Real estate is a non-linear business, which makes some feel unstable, but as a broker, you can provide that sense of balance.

Change is a constant—especially in the real estate industry. That’s why brokers are so important. With the terrain constantly shifting, agents need the reassurance of leaders who’ve seen it all and come out ahead. “Brokers must be the calm in the storm that tells everyone, ‘it’s going to be okay,’” says Robert Morris, a Tennessee-based selling broker who leads real estate seminars. Here’s how to give them a sense of security.

Offer Perspective

Your experience is an asset when it comes to assuaging agents’ fears. Communicate how highs and lows are part of the business, especially with agents who’ve never experienced a challenging market. So, if you have stories about how you navigated similarly rough times, share them. “Having seen these things before, it gives some level of comfort that this too shall pass,” says Morris, who’s been in real estate for 40 years. “There’ve been changes all along and we’re still standing.”

Model Calm and Optimism

Agents follow their leader. That’s why it’s so important to remain calm. “Nothing makes me panic because I have seen it all,” says Ben G. Schachter, the Florida-based broker and president of The Signature Real Estate Companies and co-founder and head of sales of TotalBrokerage Software. “I don’t panic because the reality is when you run a large successful business, you take different hits every day.”

Along with maintaining your composure, try to project optimism, he adds. “The moment a leader shows pessimism or frustration or depression is the start of a cancerous growth in the organization. You never want that. You always want positivity, even when the market slows down. Even when you’ve lost a chunk of business. It’s always sunny skies ahead.”

Be Brief

In times of greater instability, “no one needs the details,” says Ruth Gotian, Ed. D, author of “The Success Factor” and “The Financial Times Guide to Mentoring.” Too many details can often be overwhelming. Instead, agents want to know their leader has made decisions based on the best available information. To ease their anxiety, keep your messages brief, she suggests. Imagine you’re a newscaster and report what happened, what you’re doing about it, and why they’ll be OK.

Make Yourself Available

Morris will never forget an agent he knew who was struggling with his mental state and had plans of self-harm. When this agent was having second thoughts, he called his broker to talk. Unfortunately, the broker couldn’t chat because they were heading to a closing—and the agent went ahead with his plan. “I always say to brokers: ‘this is your flock. You need to be around to see what people are going through,’” he reminds.

Your agents might not be in such a dire condition, and you are not by any means a doctor or mental health expert, but an agent may reach out when they need you, whether for a personal or professional matter. It’s important that you are available and cognizant of where some agents might be struggling, and it’s also important to have the resources needed to guide them to help if help is needed.

Maintain Vigilance

If one of your agents is acting atypically, ask them what’s going on, suggests Morris. If they’re dealing with something important—say, their child was just suspended from school—suggest they leave to handle the issue while you and your team cover their work. Not only will they feel more at ease once they address the problem; their anxiety could distract others in the office, he explains. “Remove those types of challenges to keep a good cohesive environment.”

Offer Support

“Remind agents this is a stressful industry and it’s normal to feel some kind of stress,” says Morris. “What’s key is how we handle the stress we have.” By normalizing anxiety, your agents will feel more comfortable admitting when they’re struggling. To encourage them to share, consider creating a support group in your office, he suggests.

Partner With Your Agents

To help her agents appeal to prospects and feel more confident, Cindi Bulla, broker-owner, Realty Central Services in Texas, partners with them. “It’s like we have one resume,” she says, explaining their resume also includes her accomplishments. “I am selling them what I bring to the table for them to brag about [to their clients and prospects]. They can say, ‘my broker partner is this, and this, and this.’ If they’re competing with someone with 20 or 30 years of experience, all they have to say is, ‘you have my enthusiasm and my outside-the-box youthful approach to marketing plus all the experience my broker brings.’”

Offer Recognition

“We all like to be acknowledged, to know that we matter and are making a difference,” says Morris. So, give frequent awards, he suggests. Recognize agents who sell the most in dollars. But also reward those who sell the most total units or are the most helpful in the office. “Look at different ways to recognize and honor people’s efforts and make sure everybody has a chance of winning.”

