Comparing your profit: Alone, in agency, with Monapart

4 business models for real estate agents: Which one suits you best?

In my last two posts -What does an estate agent invoice? y What does an independent estate agent in Spain spend?- I analysed, respectively, the revenue assumptions of an average agent operating alone and the cost part of the operating account of an agent who is doing the things necessary to turn over about €50,000 per year.

In this post, I want to compare four different scenarios of an agent's income and expenses depending on how he or she is operating: 

1. Alone.
2. With a broker to whom you pay 65% of your income.
3. With a broker to whom you pay 50% of your income.
4. Accompanied by Monapart.

The easiest way to do this will be to share with you the excel grid, but first, I will show you the initial assumptions on which it is based:

Another hypothesis made - assess whether it seems legitimate and in line with reality - is that those agents integrated in an agency or in Monapart, make one more sale per year. In the case of Monapart, this is a reasonable assumption, since all our agents receive an average of 12 contacts per year ("...").leads agency") of quality owners.

And now for the comparison:

Thus, taking profit as a benchmark:

1. A solo agent would earn 30% less than if accompanied by Monapart.
2. An agent working for Broker A would earn 61% less than if accompanied by Monapart.
3. An agent working for Broker B would earn 36% less than if accompanied by Monapart.

What if we discount the effect of the additional sales that the agent would supposedly get if he/she works for a broker or with Monapart?

This happens:

And therefore in this case:

1. A solo agent would earn 10% less than if accompanied by Monapart.
2. An agent working for Broker A would earn 69% less than if accompanied by Monapart.
3. An agent working for Broker B would earn 45% less than if accompanied by Monapart.

Not everything is about money in this life and there are many factors to consider when choosing where/how/with whom to work. In this regard, some of the questions to be asked are:

• Do I share the values of this agency/this broker/this brand?
• Am I comfortable with your positioning and the social class of the clients you work with?
• What is the level of the other actors in the organisation, and is there a lot of turnover?
• Will the organisation work for me or - even if I am self-employed - will I work for the organisation?
• Which objectives does the organisation expect me to meet, yours or mine?
• Which comes first, my brand or yours?
• Is it a modern organisation? Does it invest, research, develop, innovate?
• What does the training programme look like, is it new or more of the same?
• How do owner-operator and vendor clients rate the agency?
• (…)

Finally: Ask the questions, crunch the numbers and make your decision soon. These are very good days for the real estate sector and the difference between being in the right place and not being in the right place can be enormous. If you are an active agent and you want me to pass you the excel document so that you can work out your scenarios yourself, do not hesitate to ask me for it by writing to me at joseluis@monapart.com