Agents – Someone Else Sees The Problem

I used to have an agent. He was a nice guy, very smart. In fact, he was a Harvard Law School Graduate with anexcellent reputation. If someone was going to represent me, why not him?

When I signed with my agent I assumed our interests were aligned. The more I made, the more he’d make. It wasn’t until the relationship was real that I realized how wrong I was.

I have discussed this with a few friends in the business over time, but had never seen my concerns espoused in print, until today and an article in the Sunday New York Times.

This particular example is real estate agents, but the idea is exactly the same.

Steven D. Levitt, an economics professor at the University of Chicago, found that commissions did not align the interests of agents with those of their customers, a conclusion he recounted in his book

One thought on “Agents – Someone Else Sees The Problem”

  1. Also evidenced with investment bankers who have the same incentive- do the deal and get a huge fee. Don’t do the deal, no fee. The bankers advocate that their clients… do the deal! Even if it’s not at quite the right terms.

    That mentality been behind a lot of the failed mergers and acquisitions of the last 25 years.

    As far as agent/talent relations go, I think you’re absolutely right- getting the deal done matters more to the agent than getting the deal done at the best price.

Leave a Reply

Your email address will not be published. Required fields are marked *