Direct business model.

Reducing costs is another way to increase profitability. A popular method for reducing costs is the application of the direct model. The direct model has become the standard for quality and profit in many industries. It is becoming increasingly popular in the real estate industry. We believe that operating with the direct model is a profitable strategy for most experienced real estate professionals.



What impact has technology had on the real estate industry?

Technology has not diminished the need for the intermediary - the real estate salesperson. In fact, it has empowered experienced real estate professionals to serve a greater number of customers with a higher quality of service. Consumers are now buying and selling more real estate through real estate sales professionals than ever before. Technology has also enabled salespeople to become more independent. The internet, telecommunications, and other forms of technology have advanced to the level that allow salespeople to reduce or eliminate their dependence on the office/franchise. What impact has technology had on the real estate industry? There are two answers to that question. Experienced and established sales professionals have 1) achieved greater operating independence, and 2) strengthened their personal brand.

What is the direct model?

The impact of technology on many industries has created a greater need, or market, for the direct model. In the computer industry it means selling computers direct from the manufacturer to the customer - eliminating the retailer. In the banking industry it means offering on-line services directly to customer - eliminating or reducing the need for branch locations. In other words, the direct model is based upon eliminating the middleman. It has quickly become the standard for increasing the quality of service while at the same time reducing costs. It is now common to find market leaders in various industries depending on, or operating exclusively with, the direct model in order to maintain or increase market share and profits.

Who is the middleman in the real estate transaction?

The traditional office/franchise is the middleman. Increasingly experienced salespeople are reducing their dependence on the office/franchise in order to eliminate non-essential operating expenses while at the same time strengthening their personal brand. The standard office/franchise model is under greater pressure to provide more competitive services to their sales associates. Some services offered through the standard model are both obsolete and inefficient. Operating partially, or exclusively, with the direct model is a growing trend with established real estate sales professionals. Reducing dependence on the middleman, the office/franchise, is fostering the growth of the direct model in the real estate industry.

How does Broker Direct® manage the direct model?

Rather than sell a franchise, which then in turn recruits the salesperson, the direct model eliminates duplication. In other words, the direct model is based upon the elimination of the office/franchise. Experienced sales associates are recruited directly through the corporate office of Broker Direct®. As a company, without offices/franchises, we are able to offer our sales associates specialized services and consistent management. There are also many other reasons you should operate with the direct model.

Very portable (fewer lost customers).

Have you ever changed real estate brands? Is it possible you may change brands again in the near or distant future? Is it possible that your current office/franchise owner may sell, merge, retire, or simply go out of business? The answer in many cases is yes - before you retire from real estate you may switch brands or office affiliations. Business relationships are always evolving and changing. The independence gained from operating with the direct business model provides greater portability. When you have your own business address, phone number, fax number, e-mail address, and website it becomes far easier to switch from one company to another without any past clients or prospects losing your contact information. At Broker Direct®, we believe every real estate sales professional should switch to the direct model even if there are no current plans to change brand or office affiliations. This way, you can protect and maintain your own personal brand more effectively.

Effective communications (fewer lost leads).

Direct communications is the primary component of the direct business model. Increasingly, real estate professionals are switching to a direct communications model. This means each sales associate has their own direct business address, phone number, fax number, e-mail address, and website which provides better control and can substantially reduce lost leads.

Enhanced personal branding.

At Broker Direct® we believe that "you are the brand™". Successful sales associates realize that they have to develop their own style of business and unique personal brand. Establishing direct communications strengthens personal branding. Customers often perceive that salespeople with their own direct communications bundle are better organized, more experienced, more independent, and more advanced in the applications of technology. The direct model is an excellent method for strengthening personal branding.

Lower operating expenses.

The standard model functions on a dual fee structure. A salesperson usually has to pay a fee to the office/franchise for services and a fee to the corporate head office for brand affiliation. By operating with a direct model experienced salespeople can reduce their operating expenses by becoming less dependent on the office franchise. At Broker Direct® we operate exclusively with the direct model. This allows us to function on a single fee structure. Our sales associates pay one low monthly fee for brand affiliation and other specialized services.