In a recent survey, Redfin reported that 78% of agents rated commission splits and fees as “very important” when choosing a brokerage.
Next to financial issues, over 50% of agents rated brand/reputation, support/training, and culture as “very important.”
Surprisingly low on the list was providing leads–only 36% rated this benefit as “very important.”
What’s this tell us about agent movement?
It must be financially advantageous for an agent to make a move.
Since recruiting prospects operate from this paradigm, it’s important you’re ready to talk about the financial advantages of your model.
This doesn’t mean you must necessarily be the lowest cost option in your market to compete.
But it does mean you need to demonstrate how working in your company will put more income in your prospect’s pocket.
If you’re a low-cost provider, your value proposition is simple.
If you’re a high-support provider, you must demonstrate the value of the support you’re providing.
When making your case, it’s helpful to assign realistic dollar values to your support services and show how working inside of your system will help them sell more and overcome the perceived savings of low cost/low support models.
If you are financially superior to your competitors, agents will gravitate to you.
If you are financially equal to your competitors, other factors may sway their decision.
If you’re financially inferior to your competitors, you’ll be stuck with agents who can’t do math.
