Buying a Name

Buying a Name

Some real estate agency owners believe you need a big name to survive in the marketplace but this is not necessarily so. In the 25 years that I have been operating as a real estate profit consultant, I have seen franchised offices, marketing group offices and independent offices go broke. I have also seen many thrive, trading successfully for decades.

What makes the difference between success and failure? Is it the name? No. Clearly not. The difference between going broke and profiting over the long term is the calibre of the person who owns the business. All successful businesses need competent leadership. What a competent business leader choose to call their businesses makes little difference.

What’s in a name? In my opinion, very little.

When you join a marketing group or a franchise, you are buying a name. This is a name you do not own and over which you have no control.

The big problem with buying a name is that there are so many available, and they all claim to be better than each other. There are so many that they have all lost their uniqueness in the market place.

Can you really see much difference between any of these so-called big brands? All claim to be different, bigger, offering better branding, but honestly, what does one offer that another doesn’t? Whether marketing group or independent, I personally do not see much difference between one and another.

Is being part of a large group really that important to your typical real estate home seller or buyer? I don’t think so. Buyers will go where the listings are. Home sellers will go where the skill is. They will list with the real estate agent whom they feel will get them the highest price. Skill is far more important than the name you choose to put over your door.

Profit is a good indicator of skill. It takes management and leadership skill to earn high profits from a real estate sales department. Interestingly, however, franchises and marketing groups do not use the profits of large numbers of their business owners as a way of attracting new members. They talk about turnover, the power of the brand, the systems, the marketing, etc, but never the profits their franchisees earn.

Groups who sell their names want as many offices as possible – the more offices they have, the more money they make. Over the years I have heard agency owners complain that their networks have allowed another office to open in a neighbouring suburb. These principals have complained that often they lost business to the new agency because clients thought they were listing with the established agency.

This can be a problem whenever you buy a name. If you are successful, others nearby may want the name, thinking that is why you have been so successful. Essentially, you have helped sell the name to your opposition, and the opposition benefits from your work. And when two offices in neighbouring service areas have the same name, how can clients tell you apart?

So, what is the best option for your business?

  • Should you join, or stay in, a real estate franchise?
  • Should you join, or stay in, a real estate marketing group?
  • Should you be an independent real estate agency?

The option you choose can greatly affect your profit, and it can affect the long-term saleability of your business.

The decision is yours, but if you would like more to think about, visit //pittard.com.au/free-real-estate-agency-resources-and-tools?why_join_franchise and listen to the free podcast.

And, if you do decide to ‘go independent’, you will find a manual and podcast entitled How To Rebrand Your Agency.

All are free. Please share them around and do let me know your thoughts.

Gary Pittard
Recent Articles

Financial Foundations

In my experience as a real estate agency profit consultant, I've seen many real estate businesses in grave financial trouble, and many spend thems...

Cut To The Chase

Have you ever noticed how some people say five sentences when a 'Yes' or 'No' would have sufficed? Some people speak a lot but say little. Real esta...

Loving What You Do

Some people say you must love your work. I agree that this is desirable, but it's not always realistic. Pursuing this ideal could cost you a ...

Faking Happiness

Written and video reviews are essential. To quote one winning salesperson: "These days, clients go online and do research on you. At the listing pre...

There's No Marking Time

Of all sayings, I despise this the most: "If it ain't broke, don't fix it". I have heard people use this phrase as justification for n...

Money In The Bank

What most real estate agents refer to as 'Marketing' is really nothing more than 'Advertising'. Advertising is just one small component of the large...

Free Shots

Some years ago, I presented a Field Challenges workshop in Perth. Participants submitted for discussion challenges they were facing in the field. ...

Problem Stacking

"Every task is accomplished piece by piece, and every problem is solved one by one. 'Problem Stacking' is a sure way to get nothing done", says re...

Profit Systems

In the eighties, management expert Michael Gerber coined a phrase that became popular across the world: "Work on your business, not in you...

Whose Bright Idea Is This?

It is no secret that far too many business people, salespeople and leaders, hold training in low regard. In this short leadership session, real es...

Why You?

Salespeople spend a lot of time trying to convince sellers how good they are. They talk about the advertising they do, the awards they've won, the res...

Smart Goals Aren't Enough

If you have received even a modicum of real estate training, you know about SMART Goals: specific, measurable, achievable, realistic, and achievab...

Want to reach your profit potential? Contact us now.

Pittard


Suite 71, Level 4
330 Wattle Street

Ultimo NSW 2007
Australia


Mailing Address
PO Box 2045
Strawberry Hills NSW 2012


: (02) 8217 8500
Fax: (02) 9281 4198
AUS Free call: 1800 663 600
NZ Free call: 0800 448 065
International: +61 2 8217 8500

: info@pittard.com.au

Contact Us