In the ever-evolving landscape of the real estate industry, real estate agents are facing a new set of challenges, particularly in the wake of the recent National Association of Realtors (NAR) lawsuit and the impending changes to agent commissions.
The NAR lawsuit, which accused the organization of anti-competitive practices, has brought to light growing concerns surrounding the traditional commission structure. As the industry braces for potential shifts in commission rates and practices, realtors are finding themselves in a precarious position, with their livelihoods potentially hanging in the balance.
This is where the opportunity to become a franchise owner comes into play. By buying a reputable franchise, real estate agents (and any sales professionals) can insulate themselves from the uncertainties of the changing market while pursuing an investment that will allow them to leverage their already robust skill set and the incredible resources and support that a franchise system can provide, all while keeping their career as a real estate agent.
Here’s why realtors (and really, salespeople in general) are well-positioned to be successful franchise owners.
1) Realtors have a strong understanding of customer needs. Sales skills often involve listening to customers, understanding their needs, and offering solutions. As a franchise owner, this skill set is crucial in providing excellent customer service and tailoring products or services to meet the demands of the local market.
2) Realtors typically excel at driving revenue. Strong sales abilities can help franchise owners drive revenue by effectively promoting products or services, upselling, and maximizing sales opportunities. This can lead to increased profitability and faster business growth.
3) Realtors are highly skilled at building business relationships. Sales professionals excel at building relationships with clients and customers. As a franchise owner, fostering strong relationships with customers, employees, suppliers, and the franchisor is essential for long-term success and brand loyalty.
4) Realtors can flex keen negotiation skills. Negotiation is a key aspect of sales, and franchise owners often need to negotiate terms with suppliers, landlords, and other business partners. Strong negotiation skills can help franchise owners secure favorable deals and agreements.
5) Realtors are often quite practiced at marketing and promotion. Sales expertise often includes a good understanding of marketing strategies, customer acquisition, and promotional tactics. Franchise owners can leverage these skills to effectively market their business, attract customers, and drive brand awareness.
6) Realtors often have sharp problem-solving abilities on the fly. Sales professionals are adept at identifying challenges and finding creative solutions to overcome them. In the franchise business, unforeseen issues may arise, and the ability to think on your feet and problem-solve quickly can be invaluable.
7) Realtors possess a results-driven mindset. Sales professionals are typically results-oriented and focused on achieving targets. This mindset can be beneficial for franchise owners in setting and achieving business goals, monitoring performance metrics, and driving overall success.
The skills and mindset cultivated through real estate sales experience can be highly advantageous for franchise business owners, helping them drive revenue, build relationships, navigate challenges, and ultimately succeed in the competitive franchising industry.
These skills are great, but why leverage them to explore a franchise business? A key advantage of becoming a franchise owner is the access to an already well-established brand and the supportive marketing and administration infrastructure already in place and proven. Franchises often have a strong national or regional presence, along with robust advertising and lead generation campaigns. This brand recognition can be a game-changing head start for new franchisees.
Franchises also usually offer comprehensive training and ongoing support, equipping new franchisees with the tools and knowledge they need to navigate the complexities of a new business. This can be particularly valuable while real estate agents learn a new industry while keeping their job and status in the real estate industry.
That’s right – a real estate agent can invest in a franchise while keeping their current real estate career. Many franchises offer what is called “passive” or “semi-passive” operations. This means after an initial onboarding period; the new franchisee can set their business up to run with or without their daily participation. This makes adding a franchise to a realtor’s repertoire a very attractive opportunity.
Investing in a franchise business can provide a level of stability and predictability for a new franchisee in a new industry. Agents can benefit from a streamlined operational framework, with systems and processes in place to ensure efficiency and consistency across the network, while still maintaining their real estate business.
As the real estate industry continues to evolve, real estate agents who are proactive in exploring supplemental franchise opportunities may be better positioned to weather the storm and thrive in the years to come.
We invite you to explore all the franchises in our growing Find a Franchise Database. You can sort them by operations (passive, or semi-passive) if you prefer.
In our experience, these franchises are great options for real estate agents, insurance agents, and other sales professionals looking to supplement their careers.
