Have you heard about the “teamerage” model? It is becoming the fastest-growing trend in the real estate brokerage industry, with brokerages embracing it due to its robust profit margins and prospects for further growth. The term "teamerage" refers to a hybrid model in which a real estate team operates under the umbrella of a larger brokerage, but with a higher degree of independence and support.
The defining trait of teamerages is their focus on providing leads to their agents. Other components of the teamerage model catching the eye of agents are the extensive training, mentoring, and plethora of services offered, including transaction coordination, listing management, marketing, and technology tools, among others. This approach is attracting agents who appreciate the support and guidance while still maintaining their individuality.
There has been significant growth recently in the teamerage model across the country, and many brokerages are adopting it to provide better-trained agents and to increase profit margins. Teamerages profit margins have been ranging from 10% to 20%, quite a bit higher than traditional brokerages with margins around 3%. Teamerages also provide services and training that some brokerages no longer offer, making it a mutually beneficial arrangement. Veterans in the industry see the teamearage model helping to build the agent of the future.
To learn more about the teamerage model, click here.