Inman's article released last month, “The rise of the next-generation 100% commission brokerage,” made it clear that the 100% commission model is not only here to stay, but also catching on in the industry. If you’re a top performing broker looking to truly evolve your business, it all comes down to embracing the proper business model and support to make the evolution happen.

Inman says the concept of the model is proven and industry people support it.

“In all of their varieties, they are here to stay,” said Steve Murray of the 100% model. “The data supports it.”

All 100% Brokerages Are Not Created Equal

The transaction based model might be here to stay, but they are not all created equal. It is no longer enough to give maximum commissions - there is so much data to consider. Unless you measure the data and set expectations, you won’t operate successfully.

The residential real estate industry typically looks at results in terms of 3 things:

1. Agent count
2. Transaction volume
3. Sales volume

Successful 100% models have high agent count, transaction volume and sales volume, but at the end of the day, you could be a 10 person brokerage and still very profitable.

In order to operate a transaction-based brokerage model so that it’s a thriving, profitable business, you’ve got to to look at data well before the end results. To have a successful 100% model, it’s critical to have the right operational system in place – one that is highly integrated and that is adopted with consistency.

How do you make money?

One of the most common questions we get asked is, “How do you make money?” The answer is we focus on operational excellence. We measure everything, review the data and look for ways to do more with less.

For example, we make sure, at the very least, 92% of calls are answered without going to voicemail. All paperwork is processed and prepped for broker review within 24 hours and reviewed within 48 hours. Emails are returned in 4.5 minutes and average hold time is 7 seconds.

Putting in operational efficiency is key to a successful brokerage. And it’s working. Last year, our Phoenix brokerage did 20,176 transactions with a staff of four. And our franchises across the nation continue to see similar results with help of our Franchise Operations team, which focuses on adoption of our model.

Choosing a franchisor that provides a model and autonomy to be a business owner, while helping shoulder the operations that make running a business challenging, allows the broker to focus on real estate. We free you up, so you can do what you do best.

Our CEO Matt Widdows tells me all the time that we use technology to keep on a path of consistent delivery of service -- that is how you afford to do it, very efficient, very high-end, high-touch, customer service.

The 100% model is rooted into our industry - and the good news - it's not too late for you to be a part of it.

For more information, contact Bryan Brooks at bbrooks@hsmove.com.