Coach Agents to Use Downtime

“Success is where preparation and opportunity meet,” reminds Morris. So, encourage your agents to up-skill in slower markets. Sometimes, agents waffle when things slow down, and they have trouble figuring out how to maintain momentum. During less busy periods, remind them that they’ll have time to take classes and earn more certifications, he says. “That way, when opportunity knocks, they can answer.” 

National Association of REALTORS®
Reprinted with permission

Communication within a brokerage starts at the top. Set your agents and your office up for success by modeling open, frequent communication.

Good communication is central to the success of businesses no matter the industry. This is especially true, however, in the real estate sector where stakeholders across multiple aspects of the sales process must be able to share insightful information quickly, reliably and professionally.

Clear lines of communication must always be available between brokers, managers, agents and clients to ensure all parties are updated when circumstances change, which can happen frequently and without much warning. This is particularly important for agents and brokers overseeing the minutiae of real estate transactions.

To help brokers and agents ensure operations run smoothly, and to aid all parties in building trusting relationships, below are some strategies for enhancing broker-agent communication.

Identify Communication Issues

To enhance broker-agent communication, it’s first important for brokers to remember the various unique issues that their agents face in the field, like sometimes constant communication with clients, factors that change quickly and without warning and unforseen issues or delays. It’s up to the broker to model prompt, concise and insightful communication with regularity so that agents have an example of what to emulate to their business partners and clients.

There are also common communication barriers that brokers will want to consider when assessing the root cause of communication breakdowns in the office:

• Language barriers – Around 20% of US citizens speak multiple languages, though in some locations this figure is much higher. Brokers working in multilingual locations need to understand the language needs of their agents and their clients to be able to communicate effectively. 
• Geographical circumstances – In some cases, brokers and agents may be situated in different localities or states during the completion of a real estate transaction. This can impact communication capabilities, especially if different time zones are involved. Brokers need to accommodate for geographical circumstances.
• Conflicting objectives – Brokers and agents may simply have different priorities and timelines in mind when ironing out the finer details of a transaction. They might also have different priorities for their businesses. If neither party is willing to adjust, they may find themselves facing a communication impasse.
• Difference in communication style – Some professionals have a deeply entrenched communication style that may exist at odds to another’s. If one party prefers concise messages and the other is detail oriented, a middle ground will need to be located. 

Analyze Current Communication Practices

Understanding the above communication issues will help brokers and agents understand where improvements could be made. However, to ensure alterations are effective, it’s important to analyze existing communication practices to highlight potential weaknesses.

This process involves a review of current communication methods. Stakeholders should consider how communications are typically approached. For example, are messages usually relayed over the phone? Are emails preferred? Are office meetings a common occurrence?

By analyzing current communication preferences, and comparing these findings to common communication issues, stakeholders can highlight gaps in their process that need to be filled.

Strategies to Enhance Broker-Agent Communication

Now that the groundwork has been done, it’s time to determine specific strategies that real estate professionals can pursue to enhance broker-agent communication. Below are some key tips to consider when optimizing communication methods for better business outcomes. 

Develop a culture of collaboration

For any communication tools, technologies and methodologies to be effective, professionals must first develop a workplace culture focused on collaboration. Ensuring that all parties feel comfortable communicating with one another will help ensure a streamlined approach during complicated transactions. Encouraging brokers, agents and any other key parties to share ideas openly and with regularity will help foster an effective communication process.

This principle doesn’t apply solely to brokers and agents, either. It can be adopted between agents and homebuyers and landlords and tenants. Regular, transparent communication that aims for proactivity rather than reactivity helps to ensure smooth and simple transactions.

Utilize digital communication tools

To support brokers and agents in freely communicating information promptly, it’s important to use responsive and easily-accessible communication tools. This includes software solutions like project management systems, instant messaging services and video conferencing tools.

