Ken Lamb (Photo by Bryce Meyer)
By Toby Welch
Ken Lamb took a leap of faith – and it was a big success.
Lamb got into the real estate industry in the mid-1980s, when real estate franchising in Canada was still a fairly new idea, working for a Re/Max brokerage. There he met his wife, Maria Corley. Both were prolific agents and top producers in their Calgary office; Corley was the top agent at the 100-person Re/Max Mountain View office every year during the last decade they spent there.
But after 17 years, when the annual fees they were paying Re/Max began to approach high five figures, Lamb and Corley decided they wanted to put more of the money they made into their own pockets. They checked out other brands that charged a quarter or a third less, but were not inspired enough to make the lateral move to another franchise.
Unsatisfied with what was available at that time, they came up with a business plan based on production. The thinking behind the business model was that costs are marginally higher with increased production but the impact is less due to higher earnings. That guideline in place, Lamb and Corley left the security of the brand name and established their independent brokerage, Real Estate Professionals Inc.
Originally operating REP from an 800-square-foot office space in their home, Lamb and Corley jumped into real estate with a renewed commitment to one another and the real estate industry. From the get-go, a number of agents wanted to join REP and Lamb took them on. Within 18 months, REP had 30 associates.
As REP closed in on its two-year anniversary, Lamb began to recruit and during the next 18 months, the brokerage grew to 80 associates. When REP passed the 100-agent milestone, Lamb knew the company was at a precipice. They needed larger office space, so Lamb and Corley moved REP out of their home and into a south Calgary storefront location.
Lamb says he knew he needed to either hire someone to run the brokerage (he was still selling at a high level and didn’t have the time and energy to focus on the business aspect of REP) or he had to take over the operations on a full-time basis. He opted for the latter. Since 2006 when he turned the sales side of business over to his daughters, Lamb hasn’t sold real estate and he spends his days running the brokerage and mentoring associates.
July and August 2014 were two of Lamb’s best months to date. Each month included over 300 ends and the top 10 agents produced an average of $50,000 each, due partly to Calgary’s hot real estate market. REP is now the seventh largest brokerage in Alberta with more than 220 agents in two offices.
Lamb got into the real estate industry in the mid-1980s
When first making the transition from Re/Max to their own brokerage almost 13 years ago, Lamb admits there were challenges. One of his main concerns was that not having a franchised name would hurt their credibility but he quickly learned the opposite was true; the agents and clients who used their services were much more concerned with the individuals they were dealing with than the name of the company.
The greatest struggles initially were internal issues for Lamb and Corley, but once they convinced themselves that what they had to offer to their clients was valuable, it became a non-issue. The first three months were rocky, Lamb says, but when the new brokerage hit its one-year mark, Lamb was certain REP would be a success.
One of the most rewarding aspects of branching out on his own has been the opportunity to work with newcomers to the real estate profession. When Lamb speaks on this topic, it’s obvious that the entrepreneur takes pride and satisfaction in helping newbies become top producers in the industry. “You can’t create enthusiasm but you can channel it,” he says.
Lamb says that of his top office producers in 2010, eight of them were brand new to the industry when they came to REP.
As I spent time with Lamb, it became clear that a major aspect of his success is his attitude. While it may be a stretch to say he embraces adversity, he does find pleasure in coming up with solutions to challenges. “There are no problems in real estate and in life, only challenges,” he says.
Asked what he would say to someone who is debating leaving a franchised company to start their own firm, Lamb says he would encourage them. “Make a list of the pros and cons and if you decide that you really want to do it, do it.” Lamb offers the following suggestions to those starting an independent brokerage:
* “Don’t use your own name. There are exceptions such as Keller Williams, but try to find a name that is unique and build on it and your brand.”
* “Avoid names such as Jack’s Realty or Canmore Real Estate Company as this isolates and restricts you in the event you grow and want to expand to new areas.”
* Spend time working on your logo and slogan. “By building your own unique brand from the start, you will not have to rebrand as you grow to meet the professionalism you are projecting.”
* “Stick to what you know best and don’t try to be a one-stop shopping spot. If you are selling real estate, be the best real estate company you can be. Do not sell insurance or travel, as this broadcasts that you are not a specialist in anything.”
* “If you do not have a great cash flow at the start, get a line of credit or a small business loan to start a very professional looking company.”
My favourite piece of Lamb’s advice sums up his journey: “Don’t resist change, embrace it.”
