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Difference Between Channel Partner And Broker In Real Estate – A Definitive Guide To Help You Understand Who They Are

What is the difference between channel partner and broker? Who are real estate channel partners? Are they brokers? Or Agents? Will they charge you brokerage? If you go through them does it affect your property costing? Get all answers here

During your property search, you may come across a lot of real estate channel partners. It makes you wonder what is the difference between channel partner and broker in real estate?

With this article, we aim to give you some clarity about real estate channel partners and how they play a role in your property buying process.

Role Of Real Estate Channel Partners

In today’s times, running a business has become very tough owing to the cutthroat competition, and real estate is no different. Prices of construction materials have gone up and getting the necessary approvals (like EC, CC, etc) is extremely time-consuming. 

If we look at the financial aspects from a developer’s point of view, according to the RERA compliances, developers need to open a separate escrow account for a particular project, and 70% of the amount deposited there cannot be withdrawn for works other than construction and land costs related to that particular project.

That leaves the developers with barely 30% of the money which can be used for other works including marketing, branding, and sales activities along with the construction work. 

Such minimal amounts are insufficient in gathering the required momentum needed to move sales volumes and are also proven to be less effective. Also, sales support along with marketing activity is one extremely important aspect that developers offload to their highly professional extended arms called the “Channel Partners”.

This enables the developers to focus on their core business of construction and offload the marketing and sales activities to the channel partners. This is directly beneficial to the customers as the costs involved in marketing and employing a proficient workforce are saved which is passed on to the customer making properties more affordable. 

Who Are Real Estate Channel Partners?

Who are real estate channel partners? Are they a mediator? Or are they an entity appointed by the developer? Real estate channel partners are alternate channel companies proficient in sales and marketing activities (ATL & BTL), having dedicated salesforce which is deployed for a particular project to help facilitate smooth transactions between the buyer and the developer. They invest money and time in marketing campaigns and a skilled workforce.

difference between channel partner and broker
Channel partners help you to carry out your property deal smoothly

The scope of work of real estate channel partners can be listed below:

  • Publishing Radio ads
  • Publishing Newspaper ads
  • Executing Digital Marketing campaigns  
  • Organising RoadShows / Exhibitions 
  • Arranging Corporate activities
  • Organising Residential Society activities 
  • Hoardings etc
  • In-depth End-to-End Consultation    

Also Read: What is the difference between PMC and PMRDA?

Difference Between Real Estate Channel Partner And Broker

As opposed to a channel partner, traditional brokers do not have an organized setup. They work mostly on referrals and have a very limited reach than that of a Channel Partner. Traditional Brokers charge a consultation fee to the customers whereas Channel Partners provide such services for free as they work alongside the developers.     

The Main Difference Between Channel Partner and Broker

One cannot compare the two as both (Channel Partners & Traditional Brokers) have an altogether different business model and hence are totally different. The main difference lies in the nature of operations of both. While the traditional brokers play the role of a mediator between the buyer and the seller, the channel partners are more like an extended arm of the sales team of the developer who facilitates sales of the projects.

This does not mean that they work in the interest of the developer only. They are responsible to take care of the interests of the buyer too. The channel partner is responsible to provide assistance and guidance to the buyer during his property transaction. He is a trusted point of contact for the buyer in case he has any queries regarding the property or is not able to get information about certain issues from the developer’s sales team.

So next time you meet a Real Estate Channel Partner, be rest assured, you are in safe hands as you are dealing with the developers extended arm and not some unknown entity. Your journey of finding a suitable property will be smoothly facilitated by professionals helping you make this crucial decision where you invest your life’s savings.


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