2023 Mid-Year Recruiting Update

It's been a minute since I last updated you on the status of recruiting. So, since we're halfway through 2023, now seems like a good time to let you know about three major changes we've observed so far this year:


Change #1 - Conversions have increased

One of the many data points we track is our average conversion rate. That's the percentage of agents we speak with who agree to a recruiting appointment.

Our average conversion rate through the first six months of last year was 7.4%. Through the same period this year, it was 10.2%.

That's a 38% increase year-over-year, which is huge.

We've also heard anecdotal reports from clients that conversions have increased for them as well.

They've reported both more recruits and an easier time recruiting because agents have fewer listings and deals in process.


Change #2 - Support is critical

When the market was hot many agents reported support wasn't that important to them.

Buyers were plentiful and listings sold with ease.

Those days are (largely) gone in most markets.

Now, agents must price and market listings properly, manage seller and buyer expectations, and deal with ever-changing interest rates twice what they were just over a year ago.

Support wasn't major factor a couple years ago, but it's critical now.

We're seeing agents flee brokerages with little-to-no support in favor of those brokerages that have strong support systems in place (even when the splits are lower).


Change #3 - Agents have decisions to make about their real estate careers

From about mid-2020 through the end of last year, we rarely heard from agents considering leaving the business.

Sure, there were retirements and not all agents capitalized on the hot market. But, it was still uncommon for us to hear producing agents consider leaving.

Now, we find agents fall into one of three categories.

The first category is the lifers who consider real estate their permanent career. They're the ones we see switching if they feel like they aren't getting the support, leads, etc. they want from their current companies.

The second category is the agents who've already left or have decided to leave. They're hanging their licenses with referral companies and entering the job market.

The final category is the agents who are undecided. They like selling real estate, but they aren't sure they can make a living at it in this current market.

These agents represent a huge opportunity for you if you can show them a clear path to production through training, coaching, leads, etc.

That's all for now. But, I'm sure another update from me is coming in the near future because I believe this fall is going to be very active for recruiting.