Inman Guide to Real Estate Brokerage Models

(Re-Printed from Inman News)

This presentation contains information provided to Lobb from the brokerages in question, as well as information he publicly sourced from their websites. It only contains a few indie brokerages at present, but Inman plans to add more.

Disclaimer: All content on this presentation has been either provided by the company or gathered from their public-facing sites when available.

KELLER WILLIAMS

Core model

• Keller Williams was built for agents. It focuses on training agents to be great agents first, and then to be good business owners. It promotes opportunity and encourages agents to build or join teams.

• It supports agent entrepreneurship through team splits, large office spaces with training rooms, and opportunities to build wealth through its profit share program and other avenues. The company has shared over $1 billion and is on track to share $175 million this year.

• All Keller Williams agents have a built-in commission-split cap. When capped, every agent pays the same amount to the company.

Technology/tools

• Keller Williams was built for agents. It focuses on training agents to be great agents first, and then to be good business owners. It promotes opportunity and encourages agents to build or join teams.

• It supports agent entrepreneurship through team splits, large office spaces with training rooms, and opportunities to build wealth through its profit share program and other avenues. The company has shared over $1 billion and is on track to share $175 million this year.

• All Keller Williams agents have a built-in commission-split cap. When capped, every agent pays the same amount to the company.

Training/coaching

• KW is probably best known for its training. It offers live events, one-on-one coaching, virtual events, and local, regional, and international training.

• Training is a profit center but also has become one of the brand’s best attraction tools. Founder Gary Keller himself teaches, trains, and coaches his agents. He constantly preaches hiring talent, retaining talent, building wealth, financials, business culture, and more.

• Its speakers and panelists are well-vetted and, traditionally, only the best performers with proven results reach its national stage. Keller Williams agents learn from agents and office owners who are actively getting results themselves.

• Agents have the opportunity to become productivity coaches, teach or speak, and own or invest in offices and regions.

Culture

• Keller Williams culture is a case study taught at Stanford. It centers on sharing information and helping others. The infectious culture can be witnessed at any major brand event.

• Its charity wing KW Cares donates tens of millions of dollars collected from its agents. The organization helps agents and their immediate family members survive medical issues, fires, crimes, and natural disasters.

RE/MAX

Core model

• RE/MAX offers an agent-centric model that drives high per-agent productivity (average of 16 transaction sides in the U.S. in 2017). Agents typically operate under a 95-5 commission split, with shared fees for brokerage and branding. It has the largest global footprint of any brand (more than 100 countries and territories).

• Built for productive agents and entrepreneurs, RE/MAX agents have the autonomy to run their businesses independently, including, generally, the freedom to set commission rates and oversee local advertising.

• It recently expanded into the mortgage industry with Motto Franchising and Motto Mortgage.

Technology/tools

• It made a major tech play for its agents and broker-owners with its recent acquisition of real estate tech provider book, which is developing a single platform for a whole ecosystem including a CRM, agent, office and team sites, integrated and automated marketing, integration with transaction management and many other products designed to make agents more efficient and productive.

• RE/MAX delivers over 1 million fee-free leads directly to agents each year. It has delivered over 18 million leads over the years.

• It partners with its agents to help them be more productive and doesn’t charge them referral fees on the leads it sends them.

• com is the most visited real estate franchise website and among the nation’s 10 most popular real estate sites.

• The company has tools to help agents close more sales in less time. It offers free automated marketing packages for every listing; free strategic Adwerx placements for new listings; agent-to-agent referrals with no interference or fees; automated content for agents’ social media channels. It looks for ways to provide automated services that help agents save time and money.

Training/coaching

• RE/MAX University offers on-demand access to industry information and advanced training.

• It offers over 1,000 training videos and 70-plus designations and certifications.

• It has a holistic approach that involves one-on-one consulting on the front-end, action-driven accountability on the backend, with customized and personalized development in the middle.

• It partners with top industry coaches on training and coaching.

• Annual gatherings, such as R4 and the Broker Owner Conference, provide a wide range of training options, along with networking opportunities.

Culture

• Agents are entrepreneurial and independent. RE/MAX likes to say that agents don’t work for RE/MAX – RE/MAX works for them.

