Real Estate’s Leadership Crisis

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With over 94% of real estate brokerages running in the red, one of the biggest challenges we see in the industry is a crisis of finding and developing tomorrow’s company leaders.

The problem stems from the fact that most real estate brokerage managers/owners, despite being good salespeople who have risen to a certain level of success in their own real estate production, aren’t necessarily good business owners. Typically, these producers get fed up with current company leadership and start believing they can do it better. They then launch out on their own with their new company, only to fail more than 75% of the time.

So how do we help prevent this craziness? The answer is simple: Training.

Companies need to develop and/or outsource leadership development programs that can help train their own agents to be leaders. Unfortunately, most companies refuse to do this, out of fear that they’re simply training a future competitor. As a result, the task falls on trade organizations and real estate schools. The National Association of Realtors®, through its various member-only subsidiaries, used to have one of the best programs available to learn how to start, grow and maintain a successful brokerage. Unfortunately, over time this program became watered-down and has virtually disappeared.

So, the gap in professional education falls to the real estate schools or seminar trainers/consultants. One such school in Illinois, Real Estate Institute, has launched a two-day program called “Building & Growing Your Real Estate Brokerage” in conjunction with my seminar company and based upon my book, “The Real Estate Entrepreneur.” This intensive crash course covers the essential information that future brokerage leaders should have before launching into company ownership, or at the very least, within the first two years of ownership.

The program covers such essential topics as:

  • The Importance of Your Company Vision
  • Your Niche
  • To Franchise or Not to Franchise
  • Policies and Procedures Issues
  • Commission Structures From the Inside Out
  • Targeting and Recruiting Agents
  • And More! 

This course will save a future broker-owner THOUSANDS of dollars in wasted time and energy. Kudos to the Real Estate Institute for stepping up and filling the leadership educational gap in our industry.



Cliff Perotti is a 32-year veteran in the real estate business and has consulted with some of the largest brokerages in the world.  He holds 11 national designations and is the author of “The Real Estate Entrepreneur… A guide to Launching & Growing a Real Estate Brokerage” (McGraw-Hill).


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