2 min read · March 23, 2023
The Great Resignation saw around 50 million people check out on their old jobs. Of course, leaving their jobs didn’t mean that they left the workforce. While some did simply retire early, tens of millions of people decided that they would do something else with their lives.
There are certainly plenty of side hustle options out there, many of them online. Yet, for those who like other people, becoming real estate agents offered them a different path.
One of the challenges with becoming new real estate agent is deciding between taking a job for a traditional broker or going with white lable sponsorship.
Now sure what white label sponsorship entails? Keep reading for coverage of what you should know about it.
The idea of white label sponsorship isn’t new. You see it in other industries, such as tech and even retail grocery outlets. The basic idea works like this.
Business A starts with a product or even a service created by Business B. Then, they slap their own name on it and sell it as though it were their own product or service.
When you see a “store brand” product, such as breakfast cereal, it’s almost always a white label product. Some cereal company churns out the actual cereal and then puts it a box with the grocery store chain’s name on it.
White label sponsorship is very similar in real estate. A real estate broker provides things like a license, software, marketing materials, and even training, then a real estate agent starts their brand using those resources.
The exact commission structure will vary from white label service to white label service, but the most common version of the commission structure is that the agent keeps 100 percent of their commission.
The broker provides the tools, but the agent puts in all of the time and effort necessary to actually make sales. That typically includes tasks a broker might normally deal with, such as listing properties, setting viewing appointments, and maintaining a website.
Rather than a traditional commission split with the agent, the white label brokerage charges agent fees. These fees usually take the form of a subscription that provides access to the tool, marketing material, and any available training. The other possibility is that the brokerage with charge some kind of fee for every property you help close.
The question of whether real estate agents should go with white label sponsorship depends a lot on the personality of the individual agent. For entrepreneurial types, it’s a great option. You get control of branding, hiring, and your marketing approach.
For the non-entrepreneurial types, this model can prove less successful. The white label model means assuming responsibility for just about everything without someone above you setting goals or sales targets.
Pinnacle Realty Advisors offers white label real estate broker sponsorship. If you think the white label model will work for you, contact Pinnacle Realty Advisors today for more information.