• It supports a dynamic culture of productivity. Offices are environments where agents achieve at their highest levels. RE/MAX embraces education and professional development to constantly improve. Its culture has a big focus on getting better every day.

• RE/MAX agents are active leaders in the industry (Examples: NAR President Elizabeth Mendenhall and NAHREP President Daisey Lopez-Cid).

• RE/MAX agents are also givers. They donate millions of dollars and help millions of kids each year through Children’s Miracle Network Hospitals.

COLDWELL BANKER

Core model

• Founded in San Francisco in 1906, Coldwell Banker is the original real estate brand. It has 92,000 affiliated agents in 47 countries. Its U.S. agents handle over 700,000 annual transaction sides for a total of over $200 billion in annual sales.

• It has a domestic and international luxury presence (Coldwell Banker Global Luxury), state-of-the-art technology, and a culture of excellence.

• It has a seller-focused model. In addition, agents and brokers have access to Realogy’s vast resources.

• The brand supports both agents and teams. The brand delivers global referrals, national advertising campaigns, tech products designed to benefit agents and brokers, and a culture of inclusion.

Technology/tool

• Coldwell Banker was one of the first real estate brands to harness the power of big data with its CBx Technology Suite. This agent-centric suite of products uses predictive analytics and machine learning to help agents close more deals. It has three products, each serving a different core function of an agent’s business. It offers CBx Seller Leads, CBx Listing Experience, and CBx Buyer Locator.

• The brand was among the first on YouTube (the brand’s videos have now received over 140 million views), among the first to host virtual reality open houses, and the first to offer a Smart Home certification.

• In total, Coldwell Banker digital platforms receive nearly 70 million annual visitors and drive close to 700,000 leads to affiliated companies, offices, and agents.

Training/coaching

• Coldwell Banker University helps agents reach higher productivity by tapping the expertise of top performers throughout the brand who develop current and actionable best practices.

• Coldwell Banker offers customized coaching and individual strategic guidance from managers who’ve succeeded before.

• It offers education in the classroom and online, on-demand. It also offers certifications in specialties including Luxury and Smart Home.

Culture

• Coldwell Banker strives to create a supportive, inclusive culture. From A-List concerts at the Generation Blue Experience to the Coldwell Banker Homes for Dogs Project, the Gen Blue network is proud to bleed blue.

• Since 2015 the Coldwell Banker network has partnered with Adopt-a-Pet.com to place more than 20,000 shelter dogs in adopted homes through local events and the annual Homes for Dogs Project.

• Coldwell Banker has also pledged to foster a culture of inclusivity and support diverse leaders. In 2018, the brand was honored as a Women’s Choice Award recipient, recognizing it as a brand women trust.

• Its annual Generation Blue Experience, called “Gen Blue,” takes place from Miami to Los Angeles and offers attendees dynamic speakers, networking, learning, and entertainment. Top producers and culture leaders receive awards.

CENTURY 21

Core model

• The company, which was founded in 1972, executed a well-received rebrand in 2018. It has 8,000 franchise offices in 80 Countries, and 118,000 affiliate associates.

• It does national advertising, TV, and digital press. It also has a partnership with ESPN.

Technology/tools

• Century 21 has the largest Facebook and Twitter following among national real estate franchise companies.

• The brand has partnerships with Google AdWords, and Videolicious and provides social content for brokers and agents through its C21 Social for Business platform.

• The franchisor offers agents and broker franchisees its brand Business Builder, a fully-integrated CRM system with over 500 specially designed templates. Templates include greeting cards, newsletters, postcards, recruiting materials, and drip campaigns in both English and Spanish, for no fee.

• Its AdMaker platform allows franchisees to develop print, online, radio, and television advertising. It also offers a proprietary, direct mail referral program called Preferred Client Club.

• The company has C21-branded magazines, calendars, home guides and greeting cards.

• Its social media and public relations studio creates engaging, ready-to-use content for franchisees and their agents.

Training/coaching

• Century 21 University offers programs designed to transform agents’ skills, knowledge, and habits through multiple formats including video, live online and classroom classes, social network groups, self-paced courses, hands-on technology labs, and more.

• It offers webinars covering a variety of topics, each averaging 60 minutes in length. The brand also gives brokers and agents group and individual coaching.

• It provides broker and sales-management courses, continuing education accredited courses, and niche market and commercial courses and webinars.

