In a recent podcast, Steve Murray highlighted some of the insights emerging from this year’s Real Trends 500 report.
In an analysis of the top 903 brokers looking back over the past 5 years, over 600 companies grew their transactions during this period. This is not surprising considering the health of the market.
As you’d expect, some grew at much faster rates than others.
In fact, the top 25 brokers grew their transaction volume by over 200% during this period.
What caused them to consistently grow beyond the rate of their peers?
It wasn’t the initial size of the company, geographic location, brand of the company, or the sales model that made the difference.
In fact, by looking at the data alone, it’s difficult to discern what caused the high performance.
It wasn’t until Steve and his staff conducted follow-on interviews with the owners of these firms that the common denominator emerged.
Most of these companies grew organically and not through merger/acquisitions.
I heard over and over again from owners—”we spend 30% – 50% of our time and resources on recruiting and developing agents.”
Depending on how the public health crisis plays out in the months ahead, many real estate companies may be forced to make difficult cost-cutting decisions.
If/when this happens, it’s important to protect the recruiting and agent development infrastructure in your company.
Why?
It comes down to having a mindset that recruiting and developing people are at the heart of a residential brokerage company.