Brokers and agents should be able to access these tools at all times, which means brokers will want to look into services and platforms that can be installed on smart devices, rather than constrained to the office or a computer. It’s also wise to discuss with agents what’s reasonable when it comes to acknowledging notifications and figuring out response times. That way, everyone is on the same page, and no updates are unintentionally ignored. 

Pursue continuous training initiatives

The best practices governing effective communication between brokers and agents should be frequently reaffirmed to ensure all parties continue to follow them. Continuous training helps to keep such ideas fresh in everyone’s minds to aid long-term working relationships.

All parties should be encouraged to engage with workshops, meetings and courses intended to hone their communication skills in relation to new tools and techniques. Initiatives can also be used to provide a structured environment for parties to share unique thoughts and ideas.

Implement KPIs for communication

To measure the efficacy of new and existing communication strategies, stakeholders should think about which key performance indicators they associate with effective communication. This could include metrics like response times, communication tool usage, productivity after new measures have been implemented and insightful feedback from clients and colleagues.

KPIs can be frequently assessed to highlight the efficacy of new processes and identify any areas that still need improvement. During this review process, feedback from stakeholders can also be analyzed to help all parties continuously optimize shared communication efforts.

To ensure brokers and agents are positioned to update each other with key information and changes effectively, time must be dedicated to the development and continuous improvement of communication strategies.

By understanding common industry-specific communication challenges, analyzing existing communication practices and implementing new strategies positioned to action these issues, brokers and agents can enhance communication practices to improve business outcomes.

National Association of REALTORS®
Reprinted with permission

Mentorship programs can boost agent success and increase morale.

The company that Jon Yacovetta works for was pretty new in 2020, with a lot of growth due to an influx of new agents coming on board. 

“I have a background in education and leadership, and I had phenomenal mentorship myself from Bret Weinstein, our founder and CEO,” says the Director of Mentoring at Guide Real Estate, in Aurora, Colo. “So, as we were taking on these new agents, Bret thought it would be a good idea for me to put those skills and what I learned from him to use, and to teach these new agents how to do real estate and provide the supervision all new agents require.” 

After the initiative proved successful, Yacovetta and Weinstein decided to implement a formal mentorship program, which took off and became a magnet for attracting talent. When executed well, a mentorship program can make a huge difference for agents and the brokerage, helping agents gain confidence and clients and thus bringing in more money.

He adds that it also becomes a point for recruitment and growth, plus it creates new opportunities for producing agents to earn and to add to their experience and expertise.

Mentorship Makes a Difference

Ahmed Islam grew up in Dubai but came to New York City when he was 16. After getting his real estate license and working for several years in the industry, he entered a mentorship program offered through the National Association of REALTORS® as a mentee. His main reason was that he felt he needed more guidance and basic advice to enter the world of commercial real estate.

“I’d go to commercial brokerages, and they’d tell I just wasn’t ready for it,” he adds. “I had a lack of experience in it.” 

He’d identified a California agent in the commercial sector who he wanted to learn from. “The good thing about him was he went above and beyond. He taught me a lot of motivational stuff, not just work. I hit the jackpot,” he states. 

“Being mentored helped me bridge the gap from residential to commercial. I had tried to get into commercial for seven years,” says Islam, who is now a commercial real estate specialist and partner at Prime Realty Services in Camp Hill, Pa. 

Because of his great experience as a mentee, Islam became a mentor and has served as one for the past three years. 

“Being a mentor is giving back like all the people that paved the way for me,” he adds. “They took time out of their schedule to help me. They were selfless. No one was paying them.”

Considerations for a Mentorship Program

“There are many benefits to having a mentorship program, like more successful agents and fostering a feeling of giving back for mentors,” says Yacovetta. “It just has to be done right, and that’s the most difficult part.”