Culture

• Century 21 provides franchisees with a dedicated support team. The team ensures franchisees and agents have access to all of the brand’s resources and knowledge.

• Franchisees are assigned a Century 21 Brand Ambassador who helps them meet their business goals. These may include recruiting, market-share and revenue-growth goals, and implementation of Century 21 systems, tools, and learning programs.

• It also offers specialized support teams who work directly with franchisees and their C21 brand ambassador to focus on key aspects of their business. These specialized teams provide in-depth consultation on strategic growth, business planning, data analytics, and optimizing technology platforms.

COMPASS

Core model

• Compass combines the creative energy, and immense capital, of a startup with the sophistication of a luxury brand. It is building an operating system for real estate, aiming to empower agents with innovative digital tools and customized marketing strategies.

• It wants to help agents focus only on spending more time building relationships with clients, not on other aspects that can crowd agents’ days.

Technology/tools

• Compass offers Compass Collections, a curated visual workspace that allows agents and clients to collaborate in real-time on home searches. Consumers can easily organize homes, centralize discussions and monitor the market by receiving immediate status and price updates.

• The firm also has Compass Insights, a personalized dashboard that contains all the key data points agents need to design a marketing strategy built on audience and traffic information, uncover new lead-generation opportunities and invest smartly in marketing their listings.

• It offers agents access to a marketing center featuring a digital design studio with a library of designs that help them quickly create customize print and social ads.

• Its Compass Markets mobile app gives agents and their clients access to real-time real estate data including active listings and historic sales at their fingertips.

Training/coaching

• Compass’ agent onboarding service sets up agents with email accounts, syncs their contact and creates their agent pages. Compass also offers agents personalized concierge and in-office IT assistance. It also hires assistants for agents through its agent assistant program.

• It hosts national networking events ranging from in-office seminars to cross-country referral events.

Culture

• The company has eight core principles:

  • Dream big

  • Move fast

  • Be solutions-driven

  • Obsess about opportunity

  • Collaborate without ego

  • Maximize your strengths

  • Bounce back with passion

REDFIN

Core model

• Redfin is a technology-powered residential real estate brokerage with a presence in over 80 U.S. markets. Its mission is to redefine real estate in the consumer’s favor.

• Agents are salaried employees and paired with Redfin-built technology designed to be faster, better, and less expensive for agents and consumers alike.

• It charges sellers a full-service listing fee of from 1 to 1.5 percent, depending on the market.

• Agents are compensated, in part, for customer satisfaction.

Technology/tools

• Redfin is a technology-powered residential real estate brokerage with a presence in over 80 U.S. markets. Its mission is to redefine real estate in the consumer’s favor.

• Agents are salaried employees and paired with Redfin-built technology designed to be faster, better, and less expensive for agents and consumers alike.

• It charges sellers a full-service listing fee of from 1 to 1.5 percent, depending on the market.

• Agents are compensated, in part, for customer satisfaction.

Training/coaching

• Redfin offers agents comprehensive onboarding training and ongoing career development.

• It spends about $20,000 per agent per year on agent benefits and other expenses, including comprehensive health care, paid vacation and parental leave, payroll taxes, licensing, dues and fees, continuing education, mileage reimbursement, laptops and printers and mobile service.

Culture

• Redfin offers agents comprehensive onboarding training and ongoing career development.

• It spends about $20,000 per agent per year on agent benefits and other expenses, including comprehensive health care, paid vacation and parental leave, payroll taxes, licensing, dues and fees, continuing education, mileage reimbursement, laptops and printers, and mobile service.

BERKSHIRE HATHAWAY HOMESERVICES

Core model

• Berkshire Hathaway HomeServices aims to be the most recognized and highest respected homeownership services brand in the U.S. and worldwide.

• Its mission is to provide services and support that significantly increase the growth and profitability of affiliates and agents in its network.

Technology/tools

• Its tech tools include national and franchisee websites, lead management, CRM, extranet, and a marketing platform. Mobile capabilities include expanded property search tools and lead-management capabilities for agents. Social media services include the ability to manage multiple accounts from a single platform.

• It offers agents Marketing REsource, a branded and editable marketing tool they can use to create digital cards, flyers, postcards, and track metrics and engagement.

