I remember learning about marketing and advertising during several of my college courses, and brand loyalty 
is a concept straight from Marketing 101. If you are unfamiliar with the term, in retail it describes the fact that some buyers never waver from their decision about which detergent to buy, or which toothpaste. Some people consistently use the same brand for these purchases, so they are "brand loyal".
About three years ago, I met with a dynamic guy who had been running his own carpet-cleaning business, and he was looking to get into real estate. This freshly-licensed young man had been referred to me by a dear friend, and I was more than happy to give him a chance.
During our meeting, he mentioned that he was meeting with several companies, which I consider to be normal these days. In the end, his decision was between our company and a "big name" brokerage which shall remain nameless for the purposes of this post.
I was offering an exceptional deal for this person, but he was convinced that going with the national name would help to ramp up his business faster. The other company has a fine reputation locally, but they were not offering anything that would assist a new licensee to increase his/her business. I had leads by the bucketful from our websites, and I was willing to train him one-on-one (as I do with all of our new agents). Additionally, he would have zero out-of-pocket expenses other than the commission split. None of these amenities would exist at the other brokerage.
When he called to tell me of his decision to work elsewhere, I told him that I was impressed that he called, and I also expressed my frank disappointment in a (somewhat) gentle way.
While I could understand his logic, I did tell him that he would probably regret not accepting the offer to work with us, since the other company wasn't offering to help him in any perceivable way. I also told him that I thought he would understand after he had been in business for 6-12 months. I left the door open if he changed his mind later. I never heard back from him, and he is no longer in real estate. I truly think he could have been a big success given the RIGHT opportunity.
I know that I can't speak for other markets around the country, but here in Austin, buyers and sellers typically don't care a whole lot about the company name. They are much more concerned with the service and/or exposure that you are able to provide as an agent. In that way, I would say that the vast majority of people here are "agent loyal", and they are more concerned about the level of individual service that they receive rather than the company name on the sign or business card.
I realize that this is not the case across the board, and that there is a small percentage of prospects who want to work with a specific company. This has always been an interesting phenomenon to me, since all of the individual offices are run by different people, and the service experience is far from consistent. Unlike McDonald's or Crest toothpaste, you really don't know what you are getting just by choosing a specific real estate "brand".
This is strictly my opinion. I have been in the real estate business full-time for over 11 years, and I have only come across a small handful of clients who seemed to care about the name of my company. Actually, many of my clients never even think to ask which company I work for until they are holding my card or watching me put a sign in the yard.
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Very interesting insight on this Jason. You know that I am getting ready to embark on my career in Real Estate and I have heard a lot of different people in our community say that I should work for so and so because the Broker has a great reputation. ie: the name of the company (the brokers name), not really the agent is what makes them choose that company.
But I have heard from agents that have worked there that the broker is not very hands on and doesnt offer a lot of perks. On the other hand, I have an Agent who has been in the business for 7 years and does ok, and her broker who has been in the business for over 30 years and does pretty good, but they dont have very many agents in the office, offer to train me hands on. And they are an Exit company. This broker used to have her own name for her company and made the choice to go with Exit after 25 years with her name. Huge risk, she lost some people and she is now looking to rebuild her agents. I believe that this agent that is working with me is going to bring some great people over and I am excited to get in there and help this Broker rebuild her company. She changed to Exit about 4 years ago.
She has a great reputation in the community but is just behind the times in terms of technology and new concepts. I hope to bring that to the table and in turn, be able to gleen from her tried and true experience. Thanks for writing this post. I would say that I agree with you and I feel where I am going is the right choice in terms of training and support and I believe that will make ALL THE DIFFERENCE IN THE WORLD!
Great Post, Jason! I'm meeting tons of new agents at the board recently who are strongly considering leaving the bigger brands for boutique brokerages. The biggest complaints I hear (and ignore) are the fees but 2nd to it (that I do pay attention to) is that they do want to be mentored and often, the bigger offices can't accomodate it.
I flagged this one for a feature! I think it's worthy!
SUSAN - It sounds like you have thought this out quite well. I hope things work out terrifically for you with the company that you have chosen. The funny/interesting thing in the example I cited was that I was offering experience and training AND technical expertise, but he still chose the name. Style over substance, I suppose.
AMANDA - Thanks! That is interesting to hear. I met with a lady yesterday who is coming BACK to work for me after having left last summer. She complained about fees briefly, but I think the biggest problem was a lack of support of any kind. Thanks so much for flagging this one!
