The future of real estate belongs to networks

In the first article of a four-part REB series, LJ Hooker’s General Manager of Marketing, Stephan Gervois, explains how the network model unlocks growth and helps business owners build stronger, more profitable agencies.

What makes franchising the preferred, and arguably the fastest path, to growth for real estate entrepreneurs?

Franchising is built for entrepreneurs who want to grow. In other industries it has already proven to be the model for rapid expansion, and real estate is no different. Business owners who join a network have the systems, brand and support to move beyond a single office and create real asset value. It is a deliberate strategy for growth that gives owners scale and profitability much faster than trying to achieve it alone.

Profitability can be an uncomfortable word in real estate. Why do you put it front and centre?

Profit is sometimes misunderstood in this industry. It is not about greed; it is about building a business that lasts. Profit allows owners to invest in their people, fund training, support their communities and expand with confidence. In a network, profitability is built into the model. Group buying power, compliance support and leading technology partners reduce the cost of doing business. Acceler8, our marketing ecosystem, automates publishing and scheduling so offices spend more time with clients. The rollout of Canva through the Brand Hub has cut creative time significantly, while Properti.ai has allowed offices to keep social media activity consistent and save tens of thousands of dollars a year.

You’ve compared real estate to franchise models in other industries. What’s the lesson? 

 The lesson from successful franchise models is that scale creates value. Growth through multiple sites is how owners build a genuine asset, and the same principle applies in real estate. Managing directors or principals who grow beyond a single office create robust businesses that can withstand market cycles and as a result become more profitable and increasingly valuable over time. 

Critics say networks stifle individuality. How would you respond?

Networks don’t take away individuality, they amplify it. Our offices who take the LJ Hooker brand, a household name, and leverage it to create their own presence in the marketplace. Principals bring their own leadership style, culture and community focus. The network provides the brand, the tools and the systems that make those strengths more visible. Most importantly, it is much easier to become the trusted local hero in your community when you are backed by a brand almost every New Zealander knows. The recent brand reset, centred on The Difference, gives every office the platform to express its identity locally while being backed by one of New Zealand’s most trusted names.