The Agent-Centric Era Ends

Unlike brokers, the majority of agents do not have the same level of financial investment in the industry. Many agents have been unable and/or unwilling to effect the changes the brokers need to build effective and profitable businesses. It remains a numbers game and brokers frequently don’t make decisions that are in the best interests of the brokerage, they make decisions to appease their top-producing agents. With the growing impact of technology, consumers are now wielding newfound power and imposing increased demands on the brokers through their agents, which further complicates the existing model and favors change.

As real estate brokerage companies and franchise organizations continue to consolidate and expand in size, head count, and profitability, the obvious need for increased standardization of best practices and the implementation of best systems has become critical. Going forward in the evolution of the brokerage business, there is danger in failing to address the legacy of fragmentation that was brought about in large part by agent-centricity, which has become a multilevel handicap to the brokerage business and the ability of brokers to adapt and move forward. To realign from an agent-centric model, significant time and money will need to be invested in realigning company assets to ensure