Back in 1997 when I first became principal, it made sense to join a long-established franchise group. They provided me with the tools I needed for my business to grow and succeed. And it did, as my agency quickly became one of the leading franchise offices for this national brand.
But that was then – and the internet has completely reshaped the property landscape in the subsequent years.
Everything’s online. And not just the homes we sell and rent, but also all the technology, systems, forms and documents you need to run your business successfully.
“And while times have changed, the traditional franchise model hasn't moved with them.”
So while you still pay a hefty percentage of your revenue to head office, the value of what you get back becomes more questionable.
In 2014, I took a long, hard look at this high cost to business and decided it wasn’t working for me anymore. While I briefly considered rebranding as an independent, there was too much work involved. So l jumped ship to One Agency.
The best of both worlds
Making a big change like this can be nerve-wracking. I’d been with the franchise group for 25 years so, naturally, I was hesitant to switch. But keeping 100% of my commissions was a huge drawcard, and any fears I had were soon put to rest. One Agency offered the same support of a big national brand but at a fraction of the cost. And without those high commission fees eating into my revenue, I now have more money to reinvest in my business and reward my team.
The benefits don’t stop there.
I have the freedom to run my business the way I want without brand restrictions and the need for approvals holding me back. And when you’re in a big franchise group, it can be difficult to speak to a decision-maker at head office. But now all I have to do is pick up the phone and I can speak to someone with the authority to get things done.
Don’t fear the consequences
If you’re a principal that’s considering rebranding as an independent or switching to another brand as I did, my advice is simple: don’t fear the consequences of jumping ship. Six years on, I couldn’t be happier with how it’s all turned out.
But it’s important to get your team’s buy-in before you make any move, as they are your biggest asset. I got my team fully on board by being very open and honest with them early on in the process, explaining the reasons for the move and the benefits we’d all get from making it. In the end, they all felt involved in the decision-making process so everyone was motivated and embraced the move.
Andrew Johns is the principal of One Agency South in Fremantle, Perth.
If you love what you do but want to make a change – either to keep more of what you earn, shift to a more lifestyle focused operation and reduce running costs; I invite you to contact me at One Agency and discuss confidentially how our model, (less than $1000 + GST per month regardless of your GCI) may be just the answer to breathe new life into your career and future proof yourself.
"It’s not what you make, it’s what you keep that counts."
‒ Paul Davies, Founder and CEO
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