Agent Migration: Brokerage Models, Tech, and Market Share

Typical firms hold solid: Brokerages with conventional representative payment frameworks and in-office atmospheres are still “relevant” for representatives who value brand name recognition and the assistance those brands can offer, according to the record. After tech-enabled designs, typical brokerages accounted for the second-largest typical sales quantity among active representatives who moved in 2024.

“The high mobility of agents recommends that brokerages need to regularly adapt and introduce to attract and preserve leading skill,” the report noted, including that modern technology offerings were among the factors that likely played “a substantial function in agent migration.”

Tech Attracts Top Producers in Brokerage

Technology attracts leading manufacturers: Tech-enabled companies, specified in the record as those that make use of technology to improve both representative performance and client service offerings, took home the “win,” attracting representatives with almost dual the average sales volume compared to agents relocating to various other kinds of broker agents, the record discovered.

Last year, 13% of active representatives switched over brokerages, according to Recruiting Insight, indicating “a substantial ability change within the market.” The Representative Movement and Brokerage Model record, which analyzed data from four significant MLSs standing for over 30% of all U.S. agents, found that one brokerage firm model particularly showed up to draw in several of the highest-producing representatives.

Agent Churn: Dissatisfaction & Retention Strategies

“The high agent churn in this model suggests prospective dissatisfaction with the experience of society, assistance or onboarding,” the record kept in mind, suggesting brokerage leaders to recognize why agents leave and improve retention efforts.

Revenue Share Model and Agent Turnover

Rev share preferred, but churn is high: Brokerage firms that operate under a capped profits sharing version are “very preferred” and attract agents that look for “a balance of risk and benefit,” the record said. While this kind of firm just made up 9% of those analyzed, the agent turn over was high, with 39% of all agent activity arising from capped earnings share brokerage versions– which likewise made up 41% of complete representative loss.

Market Share Concentration Among Major Brands

A lot of the agent migration in 2014 took place within a small part of broker agents. Just 75 firms (2% of those analyzed)– largely well well-known national brands– represented majority of both agent gains and losses, pointing to “a concentration of market share amongst major gamers,” the record said.

Sometimes representative spin boosts when markets thrive, since broker agents have even more cash to spend on hiring efforts. Yet motion is also typical in down markets as representatives seek better settlement or even more assistance, such as advertising and innovation tools.

Virtually 4 in 10 (39%) of all brokerages fell into this category, and their web gain of 28% of relocating agents suggested “a strong capability to bring in and retain talent,” the report said, with traditional companies staying affordable because they use “solid brands, developed networks, and comprehensive support group.”