{"id":15462,"date":"2012-01-19T19:15:17","date_gmt":"2012-01-20T02:15:17","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=15462"},"modified":"2012-01-19T19:15:17","modified_gmt":"2012-01-20T02:15:17","slug":"the-brokerage-biz-model-that-rocked-in-1966-is-still-rockin","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15462\/the-brokerage-biz-model-that-rocked-in-1966-is-still-rockin\/","title":{"rendered":"The Brokerage Biz Model That Rocked In 1966 Is Still Rockin’"},"content":{"rendered":"

Let’s begin by establishing clearly — this isn’t new info — just widely ignored. In fact, it’s more likely than not most agents readin’ this will roll their eyes for one of two reasons. One would be cuz it’s old news to them. Not that they’ve ever contemplated using it, just old news. The other is cynical disbelief when something from a couple generations ago is touted as being highly effective and profitable in today’s real estate brokerage climate. Give it a read and then make your call. <\/p>\n

I will tell you in advance that from what I’ve seen personally, the huge majority of super high volume per agent operations are using it. They just don’t know it was snatched from the hippy dippy 60s. \ud83d\ude42 <\/p>\n

And yes, there are one or two big time brokerages who’ve successfully gotten away from the model used by the industry the last 40 years.<\/p><\/blockquote>\n

I learned this model beginning in 1967. I’ve spoken of Dad’s brokerage countless times here, but what may not have been communicated clearly is how relatively few agents were needed to produce such off the chart sales. Let’s put the numbers on the table. How’d you like to have been one of the 25 to never more than 30 full time agents (Usually 8-12 part timers.) who divvied up more than 1,000 sides a year for five straight years? As their janitor\/official printer-of-listings, I witnessed some pretty astounding things. ‘Course, back then I had no earthly clue I was seeing world class production, as I thought it was the way it was supposed to be. <\/p>\n

Boy, did I ever learn different as a few birthdays came and went. <\/p>\n

Our industry, beginning in the 1970s, decided it made more sense to go away from a highly profitable business model. Before operating expenses, the OldSchool<\/em> model netted 40-50% of every commission dollar earned. From that income they paid all costs — the broker did. I cut my teeth on that model, and it worked like a charm.<\/p>\n

In their infinite wisdom, they decided a superior strategy included increasing agent pay by over 100% Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Let’s begin by establishing clearly — this isn’t new info — just widely ignored. In fact, it’s more likely than not most agents readin’ this will roll their eyes for one of two reasons. One would be cuz it’s old news to them. Not that they’ve ever contemplated using it, just old news. The other […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[212,5],"tags":[],"class_list":{"0":"post-15462","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-flourishing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1019,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1019\/is-your-broker-profitable-traditional-brokerage\/","url_meta":{"origin":15462,"position":0},"title":"Is Your Broker Profitable?- Traditional Brokerage","author":"Brian Brady","date":"February 8, 2007","format":false,"excerpt":"Have you ever analyzed the business model your broker has? Try to run the numbers sometime and see just how much profit the owners(s) of your real estate brokerage really earn. I learned a lot about running a mortgage brokerage and real estate brokerage from 1999-2002. I've owned both and\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15573,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15573\/real-estate-brokerage-models-jeff-browns-dad-and-dead-cats\/","url_meta":{"origin":15462,"position":1},"title":"Real Estate Brokerage models, Jeff Brown’s Dad, and Dead cats.","author":"Eric Blackwell","date":"January 23, 2012","format":false,"excerpt":"If you have never read what Jeff Brown writes, STOP. Go read it. Seriously. Go to the right sidebar, scroll down to the Bawld Guy and click the archive link. Ok. ;-) Jeff's recent post brought up some good conversations that I want to shed some light on from my\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":613,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/613\/a-horrifying-thought-experiment-elaborating-on-a-brokerage-business-model-that-could-completely-disintermediate-buyers-agents\/","url_meta":{"origin":15462,"position":2},"title":"A horrifying thought experiment: Elaborating on a brokerage business model that could completely disintermediate buyer’s agents . . .","author":"Greg Swann","date":"November 7, 2006","format":false,"excerpt":"I wrote this this morning, and it's been bugging me all day:Here's a thought: The $99 divorce. It only works where the split is unclouded by children or property. But imagine a $999 FSBO package: The usual MLS-only marketing package with a buy-back guarantee for the buyer. Quoting me: \"From\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13731,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13731\/violent-change-in-store-for-real-estate-agents\/","url_meta":{"origin":15462,"position":3},"title":"Violent Change in Store for Real Estate Agents","author":"Chuck Marunde","date":"December 1, 2010","format":false,"excerpt":"The real estate business is obviously in the midst of dramatic changes, and that is certainly an understatement.\u00a0 I just published a new book entitled The New World of Marketing for Real Estate Agents (Early Adopters:\u00a0 The New Millionaires).\u00a0 The book will be available on Amazon for $14.95, but what\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3752,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3752\/another-real-estate-model-a-less-radical-variation-on-a-current-theme-that-can-work-within-the-present-regulatory-context-a-national-franchise-of-real-estate-franchisors-each-of-whom-is-committed-t\/","url_meta":{"origin":15462,"position":4},"title":"Another real estate model, a less-radical variation on a current theme that can work within the present regulatory context: A national franchise of real estate franchisors, each of whom is committed to sustaining the value of the brand","author":"Greg Swann","date":"August 4, 2008","format":false,"excerpt":"I read Rob Hahn's ideas about brokerage-as-law-firm last week. I thought that much was kind of naive -- a reflection of a lack of understanding the legal realities of real estate brokerage -- but I didn't jump in because I thought some of his other ideas were interesting. Here's the\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1041,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1041\/is-your-broker-profitable-rent-a-broker-shops\/","url_meta":{"origin":15462,"position":5},"title":"Is Your Broker Profitable? – “Rent-A-Broker” Shops","author":"Brian Brady","date":"February 13, 2007","format":false,"excerpt":"The 100%, desk fee model was made popular some 25 years ago by one HUGE national franchisor. There have been several companies that have adopted that model and had equal success. Essentially, the business model is along the lines of \"rent-a-broker\" for a flat fee per month. The term \"rent-a-broker\",\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/15462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=15462"}],"version-history":[{"count":6,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/15462\/revisions"}],"predecessor-version":[{"id":15564,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/15462\/revisions\/15564"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=15462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=15462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=15462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}