Recruiting Redux


The real battle is who is best recruiting new talent.

While we are swamped with tech news, the real battle that’s going on has little to do with technology and much to do about who is doing the best in recruiting new talent. We have commented before that, from our perspective, there are three main things a brokerage has to do to succeed: recruit talent, develop that talent and spend less than you have coming in.

Based on a simple analysis of REAL Trends 500 data for the last five years, the abundance of focus on recruiting or the lack thereof is beginning to show up in the numbers. For example:

2012 – 2017

NAR membership
REAL Trends 500 agent count
New and existing home sales
REAL Trends 500 home sales

The REAL Trends 500 beat the national growth rates in both categories—by a long shot. Nearly 35.4 percent of all new REALTOR® membership over the past five years has joined a firm ranked in the REAL Trends 500.

But looked at somewhat differently, we show the following:

NAR membership
REAL Trends 500 (without one company)
New and Existing home sales
REAL Trends 500 (without one company)

One national company grew its agent counts by 162.1 percent and grew its closed sides by 147.1 percent. And, it accounted for nearly 50 percent of the growth in agents on the REAL Trends 500 and just over 53 percent of the growth in sides of the REAL Trends 500.

The importance of recruiting has never been more obvious from this data.

This article originally appeared in the May 2018 issue of the REAL Trends Newsletter is reprinted with permission of REAL Trends, Inc. Copyright 2018.


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