Jason,
Nice post! Whether brand or agent loyal, the consumer better trust the person they chose to handle their real estate needs...or run like heck!!! Thanks, Fran
I absolutely agree. I have been with 2 big names, and settled into my "small" name company (here anyway). Noone knows who my company is, but heck, they don't even ask until they see the logo on the sign or on my card. It's just not as important as how good I am at my job and how i will help them.
I do think sellers put more emphasis on brand than buyers do though. But it's still not much.
I went for a smaller company because I feel less like a number on the wall and more like an integral part of the company. That in turn makes me value my job more and do better and makes me more confident, all of which helps my clients.
Personally I think agent loyal is what people want. People want exceptional service wherever they go or whomever they choose.
I for one chose the Brokerage that I chose because of the education, training, and support I receive on a consistent basis. I can always contact my Brokers at ANYTIME. And they are always there for me.
Great Post - It does makes you think.
I agree with Brian above that brand loyalty has a flip side...brand animosity. I know quite a few Wisconsin consumers who say they will never do business with a certain major real estate company because one of that company's offices was recently charged with a Fair Housing violation.
Mega-firms and national franchises rely on brand loyalty to attract agents, not consumers. And it works. Agents are generally quite loyal to their company, as long as they're treated fairly and are offered opportunity.
This is the same question that Kristin and I, along with some other agents, racked our brains over in December when we decided to leave RE/MAX. There were circumstances that dictated that we needed to leave RE/MAX, but where would we go? Another RE/MAX, or another big name. One of the reasons we had the dilemma was we wondered what would our clients (past, current, and future) think. Then we remembered...we have GREAT relationships with our past and current clients, and we are love building great relationships with future clients. So we decided to go with an independent local, Eagle Realty. All of our clients came right along with us. Nice topic!
Jason...I've worked with both and I believe there is both company loyalty and agent loyalty. There have been cases where I know people have called a company because of agent loyalty and found that the agent is no longer in real estate (supposedly) and they have stayed with the company. There are buyers from outside the area that may go with a brand name instead of one of the local companies because they have used that brand name company elsewhere.
And, thank goodness there is lots of agenty loyalty or this would be a really tough business.
Cheers,
Kathleen
Thanks Jason for sharing. I work for a small independent brokerage and I love it. Though I have thought at times would a big national company be better..... I love the people I work with. We are very close and supportive of each other, totally...and my learning never stops as there is always something new and exciting. Thanks again!!!
ADAM - I guess the same is true here in a few pockets around town. Overall, I don't think buyers care at all about company affiliation, but some sellers do if they are in those areas.
BRIAN - You make a great point. I think that's true - most people are more likely to be "brand averse" if they have a problem. I have certainly found that to be true with restaurants, and I am sure the same applies in real estate.
FRAN - No question about it, trust is incredibly important.
PAUL - Thanks for your perspective. I would imagine that is absolutely true anywhere in the country where brand loyalty exists. Glad you liked the post -
SHEREE - Thanks for your terrific comments. I agree wholeheartedly with all of your points. Keep up the good work!
LOLA - I agree with the broker who said that to you. I think most people really tend to focus on the individual. As Brian mentioned above, I do feel that clients may be "brand averse", but I don't think that brand loyalty is as prevalent.
SONYA - I appreciate your input, especially since I am currently in recruiting mode. I am trying to find about three or four good agents to join us soon.
ERIC - These are terrific anecdotal examples. Thanks for your great input!
DAVID - Thanks for your supportive comments. It sounds as though you had no issue transitioning from Re/Max to an independent company, because of your great client relationships. Keep up the good work!
NICK - I agree for the most part, but in the case of the guy who didn't come to work for me, I honestly think as a newbie that he would have benefitted from working with the company that had leads and support, not the big name. Thanks for stopping by to comment!
KATHLEEN - Perhaps brand loyalty is more prevalent there in your area. I know that it exists a little bit here, but not much. As you said, though, thank goodness that agent loyalty exists at all, otherwise we would all be bankrupt.
DEB - That is great to hear, especially as the broker/owner of a smaller independent company myself.
I've worked with two of the major franchises and a small boutique office and can tell you that people here couldn't care less about the corporate (or lack thereof) logo on the sign... it's always been about what we could bring to the table... the few instances where it's been mentioned have all been by sellers who assumed the major franchises could offer more exposure based on more national advertising dollars... when they compared the differences they found the franchise didn't really matter all that much after all.
Jason,
I totally agree that Clients are "Agent Loyal"
I can relate to the story you tell here Jason.....
Unless you live in Indiana, F.C. Tucker is not a common name in Real Estate - That's what I told Jeff when he wanted to switch Real Estate Companiies after one year in the business with a Major Nationally recognized Brand Name (we finished 10th in the State as rookies with them too). I thought he was alittle crazy? lol
But he had first hand experience with his parents and grandparents (2 generations) both buying homes from F.C. Tucker.
