Becoming an agent

[de nero]

Theres a reals estate agency who say they're gonna be expanding massively this year and need alot of new sales people.

They also provide training, and a license which costs about $800. I'm a little skeptical, thinking that in these times where sales are kinda low, it may just be a revenue raiser for them.


Any thoughts?

 

[Xenia]

so your question is?

should you take up the offer? Or should you be skeptical?

Real estate sales people cost money for the agency and most fail.

Becoming a sales agent is starting a business within a business and requires dedication. They would not be giving you a free ride, they will be giving you an opportunity to bring in sales using their systems.

 

[de nero]

I am skeptical. Is that skepticism warranted is the question.

The company is implying they're going to hire alot of sales people this year and put them on salaries, however, I dont think that any company in Southern Queensland is in a position to make such an inference, given the state of the market at the moment.

 

[BV]

They also provide training, and a license which costs about $800. I'm a little skeptical, thinking that in these times where sales are kinda low, it may just be a revenue raiser for them. Any thoughts?

It could be both a revenue raiser as well as a way to find talent.

There are REA courses you can do (at least in NSW) that cost half as much
but these guys could be offering more than required by law and some material and marketing methods could also be specific to their brand

 

[Xenia]

salaries cost a lot of money. I would pose the question to them

It will cost you a lot to do this, I perceive the continuation of a down market, what plans do you have to bring on more sales? How?

What are the KPIs of the agents you are hiring? What if they are not met?

Given that it is a down market, what is your contingency plan.


My question to you de nero is if you are hired by this agency and it does not work out for them what do you have to lose? I'm just not following where you are coming from? Is there a cost to you to be hired?

 

[Ocean Architect]

Let me tell you a story.

Once upon a time, in land far, far away, the RE market was a paradise. Houses were selling like mad. Developers were building anydogboxes and they would be out the door before the ink dried on the plans. 18 year old kids flat out getting jobs flipping burgers were doing 2 week RE courses and buying new cars 6 months later. RE companies were making fortunes from commissions. RE agents packed like sardines into fancy cafes, lolling in fountains of chardonnay in 2 hour lunches.

Then, disaster struck. An ogre called GFC emerged from his cave and descended on the land. Properties weren't selling. RE companies rubbed chilli peppers on toilet paper, in vain hopes of making their agents run around extra fast to get listings.

Then a clever RE company had an epiphany. Why sell properties for a commission? Instead, recruit new agents, bright eyed, bushy tailed, full of jumping beans, to run around getting as many listings as possible, and make money off the advertising? Pay them a meager retainer, fill their heads with promises and false hope, and bleed them.

Sorry but I don't know how the story ends.

In all seriousness, that scenario was described to me by one of my agents. And if he's saying that to me as the developer, imagine what is said behind closed doors.