Real estate agents must hang their license with a brokerage in order to practice and agents are free to choose which brokerage to join. In our industry, we often see newer agents switching brokerages early on. This also happens for seasoned agents but not as frequently. Regardless, how do you know when it is time to leave and find a new home? These are some of the top reasons why real estate agents switch brokerages:
- Commission split: this is easily the biggest factor why agents switch brokerages. When they realize that there are other brokerages out there that let agents keep more of their commission. Sometimes agents feel a certain type of way against their brokerage, I produce this much for the brokerage, why do I only get to keep this much? And so they seek greener pastures thinking they will make more money if they switch brokerages.
- Lead generation: Leads are what keeps all agents’ businesses going. The reality is not many brokerages literally hand out actual leads to agents. But they should at least help agents strategize and build lead generation strategies to properly build their pipeline and business. However, this is something that not all brokerages excel at doing. Some brokerages have outdated strategies. As a new agent, if your pipeline is dry and you aren’t getting the proper training or strategies to implement. This is a huge pain point in your business to seek help with and find an immediate solution.
- Technology: The real estate industry is constantly evolving and implementing technology to help streamline and automate agent businesses. There certainly are brokerages that embrace and offer these tools to their agents. And then there are some that are still archaic. If you are a tech-savvy agent who loves leveraging technology to get a leg up on your competition, you will certainly want to seek out the brokerages that are leading the way in real estate on this front so that your business can operate as efficiently as possible.
- Support: At the base level of all agents’ business is the support of their brokerage and broker. Proper training from the brokerage on how to set up and operate an agent’s business is crucial to the success of an agent’s business. If there is little to no training available and assistance on marketing getting the agent’s business off the ground, the agent ends up wasting way too much time inside of the business instead of working on getting business. In addition, if the managing broker has poor communication, unresponsiveness takes way too long to reply, is unable to provide clear and concise answers, and ultimately lacks support. Then the agent becomes frustrated and starts to seek a more confident and consistent leader.
- Personal relationship: Agents may switch brokerages because of a personal relationship with a broker or agent at another firm. If an agent has had a strong working relationship with a broker or agent it can be a big factor in an agent’s success, and agents may choose to switch to a brokerage because of that.
- Culture: Even though agents are their own business owners, the brokerage they work for still sets the tone for the company culture. And if the company culture doesn’t align, support, or motivate the agent positively, then an agent might switch when they come across another brokerage that does align better.
In conclusion, there are many reasons why real estate agents decide to switch. But ultimately it is for the improvement and betterment of their business. If there is a better opportunity for growth, naturally people will seek that rather than remain where they are.