So, REM is celebrating 20 years of service to the real estate industry in Canada. It’s no mean feat in today’s economy that your little magazine, so packed with great information, has survived.
I went back to 1989 in REM’s archives and reviewed some of the many articles in some depth.
From August 1989: “A REM survey shows lucrative new employment packages have drawn top agents to those brokerages…” So, what’s happened since? Take a look at most brokerages today. We’re all offering similar packages or menu plans, as some brokers prefer to call them.
The upside to the lucrative packages is that agents receive more “bang out of their buck” to make more money selling real estate, even after paying the broker either a desk fee and/or a percentage of the gross commission. The downside over the years to the brokers has been pressure from consumers to reduce the commission, so the broker nets less than ever in today’s marketplace. Take a look at some of the low fee or, in some cases, negotiation fee-based brokerages. As well, websites such as Zillow.com offer the public viewing of FSBOs and/or listings by all brokers in an area.
Who’d have thought in 1989 that we would have such pressures?
Brokerages could not have foreseen that giving agents more money on each transaction would not be a magic pill to retain their services.
As time went on, many of the brokers realized that in addition to paying for technology to enhance agent’s services, they’d have to ramp up their own services to the agents. And so today, almost every brokerage offers all types of educational seminars and webinars.
In 1989, when I was executive vice-president at Safeguard Real Estate, the broker and I, like others at that time, could not or would not listen to the war drums of recession beating. The only vision we had at that time was to increase the amount of commission we were paying to the agents who, in spite of our offering more, were leaving to go to higher-paying franchises that had been in Canada for less than 10 years. In addition to the higher commission splits, they offered a brand image that most of us couldn’t match. Did some of those brands fail in the succeeding years? Yes they did, but several survived.
How did they do it? Well, many, like Royal LePage, Re/Max and Century 21 made some serious decisions to bring not only formal education to the agents, but pushed the envelope to include national advertising as well, via the collection of regional fees.
So, fast forward to 2009. We’re in the depths of the most unimaginable recession, bordering on the big ‘D’ word, and it’s global, not just in North America.
What vision must brokers have today as we move through the 2000s? What images must brokers envision for their future? I believe that the broker of today and tomorrow must be sales rep-driven and not just fee driven. The sales rep of today and those graduating tomorrow are seeking brokerages that will nurture the skills they must develop at those brokerages. And it’s not a one-day seminar once a month; it’s as often as the broker will allocate his valuable time for. Sure, Brian Buffini, Mike Ferry and Richard Robbins are dynamic leaders in their field. But the guy or the gal at the helm of their brokerage is ultimately responsible for the success or failure of his/her agents to perform.
I know, many brokers are saying, “But Stan, when will I have time to recruit?” or “I do enough for my agents now in the way of training!” Okay, maybe you do, but here’s a thought: you have to ensure you nurture your current agents. If you do, I promise you this, they will think so highly of what you are offering, other than high commissions, that they will recruit for you.
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I would be remiss in closing this 20th anniversary article for REM if I didn’t say to Heino Molls and his tireless staff, big congratulations on your marvelous achievement of 20 years of superb information from writers from all over Canada and the USA. Great work and good luck on your next 20 years!
Stan Albert, broker/manager, ABR, ASA at Re/Max Premier in Vaughan, Ont. can be reached for consultation at stanalb@rogers.com. Stan is now celebrating 40 years as an active real estate professional. His first REM article appeared in October 2004.
Stan Albert, ABR, ASA is a consultant with Re/Max Premier in Vaughan, Ont. He can be reached for consultation by email. Stan is now celebrating his 45th year as an active real estate professional.
