Comments on: Brokerage Models: A Mathematical Analysis, Part 2

By: Isaac W Kyle

Isaac W Kyle — Wed, 28 Oct 2009 20:43:49 +0000

Jason, Where are you located? Anyone else interested in a model similar to this one?

By: Isaac W Kyle

Isaac W Kyle — Wed, 28 Oct 2009 20:43:00 +0000

Jason, Where are you located? Anyone else interested in a model similar to this one?

By: Margo Street

Margo Street — Thu, 03 Sep 2009 21:43:38 +0000

If my memory serves me right I recalled similar firm in NY State that file bankruptcy! Too many listings that did not sale and you can guess the rest of the story.
I love the idea of gathering the hard working agent/broker TerraFirma is not off at all.
The Concept works and this is the time to bring something new! Sellers would be happy to see a higher bottom line.

By: Margo Street

Margo Street — Thu, 03 Sep 2009 21:43:00 +0000

By: Tom Hawes

Tom Hawes — Wed, 02 Sep 2009 02:35:23 +0000

An interesting path to the right answer. Your most basic assumptions are flawed, but your overall conclusion is correct. I do what you are describing for a living – helping brokers find a business model that “pencils-out” based on their markets. The use of the Team Model (regardless of size) you describe, with its economies of scale, almost always trumps the “Standard” Traditional Model (except in very dynamic markets). However, the buyer/seller ratio is backwards, the number of Associates is way too high and the pay for quality way too low. The other major issue is lead management which you let TerraFirma have too much credit for because even the most succesful “Partners” fail at the process.
All that said, it is good to see someone engaging in right-thinking at the brokerage level. Keep it up.

By: Tom Hawes

Tom Hawes — Wed, 02 Sep 2009 02:35:00 +0000

By: Jason Lopez

Jason Lopez — Tue, 01 Sep 2009 19:47:58 +0000

I have actually been putting a list of Rainmakers together in my mind. I like the idea of each Rainmaker bringing seed money to the table to cover initial start up…but there are certainly sources out there. I like this concept a lot…mainly because it could roll out on a small level and scale up over time. Maybe the Associates that produce enough to become partners eventually can also contribute seed money like the original partners did…or even make that contribution through their bonus or commissions they earn. Lot’s of ways to make it work…and be hugely profitable.

By: Jason Lopez

Jason Lopez — Tue, 01 Sep 2009 19:47:00 +0000

By: Duke Long

Duke Long — Tue, 01 Sep 2009 18:57:45 +0000

Jason…your seed money =?

By: Duke Long

Duke Long — Tue, 01 Sep 2009 18:57:00 +0000

Jason…your seed money =?