The Perils of Switching Companies

I frequently get calls from my students asking advice on switching brands. I want to approach this topic not from a company’s point of view, but from an agent’s point of view.

In a previous life I worked as a recruiter. I interviewed hundreds of agents trying to convince them to switch companies. I want to share my experience to help you navigate making this tough decision.

Agents often believe the grass is greener on the other side. Sometimes it is, but most of the time it’s not. They often consider a move for the wrong reasons. The problems they are trying to fix don’t go away just by switching companies. In the move, they disrupt their business and the greener pasture they were looking for doesn’t materialize.

Here are the most common reasons why agents consider switching companies:

#1 REASON – COMMISSION SPLIT

Most agents consider switching companies to get a better split, but they don’t do enough research to compare all the costs associated with the new firm. They may get a better up-front split, but they don’t consider the hidden fees. In life, you get what you pay for. If you pay less, you should expect less.

The question shouldn’t be about splits, it should be about services.

Can you get advice from your manager when you need it? Their advice can make the difference between closing a big deal or having it blow up. What marketing does the company do to promote your listings and generate buyer opportunities? Again, we often lose sight of how we are getting business. What company tools do you get? Have you even explored all the tools you have available to you right now? You might be thinking: “I’m successful, I do everything myself and I don’t need the company tools.” My answer to that is: “You may be successful now, but that success was achieved at your company. There is a lot of things the company does to create the right environment for you to succeed. Don’t be so arrogant as to think you did this all on your own.” Even if you sell a lot of real estate, you must remember that a lot of your inventory is being sold by agents in your office. What is that worth to you?

#2 REASON – BOOST IN PRODUCTION

Agents who go through a slump in their business consider moving because they think that by switching companies, they will get a fresh start and miraculously their business will improve. The problem isn’t with the company, it’s with the agent. They stopped prospecting a while ago and now they are feeling the results. Managers at competing brands will try to woo you by recognizing that your production is down (they know your numbers) and telling you that a new environment is all you need to boost your business. That’s not true. What you need to do is start prospecting again.

#3 REASON – BETTER TECHNOLOGY

Some companies will try to seduce you with flashy new technology. There are companies coming into the market who actually claim to be technology companies that sell real estate. It’s a good sales pitch. Agents are always looking for that next shiny thing that will get them more business. The truth is, technology is just another tool in your toolkit. It will not magically make you more successful. Once you get past the sizzle of the sales pitch, dig deep to find out about the services the company offers beyond the technology. Long-term success in real estate is based on substance, not flash.

#4 REASON – THEY WILL GIVE ME LEADS

Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime. Don’t choose a company because they can give you leads. Choose a company because they can train and support you to be a great salesperson. Don’t depend on others to feed you leads, learn how to do it yourself. Prospect your own business and become truly independent. That’s when you’ve found the sweet spot in the business.

#5 REASON – BETTER CULTURE

Some agents tell me that they are considering a move because they don’t get along with the people in their office. EQ (your ability to emotionally connect with others) is a requirement in sales. If you have a problem with your manager, sit down and work it out. Be honest and authentic. If you don’t like the environment in your office, do something about it. Make a positive contribution. Show up every day with a positive attitude and others will be drawn to you. More people will want to collaborate and share information and you’ll sell more houses.

Chris Leader
President
Leader’s Edge Training