As I mentioned earlier this week, we’ve started work on the next installment of our Agent Migration Report.
As we seek to fully interpret the data, interesting insights are already starting to emerge.
For example, low-fee/cloud-based brokerage models are still pulling agents away from legacy brands, but the agents moving in this direction tend to have a production deficit of over 20% prior to moving.
These moves are not growth decisions.
They are mostly solvency decisions that allow declining producers to slash overhead.
By contrast, the top tier legacy brands are not attracting as many hires, but the agents they are hiring tend to have stable production.
These agents may be moving to well-established brands as a volatility hedge against market instability, or they want to increase focus on growing their listings.
In the end, both groups of migrating agents are looking for lifeboats, but for different reasons.
As a result, legacy brands should focus retention energy on existing producers who are more than 20% down in the last year.
These agents are the most vulnerable.
For low-fee/cloud-based brokerages, the declining production trajectory of new hires must be quickly stabilized or reversed.
Otherwise, they’ll churn out just as fast as they’re being hired.
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P.S. If you’d like more detail on how your brand/model is doing and what actions to take as a result, reach out. We can share more details in a confidential setting.
