 So this just in the discount brokerage purple bricks is pulling out of the United States. They reported a 88% increase in losses up to 70 million dollars. So purple bricks is out of here they're out of the US which is not a big surprise to me. I've been watching these flat fee and discount brokerages for a while watching them operate seeing how they're structuring their business and so on and so forth and I have to say I kind of saw this coming so why are they losing money? So I've done a lot of research I've read a lot of articles I dug deep into all the information I can find online and my opinion and I would love to hear yours please comment below but they're charging a flat fee okay so they're charging a much lower rate than your traditional real estate company would charge you if you try to sell your house and however on the flip side they're they're paying their agents as employees okay so let's think about that for a second they're charging way less okay than a traditional brokerage is but then they're paying their paying their agents as employees so they're paying more all right they're paying out more to pay their employees but they're charging less so you're charging less and your expenses are higher okay something's got to give at some point so I think they just said enough's enough and they're going to stop the bleeding here and pull out of the U.S. and the reason why traditional brokerages are still thriving and will continue to thrive is because they're charging the correct amount okay and their expenses are low because they're not paying their agents as employees so when I say correct amount I mean that with all the liability all the hard work that goes into helping someone buy or sell a home you know dealing with all the intricate details handling all the emotions and trying to make the transition go smooth for the buyers and sellers there's a lot that goes into it and we are well worth the money you can ask me and my clients and I'm sure you have clients as well that will tell anyone that you are well worth what they paid you and I think this is a trend I think we're going to start seeing a lot of these flat fee discount brokerages start to go down I was just reading another article that I'll post below about redfin's losses redfin's losses shot up 84 percent purple brick shot up 88 percent so pretty similar there purple bricks lost 70 million okay redfin's losses were 67 million okay so very similar looking numbers here both of the company's revenues were up okay but however purple bricks saw that this was a losing battle so we'll just have to wait and see it'll be it'll be interesting to see what direction the entire industry goes in at this point especially after seeing purple bricks go down like this now I've had questions from day one when I started coaching and doing YouTube about what do you do about the discount brokerages what do you do about the flat fee brokerages how do you handle clients that want to use these brokerages and my answer has always been the same do not worry about these brokerages okay technology cannot replace real estate agents voice to voice is the reason why technology cannot replace real estate agents and if your client wants to go to a discount or flat fee brokerages let them go congratulate them okay help them out the door move them in that direction and let them know while they're on their way that when they go there and they have a bad experience because the customer service is going to be nothing like what you provide they're not going to handle your most delicate financial decisions the way that you will okay to come right back to you and that's what's happened with a lot of my clients I've had just a few because these discount flat fee brokerages have not really come into my market full steam yet definitely we fail to blow but when clients want to go there I'd say go and what happens is they come running back to me all right and they never leave me ever again after that the grass isn't always greener and that's what they think they think the grass is going to be greener they're going to save money they're going to save time everything's going to be all wonderful but they get over there and they realize the grass is not greener okay and what a huge mistake that they made by leaving their agent that did such a good job for them who actually cares about them their future everything that they have going on and they come running back so I think this is the way you should handle it realize that business is unlimited it's okay to let those people go that's going to save us time that we would have spent on those people that we can now spend on other people that want to do business with us if those clients leave and never come back then you should again congratulate them for finding a situation that they love that they feel comfortable with that they feel is the best for them you want your clients to be in the best position for them okay whatever they think is best for them that's what you should want for them not because you feel like you're going to lose money if they go somewhere else you're not going to lose money because here's how you should view it okay your time is worth money okay if they just gave you back time now you're going to fill that time up with people who actually want to do business with you and now you haven't lost anything you've actually gained something I would love to hear your opinion on this please comment below smash the heck out of that like button let me know what questions I can answer let me know what I can do for you you guys have a good rest of the day we'll talk to you soon