PROView - November 2008 - (Page 18) (Brokerage Design, from page 10) Today’s business investor is not interested in the opportunities they might have harvested to make brokers financially successful in the old era. They are interested in just one thing – profitability. For the investor, profitability is tangibly recognized as a return on their investment. For them there is just one question; can a freestanding real estate brokerage generate a market level return on investment. Moving forward into 2009/2010, there is simply nothing that is more important to our industry than creating a brokerage business model that can generate market level profitability. Those that might find this a bit harsh would do well to consider the fate of industries that fail to generate appropriate levels of profit in a free enterprise system. Simply put, business functions that fail to generate profit in a freestanding environment are incorporated into another industry or business format as amenities or “peripherals”. A strong argument can be made for the concept that there will always be a business opportunity for marketing real estate. However, there is no substance to the argument that such an opportunity has to be freestanding or independent. In the case of real estate, there may be a number of other industries that could “adopt” the real estate marketing function. Banks, credit unions, Home Depot, Lowe’s, Wal-Mart, e-Bay and Amazon.com are but a few. Some industry pundits will passionately argue that the American real estate consumer would not tolerate such an arrangement. The reality is quite the opposite. For each of the entities listed above there are thousands of former financial service, plumbing shop, lumber yard, hardware store, grocery story, drug store and other former business owners who all said that “their customers” would never abandon them for, what has become, a more consistent, accountable, predictable, and reliable business experience. The lesson to be learned here is simple. Beginning now, the profitability of the real estate brokerage with which they are affiliated, is the responsibility and job number one for every executive, manager and agent. Unless we can work together to create a profitable business configuration, we all face alternatives that will be much less attractive than those currently being experienced. All of which takes us back to the beginning of this column. Profitability is the basis of the new competitiveness within our industry. As we prepare for the new market realities of 2009/2010, it is time to cease the endless conflicts between brokers and agents, and the instability that they cause, in favor of a higher level of consciousness, awareness and, frankly, self interest. It is quite possible that over the next few years the essence of competitiveness in this industry will have nothing to do with what firm the consumer chooses. It may have every thing to do with what firm the investor chooses. Those who choose to dismiss these ideas would do well to visit one of the alternatives listed above in the near future. It is not an inspiring sight and it would not be a satisfying experience. Perhaps a more compelling parallel can be drawn from the words of John F. Kennedy: Ask not what your brokerage can do for you, but rather what you can do for your brokerage. 18 PINELLAS REALTOR® ORGANIZATION November 2008 http://www.Amazon.com http://www.realtor.org
Table of Contents Feed for the Digital Edition of PROView - November 2008 PROView - November 2008 Contents Chairman’s Notes Feature Story PROActive Brokerage Design Marketplace Analysis Home Sales Report MLS Update MLS Mind Your Manners 2009 REALTOR® Dues New REALTOR® and Affiliate Members Calendar of Events & Programs PROView - November 2008 PROView - November 2008 - PROView - November 2008 (Page Cover1) PROView - November 2008 - PROView - November 2008 (Page Cover2) PROView - November 2008 - Contents (Page 1) PROView - November 2008 - Chairman’s Notes (Page 2) PROView - November 2008 - Chairman’s Notes (Page 3) PROView - November 2008 - Feature Story (Page 4) PROView - November 2008 - Feature Story (Page 5) PROView - November 2008 - Feature Story (Page 6) PROView - November 2008 - Feature Story (Page 7) PROView - November 2008 - PROActive (Page 8) PROView - November 2008 - PROActive (Page 9) PROView - November 2008 - Brokerage Design (Page 10) PROView - November 2008 - Brokerage Design (Page 11) PROView - November 2008 - Marketplace Analysis (Page 12) PROView - November 2008 - Home Sales Report (Page 13) PROView - November 2008 - MLS Update (Page 14) PROView - November 2008 - MLS Mind Your Manners (Page 15) PROView - November 2008 - 2009 REALTOR® Dues (Page 16) PROView - November 2008 - New REALTOR® and Affiliate Members (Page 17) PROView - November 2008 - New REALTOR® and Affiliate Members (Page 18) PROView - November 2008 - Calendar of Events & Programs (Page 19) PROView - November 2008 - Calendar of Events & Programs (Page 20) PROView - November 2008 - Calendar of Events & Programs (Page 21) PROView - November 2008 - Calendar of Events & Programs (Page Cover3) PROView - November 2008 - Calendar of Events & Programs (Page Cover4)
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