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The journey to agency ownership begins well before the decision to have one. As agents experiment on what works and what doesn’t, their early experiences introduce them to their business personas and the support structures they need to thrive.
To capture an up-to-date picture of Australian agents and agency owners, the Your Future Network 2023 report interviewed 707 participants from different stages in their respective careers.
While a highly stratified field, the study revealed two broad categories encompassing these professionals: the business builders and the sales pros.
The distinction between the two personas reflects what each group has in their bag of tricks and what support structures they require to complement them.
For instance, franchise networks entail giving up some autonomy and a portion of earnings to franchise fees and licensing costs.
But for sales pros, this is nothing but a part of the formula to making it big. The perks, such as brand recognition and advertising support, make it a worthwhile decision.
Sales-focused professionals gravitate towards franchise network models where their negotiation skills are well-complemented by brand familiarity and market presence.
Almost three in four aspiring agency owners perceive brand recognition as the primary reason to start an agency under a franchise network, while seven in 10 put a premium on marketing and advertising support.
In addition to carrying the name of a known brand, it can be easier for franchise holders to penetrate their local market due to the sense of security around dealing with a large, recognised entity.
As reliable systems allow sales pros to deliver services with a set calibre, training, education and operational support are also highly regarded by almost six in 10 real estate agents and property managers planning on holding a franchise.
On the other hand, business builders capitalise on the magic of their personal touch, seeing ultimate control of their future agencies as a top priority. This preference also comes with the belief that going independent will give them the opportunity for higher profit margins.
In particular, almost seven in 10 participants highly value the freedom to run their own real estate business and the opportunity to grow their own brand.
The current data highlights that differences in business approach lead to different model attributes that future agency owners see as empowering.
Five in 10 business builders see the freedom to choose their own tech as a plus in running an independent agency. In comparison, four in 10 sales pros point to readily available products and technology as a motivator for choosing a franchise network model.
Going down the priority list of agents planning to hop on a franchise is the prospect of greater earnings and autonomy.
This contrasts with business builders, where higher profit margins are expected by 65 per cent of the participants, and autonomy is most important to 68 per cent.
While a relatively lower percentage eyes the independent agency model as a tool to improve local branding, the response rate remains at three in 10.
You can read more of the report’s findings here.
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