As a professional agent, you have choices...
Thinking about a Conventional Company?
Coventional brand-name comnpanies generally offer agents a good deal of name recognition, tools, resources and training. The problem is that you have to pay too much to work there. Think about it; if you're on a 65% commission split, paying a 6% franchise fee, paying out referral fees on leads (plus high E&O insurance, ad costs, tech fees, etc), you're probably ending your year with about $58,000.00.
All in all, you're PAYING your company about $42,000.00 A YEAR to work there...but, since you're not actually writing a check to the company, it's easy to forget where that money goes!
All in all, you're PAYING your company about $42,000.00 A YEAR to work there...but, since you're not actually writing a check to the company, it's easy to forget where that money goes!
Considering a"Flat Fee" Company?
The past several years has seen the emergence of flat-fee 'warehouse' companies...you pay a small monthly fee of $39-$100, and your commission payout is between 90% and 100%. Great deal? Not so fast...
There's an old saying, "in life, you get what you pay for". Watch the numbers. Agents from the largest flat-fee company on Long Island only closed an average of 2.3 transactions in 2010. And they're still responsible for the cost of marketing, advertising, lawn signs, presentation materials, MLS forms, etc....the broker is making plenty of money by warehousing hundreds of licenses, but what about your income?
If you're a career agent in a challenging market, the prospect of paying very little and keeping 90-100% may seem attractive at first, but in addition to all of the extra expenses above, you may be trading off your brand name, national advertising, training, online resources, administrative support, even your desk!
Fewer closed transactions + paying all of your own expenses and advertising = less income at the end of the year.
There's an old saying, "in life, you get what you pay for". Watch the numbers. Agents from the largest flat-fee company on Long Island only closed an average of 2.3 transactions in 2010. And they're still responsible for the cost of marketing, advertising, lawn signs, presentation materials, MLS forms, etc....the broker is making plenty of money by warehousing hundreds of licenses, but what about your income?
If you're a career agent in a challenging market, the prospect of paying very little and keeping 90-100% may seem attractive at first, but in addition to all of the extra expenses above, you may be trading off your brand name, national advertising, training, online resources, administrative support, even your desk!
Fewer closed transactions + paying all of your own expenses and advertising = less income at the end of the year.
Consider RE/MAX...the perfect balance of lower cost and the highest value
At RE/MAX, you'll benefit from the power of a world-renowned brand, dominant national advertising, comprehensive marketing package at no additional cost, FREE training from the best names in the industry, PLUS 7-day administrative support and personal coaching from brokers who care about your success and have the time to devote to you.
All this in addition to the highest per-agent closed transactions on Long Island and throughout the United States!
All this in addition to the highest per-agent closed transactions on Long Island and throughout the United States!