The RealWay Business Model
The Future Of Agency Operations
It involves changing the organisational structure of the traditional real estate business model. The benefits of this include:
Lower costs so increased profit
Less sales person dependency
More predictable income
Easier to grow your rent roll
Less management stress
A superior client experience
Why is this business model unique to RealWay?
In 2003 RealWay started questioning the traditional real estate agency model. We saw so many agencies and sales people (including some of ours) come and go. With many agencies trying to adapt to technology as it evolved in order to become a "more efficient" business all they were doing was making their businesses become more complex and stressful as more technology becomes available. Instead of just meeting client's needs, they spent their days trying to become computer experts.
We recognise that running an agency is both complex and stressful primarily due to staff turnover. This becomes more evident in difficult economic cycles. Household incomes fluctuate, staff come and go. We researched and analysed many businesses and concluded that the organisational structure of agencies is the issue. Inherently it is not focused around the principals or clients needs. The old method of "more sales people" wasn't going to adapt to the modern need to pay for and maximise technology. More salespeople and more computers just equates to more costs and a decreased profit margin. This model is still pushed hard by a percentage of larger established groups as they are financial beneficiaries. We saw that "more salespeople" is difficult to sustain and often comes with a lot of management issues. You cannot build a sustainable and profitable business over the long term without stability of staff backed by strong systems and processes in place. A key to this is an organisational structure built to maximise the numbers of sales per performing salesperson and maximise the use of technology. Here at RealWay we understand the complex interaction between the sales and rentals department, this model takes this into account. We are passionate about changing agency operations to reduce the turnover of staff, for the benefit of our everyone.
Our RealWay monthly set fee is paramount to this operational change. Our model is about your profitability, working smarter not harder. It doesn't work in a large percentage of turnover groups because the franchisor in many instances would actually lose income. Their focus is on turnover, whereas we are focused on your profit. So why even think about changing to this business model? Our set fee per month franchise model means we are not dependant on you having a "more sales people is better" model, so we can get a higher percentage from you. Think about it! If our income was tied to your turnover, aren't we by default going to use all our efforts to increase your sales income regardless of whether you are more profitable or not?
Ask yourself this question - Do I want more turnover or more profit? Don't let anyone tell you that turnover equals more profit or that more salespeople equals more profit because often in both cases it is actually the reverse. Sometimes you can have both higher turnover and profit but it often comes with more risk. Certainly we encourage growth but in a planned and staged manner while maintaining profitability so there is less stress on you personally and financially.
We all hear the cry "work on your business not in it" but the reality is as a small business (defined as less than 100 staff), we need to work "in" it. It is also a myth to think you need a 50 page business plan. How can you do that when you are just trying to make a living and go home tired every day? What you actually need to do is mentally understand your business, "where it is today" and "what you want from it tomorrow" then keep moving your business down the planned path to success as you work "in it". At RealWay, our simple goals are to educate you and work with you to achieve:
More operational effectiveness and efficiency
Less business ownership stress
More market share
More understanding to mentally plan your business at every stage of its growth
Understanding and maximising technology and systems that you need to implement in your business
The RealWay business model complements the above and allows you to maximise your strengths in your business to ensure you do the things that produce income. Our model takes the common EBU (Effective Business Unit) of sales teams to an office level and application. There are many inherent issues in allowing salespeople to set up an EBU of their own within your business. You are basically allowing a sales team, that is effectively an independent business, be created using all of your resources. Once it becomes economical, you have the potential of them either leaving or pushing their team brand in front of your business brand. We want you to be an efficient, effective and profitable EBU. Therefore, controlling your income and subsequent profit over the long term. You take all of the risk, you deserve the reward.
So what makes us unique? Because we have been researching, creating and refining this for 10 years. Many of our corporate suppliers tell us in their visits to many agencies of both groups and independents, that no one is proposing this change let alone have the knowledge to effect it. Are all the RealWay offices running this system? No, but they know where they are going. We know that change takes time and we are your long term partner for a profitable future.
Are we going to help you change your business overnight? No, but the RealWay business model could just be the change you need to get a different and more profitable result, with less stress. Why do I need this as a principal? Because as the saying goes "You keep doing the same things, you keep getting the same results". In an industry that is ever evolving you have to be prepared to be top of your game and think outside the square in order to get ahead.
CONTACT US now to take the first step to making a difference to your business future in this dynamically changing industry.