5 min read · April 17, 2023
Owning a Texas Real Estate Brokerage comes with many benefits for real estate agents. Understanding the difference between agent sponsorship and being the broker-owner is important. Getting agent sponsorship in Texas allows you to handle all kinds of real estate transactions. Owning an LLC brokerage in Texas allows you to do all of the things an agent would do with the added benefit of being the brokerage owner, which allows you to build your own brand and hire and sponsor other real estate agents as well.
Are you tired of being a salesman, and you want to get into the real business of real estate?
Do you yearn to enjoy the advantages of self-employment as an independent real estate broker? Well, you’re in the right place.
Landing a job as a real estate agent was great; however, owning and running your own Texas real estate brokerage firm is even better. A few years of working for someone else’s brokerage firm gets you thinking. You tend to wonder just how greener the grass is on the broker’s side.
If you have arrived at this crossroads in your career, keep reading to find out the nine key benefits of being a self-employed real estate broker.
Let’s face it; every entrepreneur wants to have control over the critical aspects of their life. These aspects include time, daily schedule, business planning, etc.
As a real estate agent, it is difficult to maintain a grasp of these aspects. This is because you operate on someone else’s schedule. Your boss tells you what to do and when to do it. To make things worse, you have no say in the decision-making process of your career.
By becoming a self-employed broker, you regain all the above privileges and more freedom.
Brokers and agents both earn a living via the commissions they get. Though agents earn a larger commission on each transaction, brokers still get a piece of every deal closed by their firm.
Additionally, if you make and close a sale as a broker acting as an agent, you get to keep 100% of the commission.
As a broker, you will have multiple agents under your employment. For each transaction they close, a cut of the payout comes to you.
As an agent, it is difficult to expand your business horizons in a significant way. The reason being your growth is limited to the amount of time you put in individually. As a single individual, this is quite limiting.
However, as a self-employed broker, you have two options for expansion.
One option involves hiring other agents to work under you.
Extra agents enable you to distribute a large workload amongst many people as opposed to taking it on your own.
The second option involves sponsoring agents to become affiliate brokers. This option allows you to leverage your potential for phenomenal growth.
As far as experience and expertise go, brokers are considered the cream of the crop over agents. Hence, when potential clients are looking for representation, they are more likely to choose an established broker over an agent.
You can also leverage your broker credential in your listings. New clients (sellers) may look to procure your service, considering you have a better grasp of the market than an agent.
As an agent, your work typically revolves around being a salesman. Hence, you are only in it for the commission, period.
As a real estate broker, you are both a salesman and a C.E.O at the same time. You take on more responsibility, and thus you end up with better rewards.
For instance, when a deal gets done, agents rarely see the point of any follow-up action with the client. The reason is that their main focus is to close for a commission.
As a broker, follow-up is essential as it leads to additional leads for the next close. Hence, the extra effort generates tangible results in the form of potential clients and more income.
A key benefit of self-employment is that you quickly learn to become self-sufficient. You have to discipline yourself, motivate yourself, and become accountable to yourself.
By starting a brokerage firm, you will learn how to become a leader. You will have to coordinate your agents and affiliates toward your business goals.
Leadership allows you to broaden your horizons into other businesses through networking with other business leaders. With time, you become a holistic business person with numerous business contacts and ideas.
Starting and running a brokerage firm provides the freedom to express yourself. You gain full control of your branding, business structure as well as marketing campaigns.
Every entrepreneurship journey starts with a vision driven by passion. If you have a passion for real estate, becoming a self-employed broker has to be part of your vision. The beauty of running your show is that you get to be who you want to be.
You can model the company to your wishes, create a brand that speaks volumes about you, and develop marketing campaigns that show your inspiration and love for what you do.
One of the top self-employment benefits is having something to call your own. As an agent, you work as an independent contractor for a brokerage firm. Thus you have no stake in the actual business.
Irrespective of how much time you put in, at the end of the day, you have no claim to the firm you helped grow.
Building a brokerage business provides the pride of having a claim over your hard work. When you look back at all the hard work you put in, it is evident in the success of your company. Besides, you will have an establishment to leave behind for your children; upon your retirement. A mark of pride.
When you white label your brokerage using a brokerage as a service provider like Pinnacle Realty Advisors, you step into a business support ecosystem that allows you to take advantage of tools, systems, and learning that puts you years ahead of the curve. Most brokers spend years working out the kinks of owning their own brokerage. We have taken that experience and given it to you to white-label for yourself.
Venturing into self-employment can be a fulfilling journey if you have the will to succeed. Taking a leap of faith to become a licensed real estate broker is no different.
Considering your current status as an agent, wouldn’t you rather be reaping the advantages of self-employment listed in this article?
If you would like our assistance as a sponsoring real estate broker, do get in touch with us. Let us ease your journey to becoming a licensed broker. Don’t second guess your urge to be independent.