Every time I hear of an incidence like the one that just occurred, I think of the ramifications these type of changes have on brokers and their agents.
So here’s how I feel about the use of technology as a means to retain agents in brokerage companies.
The strategy never works. Here's why.
It is because of the nature of our business model as it exists today. Brokerage companies are built on the foundation of independent agents essentially licensing their sphere of customers to broker in return for some form of consideration. And that consideration comes in many shapes and forms. It can be in terms of shared equity in the company, a share of the profit of the company, free marketing, free technology or the age-old offer of a better commission split.
While it has been proven that technology is able to increase the effectiveness of an agent’s business, it is not always the case that the agent will use it or even adopt it if it tied to a particular broker and it will be lost if they leave the brokerage company.
Add to this dynamic an unquestionable slim margin of profit for the brokerage company, and brokers providing technology to their agents is becoming less and less feasible.
So what now? The answer to that question is founded in one word. Choice.
Open platforms are the answer. I believe that in the not so distant future, the role of the broker will be to provide their agents with an open platform from which the agents are able to chose “plug and play” with an array of technology solutions. And the MoxiCloud provides just that type of open platform. Not unlike what Microsoft did with its Windows platform and the option to plug in an array of Microsoft Office products, MoxiWorks has constructed the ideal technology solution for today’s brokerage company. The core of which is the MoxiCloud, detailed in the attached article.
In closing I offer you this point of differentiation. Way beyond the attractions to various types and degrees of compensation, people join and stay in work environments that have a high degree of integrity, strong leadership and that constantly strive to provide a higher standard of care for their people and for the consumer.
Everything else - including the provision of proprietary technologies - is nothing more than a piece of a tempting array of shiny objects that serve as initial, and usually, temporary reason to make a change.
Provide choice - lots of them - be that kind of company as described above and move confidently into the future of your business with the support of great people.
Have a great day.