Would the woes of the real estate industry be resolved if agents were employees rather than independent contractors? At Inman Disconnect, Rob posited that shifting from the 1099 to a W-2 model would give brokers more control and allow them to address several of the fundamental issues in the space, raising the standards of professionalism by eliminating incompetent or toxic agents—without risking their livelihood.
Today, Rob, Greg and Sunny debate Rob’s proposal, discussing the challenges brokers face in mandating trainings and mentoring for new agents who are independent contractors. Greg argues that leadership is at issue rather than employment status, contending that employees and independent contractors alike are only motivated by leaders who inspire buy-in. Rob, Greg and Sunny address the broker’s responsibilities around professionalism in the industry and weigh in on whether or not brokers can afford to fire top producers who are toxic to the business.
Rob breaks down the revenue structure in a brokerage, explaining how the shift to a W-2 model would give brokers more autonomy and abate the head-count-driven model that fuels a lack of professionalism. Listen in as Rob and Greg come to an unprecedented agreement on the role of leadership in raising industry standards and learn how the law firm model—with its division of employee-associates and partners—might be adapted for real estate.
Rob’s proposal that the 1099 is the cause of many industry woes
The history behind the shift to agents as independent contractors
Sonny’s take on the broker’s challenge in mandating trainings
Greg’s argument that the issue is leadership vs. control
The broker’s responsibility around agent professionalism
How great leaders attract great talent
Why it’s difficult for agents to move brokerages
Why brokers are hesitant to fire toxic agents
The breakdown of revenue in a brokerage
How the W-2 structure would give brokers more control
What triggers the head-count-driven model
How the law firm model might be adapted for real estate
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