Can you hear me? The sound of the first shoe falling.
As the market changes we’ve been hearing about forever come to fruition, some of those who entered real estate or switched brokers on the strength of high contract bonuses and fully structured ‘retirement plans’ teeth stock option Or the downline from the ensuing agent recruitment is waking up with something of a hangover.
Many of them are starting to realize there’s more to being in real estate than signing up other people to sell them. increase.
hefty incentives Monthly marketing budgets find large brokerages struggling to recruit and maintain incentive-based struggles to keep promises made to agents during pandemic real estate market boom , on the chopping block. Growth by hedge funds.
For those of you who watched the LuLaRoe documentary last year, Lularich, knows how MLM works. (If you haven’t seen it yet, stop what you’re doing and go watch it now. I’ll be waiting.) Those who got in early are those who got perks and big bucks. Those who go into the tail end, well, they don’t.
Hear what I’m saying, I hope these companies find a way to keep their promises. I hope they do the right thing by their agents. No one likes changing brokers. The industry is already experiencing too many new agency turnovers.
However, some of these real estate companies made short-term promises and pretended to be long-term guarantees. Some of them kept making promises even when we could see the changing market on the horizon after being there for a while.
What do new agents do now?
Now new agents who have tapped into the strength of these promises find themselves in a rush to learn how to do more than recruit downlines. They need training, they need marketing and need perspective. They need to plan for the long term and need to do business bookkeeping to make a real retirement plan.
It sounds like a meow, but it’s not. I don’t blame snowy brand new individual agents. I blame corporations for acting like this party is going to last forever.
Everyone says with me: Real estate is a cyclical business.
Brokers should offer enhanced training and mentoring to get you up to speed. Many of these new agents were thrown into the deep end during historically active markets. They may need to go back and spend time rebuilding.
They need to ask what solutions the broker offers other than telling them to keep building their downline. need to know what they are trying to do to build a sustainable business.
Some of these new agents need to find a broker who can provide real solutions if their broker doesn’t have a convincing answer.
Old school agents are today’s best resources
I have to say one of the best things I’ve seen on Inman’s page in the last few months. I love reading old fashioned market analysis provided by veterans who have seen the worst a recession can throw at you. I showed you how to have tough conversations with both sellers.
New agents whose incentives have run out get little to no guidance from large incentive-based brokerage firms, little to no real-world experience, and the time they spend pulling people into ever-decreasing downlines You need to spend less time reading real estate realities so you can learn what running a long-term built real estate business really means.
As an indie broker I can’t help but be satisfied when I see some of the smoke and mirrors being cleared and showing the shallow promise behind the major players in the industry. Let them cover their tracks During my busy schedule, I work with my team on a daily basis to help grow a sustainable business based on a solid foundation.
Troy Palmquist is the founder and broker of DOORA Properties in Southern California. Follow him on Instagram or connect with him on LinkedIn.