{"id":571,"date":"2006-10-25T17:50:25","date_gmt":"2006-10-26T00:50:25","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=571"},"modified":"2006-10-25T17:51:52","modified_gmt":"2006-10-26T00:51:52","slug":"the-unbrokerage-how-to-profit-from-the-glut-of-unproductive-real-estate-agents","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/571\/the-unbrokerage-how-to-profit-from-the-glut-of-unproductive-real-estate-agents\/","title":{"rendered":"The Unbrokerage: How to profit from the glut of unproductive real estate agents . . ."},"content":{"rendered":"

Broker Bryant’s comment below<\/a> put me in mind of a business model I invented earlier this year.<\/p>\n

I spent my second two years in real estate in a brokerage such as Bryant describes: You pay a monthly fee to hang your license. If you produce — not encouraged — you pay a transaction fee plus an Errors and Omissions insurance premium. There were 185 agents in the brokerage, of which maybe 15 of us were doing more than one transaction a year. I was doing a lot<\/i> more. I was there because it was the cheapest 100% plan available to me, because I knew they would leave me alone — which they did — and because I was biding my time until I could take the test for my broker’s license.<\/p>\n

But it occurred to me that the NAR has got got be about one-third dead weight by now: Agents with style, charm and zeal — just no clients. Even so, an active real estate license is a valuable thing to have, even if you really are doing one or fewer deals a year.<\/p>\n

On the other hand, you are only valuable to me as a broker if you are not increasing my liability. When you do nothing except pay me, I love you. When you write contracts or engage in other random acts of agency, you scare me.<\/p>\n

Here’s the idea I had: You can hang your license with us for FREE<\/i>. No monthly fees — forever. You arrange your own renewal hours and pay the state’s fees, but you own me nothing, and you can hang your license with me for free forever.<\/p>\n

What’s the catch? You cannot ever<\/i> write a contract or represent a client. You cannot do anything for which I can be sued. If you have a mother-in-law deal, that’s great. It will be handled by a working agent and you’ll get a 50% referral fee, with no nickel-and-dime brokerage fees deducted. Refer as many deals as you can — your referral fee is always 50%. You can’t do anything, but you can make a ton of money for doing nothing.<\/p>\n

We Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Broker Bryant’s comment below put me in mind of a business model I invented earlier this year. I spent my second two years in real estate in a brokerage such as Bryant describes: You pay a monthly fee to hang your license. If you produce — not encouraged — you pay a transaction fee plus […]<\/p>\n","protected":false},"author":1,"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":[3,4,6,5],"tags":[],"class_list":{"0":"post-571","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-disintermediation","8":"category-marketing","9":"category-real-estate","11":"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":571,"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":1041,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1041\/is-your-broker-profitable-rent-a-broker-shops\/","url_meta":{"origin":571,"position":1},"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":[]},{"id":18324,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18324\/buyer-agency-project-buyer-agents-offer-no-value-today\/","url_meta":{"origin":571,"position":2},"title":"Buyer Agency Project: Buyer agents offer no value today.","author":"Brian Brady","date":"July 17, 2021","format":false,"excerpt":"\"I just showed three houses this week, out in L******, and all of them had 2% co-brokerage fees.\u00a0 Learn to sell, listing agents\" I read this post (paraphrased), from a former car salesman with a Florida real estate license, in a Facebook group the other day.\u00a0 The irony of it\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":1327,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1327\/when-banks-are-permitted-to-competethe-consumer-might-just-win\/","url_meta":{"origin":571,"position":3},"title":"When Banks Are Permitted to Compete…The Consumer Might Just Win","author":"Brian Brady","date":"April 21, 2007","format":false,"excerpt":"In Southern California, many loan originators are licensed by the Department of Real Estate. Such licensing is unique to California. California was one of the first states to require licensing of loan originators and chose to require that they have a real estate salesperson's license. Some bright Realtors realized that\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":6703,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6703\/turning-liquidblue-into-steady-green-is-it-possible-to-found-a-new-real-estate-brokerage-without-going-broke\/","url_meta":{"origin":571,"position":4},"title":"Turning LiquidBlue into steady green: Is it possible to found a new real estate brokerage without going broke?","author":"Greg Swann","date":"January 27, 2009","format":false,"excerpt":"Cleveland real estate broker John Kalinowski and I have been batting around some ideas of his on how to structure his new brokerage to make it work well for everyone -- clients, agents and ownership. Surely I'm not the best person to ask about this, since we are doing everything\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":229,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/229\/interview-with-the-vampire-how-nick-learned-to-knuckle-under\/","url_meta":{"origin":571,"position":5},"title":"Interview with the Vampire: How Nick learned to knuckle-under . . .","author":"Greg Swann","date":"August 21, 2006","format":false,"excerpt":"\"Hi, Nick. Come on in. Sit down. Sorry to keep you waiting. \"How long have you been here, Nick. Sixteen months! Wow, it seems like just yesterday that I turned my back on you and forgot all about you. \"It seems like you're doing pretty well for yourself, Nick, two\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/571","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=571"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/571\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}