• It offers agents listing templates prepopulated with content from the MLS and has an integration with XpressDocs so agents can print and mail postcards, flyers and more on-demand.

• Its national consumer website drives online leads to its network of brokerages and agents.

Training/coaching

• The franchisor’s online and virtual training center, LearnCenter REsource, offers courses that support agents’ professional growth and business goals through best-practices training and education.

• It offers web-based training, recorded sessions, training videos, and downloadable resources designed to meet the needs of both newbie agents and productive vets.

Culture

• The Berkshire Hathaway brand carries a consumer promise of integrity, professionalism, innovation, and high standards that all network members enjoy.

• It has a partnership with The Sunshine Kids, a nonprofit committed to bringing sunshine to young cancer patients’ lives by providing positive group activities and emotional support.

BETTER HOMES AND GARDENS REAL ESTATE

Core model

• Better Homes and Gardens Real Estate is a Realogy brand. It offers a full-service brand and business model to brokerages with a complete infrastructure for operations, servicing, business planning, multi-channel marketing, and branding.

• It has a big focus on lifestyle branding through the brand name’s parent company Meredith Corporation and its Better Homes and Gardens magazine, both in print and online.

Technology/tools

• As a Realogy brand, it has access to Zap, a lead generation and incubation platform that helps agents prioritize their contacts and leads and manage their digital and social reputations. It offers print and digital marketing suites, document libraries, approved suppliers, access to BHGRE training center Be Better University, and listing distribution.

Training/coaching

• Be Better University is the brand’s one-stop destination for learning resources. It offers live and virtual classes, in addition to self-paced learning options.

• Training focuses on three areas: professional development, tools, and technology.

Culture

BHGRE strives to be recognized as a collaborative, values-driven company.

Its brand culture centers on the PAIGE value set:

• Passion

• Authenticity

• Inclusion

• Growth

• Excellence

ERA

Core model

• ERA Real Estate’s model is global, flexible, community-oriented, and broker-first. It is in 47 U.S. states and 31 countries.

• ERA’s primary focus is ensuring brokers and agents have the best tools and resources to make buying and selling homes as simple and straightforward as possible.

• One size does not fit all at ERA. Its offerings and economics are designed to help brokers build and grow in the ways best suited for them.

Technology/tools

• ERA was founded in 1971 with the vision of utilizing the latest technology – then a fax machine – to provide the highest quality service.

• ERA claims to be the only national company that offers the Sellers Security Plan program and is piloting an iBuyer-like option for sellers with ERA Express Sell.

• It offers a virtual staging tool that allows consumers to design, decorate and furnish a prospective home.

• ERA agents have access to the Zap platform, which uses predictive analytics to help agents find more clients and close more deals.

Training/coaching

• ERA provides training for agents and brokers. Its significant investments in recruitment, training and continuing professional development to promote agent retention, productivity, and achievement.

• It offers brokerage owners in its network a 46-week executive education program designed to prepare them for success.

Culture

• Built-in social platforms allow all ERA agents and brokers around the globe to share knowledge and build relationships across offices.

• ERA embraces its global family with community events and fun branded gear from T-shirts to Converse’s Chuck Taylor.

EXP REALTY

Core model

• EXp Realty has a cloud-based model where agents can earn stakes in the company and share in revenues. It has over 12,000 real estate agents across North America.

• It has no brick-and-mortar offices, no desk fees, no royalty fees and no franchise fees. Agents start on an 80-20 commission split with a low cap.

Technology/tools

• EXp agents meet colleagues, share tips, attend classes and build strategies in an immersive cloud-brokerage environment.

• EXp offers digital transactions and access to instant access to training and support.

Training/coaching

• The company offers agents more than 15 hours of live training every week. It offers virtual training on a variety of subjects including sales and listings, lead generation, social media, CRM and database management and digital transactions.

Culture

• EXp Realty agents can work from anywhere and anytime on the company’s digital platform.

• EXp Realty is working with nonprofit New Story to transform slums and areas in disrepair in Haiti, Bolivia, and El Salvador into thriving communities.

ENGEL & VÖLKERS

Core model

• Engel & Völkers is a service-centric real estate franchise model. The privately-owned Engel & Völkers franchise was started by Christian Völkers in Hamburg, Germany in 1977 — he is still the brand’s global CEO.