He explains what’s helped his brokerage create and maintain a successful mentorship program:

Assign someone to run it 

“A mentorship program will not get off the ground without dedicated personnel,” he says. In order to implement a formalized program, someone must have the time and capacity to run it. Consider hiring a staff member or making the mentorship program the main focus of an associate broker’s job.  

Leaders need to invest in the program

Simply deciding to create a mentorship program isn’t enough. You have to be willing to see the initiative through and make clear your investment in it. “At the leadership level, the leaders have to be passionate about agent quality and growth. They have to be patient enough to understand the plight of new agents and be willing to endure those plights.”

Bring in agents who want to be mentored

A motivated agent will be more successful in a mentorship program than one who’s uninterested,” Yacovetta says. “That’s why it’s important to consider offering mentorship to a dedicated few who really want to be mentored. “We recruit like-minded individuals who want to learn and who want to be led. So, being careful about who we bring on certainly plays a part in the longevity of the program. We’ve had 35 agents make it through the program.”

Let potential mentors voice their interest 

“If they want to be a mentor, they’re already on board,” he adds. The ones who are interested come to him to help out, and no one is ever required to do it. “They’ve already had the experience in real estate to know that new agents need help in order to survive.” They also want to provide that help to better the agent and the industry.  

Guide the trainers 

Meeting with the mentors once a week to check on their mindset, their process and how their mentees are doing keeps the program running smoothly.  To be a mentor, agents must agree to provide supervision as stipulated per their regulatory agency, and have closed a minimum of 75 transactions. 

Guide the mentees 

Those who are interested in the program meet with Yacovetta in-person, and they go over the mentorship agreement, which outlines the entire program, expectations, and criteria for graduation.

Require time together 

At Guide Real Estate, mentors must meet with their mentees at least once per week for accountability purposes, goal tracking and general support. The mentoring, however, is highly variable, Yacovetta says. Mentees are enrolled in the program for their first five transactions and must complete a series of classes and practical application tasks to graduate. The mentors can tailor their process based on what the mentee needs.

Offer the right resources 

Mentors need to ensure that mentees have access to as many educational and systematic resources as possible, Yacovetta advises. For example, they need a CRM. Also, they should know where to seek out classes to build their skill set and to stay up on their continuing education credits. A mentee also needs to know who their network is within the program. “There should be a clear phone tree in place in the event the mentee has an emergency and that mentor is not immediately available,” he adds.

The Benefits of Mentorship for the Brokerage

Islam believes if the agent advances in their business, the brokerage grows as a result.

“A brokerage should have a lot of interest in strengthening their agents, which helps them. How will they succeed if we don’t help them?” he asks. 

He also feels that those connections between mentors and mentees can flourish friendships throughout the industry, strengthening the industry.

“I have remained friends with my mentor. He knows a lot of people. He’s the connector with somebody that I want to connect with. He always introduces me to people all the time,” Islam says. 

He also believes that the new agents can teach the experienced agents things they never knew before or encourage them to try something they wouldn’t have attempted previously, like social media and new technologies. It’s a win-win for a brokerage for the different generations to learn from one another and benefit from each other’s skill sets. 

Yacovetta’s brokerage chooses to keep costs low for agents, which means they rely on agents to make sales in order to bring in money. Since that’s the case, their agents need to feel confident in the field and they need to produce. This makes a mentorship program a natural fit to boost agent—and thus, brokerage—success. 

“We only make money if they’re making money. So, it is certainly a mutually beneficial situation. We put in the time and the resources up front,” he states. “If the agent finds success, the investment pays off for everyone.”

Successful mentorship programs aren’t just a boon for the mentees, either. A good one offers incentives for the mentor as well. 

“I’ve certainly grown as an agent, a mentor and a leader,” Yacovetta says.

National Association of REALTORS®
Reprinted with permission

Personalized service and transparent communication go a long way in making a customer happy.

Starting a career in real estate can be daunting yet rewarding. Transitioning educational knowledge into building relationships with prospective buyers requires humility and a determination to perfect the craft.

