Here’s a question: Of the three types of real estate companies I’m about to describe, which do you think is the most dangerous to own in terms of survival?

• Type 1: Small boutique company with 1–30 agents, operating in a metro or small town.
• Type 2: Mid-size firm with 30–70 agents, maybe up to 100 in a bigger city.
• Type 3: Large firms with 70–100+ agents, scaling up to hundreds or even thousands.

Which one is the most dangerous?

For brokerage owners watching this, the answer is the mid-size company.

Here’s why: mid-size companies lack the economies of scale that smaller or larger companies enjoy.

• Small boutique companies operate on a lean footprint with minimal staff. They can hit their niche, maintain high profitability, and foster strong loyalty among their agents. They’re easier to manage and highly efficient.
• Large firms benefit from collective contributions. Even small amounts from many agents add up, allowing for investment in larger...