In my 26 year career in real estate I have often pondered the issue of branding.
I have worked for international brands, Canadian brands and local (Greater Toronto Area) brokerages that you might call “no-name” companies.
All were successful businesses in their own way. However, when switching from one to another, the question of how important the brand is always came up.
I separate branding as it relates to our real estate industry into two. One is your individual branding as a Realtor. Second is the brand or non-brand of the brokerage.
In a GTA market of 42,000+ licensed Realtors and 200,000 transactions per year, it is imperative that individual salespeople distinguish themselves from the rest. The best way of doing that is by creating a distinct logo, title, nickname, icon or image.
I have seen many Realtors call themselves “Kings” or “Queens”. This title became so cliché that it is not a brand any longer (unless this is your real name). I also saw a “magician” and a “captain”, which when used persistently for years, created distinct recognition of the person.
A slogan can also make one unique, but only if used consistently and not changed for a long time.
Your own name associated with marketing materials in an area or in certain print media where readers come to “expect” to find you is good brand marketing. A slogan used consistently will also be remembered and associated with the individual. (“Sell or buy, I’m your guy.”)
When I was acting as a recruiter for different offices, I heard both sides of the argument about national franchise brands. On one hand I heard the owner/broker telling me, “I am switching to your company to save money, because I believe that I am the one solely responsible for getting the business, not the brand that I belong to.” These brokers usually leave a more expensive branded brokerage for a less expensive one.
I also heard the other side of the argument, of brokers leaving the less expensive independent brokerage to go to a brand brokerage, and willing to pay more to cash in on the brand recognition by the public.
I believe both are right. However, switching from one to the other will not necessarily help one get more business or save money. The individual brokers have to make personal adjustments to the change in brokerage.
Switching from a brand name company to a non-brand, the Realtor may have to increase his personal marketing budget to compensate for marketing done by the branded brokerage. This individual may end up paying more per transaction and do fewer transactions because of the switch to non-brand. There may also be a loss of preferred marketing rates that have been negotiated by brands taking advantage of their “brand power”.
Switching from a non-brand to brand brokerage does not automatically increase one’s business.
Here are my conclusions. Branding oneself as an individual is absolutely necessary in our industry. Be consistent and show your logo, slogan and icon everywhere. Once you’ve decided on your brand, don’t change it.
A Realtor’s ability to procure the business and charge a decent commission may depend on which brand they have associated themselves with. Public perception of the brand plays an important role in our business.
If the public believes it’s a discount brand or a low expectation brand, whether it’s true or not, it may be harder to get a high-priced listing or get any listing without having to deeply discount the commission. If the brand is associated with luxury, the Realtor will have an easier time procuring that high price listing at a reasonable commission rate.
To illustrate how important public perception of a brand is, did you know that the Chevy Nova was manufactured by Toyota and was sold in the U.S. for less than the Corolla? Look at where Corolla is today and where Chevy Nova is. I guess once you put on the Chevy sticker, you have immediately formed a perception. It doesn’t matter that it is really a Toyota.
Michel Friedman has been a real estate broker since 1990. He is the author of STAR AGENT, the path to 50+ real estate transactions per year, available on Amazon, and was rated as #1 in hot new releases in the real estate profession category when it came out. Michel is currently senior manager at Re/Max Premier Inc. in Vaughan.
