As the Managing Director of One Agency I talk to a lot of real estate agents who are unhappy in their current situation.
Many are considering taking the leap into starting their own agency and the biggest hurdle in making that decision is often fear.
An acronym I like for FEAR is False Evidence Appearing Real. You may be sick of working for a principal who retains more than 50% of your hard earned commission, or you may be a principal who is sick of feeding the ever hungry franchise head office with your hard earned profits. What’s stopping you from taking control of your financial future?
If you are fearful of opening your own business or moving out from the constraints of a traditional franchise, it would be productive to identify what the specific items are, that make you feel that way.
You need to analyse each of those fears and determine if they are ‘real’ or not.
Fear is a paralysing emotion and generally doesn’t achieve anything much positive. That is of course unless it’s fear your personal safety, such as crossing a busy road, which is to be respected. However for the most part, when we look back at what we were once fearful of we often find that we have usually moved on and it no longer applies. This is what typically happens if you plan to open a business, you feel the fear and then do it anyway, then wonder what it was you were fearful about in the first place! The perceived fear is ALWAYS greater than the actual situation, in other words, it’s never as bad as you think.
So let’s talk specifics. You’d love to have your own business (and who wouldn’t like the freedom AND BENEFITS that brings?) but you are fearful. The first thing you should know is that you are completely normal. Totally and utterly normal.
Whenever we step into unfamiliar territory and take a leap of faith, we don’t know what may occur and therefore it makes sense to have certain amount of fear and trepidation. That’s to be expected and it’s perfectly understandable.
AGENTS THAT JOIN ONE AGENCY, I WOULD SAY HAVE A 95% CHANCE TO BE SUCCESSFUL.
So let’s break it down and take a look at what you may be concerned about.
Q. Are you first person to have ever opened a business?
A. Well of course not, so that means it can be done.
Q. Are you unsure what to do?
A. Yes and that’s totally natural because you’ve not done some parts before. However, there is abundant information and assistance out there. So whatever it is that you’re unclear about, the information, guidance or support is always available.
Q. What’s the most important factor to be successful?
A. Listing and selling property. If you can do that, the rest is no big deal and can be learnt.
Q. What if I run out of money?
A. This is what accountant’s and financial planners are for. You need a solid plan with what your costs will be, for say the first 6 months and we like these to be as low as possible, and then underestimate your potential income. I recommend that you estimate half of what you usually write.
Considering that you are now keeping 100% of your fees, if you keep operating costs low as advised, you may be surprised how few deals can make the business operate.
Don’t forget that it’s the individual agent that people choose to list with and NOT the company. So moving from one company to another, or to your own business (in the same marketplace) often means listings continue to come in the same way. In fact our One Agency agents often report an increase in listings as the market place tends to respect and like an individual who is stepping up and ‘having a go’.
Q. What’s the worst thing that can happen to me?
A. This is a good question, and the answer is not as bad as you may think. We are going to presume that you are a proficient agent with good abilities who can list and sell as it would be unwise to proceed on any other basis. So in the highly unlikely event that you don’t list and sell property or simply don’t like being your own boss, then your previous employer would no doubt welcome you back with open arms, as would a competitor.
Let’s face it – if they can make money out of you then you’ll be in demand. So you can go back to where you were. Following our lead on operating costs would mean that you probably will cover most or all of your costs.
Keeping costs low is a critical component to success. Most large real estate groups are eager to have you spend your money, but at One Agency, we are not. Bigger is not necessarily better, we encourage you to keep it lean and mean. This way, when you secure a fee, you get to keep most of it instead of seeing it dwindle away on unnecessary operating costs. For example do you know that about two thirds of our members do not have the cost and burden of a business premises or shop front.
The truth is that if you are established and have ability then you are far more likely to succeed than to fail. AGENTS THAT JOIN ONE AGENCY, I WOULD SAY HAVE A 95% CHANCE TO BE SUCCESSFUL. With all the information out there (including our One Agency model) to assist you, there has never been an easier or better time to make the step.
If you can make money for your boss, then why can’t you make money for yourself? At the same time, you’ll gain some security, FREEDOM, improve your self-esteem, increase your income, BUILD AN ASSET and have the enormous pleasure related to self-achievement and running your own race.
Why not talk to some of the people who already do this? You can hear their stories here or call them up for a conversation to get a good sense of the rewards that await you.
What do you have to lose? If you’re anything like me, you may surprise yourself!
Paul Davies
Founder & CEO One Agency
At One Agency we are always open for a conversation, so if you have anything to say in response or have any questions, please contact us.
T 1300 79 23 88
T +61 2 8039 2110 (International)
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