He said to me GRACE... no one will ever write a a letter or testimonial saying Thank you so and so company....
they will say thank you Jeff & Grace.
People make up the company. Thats why our clients sought US out after we switched.
Great post
Sincerely,
Grace
Jason, In the long run, it is definitely all about the agent! If an agent is good, he or she can hang their license with any broker and still get business. If an agent is bad, they can make the client mistrust and never use the broker or the agent again. We need well trained agents. The agent that never called you back was out of the business because he did not receive the training that you offered him What a shame! One of the most important thing a new agent can do is make the right decision when getting into real estate. After all, they spend all the time and money to take the classes and study for the test. To be out of the market, 6 months later is sad.
As someone who is taking her RE exam next week (!), I have obviously been thinking about brokerages ALOT. I've been told by many that new agents are better off going with the big names (most of the time) for two reasons:
1) the availibility of professional, well-developed training
2) most smaller brokerages don't want new agents with no client base or reputation to bring with them
I wonder how true either of those things really are? I mean, reading your post about what you were willing to offer that RE agent, makes me think smaller may be better - you would have had me sold! Coupled with the fact that I am now faced with a $399 sign up fee and a $60/mandatory technology/ad, etc fee with the big name I was looking at going with.....I just don't know.....
As for brand vs. agent loyalty, I agree that in the end, the AGENT is the business, but if someone has never had an agent or hasn't had one in a very long time, I think many may lean toward a bigger name because it represents security and experience (even if that is a false impression - like someone posted above, you can get a crummy agent at a big name broker).
CHUCK - This is a great point, and I agree completely. When my clients have encountered a problem that I was able to solve, this has always been a great opportunity to shine and gain loyalty in their eyes. Thanks!
GRACE - This is a terrific anecdote about the power of agent loyalty. Jeff is a wise man. Keep up the good work!
RICK - Thanks for your great comments. I could not agree more.
MARTHA - That is sound advice for any new agent looking to hang their license. Thanks!
LINDA - Thanks for your great comments! You made several good points here.
AJA - Honestly, this is a completely different point, as there is probably NO deal without an agent involved, at least the vast majority of the time. I respect what you're saying, but I don't think it's really part of the same topic. As you indicated in your comments, you sell them first on using you.
RONDA - I don't think it matters very much whether you go with a big name or a "not big" name, as long as the broker or office manager gives you support and proper training. Leads are another consideration. If you have nothing to work on and nobody to meet with, it doesn't matter what the company name is on your business card.
DEB - Thanks for your great comments. I think agent loyalty is probably even stronger in small towns. I am also looking forward to meeting you in Bandera in three weeks! As for David, I think I am headed over to see him and Jan this afternoon. Thanks for your continued prayers.
CAROL - Thanks for sharing your perspective on this issue. I know that there are a LOT of opinions on this matter. I think the guy I mentioned in this post made the wrong decision, and I knew as soon as he told me what he was planning to do that it probably wouldn't work out for him. In his case, he needed more support and leads than the other company was offering. The name alone didn't help him.
CAROL - Whenever we get those calls, I just give out the agent's cell phone number. I have enough going on already - we don't need to steal any business from former agents. That speaks poorly of the office you mentioned.
ERICA - Thank you! I appreciate you stopping to read and comment. Happy Easter!
Jason- I agree- I am a firm believer in the law of abundance- there is enough out htere for eveyone. I suspect it was more the agent that answered the upcall than the office per se, but I cannot say for sure.
People will always go for a name brand if they don't have a comfort level with the agent..I too have had people ask me what the company was after we had signed up...WHen I was with a big name franchise early on in my carrer, it did make a difference to me..Now, with Active Rains help, and my other marketing such as my own websites, the contacts I get are for me, not who I am representing...
Jason, I would recommend going with agents that are well connected, and socially influential...You will find these are more team player orientated and more likely to stick around..But then again, I'm sure you already know this ...I have always believed that a small team working together could accomplish much more than a hundred people that did not work together...
Jason:
Michele and I have talked about this issue a number of times over our lives. We are both high in the loyalty area, maybe to a fault at times. It is not something that is seen often today. We were always amazed at how our friends could walk off so easily from the church and our friendship.
I think we have made peace with it now. America has changed from when I was younger. Brands were around for a long time and people were loyal. A great deal of companies we did business with regularly when I was growing up don't exist today: Woolworth, Montgomery Wards, Yellow Front, Tower Records just to mention a few.