![]() ![]() THIS is what is preventing them from adapting and competing with the next generation of brokerages like REAL.īlockbuster had the exact same problem! They WANTED to start their own streaming service to compete with Netflix but could not because of their franchise owners who paid hundreds of thousands of dollars to open up Blockbuster franchises. Now, you may be asking yourself “so why don’t the national brands just change to this model?”Īnd the answer is because these national brands have made serious commitments and have obligations to their Regional Managers and Franchise owners. So that was a total of $34,000 a year I was giving to all those greedy hands up the food chain from me.Īt some point, I had to ask myself “Is the value I am getting from my brokerage WORTH $34,000 a year?” and the obvious answer to that was “NO!” On top of that, I was also paying $500 a month to have my own office within my brokerage. The office manager then hires support staff and recruits YOU the real estate agent.Īll of this bloat and hands in the jar is ALSO why these franchised-based brokerages are SO EXPENSIVE!īecause the office staff, the office manager, the franchise owner, the regional manager, and the company owner ALL WANT THEIR CUT FROM YOUR COMMISSION CHECK!Īt my last brokerage with Keller Williams, I was being charged $28,000 a year for the “privilege” of being an agent underneath them! The franchise owners then hire an Office Manager. In Keller Williams, the office manager was known as the “Team Leader”. These are the individual brokers who start offices. The regional managers then sell territories to Franchise Owners. These national companies then divide the country up into regions and hire Regional Managers to grow them. ![]() They all are following this exact same franchise model.Īs a side note, this is also the exact model Blockbuster followed and why they also failed to adapt. So this Keller Williams, Coldwell Banker, REMAX, Century 21, and all the others. To understand why, let’s take a quick look at the old-school, franchise model that virtually all national real estate brands have followed since the 1980s.Īt the top, you have your National Company. I truly believe that in the next 10 years many old schools real estate companies who follow a bloated, expensive, franchise model are screwed!Īnd we most likely will see more than one national brand in our industry, that has been around for generations, go bankrupt! Why Franchised Based Brokerages Are DOOMED and There Is Nothing They Can Do About It! Their business model fundamentally has not changed since the 1980s and is why many of them are doomed to fail. Virtually every single industry in our society has produced better consumer experiences by embracing technology and developing new business models around that technology.Įxcept for one…and that is the real estate brokerage. The music industry went from selling us CDs in physical stores, which usually only had 1 or 2 songs on them that we wanted anyway, to now we can stream the exact song we want, where ever we are, whenever we want it! Old-school brick-and-mortar retail stores & shopping centers have been replaced by far more convenient and efficient online stores like &. Old-school movie rental businesses like Blockbuster have been replaced by more convenient streaming services like Netflix, Amazon Prime & Disney+. So obviously the introduction of the internet has changed our society and business within our society a lot! The Internet Changed EVERYTHING…Except For Real Estate Brokerages! This is why I decided to join REAL Broker, LLC. ![]() In this article, I am going to explain to you WHY I made the decision to leave Gary Keller behind and throw my hat in with an innovative, “next-gen” company. So it is with a heavy heart, and a little excitement, 5 years later when I left Keller Williams Realty for good to join an exciting, new brokerage that also has a bold vision of the future. So when I finally got my real estate license, I KNEW there was only one brokerage for me…and that was Keller Williams Realty. ![]() I was mesmerized as I watched clips of him on YouTube and listened to interviews of him talking about the secrets to success and business.Ĭoming from the military, I had always respected stronger leadership and bold visions of the future and Gary had both of those qualities. I had read and re-read The Millionaire Real Estate Agent as well as several of his other great books on real estate investing such as FLIP and HOLD. Before I ever even got my real estate license, I was a huge fan of Gary Keller and his story of how he grew Keller Williams into the largest brokerage in the world (by agent count and transaction count). ![]()
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