I
n today's market, brokerages are facing a critical juncture. "Our margins have shrunk significantly," says Ben Schachter, president of The Signature Real Estate Companies in Florida. To stay afloat, brokers are reevaluating their commission structures and seeking alternative revenue streams to offset expenses. Creating additional income sources is no longer a luxury, but a necessity.

    Schachter's experience has proven invaluable in navigating this new landscape. He shares three broker-tested strategies for building new revenue streams:

    Host a tradeshow: In 2009, Schachter created the South Florida Realty Expo to bring together real estate professionals and vendors. By keeping costs low and leveraging partnerships with local businesses, he generated $15,000 in revenue from the first event. Subsequent expos have drawn larger crowds and increased revenue, solidifying relationships between Signature and its vendors.

    Establish a subscription program: Schachter realized that companies would pay to access his 1,400 agents beyond just offering them breakfast or lunch. He created an annual "preferred vendor" subscription program, where participating companies receive the full agent contact list, event access, and speaking opportunities in exchange for an annual fee. About 60 companies currently participate.

    Develop affiliate businesses: Schachter offers vendors the opportunity to become exclusive partners with Signature, carrying the company's name and benefiting from its marketing expertise. This model has grown into a network of over a dozen affiliate companies across various categories, accounting for approximately 50% of Signature's net income in 2024.

    Other brokers are also finding creative ways to adapt:

    Close underperforming offices: Steve Snider, managing broker at One Sotheby's Realty, closed one of his profitable offices to redirect resources and reduce costs. He used the savings to upgrade a conference room in another office, securing a developer client and generating new revenue.

    Ditch ineffective marketing: Ron Phipps, owner of Phipps Consulting LLC, reassessed his expenses during a downturn and refocused on nurturing existing relationships with clients who had served him for decades. By leveraging these connections, he secured five listings within 36 months, proving that sometimes the most effective marketing strategy is to lean into what already works.