When I was a newbie in the industry, my strategy began with dedicating time to learning from leaders who excelled at providing unique customer experiences that left a lasting impression. Their advice offered insight into the different dynamics of the real estate industry.

Agents look to brokers as leaders and rely on broker support to help them define and implement successful customer satisfaction practices. Brokers succeed when they are committed to leading their agents and providing them with the resources and community necessary to foster relationships.

Our success at Stone Martin Builders (SMB) is directly related to the lessons I learned through my professional community, composed of industry leaders and a diverse group of real estate professionals that I found through my involvement with local real estate organizations. As a company, we’ve learned that these three simple and effective tools have helped us maintain buyer satisfaction that exceeds expectations:

• Build dynamic teams committed to buyer success
• Be comfortable having difficult conversations 
• Customer satisfaction extends beyond the process; always aim to offer more

At SMB, being a trusted advisor to prospective buyers requires the right support. All our teams provide a seamless experience and guide home buyers through each stage of the process. Relationship building is at the helm of how we operate, which is the key takeaway for brokers to relay to their agents.

Building a relationship with the buyer and their family starts with understanding who they are, what goals they want to achieve and where they are in the homebuying journey. Once an agent understands these factors, they need to be equipped with the tools and resources to help guide buyers to their goals.

A brokerage needs to offer the right support so that agents can focus on the client. This might look like regular check-ins with agents to ensure they are committed to their clients’ goals and providing the resources an agent needs—a transaction coordinator, marketing support, educational opportunities, technology, etc.

Encourage Empathy

As experts in the homebuying space, we are all trying to empower buyers by providing the right amount of information to educate without causing overwhelm. As I train real estate professionals, I like to reinforce that we should walk alongside buyers, ensuring they understand that their agent is not here to push them into something they are not prepared for. Additionally, as buyers advance in the homebuying process, real estate practitioners should show empathy and compassion. Not all clients come with the same level of preparation and knowledge of the process, and it is the agent’s job to be their guide.

The Value of Feedback

Asking for feedback can also help an agent navigate new ways to personalize the buyer’s experience. For example, we implemented the buyer satisfaction survey. We provide this survey at three points: at closing, 30 days post-close, and one year post-close. This allows SMB to gauge what areas in our process call for improvement.

Create the Right Environment

In this industry, it is crucial to be comfortable having transparent conversations with buyers who might want to avoid important information, like the state of their finances. These conversations can oftentimes be difficult or uncomfortable for clients. But understanding a client’s financial circumstances helps inform the sale, so agents who are informed are better prepared to help their clients. As a broker, troubleshoot situations that involve uncomfortable conversations with your agents. Give agents tools to help create a relaxed environment during first introductions so that they can increase buyers’ willingness to be open about their financial circumstances.

Take the Extra Step

Agents should provide the same level of service to all clients, but they can also tailor their approach to the client’s needs. For example, when necessary, taking an extra step with detail-oriented buyers can aid in easing concerns. SMB agent teams in the Huntsville, Ala., area commonly work with buyers who are engineers or government employees who seek a deeper understanding of the building process. As an extra level of service, these agents facilitate opportunities for buyers to meet with the build team. This extra step reinforces the buyer’s trust in the agent.

In these unique circumstances, additional steps may prolong the process, but brokers will want to emphasize that agents should not be deterred. Earlier in my career as a new real estate professional, I worked with an entrepreneur who was a first-time homebuyer. This buyer needed more information to understand the process. I provided all the information and documentation needed, and it made the process longer. However, seeing the process through to completion and watching him get his keys was rewarding. We saw our hard work pay off in real time.

It’s important that brokers remember agents are representatives of the brokerage. When brokers meet the needs of their buyers and aim to offer that extra step in service, they can build a lasting relationship with the company, often resulting in referrals to family and friends who are ready to enter the real estate market.

