However, the franchise is now working with commission splits and, to my knowledge, I don't think new agents are being taken on at 100% any more. It's probably more a natural evolution thing than a negative comment on the business model. Our entire industry is experiencing pressures to adapt our business and compensation models.
The thing is, it just might be the right time to look again at the 100% commission model. Why? Because the costs associated with an office for an agent can be dramatically less if we adapt to the more mobile nature of our society as a whole, and our agents in particular.
Using current technology, the brokerage can:
- Operate the entire business with an online Intranet.
- Facilitate their agents' ability to work as a mobile office with netbooks.
- Reduce office expenses associated with floor space and office equipment.
- Also reduce the amount they need from agents to operate profitably.
One of the problems with the current approach is the growth of costs to support the average agent, and their reduced use of the office space they're renting. So, many tend to leave and negotiate better deals with small brokerage takes elsewhere. Or, they go out on their own. It's time to look at using technology to operate more efficiently, while providing the services agents want at lower cost.
