The Evolution of the Virtual Culture.
An interesting commentary was recently written by James A. Crumbaugh III, CEO of Allison James Estates and Homes, and published by RIS Media. Here is what James had to say about the evolution of the virtual culture.
I recently returned from the NAR National Convention in San Diego, California, a convention that had a feel of celebration. I believe that's because every one of the 19,000 attendees is a survivor of the past three years of the worst economic and real estate crisis this country has seen in 80 years.
For me, the experience was one of confirmation of what I believe to be the future of the real estate industry-Internet-based real estate. The business model, like ours, is a national Internet-based Real Estate Brokerage, where the Realtors work out of their home offices, and as a result, the broker has no brick and mortar expense. In return, the Realtor keeps 100% of his or her commission and just pays the broker a small association fee each month, thereby creating a profit for the broker, rather than an expense.
Two years ago, when we first rolled out our business model in Washington D.C. at the Midyear NAR Convention, the word "virtual" was absolute poison. Brokers and Realtors would come to our booth and literally run when they heard the word virtual. What a change just two years has made.
This year at the NAR National Convention in San Diego, the word virtual was the most exciting idea being discussed. Brokers wanted to learn how to create a virtual environment for the Realtors and brokers successfully. I suspect in the coming year we will see hundreds of brokerages recreating themselves under a virtual banner.
Even the Realtors this year jumped all over the virtual business model. We encountered thousands of Realtors who realized that they can now command 100% of their commissions, and that is now the accepted standard.
Furthermore, what we heard from every Realtor is the reason they don't go to an office, and the reason they don't care about an office environment is boiled down to one word: distraction.
The top producers think that when they go into an office environment, they become distracted from being productive. We heard this comment universally from almost every Realtor. Realtors' insight into their most fruitful working conditions has been an unanticipated end result of this business model.
So, after this year's convention, I feel that Internet-based real estate was not only accepted by both the brokers and Realtors, but that brokers, such as myself, were no longer the strange broker that lived out there in some mysterious virtual never-land.
The virtual culture is not only the future of the industry, but a huge favor to all the brokers who are struggling to keep their doors open, now that even brand new Realtors expect to keep 100% of their commissions.
This new business model has legs, and it will continue to expand and grow. It will, in the process, make the brokers of our industry financially healthy once again. It will also allow the Realtors to truly be independent contractors who are allowed to keep all of what they have earned.
The virtual culture is a win-win-win for the broker, the Realtor and the consumer.
Article compliments of RIS Media
Is your model exclusively internet based? Are you working from home offices? Do you do any offline marketing?
Melinda -
I take it you believe your Real Estate Cafe model is in keeping with what this man said.
I definitely believe a home office model works...if your home does not contain a lot of people distractions.
I have worked out of my home since Day 1 of Real Estate, but in the beginning was paying my 30% to the broker. Now does that make sense! I still pay 3.5% plus to hang my license. Now I think I will be on the lookout for the 100% broker. Great post, Melinda and very encouraging.
Charles - We have both, in and out-of-office agents.
Jim - Not saying that I am there yet, but I certainly think there is merit to the virtual office concept.
Jane - Good for you! More money to be made that way!
I run my brokerage 100% virtual, and am looking at hiring agents with the 100% model. Like anything else, this concept takes a lot of discipline. So far it has worked well for me.
Great post Melinda, thank you...I couldn't agree with you more. And it applies to many industries, not just real estate. We are a mobile society and the Internet sets us free. The real tipping point will come when broadband wireless data networking is available everywhere always, just like mobile phones.
Cheers,
John