• With its U.S. headquarters in Manhattan, Engel & Völkers began its focus on western hemisphere expansion in 2014. It draws on its European history to deliver a fresh approach to luxury real estate through a bespoke, white-glove concierge client experience at every stage of the real estate process.

• Engel & Völkers has a global network of over 10,000 real estate agents in more than 30 countries.

Technology/tools

• While the brand has a focus on technology, its leadership says it will always be a real estate company no matter the technological advances it makes.

• Engel & Völkers equips its agents with online global exposure through its EDGE platform, a referral network of over 900 portals.

• It offers its brokerages virtual-reality tools to serve its clients.

• Every company office and agent receives its own mobile app and integrated website, in addition to a full suite of support platforms.

Training/coaching

• Engel & Völkers offers training to its brokers and agents through two key programs: the Engel & Völkers Academy and coaching and accountability.

• The Engel & Völkers Academy provides mandatory training and education for every new brand brokerage and agent. It also offers ongoing education through a mix of live and virtual training hosted by brand and third-party subject matter experts.

• The company’s coaching and accountability program provides its broker-owners with optional enrollment for personalized business coaching. More than 80 percent of the network’s brokerages use it. This coaching includes the creation of a five-year business plan and monthly consultations to review profit-and-loss statements, and key performance indicators (KPIs) covering recruiting, inventory, opens, closed business, referrals, and more. It also includes tracking and performance reviews.

Culture

• Engel & Völkers offers training to its brokers and agents through two key programs: the Engel & Völkers Academy and coaching and accountability.

• The Engel & Völkers Academy provides mandatory training and education for every new brand brokerage and agent. It also offers ongoing education through a mix of live and virtual training hosted by brand and third-party subject matter experts.

• The company’s coaching and accountability program provides its broker-owners with optional enrollment for personalized business coaching. More than 80 percent of the network’s brokerages use it. This coaching includes the creation of a five-year business plan and monthly consultations to review profit-and-loss statements, and key performance indicators (KPIs) covering recruiting, inventory, open, closed business, referrals, and more. It also includes tracking and performance reviews.

@PROPERTIES

Core model

• @properties is a full-service brokerage with a proprietary platform of end-to-end marketing, technology, business development and transaction management. The Chicago-based firm has 2,500 agents.

• It operates with little to no debt with an organic growth strategy designed not to burden the company with large fixed expenses.

• It reinvests profits back into the company, in tools and services that benefit agents in areas such as marketing, staff, expansion, advertising and marketing, new technologies, training, coaching, and education.

Technology/tools

• @properties develops and refines its tech suite and marketing resources to help agents run their business better and more efficiently, with a focus on increased production and profitability.

• Its core technologies developed in-house, include a deal-management system, an interactive CMA, a CRM, an email marketing platform, and a listing presentation application with built-in analytics.

Training/coaching

• The company says it was one of the first brokerages in Chicago to offer a full-time, on-site performance coach.

• Its agent-development team consists of more than a half-dozen full-time staff who offer training such as Real Estate 101, The Perfect Listing Presentation, Getting What You’re Worth, and Road To Rolex. The team also provides one-on-one services ranging from integrating @properties’ technology tools to creating and executing an individual business plan.

Culture

• The firm distills its culture down to a single word: love. Love entered the @properties lexicon with an ad campaign, “Love Where You Live,” which morphed into an internal tagline, “Love Where You Work.” This was eventually shortened to just love.

The brokerage has embraced the emotional nature of real estate, understanding that homes are a backdrop for the meaningful people, memories and milestones in our lives.

NEXTHOME

Core model

• Franchisor NextHome charges franchisees either a flat monthly fee of $175 per agent or 6 percent of their gross commission income. Broker-owners can choose the one they prefer and switch up as often as every six months.

• It provides agents in its network with an integrated technology platform with automated systems.

• The company is geared towards smaller real estate brokerages with higher-producing agents. It measures success by the number of transactions each of the agents in its network close and the quality of the consumer experience they provide.

Technology/tools

• NextHome offers an integrated technology platform with single-sign-on functionality where each tool auto-fills data with other tools on the platform.

• Its products and services are included in its fees, so agents pay nothing additional to the brand for them. Its product offering includes national listing syndication, DocuSign, Updater, Spacio, a CRM, an email marketing system, a seller and buyer presentation builder, buyer and seller leads, brokerage and agent website design and hosting, and single-property websites.

