Independent realtors are paying up to $68,000 per year to fly solo, according to Perth-based agent Phil Taylor who has done the maths on operating under his own banner.
Mr Taylor worked as a solo agent for three years and said it cost him almost $70,000 per year to cover the insurances, subscriptions, advertising and software required to work in real estate.
He says he recently joined real estate network @realty and has reduced his overheads to just $3,300 per year under the company’s innovative business model, which allows agents to work independently under its national brand.
“I think a lot of agents are unaware of the costs of operating as a truly independent agent with no affiliations. It’s prohibitive for anyone who is selling in the lower end of the market, the costs outweigh the benefits,” Mr Taylor said.
“The $68,000 I was paying annually excluded office space and was just enough to cover the basics like memberships with industry bodies, subscriptions to real estate websites and other tools required to do my job properly.
“I realised that there must be a better way and started to do my research. I came across @realty, which allows agents to pay $275 per month to gain access to administrative support and all of the company’s software, sales tools and marketing.
“Nothing has changed in the way I operate. I still do things ‘my way’ but my costs have plummeted and my earnings are still great, because @realty offers 93 per cent of full commission and allows its agents to own rent rolls.
“I’d urge any agent who wants to step away from working with a franchise but is finding it too challenging to set up independently to join the @realty team.
“All 500 @realty agents across the country work together as a collective and that’s to the benefit of both agents and their buyers and sellers.”