Real Private Label - Independent Brokerages Best Option?

The Best Option for Independents - REAL Private Label

Have your cake and eat it too. That is what REAL has created with their Private Label program that is specifically designed to allow independent real estate agents to keep their identity while plugging into a larger model that is tech driven and eliminating liability. 

I am getting a little ahead of my skis here. First let’s talk about what it is. 

The REAL Private Label is a program that allows a brokerage to keep their name and their independence, but also allows them to be part of the REAL network. 

It is essentially set up as a D/B/A (Doing Business As). Let’s say you are the owner of ABC Real Estate and you have a 70 agent brokerage. You have spent millions on marketing so that ABC has some brand recognition in your town. Understandably this would be a lot to walk away from! 

REAL allows you and all of your agents to join REAL, but also keep ABC Real Estate. Like I said, you get to have your cake and eat it too! 

So what are the benefits of taking an independent brokerage and becoming a part of REAL and using their Private Label program. 

To me the first and biggest benefit is the elimination of Liability. In today's Class Action Lawsuit and sue for your coffee being too hot world… This is a pretty nice perk. Being a part of REAL means that they are responsible for the liability of your agents as well as the industry sales practices. It’s REALs Errors and Emissions. 

Another benefit is the back end management of the real estate company. I remember it was this benefit that tipped the scale for me going to eXp back in the day when I was looking at leaving RE/MAX and was deciding to go independent or going to eXp. I realized that if I went independent, then I would need to hire back office support to manage the books, balance the escrow accounts, cut the checks, pay the bills, and handle all the 1099s… I mean the list goes on and on. When I ran the numbers, it was cheaper for me to go to eXp… And now even less expensive being at REAL then having to hire someone to manage these parts of the business. I figured it would be at least one person at a $50,000 a year salary in order to manage all of this. My costs to operate my business at REAL is less than $20,000 a year. 

It’s all REALs backend. I have a Transaction Coordinator that I pay $250 a file to upload and manage the files. It’s REAL that is doing everything from creating the deal invoice to paying me and my buyer agents. 

Oh… And paying agents. REAL makes it SO easy. It’s again, all in the backend. Agent John is on a 60/40 split. Perfect, put it in the system. Oh, you have an agreement where you pick up the transaction fees, fine. Put it in the system and REAL handles it all and manages it. 

OH, John had an awesome quarter and you want to reward him with a bump in the split or to cover a certain expense… Then put it in the system. It’s not Skyslope which sucks. It’s not a clunky system that doesn’t make sense. This is all tech that was built from the ground up to specifically manage the company and its agents. The system is seamless. 

And not to put down eXp cause they are such an awesome company… But it is about a 1,000 times better than what eXp runs on. My goodness Skyslope sucks…

The next benefit and quite frankly the biggest opportunity is in the stock awards. For you… And your agents. But we are going to talk about the agents more in a couple moments. You get shares awarded to you when you become an elite agent. You get shares awarded to you when you recruit an agent. You get share bonuses when you buy shares as you close deals. 

The upside of consistent stock awards and purchases could make for a very comfortable retirement. 

Speaking of retirement, that is another benefit of moving to the Private Label if you are an Independent brokerage. It’s an amazing exit for a business owner. It not only creates a residual income, but a residual income that could continue to grow! The best part is that when you are ready to walk away, then walk away and collect the mailbox money. There is no transition. REAL is already managing everything behind the scenes. A retirement party could be fun though. 

And here is one of the most important benefits. In having your cake and eating it too with the Private Label Partnership, it allows for a much better chance of being able to retain agents. You are a smaller company with the power of one of the larger real estate companies in the industry at your back. 

So how does this enable a situation where you could retain more agents? It provides your agents the opportunity to network with other agents around the country. Essentially, for those that want to start to swim in a bigger pond, then they can jump into an ocean like amount of resources and networking opportunities. Plus they are still getting everything that you are already offering with ABC Realty.

When that fish is ready to start swimming in the ocean on their own, then there is a higher likelihood of them branching out within REAL and shedding the ABC Realty name. And that’s fine, because while your ABC Realty no longer has them under their umbrella… They are still under REAL’s which means they are still under you. 

Not to mention when you are able to offer an agent both brands when talking to an agent and recruiting them. It’s as if you are a car salesman that has the ability to sell both Ford and Chevy pickup trucks. You have the solution no matter what they are looking for. 

The other area of retention where REAL wins out compared to an eXp is that there is no monthly fee. I know it’s crazy to think about, but that $85 a month fee will make it so that a lot of those 70 agents will end up leaving and going to a zero monthly cost brokerage. What’s the point of joining a large national brokerage and then half of the agents that you worked so hard in recruiting and nurturing end up leaving?!?

And here are two other quick huge benefits. You don’t have to be the broker. You can just do all the more fun, productive and rewarding things like training agents on growing their business and building their wealth. But also not having to be the broker means that should you want to expand ABC Realty into other markets in the same state or even a different state, then it becomes mindless easy. 

And there is the entirely enormous upcoming benefit of REALs Financial Technology. This is an incredible opportunity that would be the equivalent of three new videos in and of itself… So, connect with me offline and I can show you how unreal of an opportunity that this is. 

It’s Jeff Chubb with REAL Broker, you can reach me at 617-775-7687 or shoot me an email at [email protected]

Let me know if you are wanting to talk more about the advantages of partnering with REAL… Confidentiality of course. 

Until next time. 

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