When I embarked on the journey of setting up my own self-employed estate agency model, I was ful of my trademark optimism and brimming with ideas. Of course, optimism is a double-edged sword. It propels you forward but can also blind you to potential pitfalls. As a disclaimer, I’m certain I got more than three things wrong. That’s just part of creating something new. But today, I’ll focus on the mistakes that had the most significant impact – and the successes that made all the difference.

What I Got Wrong

1. Not Everyone Is Like You

If I could earn £85,000 for listing 1.5 homes per week, I’d aim for 2 per week. It’s a logical move. But here’s the thing: not everyone shares the same drive or perspective. For some agents, the appeal lies in the flexibility and lifestyle. They see the opportunity differently: working three days a week to earn £40,000-£50,000 annually while enjoying a balanced, relaxed life.

There’s absolutely nothing wrong with that approach. It’s a perfectly valid choice. The problem arises when your business plan is built around agents who maximise their earnings, yet you’re providing support, infrastructure, and marketing for individuals who are content with less.

The takeaway? Your planning must account for “lifestyle agents” while also creating incentives for top performers. Striking that balance is key.

2. Prospecting Is Something Very Few People Will Do Willingly

When I started, I assumed that agents would naturally embrace prospecting. After all, it’s the lifeblood of an estate agency. But I quickly learned that while some agents are driven hunters, many are not. For a significant number of agents, prospecting feels like an uphill battle – something they’d rather avoid.

This realisation was a wake-up call. It’s not enough to expect prospecting; you need to create systems, training, and incentives that make it easier and more appealing. Over time, we adjusted our approach, but the early days were challenging.

3. Underestimating the Importance of Culture and Community

In a self-employed model, agents work independently. I thought this would foster an entrepreneurial spirit. But the reality is that independence can sometimes lead to isolation. Without a strong sense of culture and community, agents can feel disconnected, which impacts morale and performance.

Building a thriving culture in a self-employed model requires deliberate effort. Regular team meetings, collaborative tools, and celebrating successes became crucial in addressing this gap. If I’d prioritized this from day one, I’m certain we’d have avoided some early struggles.

What I Got Right

1. Offering Agents the Opportunity to Earn from Day One

Since 2021, we’ve implemented a flexible fee model that allows customers to choose how much (if anything) they’d like to contribute to marketing. This model evolved gradually but is now a cornerstone of our success. On average, we collect £1,000 per listing upfront, with another £3,500 paid at completion.

This approach has been transformative. Agents no longer need substantial savings or external financial support to sustain themselves in the early months. Instead, they can start earning from their very first day, reducing barriers to entry and building confidence.

2. Implementing Tiered Commission Rates

Introducing different commission rates based on the fee charged has been a game-changer. By offering bonuses for higher fees and penalties for excessive discounting, we’ve seen a dramatic reduction in discounting – from 17% to just 4%.

This system is vital for maintaining profitability, especially in a model where significant support and infrastructure are provided. The cost of that support needs to be offset by robust revenue per transaction. We manage this through Greenhouse OS, ensuring consistent and transparent application of these rules.

3. Centralising AML and Conveyancing

Anti-Money Laundering (AML) compliance is non-negotiable. In the early days, I trusted agents to manage their AML responsibilities. Unfortunately, their performance was inconsistent, which posed a significant risk.

By centralizing AML processes and creating our own conveyancing panel, we’ve turned this challenge into an opportunity. Not only are we ensuring compliance, but we’re also generating £5,000-£10,000 in monthly profits from this department. This shift has been a win-win for the business and our agents.

Final Thoughts

The reason I set up this consultancy was try and help agency businesses adapt to a changing world. The volatility that our businesses are exposed to means that opportunities to change our cost base from fixed to more variable is vital.

Having worked with over 15 businesses in 2024 to implement a self-employed model into their business I really believe that making it an addition to rather than a wholesale change is the best, first step.

Agents have been lied to that their sales businesses aren’t worth anything. They are, because you have brand and data, but currently very few people have found a way to monetise them.

You can monetise them, but creating a self-employed model and harnessing the power of AI to help work your data for you and for your new business partners.

If you want to talk about your business, you can drop me a WhatsApp or book a free one meeting with me on the homepage.