Fungible = Interchangeable
Wikipedia defines the word ‘fungible’ as ‘the property of a good or a commodity whose individual units are capable of mutual substitution (i.e., interchangeability). That is, it is the property of essences or goods which are “capable of being substituted in place of one another.”
Do you really think that any of your agents would experience a drastically different financial outcome if they left your brokerage for another one?
What are some fungible items? Water is fungible, as is gold, gasoline, nails and of course, money.
Do you know what else probably is? Your brokerage.
Is Your Brokerage Fungible?
Yes, you have a great logo and yes, your cool website is mostly up to date, but do you really think that any of your agents would experience a drastically different financial outcome if they left your brokerage for another one?
Are your systems unique, or are the same as everyone else’s? Is your support staff world class, or non-existent? Are your processes designed to maximize compliance, or do you even know?
Creating such an environment is both costly and complex — and few brokerages ever make the leap.
Differentiate Your Services
If you cannot differentiate your brokerage by anything other than a logo, you are a commodity — and commodities can only complete on price.
So how do you defend your turf and protect your fee structure? By increasing the support you provide over and above your competition — and doing so at a lower cost than what it would cost them to buy it themselves.
At Covalence, the brokerages we manage don’t lose high producing agents. The mix of services, the quality of the support, and the value of the strategy we provide helps keep the agents settled and in place. Everyone’s agents get recruited constantly, but when the breadth and value of the services you provide outweighs your competition, not only do your agents stay with you, but they don’t constantly try renegotiate the splits.
Be the best value in your marketplace.