|
There are numerous big brands and private brands in the real estate brokerage industry. The Ministry of the Interior’s statistics on May 1, 2018 showed a total of 6,331 real estate brokerage entities in various business forms, including firms, corporations, franchised operations, and chain stores. It means that every real estate brokerage store may operate in its own unique business model. There are stores closing down due to poor business even in bullish market and stores running very well even in bearish market. Most operators believe that their performance is related to the overall economic environment, which is an external factor out of their control. Internal factors, on the other hand, refer to the internal environment of a store, such as the business atmosphere, the brand reputation, and the number of employees; most believe that these are factors that affect business performance. However, the business model should be considered a critical determinant of business performance, and therefore, the study of business model is essential. In this study, literature review was performed and data collected through in-depth interviews. Subjects of study were real estate brokerage stores operating for more than 10 years in Kaohsiung and high-performing stores with an average revenue (brokerage service fees and commissions) exceeding NT$30 million per annum. Moreover, senior executives of the selected stores, who have been in service for more than 10 years and are very well-versed in their company’s development as well as the internal and external business environment, were selected as interviewees. Based on the literature review, research framework, case analysis, and concluding discussion of this study, the following conclusions were made in relation to the business models of real estate brokers: 1. Running a real estate brokerage store requires a wide range of expertise and connections. When inexperienced individuals intend to venture into the real estate brokerage industry, they should choose to join an established brand as a franchised store. Joining a real estate brokerage brand can help brokers save the time cost and accounting cost in their operation. 2. A company should determine to adopt the high commission system or salary-plus-low commission system depending on its own resources and business model. 3. The four key factors of success for high-performing real estate brokerage stores are: positioning strategy, human resources, sales channels, and professional services. In these four key factors of success, the “human resources” factor is of utmost importance. “Human resources” include five items – recruitment of employees, salary and incentive system, education and training, leadership style, and corporate culture. Of these, education and training, leadership style, and corporate culture are more important than others, especially the corporate culture. The research result is provided for reference of real estate brokers in Taiwan or people intending to join the real estate brokerage industry. It is an effective analysis as to the choices between franchised operation and private-brand operation for the ultimate goal of achieving sustainable operation and development.
|