as a the dinosaur brokerages, with high splits, old sales tactics, and a disconnect from current reality. It's no wonder agents haven't created more wealth for themselves or their families.
At Momentum, your business partners are on the front lines with you, tackling the day to day issues with you, while still maintaining the big picture philosophy that is required for success. All of that for typically 1/4 to 1/3 of the cost.
#5. Agents thinking that technology is their savior.
Technology is not your savior. It's simply a tool to enhance your systems and productivity. Real estate is a relationship game and will remain being so for the near-mid future. Nothing has been created today that cannot be re-created or copied. In fact, many big brokerages are trying to re-create what's already been created to collect your data and sell your clients ancillary services to their benefit - not yours. Frankly, even if they do convince you to get you on their platform so they can collect more fees, they're behind the curve set by large online lead aggregators and distributors - Zillow, Trulia, Realtor.com. Meanwhile, those taking advantage of existing systems today, are crushing it and experiencing massive growth. Waiting is a losing formula in business. Don't keep waiting for your technology savior, it may never come. And, even if it does, we can buy it, license it, and get it to you. Get real and get right. This "us" vs "them" technology war does not help you.
