This is not to say that some of the franchises didn't also provide some management tools and training, as well as agent compensation structures and training in how to implement them successfully. RE/MAX is a highly successful example of a compensation structure that took off, the 100% commission. By, the way, I don't think you can get that deal anymore. There is now a split to help offset expenses of the local and national offices.
However, the major value of the real estate franchise to the local brokerage has been the brand and its ability to draw not only real estate buyers and sellers, but also agents who expected leads, walk-ins, and presentation advantages from the brand. Nice offices with the franchise sign prominently displayed were expected to draw in customers, with floor duty a coveted tool for getting business. The floor duty thing is changing already, with many agents not wanting anything to do with it. There isn't enough business potential for the time they spend sitting there answering phones.
Most of the large franchisers are now busily building huge Web presences nationally, with varying structures and procedures for delivering leads down to the local level. It's the new value proposition, with agents being sold on the idea that the split they give up is going to bring them business via the millions of visitors to the national website, and thousands to local brokerage sites. And, this is probably true, but is it enough value for the cost to the agent? If that's the major service being delivered to the agent, I think not. It's just a new wrinkle in an old concept.
So, if the past has been a whole lot of branding and a little local marketing and management help, then what is the future? It's just tipping the seesaw the other way, with a whole lot of management and local marketing help and a lot less national branding. Like it or not, the Internet is leveling the playing field, and just building huge highly-trafficked websites isn't going to get the job done when it comes to agent recruitment and retention.
Let's look at the local marketing piece in detail on the next page.
