Location has launched a new real estate agency model that will double profit margins for sales agents and improve customer satisfaction levels as a direct result.
“Most people think real estate agents earn a fortune, but the reality is the average sales agent will earn approximately $45,000 per year after giving away the majority of their commission to a franchise or agency group,” said Robert (Managing Founder of location). “So we decided to create a new business model where the agent keeps 100% of their gross commission income and as a direct result customer satisfaction levels will increase because agents will receive a greater incentive to provide a more consistent level of customer service throughout the sale process – as opposed to being solely driven by their next listing opportunity.”
Location is not a franchise or agency group. Location is a new age licensing company that does not require the same reporting, compliance or high costs associated with monopoly franchise and agency groups.
“We provide a business model for successful real estate agents to run their own business under a priceless national brand and professional website without the high costs associated with franchise and agency groups,” said Max McIntosh (Chairman of location Australia).
Below is a list of benefits real estate agents typically receive from a franchise or agency group.
- A brand or name.
- Note: Location is synonymous with real estate. Location trumps made up agency brand names.
- A desk.
- Note: Agents can lease their own office for $550 to $1,300 per month depending on their location and service required.
- A receptionist.
- Note: Agents can hire a professional Australian receptionist for $50-$90 per month. Most calls are made direct to an agents mobile phone number anyway.
- Admin support to load listings, make changes etc.
- Note: Agents can hire an assistant to do this for $100-$200 per listing.
- A trust account to hold buyer deposits.
- Note: Agents can their own trust account for buyer deposits.
- An administrator to do settlements on their behalf.
- Note: Agents can out source this for approximately $100 per settlement.
- Listing enquiries.
- Note: How many listing enquiries does a sales agent actually receive compared to directors? Is it worth it?
- A contact management system.
- Note: Agents can get access to a contact management system for around $200-$400 per month.
Plus services such as:
- RP-Data (Approx. $270 per month)
- APM (Approx. $270 per month)
- Domain.com.au (Approx. $400 per month)
- Realestate.com.au (Approx. $500 per month)
Total services provided by franchise and agency groups is approximately $3900 per month.
Note: Agents are paying approximately $3900 per month in exchange for the majority of their gross commission income for services they could organize themselves.
Does this sound like a good deal for the agent?
“Yes and no,” says Robert. “This is because new agents can learn a lot from franchise and agency groups. But as soon as an agent has done their apprenticeship so to speak and is able to generate enough gross commission income to support themselves it would be wise to look at alternative ways of reducing costs and maximizing profits.”
What is the solution for agents wanting to reduce costs and maximize profits?
“Start your own business,” says Robert.
But the problem with starting your own real estate business is two fold. 1. It’s important for agents to have a premium brand name behind them and the only way to do this in the past has been to join an established franchise or agency group and 2. The cost of a professional real estate website is expensive. For example, it can be anywhere between $30,000 and $300,000 to develop a professional real estate website and in a few years time it will be outdated and need to be re developed again.
Location is a modern day cost effective solution for agents wanting to run their own business with a priceless national brand name behind them and professional website service.
How it works.
- Agents run their own business.
- Agents pay for a license to use the location brand name with their trading name. Eg location Suburb
- Agents use the location.com.au website as their main website. Eg location.com.au/suburb
Agents pay a low monthly and one off establishment fee. And pay ZERO commission fees!
Plus there’s an INCREDIBLE First Movers Advantage available for a limited time.
For further information please contact location here >