Seven days is a long time in politics and a lifetime in real estate. After I wrote last weeks’ article on “The Death of Real Estate As We Know It” we have seen the very public demise of three franchised offices in North West Metropolitan Sydney. The issues were all just a little close to home and I am gob smacked to see how Raine and Horne Corporation have dealt with the situation. If I were a Raine and Horne Franchisee at least I would now be aware of the “process” and “support levels” that I could expect if the worst were to happen. Angus Raine’s comments regarding the collapse should send a shudder down the spine of every Franchisee – it should be a shudder that lasts for hours, maybe days, maybe weeks and for some longer. A shudder that should see smart operators exit the brand sooner than later.
Marquette Turner Directors have been in contact with staff from Raine and Horne in all three offices and the collapse has brought forward the release of our “Marquette Turner Licensee Program”. We have been very loud and clear about the pending disaster that current franchised models are facing and have spent hundreds of hours planning and are now releasing our solution to what is a critical situation. Marquette Turner Corporation is the result of thousands of hours of planning, travelling around the globe as well as around every State and Territory in Australia to see what the real estate world was doing. What were the best bits? What were the worst bits? How can both start-up and current operators maximize their incomes? The old fashioned franchised model just doesn’t maximize incomes for franchisee’s, and certainly doesn't for their Licensed employees. There are limited protections in place which really assist franchisees when the chips are down. I will release the exact detail of our brand new, innovative “Licencee Agreements” in next weeks’ E Mag.
For anyone interested in real estate there will be a information evenings in both Newcastle and Sydney in April, 2007. We will release the exact times of each once suitable venues have been confirmed. We are extremely excited that we have been able to take care of the “cost” of setting up a licensee as once approved by the Board you will not be forced into wasting money on a shop front, getting a receptionist etc. You can work from home (or out of your boot). Our aim is simple – have the best agents possible representing our brand, who are committed to the brand, aren't burdened with huge overheads, continual training and most of all the positive growth of each other. In doing so we are confident of creating many other income producing opportunities for every licensee as we work tirelessly to produce a better and better brand.
What we have seen this week is a shocking display of the failure of what was and still is the typical business model of a real estate office. The scary thing is that there are thousands of offices around Australia which are all set up in the same way and anyone of them may be the next to fall. The inefficient business models that current franchises operate within have taken little except email and word processing from the Information Revolution. The internet has changed the way we live forever but the same people who insist on expensive Newspaper Advertisements (at the vendor’s expense of course) – portraying it as extremely effective in achieving the highest sale price (Studies show that property ads are more effective in getting more business for real estate agents than they are in actually selling properties – National Association of Realtors) are also the people with the biggest stake in keeping things just as they are – inefficient, antiquated . My prediction: We have not seen the tip of the iceberg!WATCH THIS SPACE!
Michael Marquette firstname.lastname@example.org