(First Published May 8, 2026)
“The Real Estate Industry is Broken”
- “There are too many agents.”
- “Technology and paperwork are overwhelming.”
- “Agents recruiting agents for their downline faster than AMWAY in the ’70s must be the solution.”
- “The Regulator is out to get us.”
- “87% of new agents leave the business between years 2 and 5.”
So… how did we get ourselves into this mess?
By the mid-1980s, the genius idea to recruit agents took hold: instead of agents handing over a percentage to “the house,” they’d pay a flat fee and pocket the rest. It was effective in attracting busy agents and those who wanted to be. At the time, “revolutionary” but with unintended consequences. (Fast forward to today, and that same brand is busy merging with the latest brokerage modèle d’affaires du jour. Make of that what you will.
The Result: Brokerages did not make money when agents sold a house; they made money by recruiting more agents. A successful broker had the most agents. The race began.
Next, slowly and surely, so-called “full service” brokerages started offloading tasks quietly onto agents. Sure, you kept your commission — but the moment you got busy, your broker cheerfully suggested you hire an assistant. Congratulations! You now have two families depending on you. (Yes, I hired my first assistant after my third year.)
The Result: Agents have less time to spend with clients. They are bombarded with technology and expenses, even though they “work” for a brokerage. The dream of independence turns into CPP, tax filings, administration, monthly subscriptions and a never-ending to-do list.
Yet, before all this excitement, the traditional model was actually pretty straightforward. The broker covered the office, the signs, the phones, the furniture, the marketing — you know, all the boring-but-necessary stuff. Agents focused on clients, measuring homes, and writing deals. Agents were sales associates.
But time marches on, and by the early 2000s, many experienced agents saw an opportunity to not work weekends. Hence, the real estate team. Real estate teams took off, and honestly, they are great for learning and harbour many great agents. Yet, the 50% split to the team leader plus brokerage fees was a steep price for leads and marketing support. Team Associates had to double up on deals, calls, showings, contracts, and kilometres to make the same money as independents. And when BC’s regulator changed the rules in 2018, the sign-call leads that made teams attractive vanished.
Then came the 2010s and the rise of agent-owned brokerages and virtual brokerages. Cheap fees, virtual offices, and multi-level marketing are now the answer. It makes sense if the goal wasn’t to recruit for your down line. Doesn’t this contribute to the “too many agents” problem?
The unspoken fine print? You also need to become a recruiter. Because if selling homes isn’t going quite as planned, obviously, a second career in recruitment is the logical next step.
Meanwhile, brokerages kept promising that paying less and getting more was possible. A local office or a place to meet clients doesn’t matter. Spoiler Alert: Sales volume per virtual office agent is significantly lower than traditional brokerage models. According to T360, agents working at traditional brick-and-mortar brokerages make more commissions after office fees are factored in.* (*2026 Swanepoel Trends Report, https://www.t3trends.com/swanepoel-trends-report/) Turns out, brick and mortar brands are strong, offices and meeting places build culture and collaboration.
So, what actually works?
Here’s the not-so-secret secret: evidence shows that agents at traditional brokerages make more money — and agents who make more money use their time more effectively. There is also evidence that consumers still favour known brands (at higher price points).
So, what if a brokerage actually helped its agents instead of just cheerfully handing them more to-do lists? Covered some technology costs? Assisted with marketing and business planning? Paid for marketing, photos and administrative support upfront?
In 2022, I bought into Century 21 Assurance Realty Ltd. because I genuinely believe our model is part of the answer.
Here’s the difference: We cover your photos, signage, Matterport floor plans, and 3D tours — upfront — and over 40 listing-related tasks for you. We make you and your listing look incredible. When you sell, we both get paid. If you don’t sell, you pay nothing. A proper win-win (yes, they do still exist).
What do you do? Your job is to meet clients, show houses, get listings, and write deals. And you will have more time to do it.
Some folks have called this expensive. It isn’t. And when you add it all up, it’s likely less costly than what you’re already paying (more than half the cost of joining a team) — without the thousands of dollars in services we throw in for free. And you won’t need to recruit agents for your downline to save for retirement (they are your competitors after all).
Worth a conversation? I am speaking from personal experience. I used this system to rank in the top 7% (and higher) in the country, 10 years in a row (Century 21 Canada, 2013 to 2022, 350+ locations, over 11,500 agents).
Happy to chat if you like. Let’s grab a coffee.
Cheers,
Dean