How to Compete with Big Signing Bonuses
The competition is heating up in real estate. Inventory is tight, agents are competitive, and brokerages are desperately trying to recruit. With a new generation of agents in the real estate world, the way in which successful brokerages approach recruiting has taken a significant turn.
Companies, such as Compass, have huge funding and they’re using it to recruit new agents. What happens to those aggressive brokers when the value prop was a signing bonus? Making agents more productive and making their lives easier with an integrated platform in the answer. Compass is offering agents with higher commission for their first year, serious signing bonuses, and offering managers significant salary bumps. Many concerns have been raised regarding their cash burn rate and the sustainability of this model long-term. Whether or not it’s a sustainable business practice, how are other brokerages supposed to compete with these massive cash offers?
Conversations around signing bonuses, commission splits, training, and culture are getting noisy and difficult to navigate, which means creating a recruitment strategy is that much more challenging. So, what do agents really want?
Put yourself in the agent’s shoes for a minute: What makes your brokerage unique? What is the brokerage doing to prepare for a prosperous future? What tools does your brokerage provide that will ensure you’re successful?
Offering a suite of technology tools is a great way to compete with these rising signing bonuses, while simultaneously benefitting your brokerage. When you offer agents the opportunity to be more successful through intuitive, easy-to-use productivity tools, thus having greater agent productivity, everyone benefits.
Millennials are now making their mark on the real estate industry. As a generation of experienced agents retires, it’s vital for brokerages to continue recruiting, developing, and retaining new agents. It’s no secret that millennial professionals care about more than just cash. While money can be motivating, your brokerage should be making offers competitive in other ways, such as technology. Offering agents an ecosystem of technology tools that encourage productivity and success is exceedingly powerful.
The MoxiCloud open platform is an example of brokerage technology that attracts and retains agents. Why? Because it makes agents’ lives easier and brokerages more profitable, through agent productivity. The open platform is where all of your brokerage tools and services integrate and share data, creating a flexible technology ecosystem powering your business.
Now think about the future of your brokerage. What changes will you be experiencing in the next 10 years as the industry continues to evolve? Agents want to work with a brokerage that is prepared for change, arming their team with flexible tools and services to remain successful.
Whether you’re targeting new or experienced agents, they’ll want to work with a brokerage where they can find the most success. While you may not offer a massive signing bonus, you can still be competitive in a way that benefits both sides. Technology helps us get through our everyday lives, keeping us organized, on time, and efficient. Making their lives easier will make them more productive, making your brokerage more profitable. What technology does your brokerage provide that will attract the best agents?