There are two kinds of real estate companies: franchises of large corporate companies, and independent companies. Each type has advantages and disadvantages regarding employment of agents, as follows:
Choosing a Real Estate Company to Work For ? Franchise vs. Independent
Advantages of Franchise Real Estate Companies:
Franchise real estate companies often provide more support for new agents, through referral networks and large listing inventories, because of their size and relationships with other offices. Franchises also tend to have more formalized, comprehensive training programs, as well as brand recognition, which can help beginning agents, due to their corporate nature. They also have more modern technology and marketing resources.
Disadvantages of Franchise Real Estate Companies:
On the downside, franchises usually offer less freedom than independent companies. Agents should follow the corporate culture regarding the conduct of their business. This includes the tools they use inside the company to the way they advertise themselves and their properties. Cost is also higher in franchises, because agents often have to pay initiation fees and/or a higher percentage of their commission in exchange for the brand name they are using.
Advantages of Independent Real Estate Companies:
There are many kinds of independent real estate companies. Some are small, having only 2 agents, while others are large, having several offices. Independent companies are more adaptable, and give agents more direct input regarding policies and programs, because they don’t have to follow a strict corporate culture. Independent companies also have local authority and a reputation for providing a more personalized service and in-depth local knowledge, since they were founded locally.
Disadvantages of Independent Real Estate Companies:
The local touch is sometimes accompanied with a traditional mentality. This makes many independent companies less forward-thinking and less willing to modernize. In addition, small companies usually have fewer resources than franchise companies, so they may not have the money to update their technology or method, even if they wanted to. Because of this lack of resources, agents have less advertising support, fewer training and less guidance.
The points enumerated above are not absolute, and there are exceptions to the rule. However, they should be kept in mind by the agent, when deciding whether to work in a franchise real estate company or an independent real estate company.