Communicate Often and With Clarity

Delays in the home-building process that are outside an agent’s control can negatively impact customer satisfaction, such as delays in materials or inclement weather. Materials that are slow to arrive are two examples. In these situations, effective communication is non-negotiable. I have found communicating weekly with the buyer about where they are in the homebuying process is necessary to navigate the process.

Unwanted surprises can also trip up momentum. Providing photos or videos of the home in its various stages during the building process prevents these hiccups. In rare instances where quality does not meet customer satisfaction, having customer service representatives contact home buyers who have had negative experiences can help. Seeking constantly to improve, this feedback is an opportunity to gain experience, as these instances can be used as case studies for sales teams’ training efforts. Team members learn how to rectify these situations as they impact the homebuying journey.

National Association of REALTORS®
Reprinted with permission

Brokers who take an active role in agents’ success help build market momentum and company loyalty.

The real estate brokerage business is one of great fluctuation and change, often dependent on the state of the market. It’s no secret that the past several years have pushed the industry into unforeseen circumstances and opportunities. As an example, the COVID-19 pandemic propelled us forward when it came to the use of technology. It opened the doors to a new age of conducting business while being more operationally efficient. The key to moving forward and building market momentum is for brokers (and their family of agents) to evolve, be agile and have a platform and business model built that exceed consumer and industry expectations.

The “why” for the successful brokerage today, and into the future, is the agent-centric model rather than a company-first approach. That’s been a common theme for us, and it’s something we’ve aligned on in our business for a long time.

Guide Agents Toward Their “Why”

One thing that we’ve taken a deeper dive into is auditing our top producers to determine what they’re doing compared to everyone else at the firm. They all possess different personalities with different backgrounds and leverage different tactics to drive growth. What they all have in common—and what guides them to be successful—is their personal “why” and their commitment to it. If an agent isn’t committed to their “why,” the very first time they hit a bump, they’re going to stop. Our job as their business partner is to help them realize that and help them figure out exactly what their “why” is. That is our commitment as brokers and as business partners.

Once an agent establishes and commits to their “why,” they will be successful. If they’re successful, the brokerage is successful. This approach has been big for us and it’s something we live by every single day.

Now, be aware that the biggest hurdle for most agents to get there is patience. Many agents come up with their “why,” start putting in the work, say they’re committed to hitting that goal, but they pick arbitrary timelines to get there. These arbitrary timelines are not necessary, and they create stress that ultimately pushes them off the path that they need to be on.

Shift the Focus to Problem Solving 

We found another common trait that holds agents back from hitting their next level—romanticizing what got them there. They’ve fallen in love with the method and not the problem. Our role as brokers is to get agents to stop focusing on the solution and focus on the problem. If you focus on the problem, you’re going to be willing to try a million different solutions. Shifting that mindset is what gets results.

Give Agents Tools and Resources

Essentially, our brokerage is an incubator. We provide a controlled environment, both online and offline, for the care and growth of our agents. To get them to their “why” and to close more deals, brokers should first have the infrastructure in place—from a training, coaching, and development perspective. Second, they need measures and thought processes around maintaining culture and agent connection. Third, they must believe in the agent-centric process. If you believe this is the way the industry is headed, and that it’s the right thing to do for the agent, then do it.

There are any number of stresses put on a broker today, from recruitment and retention to bottom line pressures on profitability. The real estate brokerage business is dynamic and is constantly changing. It’s evolving into an agent-centric business model and developing a partnership with your agents is key to moving forward, building market momentum, and exceeding the needs and the expectations of agents and the consumers they partner with each day.

National Association of REALTORS®
Reprinted with permission

The market is always shifting, and building diverse revenue streams means your bottom line can withstand fewer sales.

In today’s market, some brokerages are finding themselves at a crossroads. “Our margins have nearly evaporated,” says Florida-based Ben Schachter, broker and president at The Signature Real Estate Companies. Sellers are negotiating for lower compensation and real estate professionals are optimizing their commission structures. Though it’s always been important, brokers are finding that creating additional revenue streams and reducing expenses are more important than ever. 

