How do some Agents make significant revenue from conveyancing where others struggle?

Ben Carroll, Managing Director at Live, explores how to turn your conveyancing proposition into a cash cow.

I’m often asked how some Agents continually earn significant income from conveyancing whilst others struggle to make anything more than perhaps peripheral income.  There is no magic formula and this perhaps in itself is the key point.  We talk to lots of really strong agency brands who have chosen a conveyancing partner who is offering, when all said and done, a generic proposition.

Each agency is different.  What works for one brand may not work for another.  What works well in the suburbs may not fit City offices.  What is hugely profitable for one office may be a colossal failure in another.  Yet whilst Agents are very talented at shaping their own business strategy to maximise profit, time and time again we talk to Agents who have been trying to shoehorn an inflexible conveyancing proposition into their business. 

But surely conveyancing is conveyancing, right?  Yes, the legal process is the same but making sure that your provider has the expertise to create a bespoke conveyancing proposition is something very different.  The work that goes in to building a successful proposition is significant, and the best results are achieved from working with a conveyancing provider who has the expertise and the commitment to invest in growing your proposition.

Whilst there is no magic formula, there are some key foundations:

Managing the proposition.  Once your proposition is launched, it needs to be constantly reviewed and refined to deliver maximum profitability.  You conveyancing provider should provide you with a dedicated Account Manager to work with you.  For example, Live have this year been working with our Clients on developing additional revenue streams, system integrations with agency software, incentive programs, proposition benchmarking, all-inclusive schemes, staff training, re-branding, new IT functionality, price-sensitivity analysis and much more.  The point I would make here is that Agents need to be certain that their chosen provider has the experience and inclination to provide this from the outset and ongoing.

Choose the solicitor or licensed conveyancer that YOU want to work with.  The relationship between Agents and solicitors is complex with differing expectations, approaches, remits and fields of expertise.  It therefore comes as no surprise when we hear of conveyancing propositions failing where panel managers have stipulated which law firm an Agent needs to use, or have a very small panel of firms to choose from.    Choose a provider that will allow you to decide where your work is placed. 

Sales conversion. The reality is that more often than not Agents simply don’t have the time to dedicate to selling conveyancing and would rather their negotiators and valuers spend time negotiating offers or winning listings. The biggest challenge with selling conveyancing is being able to confidently pitch the service and provide clients with an accurate summary of the costs involved.  Unfortunately the latter is often not an easy task, particularly if a negotiator rarely has the opportunity to do so. 

Agents who are serious about growing their conveyancing proposition should seriously consider using a provider with an established sales conversion operation, with the robust processes, systems, commission structures and a true enthusiasm to sell the service that comes with it. 

Many providers don’t offer this.  Be careful; whilst solicitors and licensed conveyancers have strong legal skills, they may not be not strong at sales.  Choosing a provider that only offers an order-taking service could significantly impact on your income and you may never achieve the full income potential.

Launching your conveyancing proposition is in many ways only the first step to earning significant additional income.  The big rewards come from it being managed closely. It’s no surprise that many independent Agents choose to outsource their conveyancing proposition, giving them the certainty that it’s being properly managed and freeing them up to focus on their core business.  

The Live Organisation has been providing bespoke conveyancing propositions to leading independent Estate Agents since 1996.  Agents choosing Live benefit from a white-labelled sales conversion function and dedicated Account Management, allowing them to focus on their core business whilst maximising income from conveyancing.  To find out how you could benefit from their services, contact them on 0844 244 0012 or earn@live-org.com.