Adam Empringham,
Director of Sales at Image Property.
Reward vs. risk – the new way of establishing your own business
Much has changed in the real estate space over two decades as technology removed the need for some factors that were set in stone for more than a century.
What I’m talking about is the creation of a bricks and mortar shopfront that could cost up to half a million dollars to fit out with all the latest fixtures and fittings.
Likewise, the days of agents needing to return to the office to deal with the reams and reams of literal paperwork associated with real estate transactions is something that has thankfully been left in the past by savvy operators.
However, many sales agents still haven’t cottoned on to these facts. In fact, if they have a desire to branch out on their own, they are often still adhering to the old way of doing things when it is just not necessary anymore.
It’s not that I don’t think that office environments aren’t important because they are – there just doesn’t need to be one on every corner.
Our Supported By Image model provides the best of both worlds, because we have wonderful office environments for agents to come and go as they please – as well as a platform to let them work from anywhere.
This is unlike some of our competitors, who believe you can only have one or the other – we say you can have both.
Commission retention
Agents who wish to progress their careers are often motivated by a desire to retain 100 per cent of their commission because they are tired of handing over a significant proportion of it to their principals.
However, by deciding to set up a traditional real estate agency, they are also taking on 100 per cent of the risk, including the significant financial outlay that is involved when they decide to set up a physical office as well.
Our Supported By Image model changes this equation, with 98 per cent of our agents reaching the threshold to retain all of their commission after writing just $200,000 in gross commission within a year.
Asset building
Progressive agents also want to forge their own paths because they have a goal to build an asset to improve their financial futures.
Again, the creation of an asset means that they also taking on 100 per cent of the risk and the responsibility, but there are smarter ways to approach this goal.
Network strength
There is always a cohort of agents who want to have more autonomy but also have a desire to be part of a bigger network.
This usually results in them becoming a franchisee within a larger real estate group.
Sure, they are now the principal of their own agency, with the costs and responsibilities that come with that, but they are also required to hand over a percentage of their profits to the franchisor for the privilege of using their brand and often out-of-date services and technology.
Again, that equation has changed, because the new way of doing things should never involve double dipping into an agent’s profits.
Fundamentally, this type of traditional franchise model is an agent buying themselves a job that they will be perpetually paying for year after year.
A fairer way
We believe that agents who want to progress their careers and their success should be able to do so without taking on such huge risks and costs that will always act as an anchor to their results.
Rather than forking out huge franchise fees and ongoing profit splits, modern agents can establish their own businesses without such financial outlays.
They can also plug into a network that provides all of the benefits but without the same degree of risk or responsibility.
Our Supported by Image model revolves around providing agents with the technology and support they need to run their own business from anywhere – while also being part of something bigger.
And the model also ensures that agents are able to retain the financial fruits of their own labour sooner rather than later, too.