Schachter and other brokers aren’t new to the need for diverse revenue streams, though, and their experience is proving useful in the current market. The following are broker-tested options for building new revenue sources to support the bottom line.

Start a Tradeshow

Twelve years ago in South Florida, the market was slow. Noting how often businesses who relied on agent referrals were soliciting his brokerage, Schachter guessed many would pay to get in front of agents. So, he created the South Florida Realty Expo to convene as many as possible, keeping the branding generic and making admission free. Then he kept his costs low. Since country clubs depend on real estate professionals to bring them new members, one quickly agreed to host the event for free. To spread the word, Schachter bartered booth space for ad space with local newspapers. Then, he tasked a few of his agents with selling sponsorships, booths and speaking slots (they received commissions on sales).

In the end, 250 practitioners attended, 45 companies bought booths and the expo earned $15,000 in revenue. Since then, Schachter has hosted three more expos. The most recent one drew 3000 agents, 150 companies bought booths, and the expo generated $100,000 in revenue. Along with making money, these events have built Signature’s relationships with vendors.

Create a Subscription Program for Vendors

Following the same logic, Schachter realized companies would pay to pitch his 1400 agents, beyond just bringing them breakfast or lunch. So, he established an annual “preferred vendor” subscription program. To participate, they’re first vetted by Schachter. If they pass the test, they pay his brokerage an annual fee. In return, they receive the full Signature agent contact list, access to all Signature events and the chance to visit Signature offices to pitch his agents (they can pay an extra fee for a premium speaking slot at the company’s annual meeting). Plus, they’re listed as a “preferred vendor” on the Signature homepage. About 60 companies currently participate.

Establish Affiliate Businesses

Schachter devised another way to earn income from businesses: he offered some vendors the chance to “graduate” from preferred vendor to exclusive vendor partnership status, where they’d become Signature affiliates. His arrangement with each company is different, and he’s careful to adhere to the Real Estate Settlement Procedures Act (RESPA)—regulations protecting consumers during real estate transactions.

But a common model is a licensing partnership where each vendor carries the Signature name and benefits from the company’s marketing expertise. Over time, Signature has grown its network of affiliate companies to a dozen, one in each category, including title insurance, pools and construction. In 2024, proceeds from these affiliate businesses accounted for about 50% of Signature’s net income.

Close an Office

Last February, Florida-based Steve Snider, managing broker at One Sotheby’s Realty, closed one of his offices, even though it was profitable and home to 10 of his agents. The space was costing him “a few hundred thousand dollars” a year and Snider was particularly keen on making changes to keep costs low. With $20,000 of the money he saved, Snider upgraded the conference room in one of his other offices to help his brokerage land a developer client. The developer was shopping for a real estate firm with an appealing space that could be used as a sales office. Swapping out the furniture, framing the TV and adding a chandelier and drapes did the trick, and Snider’s brokerage signed the developer.

Ditch Marketing That Doesn’t Work

During a downturn a few years ago, Rhode Island-based Ron Phipps, owner of Phipps Consulting LLC, assessed his expenses. He was disappointed to learn that annually, his brokerage was generating $40,000 in revenue from leads it was purchasing for $60,000. So, he refocused his marketing efforts on the clientele his brokerage had served for the past three decades.

In one campaign, he and his agents sent emails and snail mail to residents of a 35-home neighborhood where they’d been involved in 25 of the sales. In hand-written “thank you” notes, they recognized the area as one of their success stories and invited residents to reach out if they or their contacts were ready to make a move. Then they called to follow up. Within 36 months, they’d secured five listings from this effort.

“We real estate professionals keep thinking we need to spend a lot of money to get tangible outcomes,” Phipps says. “But we already have the relationships and need to lean into them, to remind legacy customers how hard we work and the value we bring. Focus on the people who know, love and trust you, and scale that.” 

National Association of REALTORS®
Reprinted with permission