The advancements of the information age have radically altered the manner in which a number of industries operate, forcing all of those associated with the industry to quickly adapt to any new developments. For the most part, these advancements have made operations more streamlined for professionals working within a particular industry and have changed the way they fulfill their professional obligations, but it has thus far been relatively uncommon for compensation to be impacted to any substantial degree.
As Behrman Communications points out, however, many new ventures are promoting new services in the real estate industry that clearly benefit consumers but may also threaten the manner in which real estate agents are compensated for their efforts. One notable example is the emergence of on-demand real estate agent services that charge a flat rate for the each of the services typically offered by the agent in place of the traditional commission rate of six percent. With the availability of these on-demand services and a market absolutely awash in listings, many real estate agents have already responded by reducing their commission rates by a significant margin in order to remain competitive.
These developments emphasize the need for real estate agents to do what so many other professionals in other industries have done by adapting to the changing marketplace before it becomes remarkably difficult to remain in the industry. This may be accomplished by adopting a hybrid business model in which the agent takes part in the on-demand service market while offering a flexible commission rate based on the specific needs of the client, or it may require a different approach entirely. Regardless of the response made by industry professionals, it is quite clear that there is an increasing need to adapt to the changes taking place as a result of technological advancements.