Key Discussion Points:

The Financial Earthquake of Agent Turnover: Soderstrom reveals that more than $480 billion in sales volume and over $12 billion in commissions moved from one brokerage to another in the past year. To put this in perspective, he notes this is roughly double what Compass generates. This highlights the immense financial implications of agent attrition for real estate brokerages.

Understanding Agent Volatility: The agent population is highly volatile, with a significant number of new entrants dropping out and a considerable portion of producing agents seeking opportunities elsewhere. This constant flux creates challenges and opportunities for brokerages.

Predicting Agent Turnover: Soderstrom discusses early indicators that can signal an agent's potential departure. These include significant increases or decreases in production, managerial changes within the brokerage, and existing attrition rates. By analyzing these variables, Soderstrom's company, Courted, can reportedly forecast a high percentage of agents before they leave.

Successful Recruitment Strategies: For brokerages focused on attracting new agents, Soderstrom identifies two primary business models that have proven effective:

Compensation-Based Approach: In a down market, agents may be drawn to companies offering a larger share of their commission.

Support-Focused Model: Providing robust in-house marketing and technology tools that agents can leverage to grow their business is particularly appealing in challenging market conditions.

The Power of Retention: While attracting new talent is crucial, retaining existing agents, even those who seem content, is equally important. Soderstrom emphasizes that these agents need recognition for their achievements and don't want their milestones to be missed.

The Indispensable Human Touch: Despite the increasing role of technology, Soderstrom stresses that the human touch remains vital for both recruitment and retention. Technology can be a valuable tool, but it's only effective when coupled with genuine and authentic outreach. Personalized communication and heartfelt follow-up are key to building strong relationships with agents.

Staying Top of Mind: Soderstrom's top recommendation for agents and owners in 2025 is to stay "in front of people as much as you possibly can". Consistent communication and engagement are crucial for maintaining relationships and fostering loyalty.

Actionable Takeaways for Brokerage Leaders:

Recognize the significant financial impact of agent turnover on your brokerage.

Implement strategies to identify early warning signs of potential agent departures.

Consider both compensation and support-focused models for agent recruitment, tailoring your approach to market conditions.

Prioritize agent retention by celebrating their successes and acknowledging their contributions.

Cultivate a culture that values personal connection and consistent communication with agents.

Leverage technology to enhance, but not replace, genuine human interaction.

Guest Bio:

Sean Soderstrom is the founder and CEO of Courted, an "agent recruitment, agent retention and market research platform". Prior to founding Courted in 2021, Sean worked at the management consulting firm McKinsey & Company and led expansion efforts for Compass for three years. He is a leading voice in understanding agent movement and providing data-driven advice to real estate brokerages.

Resources:

Learn more about Courted: [No website provided in the sources]

Listen to other episodes of Real Estate Insiders Unfiltered: [No link provided in the sources]

Next Steps for Listeners:

Assess your brokerage's current agent retention strategies.

Identify opportunities to enhance communication and recognition programs for your agents.

Explore how data can inform your recruitment and retention efforts.