Real Estate Brokerages Start Using Network Marketing Principles Part 3

February 10, 2010

“They fill in the gaps between closings and provide you with abundant cash flow streams heretofore unavailable in real estate and you become totally recession proof as a result.  The broker of your office benefits also because everyone in the entire system in North America has a vested interest in the growth of his or her office.”

Adopting this sponsoring type of system could bring dramatic results for any real estate brokerage.  It already appears to be doing that for many of EXIT’s reps.  The ad provides a list of over 100 sales reps who are making at least $100,000 per year in residual income (aside from their normal commissions).

When I thought about it, it makes a great deal of sense that a real estate brokerage’s sales reps should be pushing the business opportunity (IE signing up new reps) as well as pushing product (IE homes).  Sales reps are out there regularly meeting both prospects for product (home buyers and sellers) and great prospects for the business opportunity (reps from other companies).  So they should be financially motivated to be recruiting new reps, and who better than ones who are already in the same business and doing that exact job?  The great thing is these people are their peers.  They’re out there doing the same job and working for a broker.  So who would know better the day to day realities of working at that particular brokerage than they do?  They will get a truer version of that reality than from the broker/manager types who are doing more coaching today than working directly in the field.

In Ontario, fewer and fewer new real estate are being started these days.  Why?  The reason is the broker of record takes on so much risk of incurring fines for mistakes or fraud committed by their sales reps.  It’s simply much easier to join an existing brokerage rather than start a new one.  Even if you’re a top producing rep and have people working for you, it’s still preferable for most to do this within someone else’s brokerage.  A sponsorship type system encourages reps to start their own office and become a broker of record because they can be making money from multiple tiers of people within their company, or what’s known as a downline in multi-level marketing.

Filed under: Marketing Tips,Networking Tips

Tags: affiliates, branding, broker, broker of record, direct sales, downline, marketing, MLM, multi level marketing, network marketing, pyramid scheme, recruiting, sponsor, upline