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How AI Can Help the Traditional Brokerage Model Survive

Home Agents
Commentary by Michael Minard
April 19, 2024
Reading Time: 2 mins read
How AI Can Help the Traditional Brokerage Model Survive

In an industry where tradition often trumps technology, a revolution continues to brew. As real estate brokerages cling to the tried-and-true, the question arises: Can the sharp edge of artificial intelligence carve out a future for classic brokerages?

Modern brokerages are successfully beating the traditional models through the early adoption and deployment of new tech and solutions, including AI. 

My observation? The future belongs to brokers who understand how to synergistically merge AI’s advantages with agents’ irreplaceable human touch.

Go all-in on AI email marketing

Today, traditional brokerages are failing to capitalize on email marketing. Our internal research reveals a substantial ROI boost for those that do. 

Firms deploying AI-optimized messaging and automation see game-changing financial gains. Brokerages can increase connections, engagement and closings by integrating solutions that automatically target and personalize emails.

Closing the gap with AI-enhanced tools

The reluctance to monetize leads effectively is a puzzle. When brokerages look beyond referral fees, they’ll discover goldmines. 

AI-driven agent behavior management tools are changing the playing field. Right now, real estate teams utilizing these tools are racing ahead, while traditional brokerages’ adoption lags. 

Ditching bricks-and-mortar

The fixation on physical office space is an archaic concept. Just look at modern brokerages: they are rapidly growing. 

It’s time for a two-part shift. First, reduce physical footprints, and second, reallocate those resources to AI-driven marketing efforts. Such a transition will make good agents great and great agents market dominators through sophisticated lead generation and follow-up mechanisms.

Social media and AI: an unleveraged duo

Another underutilized area is AI-driven social media marketing. Although we have been pioneering these tools at Delta for years, they are reaching an incredible level of sophistication and influence. Once again, typical brokerages are slow to harness this technology even though our data is clear: When brokerages encourage agent adoption of these AI tools, the results are exceptional.

Analytics: the key to unlocking future transactions

Technology offers brokerages a new competitive edge by unlocking the origin of transactions: the knowledge that is power. We use comprehensive analytics with our enterprise clients to spotlight opportunities for business growth. The sophisticated adoption of automated and AI-integrated tools creates a roadmap to success.

Invisible AI

As a brokerage leader, you shouldn’t have to think about AI. It should be inside your all-in-one marketing platform. Focus not on the technology, but on the benefits it delivers. 

AI: the brokerage lifeline

Our industry’s revolution is being driven by AI innovation, and traditional real estate brokerages stand at a pivotal crossroads. AI offers a new strategic cornerstone for the traditional brokerage practice, which will require embracing AI and being more adaptable to drive future success. 

For more information, visit https://www.deltamediagroup.com.

Tags: AIArtificial IntelligenceDelta MediaFeatureMLSMLSNewsFeedMLSSpotlightReal Estate MagazineReal Estate TechnologyTechnologyTraditional Brokerage ModelTraditional BrokeragesTrends & Issues
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Michael Minard

Michael Minard is CEO and owner of Delta Media Group, a leading and trusted technology partner for many of real estate’s top brands, and 100% family-owned and operated.

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