Professionals Real Estate Group said its planned expansion into the United States market should succeed due to the attractiveness of its membership-based business model.
“While the US market is still relatively weak, franchises in the US are looking for a better option than the standard model...A fixed-fee model focused on providing real value for money is very attractive for many US operators because it provides for more upside with better performance, Professionals’ chief executive officer Glyn Morgan said.
“Our fixed-cost membership model means that once an agency has more than five strongly performing salespeople on its workforce, the agency owner is much better off switching their operation to the Professionals brand.’’
He said franchise models required franchisees to pay fees per agent and a percentage of their sales. This contrasted with the Professionals’ model which "only" required agents to pay the one membership fee.
The Professionals said Mr Morgan, who was due to open the new Phoenix-based US headquarters this week, had met with a “number of large independent real estate agencies in the US” with a view to having them join the company. The Queensland-headquartered company has more than 300 offices throughout Australia, New Zealand and a number of Asia-Pacific countries.
“Our US model will almost be identical to the business model that we have operated in Australia since we were established in 1976,’’ Mr Morgan said.
“The main difference will be that the Australian-based Professionals Real Estate Group will retain a controlling stake in the US membership group whereas in Australia it is 100 per cent controlled by the members.”
Mr Morgan added that the company would also seek to expand in the Australian market.