Whether you’re looking to pad your retirement income or want to fast-track your path to financial freedom, operating a real estate franchise is one effective way to achieve your career goals. But to develop a successful business in the industry, there are a few essential moving parts you’ll need to prepare before you bring in steady revenue. If you’re curious about becoming an entrepreneur in this growing market, here’s how to put together a solid team.
4 Steps to Creating a Successful Real Estate Franchise
1. Fine-Tune Financials
To estimate how much cash it will take to keep the franchise running strong, research the average amount a firm will have to pay per real estate transaction along with other operational expenses—such as office space rental, equipment, fees, and marketing.
Develop a sales strategy that will allow you to cover these expenses with approximately 15% of the total income. Since sales need time to ramp up, it’s smart to have a cash reserve built up to cover expenses for at least the first six months.
2. Jumpstart Action Plans
Mapping out aspects of your business ahead of time will help both you and your team know what steps to follow once things get busy. Some standard elements to prepare include business plans, marketing strategies, lead generation options, and referral system specifics. Once you’ve outlined these plans, put them into motion one step at a time and make sure they continue progressing forward.
3. Choose a Commission-Split System
You want the best agents in the region, and commissions are how you will ultimately get them. How your franchise handles commissions will play an important role in attracting skilled real estate agents and building a better bottom line. Spend some time crunching the numbers with different structures—such as 50/50 or 60/40 splits. In many cases, new agencies will prefer to start with a graduated system in which commission splits periodically increase as your team achieves specific goals. To keep your agents motivated, consider working toward a 100% commission structure.
4. Staff Strategically
Apart from agents, there are many support roles you may need to fill—such as those that address reception, office management, marketing, and finance duties. To determine what’s right for you, make a list of all the routine tasks your team will accomplish and then assign these duties to specific roles. Start by hiring those that can meet your most immediate needs first and then start building your agent roster.
When choosing agents, don’t rush. Decide on an interview and hiring process, and let your optimism show when it comes to your franchise’s future success and each agent’s role in it. Remember to place some emphasis on selecting a buyer’s agent, an inside sales agent, and a listing agent.
Finding the right real estate franchise opportunity is easy when you turn to EXIT Strategy Realty of EXIT Realty Upper Midwest. Having established a recognizable brand throughout Iowa, South Dakota, North Dakota, Minnesota, Wisconsin, and Illinois, this rapidly expanding firm is primed to help both new and experienced agents maximize their potential. Focused on building success for every employee, this industry leader will walk you through all the ins and outs of the industry and strategic residual income growth. To learn more about their franchise opportunities and unique resources, visit this firm online or call the Lakeville, MN, office at (651) 505-3570.