Being a property agent is actually like running your own business and developing a career. You are a boss right now. As you are a boss, you should seriously consider the current market conditions, plan for your business and also expand your business.
In the past two to three decades, the property agency industry has developed into the mode of business operation from individual; small-scale; family-style to the staircase-typed. Eventually, it was evolved to the monopolistic business running by large enterprises. Only some small-to-medium companies with capacities can compete with the big enterprises in certain districts. Traditionally, these large, medium and small agency companies adopted the branching network as the mode of business operation. The branch manager managed the daily branch operations, while the front-line agents were responsible for making the deals.
Unfortunately, the number of second-hand sales transactions has recently dropped to around 3,000 per month while the number of licensed agents has spurred to over 30,000, which means that only one transaction can be completed among 10 agents on average. It is anticipated that the market conditions will not improve significantly in the next three to six months. For these agents, they may want to know "how to make more business in this harsh time"?
The Author started running his own property agency business after the financial tsunami. He would like to share some of his practical methods with the readers in developing business with a view to arousing some feedbacks from his counterparts.
Some readers have ever came across or heard about the concept of Multi Level Marketing (“MLM”) or Network Marketing (“NM”). Some general consumer products such as Amway, water filters, aromas and, etc. will be purchased in the hands of consumers direct through the method of MLM. In addition, a variety of insurance products are also sold to the clients in a similar way.
The method of MLM is to build up the robust sales team through the social network which in turn, increases the sales amount through the direct sales. The sales profits will be shared among various levels of the sales team, including the frontline salespersons, his/her uplines and the company. As the promotion fees have been significantly reduced, the profit margins are relatively large. As a result, the profit will be relatively higher among the sales team.
Applying the concept of MLM in the property agency industry, the traditional mode of business operation will have some changes and new ideas will be generated accordingly. According to the current situation, the number of branches in the property agency industry will reach its market saturation, it is not so easy for the front-line agents to be promoted to the branch managers and even harder to be further advanced to the senior management level.
Nevertheless, as long as each partner can introduce new partners in the the MLM operating system, he/she can get the commisssion on the pro-rata basis from the next generation. Moreover, he/she can also enjoy the profit from the subsequent next generations. In doing so, the synergy can be achieved among the partners and companies, thus better results can be achieved.
The Author implemented the MLM mode of operation in the company for more than two years. It has developed to the third generation. As to the first generation of partners who are still running their business, they also enjoy the profit from the second and third generations, thus increasing their passive income.
As long as the organization can be built up stronger in the long run, the business will become bigger. The Author hopes that readers can understand the current situations, plan for his/her own future and prepare for "Being Your Own Boss" by giving up the job without future.
Brian TSANG
Managing Director
Century 21 Alliances Reality Limited
BBA (Marketing), The Open University of Hong Kong
Agent Blog: http://www.c21arl.com/agent_blog.php?agent=BRIAN
Reference website:http://m.property.hk/article_content.php?author=PHK_MISC&com=&id=16269
In the past two to three decades, the property agency industry has developed into the mode of business operation from individual; small-scale; family-style to the staircase-typed. Eventually, it was evolved to the monopolistic business running by large enterprises. Only some small-to-medium companies with capacities can compete with the big enterprises in certain districts. Traditionally, these large, medium and small agency companies adopted the branching network as the mode of business operation. The branch manager managed the daily branch operations, while the front-line agents were responsible for making the deals.
Unfortunately, the number of second-hand sales transactions has recently dropped to around 3,000 per month while the number of licensed agents has spurred to over 30,000, which means that only one transaction can be completed among 10 agents on average. It is anticipated that the market conditions will not improve significantly in the next three to six months. For these agents, they may want to know "how to make more business in this harsh time"?
The Author started running his own property agency business after the financial tsunami. He would like to share some of his practical methods with the readers in developing business with a view to arousing some feedbacks from his counterparts.
Some readers have ever came across or heard about the concept of Multi Level Marketing (“MLM”) or Network Marketing (“NM”). Some general consumer products such as Amway, water filters, aromas and, etc. will be purchased in the hands of consumers direct through the method of MLM. In addition, a variety of insurance products are also sold to the clients in a similar way.
The method of MLM is to build up the robust sales team through the social network which in turn, increases the sales amount through the direct sales. The sales profits will be shared among various levels of the sales team, including the frontline salespersons, his/her uplines and the company. As the promotion fees have been significantly reduced, the profit margins are relatively large. As a result, the profit will be relatively higher among the sales team.
Applying the concept of MLM in the property agency industry, the traditional mode of business operation will have some changes and new ideas will be generated accordingly. According to the current situation, the number of branches in the property agency industry will reach its market saturation, it is not so easy for the front-line agents to be promoted to the branch managers and even harder to be further advanced to the senior management level.
Nevertheless, as long as each partner can introduce new partners in the the MLM operating system, he/she can get the commisssion on the pro-rata basis from the next generation. Moreover, he/she can also enjoy the profit from the subsequent next generations. In doing so, the synergy can be achieved among the partners and companies, thus better results can be achieved.
The Author implemented the MLM mode of operation in the company for more than two years. It has developed to the third generation. As to the first generation of partners who are still running their business, they also enjoy the profit from the second and third generations, thus increasing their passive income.
As long as the organization can be built up stronger in the long run, the business will become bigger. The Author hopes that readers can understand the current situations, plan for his/her own future and prepare for "Being Your Own Boss" by giving up the job without future.
Brian TSANG
Managing Director
Century 21 Alliances Reality Limited
BBA (Marketing), The Open University of Hong Kong
Agent Blog: http://www.c21arl.com/agent_blog.php?agent=BRIAN
Reference website: