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Simon Parker and Brendan Wong
Just which real estate business model is the most popular – franchise or independent – and which brands stand out amongst those on offer, are set to be revealed next month when the results of an industry-first survey are released.
The data, which will form part of Real Estate Business’ Switching Networks survey that’s currently underway, will reveal what agents, principals and property managers not only think about their current business model, but whether they are set to make the move to another company and why.
And with more than 400 responses to date, the results will be as comprehensive as they will be interesting for business owners and industry professionals alike.
In last year’s inaugural survey, a key finding was the emerging popularity of independent groups.
There was a significant response from principals and agents looking at pursuing the independent option, whether that meant setting up their own independent agency or joining an already established independent group. Combined, these categories attracted over 42 per cent of the respondents.
Just over half of the respondents (51.1 per cent) said they would consider at least three networks/companies when it came time to switch.
The survey closes Friday, CLICK HERE now to have your say.
An industry professional told Real Estate Business last year circumstances had changed for franchising.
“The vanilla franchise models are being challenged," he said. "There are two main reasons for this occurring: One, franchisees are questioning the value proposition that’s being offered. Second is the advent of independent agents being able to source cheaper technology, training and networking opportunities for themselves.”
One respondent to last year’s survey shared this view saying that the franchise business model was outdated.
“The internet has eliminated the contact between the consumer and the office,” they wrote. “It is now direct to the property.
“The franchise office is only successful if the office is performing with staff of good reputation. There are an increasing number of suburbs/towns that the independents are dominating. The franchise offer is now not competitive.”
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