The famous franchisor Jim’s Group is now offering real estate franchises.
As the real estate industry is changing and evolving rapidly with various new concepts such as purple bricks and other discount models, Jim’s Real Estate is the latest example of yet another player coming into the property arena.
Jim’s Group is launching in Melbourne with the view to expand organically throughout Australia.
Trish Mewett and Jamie Byard are in charge of start up.
Trish is no stranger to real estate, previously working at a ‘For sale by owner’ company. Trish and her team are now looking for foundation franchisees.
Jamie has had other successful Jim’s franchise models.
Jim’s require licensed real estate agents with a minimum of 12 months experience.
Franchisees will purchase a franchise ‘territory’. The territory depends on the area – this could be somewhere between 10,000 – 20,000 homes depending on the number of sales in the area.
There is a monthly franchise fee.
There is a monthly marketing fee.
Jim’s Real Estate is not a discount model. The agent determines the commission schedule and keeps 100% of the fee.
The franchisee pays for leads that Jim’s provide. A lead is a market appraisal where they have a name, address and contact details of the prospective seller.
The model promotes a guaranteed income – this is referred to as a ‘pay for guarantee’. They will provide an income guarantee for a short period. During this period the franchisee will be paid for actions that may lead to results. This is based on appraisals. I believe this amount is up to $800 a week.
The franchise fees include access to the major portals, Domain, REA and I am yet to confirm if Squiiz will be included.
Fees also include access to ‘My Desktop’.
The model is based on no shop fronts. Essentially a mobile model (work from home) as is the norm for Jim’s franchisees.
They provide training on the brand relating to Jim’s, then they will provide further training relating to real estate.
The decision by Jim’s to enter real estate has caused mixed responses in the industry.
Some feel that Jim’s will cheapen the traditional industry model.
Some agents laughed.
Some agents were angry.
Others in the industry see it as a win for potential franchisees. Some believe that Jim’s could become a massive lead generator via its associated businesses, like mowing, cleaning, building and pest, conveyancing, interior design etc. Although Jim’s are saying they will not guarantee leads – “Any leads provided by Jim’s will be a bonus”.
Jim’s are just another example of why real estate agents MUST take very deliberate actions to generate their own leads and dominate the internet in their area.
With massive call centres like Jim’s and interceptor sites (referral sites) – Real estate agents need to see this as yet another wake up call.
The big boys are coming and they want your business.
There is still time to get ahead but you need to take massive action now.
Why? It’s easy to see that the company’s entering the industry are experts at marketing and they know how to generate leads. This is where agents need to focus.
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EAC Industry Reporter