This is the time of year when real estate companies work extra hard at recruiting agents. Most real estate agents are independent contractors and the real estate company with the most agents has the most home sales.
Did I say, independent contractor? Yes, I did. That means agents pay their own health insurance and usually pay for signs, office space and lockboxes too. You are going to believe this but in most cases, agents need to find their own business too. You might be wondering why real estate agents join real estate companies. It is because all licensed real estate agents have to work under a licensed real estate broker and that is what all real estate companies provide.
I have been watching one company that is growing like crazy but when I do the math I can see that their agents average about 4 sales a year.
Several of the largest real estate companies in the area are franchises or subsidiaries of huge corporations. Honestly, I am not a fan of huge corporations these days. I would rather be loyal to my clients and agents than to shareholders or a franchiser.
I once made the analogy that to some real estate companies the agents are like backyard chickens. More chickens mean more eggs and they can be housed in a small area. If they stop laying eggs the owner can just get rid of them.
The failure rate among real estate agents is sky-high. Failure is caused by lack of pay because agents do not get paid until there is a successful closing. Some struggle for years before the give up.
The recruiting emails I get tend to emphasize what kind of technology I would have access to if I joined a big company and often along with paying for just about everything there is a technology fee too.
If you are interested in becoming a real estate agent the process is fairly simple. Take 90 hours of pre-licensing education, pass a test, find a broker, pay a fee and get your license.
Visit the Minnesota Department of Commerce to see who needs a real estate license and how to get one. Don’t be chicken. 🙂