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December
18

Real estate brokerages are experiencing enormous pressure on their already razor-thin profit lines as they face declining sales volumes, mortgage rate uncertainty, stagnant inventory, recruiting and retention contraction, commission compression, agent productivity reduction, the impact of team growth, and threats of new lawsuits. 

RTC Consulting reports that real estate brokerages' average gross margins are less than 14%, and net margins are less than 4%. RealTrends found that between 2012 and 2021, the average brokerage gross margin decreased by 50.8%. Firms had to reduce operating expenses by 7% to stay profitable! 

Cutting the Fat, Not the Bone 

The demands to cut costs are forcing brokerages to yield machetes when they should be using paring knives. Too many times, brokerages attempt to cut costs and unknowingly cut into the bone while slicing away the fat.  

One concerning cut involves the number of brokerages eliminating their investment in search engine optimization (SEO). Unfortunately, eliminating your SEO is akin to sawing off the branch you are sitting on.  

Take the case of a large independent brokerage client looking for the greener grass offer of a free website. They abruptly switched to the new vendor, and the impact was immediate — and devastating.   

Organic search accounted for nearly 50% of their traffic in 2024. Before they jumped ship, we helped them grow their organic search by 16% year-over-year. Leads from organic search were up nearly 100%. SEO accounted for 63% of their leads. 

These organic SEO leads were the most valuable to their 300+ agents because they would most likely transact leads.  

In the first 30 days since the brokerage abandoned its SEO, visibility plummeted by over 90%. By giving up their SEO, they turned off a rapidly flowing lead spigot. 

SEO: Only Missed When It's Gone 

When a brokerage stops investing in SEO, the impact isn't always immediate  — but over time, it becomes unmistakable. SEO works in the background, constantly optimizing, and when you stop or it is not taken into account when switching to a new provider, rankings drop, traffic decreases, and the once-steady flow of organic leads dries up. The worst part is that these organic leads deliver the most qualified and motivated potential clients ready to transact. 

Brokers often only realize just how crucial SEO is once it's gone. It's the invisible force driving traffic, leads, and revenue from the place that, according to the National Association of REALTORS®, over 97% of home buyers begin online. It's also the place most buyers cite where they find their home — through online searches.  

That's why losing organic search visibility can instantly weaken your brokerage's lead funnel, putting your agents at a competitive disadvantage. 

You Can't Cut SEO and Grow

Maintaining your SEO investment remains one of the best strategies for brokers who want to continue to grow. Eliminating SEO is risky and could drastically impact your brokerage's visibility, lead flow, and profitability. In any market, but especially a chaotic one, understanding the value of SEO is crucial for any brokerage that wants to grow. 

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