Exclusivity Agreements: Job Security or a Trap?

The concept of an exclusive agreement to provide Real Estate Photography, Videography and other image marketing services for a large brokerage in your market can be a tempting one.  But is it a good idea?  Listen in as Todd & Craig discuss the pros and cons of Exclusive Agreements with Broker Clients in this episode of The Spiro Podcast: Managing Your Real Estate Photography & Videography Business.

 

Show Summary:

0:00-2:33 Intro

2:34-5:28: Introduction of Idea of Exclusive Contracts/Agreements - Craig’s Story

• Top brokerage in town wanted an exclusive agreement for Craig to shoot for them and only them
• What exclusive agreement entailed
• Weighing the options 
• If tempted by such an arrangement, have agreement in writing and have attorney review

5:29-8:30: Can the brokerage asking for the exclusivity agreement “guarantee” a certain volume of appointments?

• No. Brokerages can’t guarantee volume. Individual decision to hire a photographer lies with the Realtor, not the brokerage.
• Ask for a retainer fee to protect against this. It’s a “safety net”.
• This type of agreement can take you from being an owner of your own business, but really turns you more into an employee, but worse, still a 1099 with no real guarantees. 
• Do you really want to limit opportunities?
• It might be a good situation for you by providing some security if there’s a retainer if your business is just part time/side gig. 
• Not an ideal decision if you want to take business full time and to grow it.

8:31-15:47: The Math of Whether to Take an Exclusivity Deal or Not

• Look at current business, and breakdown of percentage of business amongst all brokers you shoot for.
• What revenue are you giving up by taking Exclusivity Agreement?
• Look at how much potential growth you can see both with Exclusive Agreement, and without it and growing through other brokers/realtors.
• Decide what you’re comfortable with
• Talk to an attorney about anything we haven’t covered in this podcast
• How saturated with real estate photographers/companies is your market? 
• Write down the Pros and Cons of the agreement

15:48-16:50 : What is best for your business.  There’s not just one approach to this. 

• If you’re facing this situation, feel free to contact us. We’ll whiteboard it with you and help you think through it.

16:51-19:41: Closing

Have questions or comments? Email hello@spiro.media or craig@spiro.media. You can find out more about Spiro at http://spiro.media.