I believe that one can greatly reduce the 20 fold inefficiency in residential real estate brokerage. In the current broken model, 50-50 broker splits, 50% of listings selling, and 80% of energies spent prospecting or idly waiting for the phone to ring, are typical of the average struggling Realtor. It is no surprise that 95% of entrants to this business fail to thrive.
The fix is a combination of streamlining operations; instituting a semi-entrepreneurial (salary+bonus) division of labor model that separates sales, consulting, and admin; and adding large scale, centralized marketing of the better mousetrap, to dramatically decrease the cost of driving a dollar of revenue.
In the past decade, on a scale of one, I've developed part of the better mousetrap. I have conclusively demonstrated that "econometric precision pricing" dramatically improves results for sellers, but most Realtors don't have the interest or background in economics and statistics to properly read the tea leaves, while most econometricians would find both sales and administrative implementation to be uninteresting. Sadly, every new Realtor in the traditional model is asked to wear all three of those hats, and cannot possibly do all three well.
I am ready to prove that an expanded (division of labor) model can be profitably replicated in two adjacent cities (Wheaton and Naperville, IL), and need both human and financial resources to take this next step. The potential payoff nationwide is in the tens of billions of dollars, much of which I'd like to see go for philanthropic initiatives that support the collaborative creation of a just and sustainable future.
Reform Residential Real Estate Brokerage - Measurably Better Results, for Lessby norlyn61, on 11.05.2012
- Looking for: Advisor, Biz developer, Marketer, Sales person, Other
- real estate
- financial services
- social venture
- social enterprise
- social entrepreneur
- venture philanthropy
- conscious capital
- triple bottom line
- net impact
- democratic reform
- deliberative democracy
- social justice
- affordable housing
- green homes
- transpartisan politics
- integral politics
- integral business
- Website: http://Connection-Realty.com
- Time commitment: half time (20h/week)
- Idea stage: launched and profitable