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Why the Traditional Brokerage Model is Obsolete



There are more ways than one that the traditional brokerage model is facing disruption. With the rising alternative business models coming into play offering new technologies and strategies, consumers are being offered more information than ever before. One of the biggest disruptions in the real estate industry is commission splits. The 100% commission real estate model is one that significantly benefits agents, and disrupts the traditional model.


What Caused the Traditional Brokerage Model to Shift


One of the most significant shifts in the traditional real estate brokerage model is the lower commission splits. Some traditional real estate brokers are now offering commission splits as low as 95/5, and some even a couple of hundred dollars per transaction. Even as good as these shifts may sound, they still do not compete with the 100% commission real estate model.


When the traditional brokerage firms shifted their commission splits, they needed a larger volume of sales to survive. The margins between profitability and gross income began dropping making it difficult to manage and train new salespersons. Traditional real estate brokerages found themselves operating in a 'hand-to-mouth' business.


Stanfles Realty 100% Commission Real Estate vs Traditional Real Estate


One of the main tools used in traditional real estate models to attract their salespeople is to promise them leads. This promise can be anything from giving them 'duty time' to providing online sources at the office. It is a difficult promise to uphold as generating more leads than there are salespersons is a tough quota to meet with almost all traditional real estate brokerages.


Stanfles Realty promises excellent broker support and office leads to our top and responsive associates. Our franchise has expanded globally and our clients are from both overseas and locally. With the global influence in our markets, we offer our agents language and cultural support including Japanese, Korean, Mandarin, and Spanish. Joining the team at Stanfles Realty means as an agent you have access to a prime downtown Los Angeles office or satellite offices located throughout California.


A traditional real estate brokerage often offers full coaching to new agents signing on with their team. The reality is with lower commission splits these 'hands-on' training and coaching offers are difficult to fulfill as there is less money available to spend on these types of services. Salespersons are left to enter the field without being fully equipped to practice professionally or successfully.


Why Choose to Join the Team at Stanfles Realty


Joining the team at Stanfles Realty means you do not have to invest in the overwhelming overhead costs associated with opening your own brokerage. There are significant amounts of time needed to handle the administration of a brokerage office. Joining the team at Stanfles Realty allows you to run your real estate business, yet avoiding the time and money needed to invest in an individual brokerage firm.


While you may feel you are a great salesperson, which will significantly benefit your success with Stanfles Realty, you may not be a good manager, bookkeeper, or administrator. For these reasons, signing on with Stanfles Realty allows you to do what you are good at, and leave the other responsibilities to someone with more experience.


Join the team at Stanfles Realty and leave the worries behind from the traditional real estate brokerage. With the traditional real estate brokerage becoming obsolete, you need to secure your career with a brokerage that has years of knowledge and experience in the industry. Stanfles Realty can offer you a career with a firm that has the best stability for your success and future.


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