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Incorporating insights from more than 700 responses, Your Future Network 2023, in partnership with Raine & Horne, sheds light on how agents and property managers stand in their future aspirations as agency owners.
This year’s research, which presents an image of Australia’s up-and-coming agency model landscape, starts by capturing what the existing one looks like.
The study reports that most agency owners are already above 50 years old, with the largest cohort being between 50 and 59 years of age. Meanwhile, roughly three in 10 are 60 or older, two in 10 are under 40, and four in 10 are below 50.
Zooming in on these numbers, the study found that agency owners remain male-dominated at a ratio of six to four overall (60 per cent to 40 per cent). However, it also spotted that the gap consistently narrowed with decreasing owner age.
More and more women in the younger age brackets are taking up opportunities in the agency ownership arena, which gives us an idea of a potentially more gender-balanced playing field in the future.
As the spotlight moved to the prospects of future agency owners, data revealed that four in 10 respondents had ambitions of starting their own agencies. Twenty-five per cent of these intend to make their move within the next five years, and 3 per cent are actively planning on the leap.
When and how agencies choose ownership models in the future can have huge implications on how the business of real estate investment takes shape.
Independent agencies can offer more customised services, catering to the specific needs of their local community. Meanwhile, franchise agency models offer consistency in their service type.
According to the most recent results, starting an independent agency is the most attractive business model for 46 per cent of future agency owners, suggesting that most agents and property managers want to build their personal brand and make independent decisions.
Meanwhile, 42 per cent of those planning to own an agency want to operate under a branded franchise network. This type of future agency owner puts more premium on brand recognition and marketing and advertising support than the flexibility of starting an agency from scratch.
The remaining 12 per cent of future agency owners intend to opt for white-label franchise networks. Even without the brand popularity that comes with the former, they can still benefit from established systems ranging from training, products and technology, and operational support.
Approximately five in 10, however, have no interest in starting their own agency, while the balance (one in 10) are those who plan to retire and those who previously ran an agency in the past and do not plan to do so again.
Being familiar with its topography is critical to succeeding in any business arena. Your Future Network 2023 keeps agents in the loop with how their peers plan on taking their careers to the next level and the underlying reasons behind these choices.
The report prompts ambitious agents to examine their preferences when it comes to finding their own sweet spot between independence and the reliability of already established franchise networks.
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