This Could Be You

To understand today’s national real estate franchises, one must look to the “Gym Membership” business model as a guide.  Gym memberships and national real estate chains have a great deal in common.  Both industries are designed with failure built in.  Both industries feed on a consumer base looking for a shortcut.  Simply joining a gym won’t get you in shape.  And getting a real estate license isn’t the road to easy money.   But strangely, this is still what many people think.

Every year Americans flush down the drain $397 million dollars for unused gym memberships.   Gym managers know 60% of their clients won’t show up regularly if at all.  This allows gyms to exceed capacity and stay afloat.   The only problem is the continuous need to recruit and sell new members to overcome the ever-increasing revolving door. 

Statistics say the odds of making it in the real estate industry are poor.   Nearly 75% of all new agents drop out after the first year.  A whopping 87% are out of the industry within five years*.   This means franchises must continually recruit to stay afloat.  Sound familiar? The problem of over-recruiting leads to false impressions and unrealistic expectations.  Again, familiarity with Gyms.  Over recruiting also leads to people being in the industry who have absolutely no business being in real estate.  At least there is one difference, very few scammers at the Gym.    

Who goes to Gyms?  People learning how to exercise, socialites and posers.  Not that there is anything wrong with that.  You Gym is your club it should be both fun and social.   Those who view physical fitness as their only goal, more often than not, have their own home gyms. 

Who joins national real estate chains?  People learning real estate, socialites and posers.  Again, nothing wrong with any of this.  Real estate agents working on your own can find life to be very solitary.  Franchises offer a form of socialization with friendship and camaraderie.  (even though everyone is a competitor to everyone else?)  Those who are more serious about their own real estate career often have their own brands and don’t generally follow the herd. 

Gyms are great!  Even if they hook a tiny percentage of their users toward a healthier life.  We need them!  Have you been to a mall lately?

Franchises are great!  This is where agents can learn what our industry is about.  There is no real estate manual on how to do things.  Franchises are terrific for passing on procedural rules and agent norms.  We need them!

Unfortunately both industries are wildly oversold.  Gyms market themselves with images of very pretty people who look like they don’t need a gym.   Real estate franchises market themselves with images of very pretty people standing in front of McMansions in what can only be described as real estate porn.   Both industries are screaming, look how easy this is!

None of this is Wynd Realty.   Wynd Realty is not a franchise.  We are a small Atlanta independent.  Wynd isn’t so much a traditional “Realty” as it is a service company that real estate agents use for their “brokerage requirements”.  We have been active anti-NAR activists since our inception.   

Wynd Realty is also Atlanta’s leading flat-fee Brokerage.   If you don’t know what that means, you should.  Going forward agents will NEED a flat-fee Broker.  The franchises are old school.  They do old school well.  BUT, that is NOT where the market is today.

If you are currently in the franchise system, and under 50 years of age, you may want to consider an updated option. 

 

 

*Wynd Realty does not agree with these statistics as we believe they do NOT account for the thriving part-time agent community.   

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