AGENT-CENTRIC vs. BROKER-CENTRIC

There are two fundamental philosophies in real estate today. The Agent-Centric Company and the Broker-Centric Company. They are vastly different with opposing points of view and they cater to two distinct types of people.

Agent-Centric companies seem to attract the more entrepreneurial agents. Agents serious about their business and committed to its success. Agents that enjoy working with more freedom to make decisions regarding their business.

Agent-Centric companies believe their success comes from their agents, so they structure their fees so the agents can keep more of the commission they earn. Broker-Centric companies believe their success comes from the company brand and the agents enjoy success because of that brand so they believe they can charge higher fees to their agents.

The Agent-Centric company encourages the entrepreneurial spirit in its people.  It empowers them to excel. When a person's very success is dependent upon their ability to make business decisions best for their business, they must have the freedom to do so. Agent-Centric companies understand the competitive pressures that face todays agents, and give them the latitude to compete in todays marketplace. The Broker-Centric company's very structure does not support or encourage this entrepreneurialism or autonomy.

Agent-Centric companies understand that technology has leveled the playing field so all companies can offer the same tools and programs to their agents and clients.  Because of technology brokerages can operate more efficiently than ever before and should be passing these savings on to their agents, not raising the fees.

Agent-Centric companies operate much leaner and on tighter margins, because when a company truly believes the agents drive the company, they do not need to pay the high costs of supporting, maintaining and promoting the corporation, so their overhead is much lower and their agents can enjoy lower fees.

In short, Broker-Centric companies believe that the Company is the machine that drives the real estate industry. The Agent-Centric company believes the Agent drives it. Which you believe determines where you should be.