I once saw a sign from a large brokerage that read, “It’s not about the agent, it’s about the brand.” This was in 2007, and since then, that “brand” has barely grown, while the brokerage models that place the emphasis on the individual agent and help them grow both personally and professionally have seen tremendous growth. Unfortunately, those companies that still believe in the broker-centric model continue to dominate the industry, but that’s quickly changing.
Today, I’m proud to look back over the last 11 years and see consistent year-over-year growth ranging between 40% and 70% for Fathom Realty. How does a simple idea grow to over 6,000 agents without private equity or venture capital pouring money into growth? It happens first by giving the power back to the agents.
There are three ways this can be done:
1. Reduce the “brand tax” and allow agents to keep more of their hard-earned commission. When agents have more money to invest into their marketing, they are better able to compete while generating more leads and closings. When agents win, the whole company wins. That’s why I created Fathom Realty and only charge our agents a low flat fee. The average agent who joins Fathom saves over $12,000 per year, and that can go a long way toward closing more sales.
2. Allow agents to brand themselves. Yes, I’m proud of our company’s brand and want people to know who we are, but how does that help our agents close more sales? The National Association of REALTORS® has reported that only 1% of clients chose an agent due to the brand they were with, while 95% chose an agent due to their relationships, knowledge and personal marketing. It’s time to get out of the way and let agents brand themselves to stand out and be memorable. When agents attract more clients and close more sales, the whole company wins.
3. Give agents an ownership stake in the company. There’s a reason we give our agents stock (equity ownership) in Fathom Realty every time they close a sale or refer an agent. Actually, there are three. First, it’s because they deserve it. Our agents are the reason we exist. Nearly 100% of our revenue comes from our agents and over 35% of our agent growth comes from agents referring other agents. Our agents should share in our combined success. Secondly, owners care more about the company. When you’re an owner, you have a vested interest in sticking around and making the company better, rather than leaving when something is broken or things get hard. Lastly, owners want to see the company grow and prosper, and when you have over 6,000 owners who care, you have a recipe for growth and success.
Josh Harley is the founder and CEO of Fathom Holdings Inc. (Nasdaq: FTHM). Harley is a Marine Corps veteran and an advocate for servant leadership. For more information, visit www.FathomCareers.com.