Training/coaching

• It offers brokers and agents over 20 hours of recorded trainings and more than 15 live webinars each month.

• NextHome also offers its brokers and agents a monthly four-day live orientation where all its tools, products, and services are introduced and explained in detail.

• Its member services team provides live support from 6:30 a.m. to 5:30 p.m. Pacific Time.

• It plans to launch a coaching platform for agents that will include live-streamed from its training center in Pleasanton, California, in 2019.

Culture

• Collaboration. Standards. Purpose. These define what the brand calls each member, a “NextHomie.”

HOMESMART

Core model

• HomeSmart claims to be the largest agent fee-based, full commission company in the country. It provides agents a full suite of business tools and support to run their businesses.

• It has proprietary technology and business systems that accelerated the firm’s growth. It has over 15,000 agents in 133 offices.

Technology/tools

• Its tech platform includes business management tools and marketing and transaction management software called RealSmart Agent (agent version) and RealSmart Broker (broker version). These systems are designed to minimize redundancies and to make life easier for its agents and brokerages.

Training/coaching

• HomeSmart offers a combination of online and in-person training through HomeSmart University. Its KickStart program is designed to provide real-world training for new licensees.

• SmartAgent provides professional transaction coordination for agents and 24/7 broker support.

Culture

• HomeSmart celebrates individuality while believing its team is stronger together. It aims to support its brokers and agents with a community of like-minded professionals.

EXIT REALTY CORP INTERNATIONAL

Core model

• EXIT Realty believes that strengthening each agent makes the team more productive and successful.

• It helps its agents build their own businesses, supported by passive and residual income to support retirement security, a standout feature of the model.

• Its residual structure involves the following:

  • 10 percent sponsoring residuals

  • 7 percent retirement residuals

  • 5 percent beneficiary residuals

• Through mid-2018, EXIT Realty has paid out more than $333 million dollars in residual income to its agents in the U.S. and Canada.

Technology/tools

• EXIT Realty has a comprehensive company intranet. It offers agents a marketing suite, mobile business cards, a back-office accounting system, and more.

• EXIT’s marketing tool contains a CRM, newsletters, campaigns, flyers, and more. EXIT Realty’s tools are designed to help its agents focus on selling real estate.

Training/coaching

• It offers on-demand and in-person training taught by some of the industry’s leading top producers who work exclusively for EXIT.

• It has programs to help agents get past the inhibitions and anxieties that tend to hamper production. Its coaching system includes negotiation and strategic planning for agents at all stages of their careers.

Culture

• Because EXIT Realty is a by-invitation-only company, EXIT agents tend to come into the company aligned with the helpful, supportive culture it strives to foster.

• EXIT Realty applies a portion of every transaction fee it receives to its charitable fund. Agents can raise money for local, approved, registered charities through the EXIT dollar-for-dollar matching program in which EXIT matches funds its agents raise.

PURPLEBRICKS

Core model

• Purplebricks offers the sellers full service for a flat listing fee of $3,600. It gives buyers a rebate of $1,000 they can use toward closing costs.

• Founded in 2014 by two experienced real estate agents in the U.K., Purplebricks has seen explosive growth. It became the U.K.’s largest real estate brokerage in just three years and is growing fast in Australia since launching there in 2016. It launched in the U.S. in late 2017.

• Its hybrid model combines end-to-end customer-facing technology with licensed, professional real estate agents it calls “Local Real Estate Experts.” It aims to make the process of selling and buying homes more convenient, transparent, and cost-effective for consumers.

Technology/tools

• Purplebricks’ app and website allow consumers to arrange showings, make offers, negotiate and agree to sales 24/7.

• All its listings receive professional photography, and an immersive 3-D virtual tour for web and mobile and are syndicated to popular real estate sites such as Zillow, Trulia, and realtor.com, in addition to the local MLS. It also includes yard signs, photobooks, social media marketing, and more.

Training/coaching

• The Purplebricks Academy provides agents training, support, and guidance across all areas of real estate.

Culture

• Purplebricks is built for self-motivated real estate agents who like to work independently, but have access to 24/7 support. It aims to stoke enthusiasm for being part of a new model with lots of energy and money behind it.