Choices, Choices...
The real estate industry has been through so many changes over the past 30 years! What began as a simple broker/Agent 50/50 business model has evolved into a number of different alternatives, including:
- Conventional: companies that operate on a sliding-scale commission structure. These companies typically spend a great deal on marketing to generate leads, and offset the cost by taking a much higher percentage of the agents' earnings, while also charging referral fees on most comany-generated leads.
- Residual-Based: Companies which offer agents an ongoing residual of the earnings from agents that they recruit. These companies focus most of their ad dollars on attracting agents, but usually spend little on internet or print marketing to generate buyer and seller leads.
- "Warehouse": Usually non-branded companies that charge a very low monthly fee (anywhere from $29.00 to $200.0000, and pay the agent 90-100% of their commissions earned. Due to the very low profit margin per agent, these companies usually do not offer office facilities, training, or full-time support and coaching. Agents are expected to asume all other expenses of doing business(i.e. yard signs, MLS forms, advertising, presentation materials, etc.)
- Internet Based: Companies that are directly linked to mortgage lenders. These companies usually attract buyer leads via internet marketing only, and then distribute those leads to agents on their network. Agents are usually paid a high commission 'split' but, again, they do not have access to comprehensive training, office facilities, consumer-focused marketing or brand-name recognition.
- 95% Concept: These companies (such as RE/MAX) charge a higher monthly fee and pay the agent 95% of all their commissions earned. Since the company operates on a more reasonable profit margin, they are able to devote ample esources to advertising, internet marketing, and training, while also providing fully-equipped modern office facilities for their agents.
So, which model is right for you? It depends upon a number of factors...
Are you a full-time agent, or are you doing real estate only part-time?
Is brand recognition important to your customers and clients?
Do you want to truly 'own' your own real estate business, are or you content to work under someone else's set of rules and business principles?
Are you able to attract all of your business on your own, or would you need help from your company to bring in qualified leads?
Do you want to spend your time recruiting other agents, or would you rather be listing and selling? (Sounds silly, but it's an important question in some companies!).
At RE/MAX Signature Real Estate, we never try to be 'all things to all people', but what we CAN do is help you figure out which affiliation might be best for your personal needs. Call us today, and we'll do our best to guide you in the right direction...even if it's toward another company...that's our promise.
- Reach For The Sky
Bold Step, Big Payoff - Become The Ultimate Agent
RE/MAX 365 Keeps You On The Top - Premier Market Presence
Your Unique Competitive Advantage - Your Life Your Way
Live Life On Your Own Terms
- This Is RE/MAX
The History, The People, The Values - RE/MAX University
Education Starts Here - RU Ready? - From $100,000 To $500,000
Peek Inside "The Ultimate Agent" - Diving Into Technology
Innovation That Leads The Industry - 100 Days To Greatness
We Get you Up & Producing Quickly! - RE/MAX Agents Have An Edge
Why Agents Are Thriving At RE/MAX
- Return To Homepage
- Who Are We?
- What Sets Us Apart?
- What Our Agents Are Saying...
- Choices, Choices...
- Contact The Broker
All Inquiries are Kept Strictly Confidential
All Inquiries are Kept Strictly Confidential
