Do you have any additional revenue streams for your company other than agent commission splits/monthly fees etc?

I would like to investigate some opportunities. Any ideas? Thanks

Business Affiliations with title, mortgage and escrow companies.

Commission Advances - charge less than the other guys but enough to cover your costs and make you a little money.

Postcard Programs - we do online designing, printing, and automatic mailing out of Just Listed and Just Sold postcards and stamps.com - all done and out in 15 minutes - charge back to the agent

I'm still working on other ideas for profit centers! Anyone else?

Some offices treat their agents as a profit center. IE: Offering services as some level of profit. At some offices, the menu of stuff for agents to purchase can be amazing.

I had one broker tell me that he made more selling "stuff" to agents, than on actual transactions. This did not encourage confidence on my part.

This was one of those offices where the only requirements to hang your license are a license and a pulse. He had deals with web site providers, postage services, printers and on and on and on. He got a percentage of everything that came out of his office. He actually had 2 full time employess whose sole job was to manage all the things he sells to his agents.

R

KBBroker...What affiliations are you talking about with title & mortgage? Sure a mortgage co. could help me with advertising but they cannot compensate me for business sent to them unless we originate the loan otherwise we are violating RESPA. I have talked to some mtg co's about renting space from me but I don't have enough agents to make it worth their while plus they don't want to take a chance with a new to the area company.

There's a JV with title & closing but again, those companies seem to cater to the established firm that can provide them with a lot of transactions per month.

I have thought of virtual tours (and the product I can offer is far less than what the typical virtual tour runs an agent), website reselling (this would help keep a unified look for the co & be more economical for the agent) etc. My new agents are asking me for referrals for these services so it seems a waste to keep referring them to a 3rd party. I want to put services in place that offer a better value for the agent too.

I see your point RebelBroker. Since the franchise concept is the agent retains 98% of their commission while paying a VERY low monthly fee, other franchise owners make money on charging for copies, faxes, phone calls etc. I cannot justify nickel & diming an agent to death by charging for those services. Besides, my agents are never in the office using those resources anyway.

Hi Tanya,
I am meeting with First American Title on Tuesday to discuss affiliation. Truth be told, I'm not all together sure what the relationship will entail as of yet although I assume there will be some marketing cost sharing. I have a Countrywide lender that rents a space in my office and BoA is actually courting me pretty intensely. They have quite a bit to offer including kiosks in area malls, etc that some of my agents may be interested in so I am considering moving to an affiliation with them. I'll post more once I meet with the title co.

Hello Tanya,
I am not a broker but my broker just invited one of the motivation speaker how to survive and do business in the area....charge each agent $85. I am sure he got some cut out of it.

He charges for desk duty, newsletter which you are personalized and but zones in 1500 homes, started using credit cards if agents don't pay their monthly dues by 5th of the month along with transaction fee that cc company charges.

He also have affiliation with Title company and lender.

we do get lot of free stuff also like all our clients get free moving truck, no administration fees, free high speed, copier (2 color & 5black & white) etc.

Good Luck

To know a good answer, need to know what your strengths are. Mine are graphic design and computers....

Thanks for my answer to KW. Back to your question. We have larger agencies that have partnered with First American to form "Closing" companies. If you use your own closing company, and they make profit....

That I would consider traditional. I have figured out how to stitch photos, and create VT's, host them for my agents. Next step, I just had Picture Path name me an authorized VT hosting agency. Now, I can charge not only my agents to post VT's on Realtor.com, but they've posted me on site to be a Hoster that can post. With little work, and less than $200 of software, I can teach others to do VT's, and host them. Or I can have them submit photos, drop them in the template, host them, etc.

We also get a $75 "marketing fee" for each home warranty sold.

You mentioned $200 in software, what hardware do you need for this?

a modern desktop, regular digital camera, a tripod. Not much really. for an example, see http://realtyworldwichita.com/Virtual_Tours/SMC/Cedar_Brook.htm

Really $100 software will do, but I like the Swish/Flash banner at the top, that was the 2nd $100. I do have Photoshop CS, but none of the agents in my office use it, or need to. Most cameras come with basice software, and the flash producer has ver basic adjustment and cropping.

the following ‘do it yourself’ information.
1. Sellers Net sheet with closing costs calculator
2. Home Valuation Price Range with ROI calculator
3. How to sell your home reports
4. Buyers How Much Can I Afford calculator
5. Buyers Mortgage Calculator with Taxes and Insurance calculator
6. Buyers Closing Cost calculator
7. Buyers reports

some real cool stuff that agent/brokers really need

Dan, little suprised by your answer. While I have most of that stuff on my web site now, how can that generate additional profit?

Sell to other agents. You and I maybe the only agents/brokers that have it. I know a lot of agents in N.CA that don't know how to make out a sellers net or a buyers closing cost. I asked why not, they said that they were never trained.

Oh, I forgot. There is a sellers net sheet on WIN forms, but not under Listing, it's under Purchase Agreement...??? It does not break down the fees or taxes either.

Tanya asked me how my meeting with FAT went so I thought I'd post it here.

In my state (Washington) the insurance commissioner is really coming down on any type of reciprocity between businesses like ours, title, mortgage, realty, escrow, so the last I heard, there wasn't much FAT could offer me (FAT being First American Title). That being said, the title companies (and others) are always seeming to look for ways around things and the latest is that they may be able to offer us Metroscan for a discount, if not free (parcel software that's pretty cool to use, esp for agents dealing with dirt and builders, etc). So, nothing yet, but I will certainly post it when I hear further!

Ancillary services are a great way to truly capitalize on all aspects of the transaction. In order for a transaction to take place, there are many service providers that must pitch in: Mortgage Broker, Home Inspector, Title Company, Pest Inspector, etc.

If the broker has an ownership interest in one ot these companies, there is a greater chance for profitability.

Example: If the broker has a lender on staff, he will be able to create additional income from providing loans.

Good luck,

I have been considering offering newsletters. They are cheaper in bulk, and if they have all of the same info except the agent name I can still get the bulk discount with a flat $150 change fee per newsletter. If I have 5 agents sending out 1,000 each I could charge them 75 cents each including postage and mailing. Regular price would normally be 88 cents each for 1,000. With 4 $150 change fees and the bulk rate of 42 cents each it would cost me about $2,700 and I could charge $3,700. It would save my agents money and I could make about $1,000 per month for every 5 agents that participated. I still have a lot of things to iron out, but it's an idea I've been tossing around. Right now I provide websites for $30 per month (that's the regular price), and I get a discount of $25 per month. As I add more agents it could go down to $20 per month for my costs.

I've thought about something similar for my Loan Officers where I offered turn-key marketing campaigns as well as Customer Retention campaigns for a slight mark-up.

However, it would be as easy for them as filing the names/addresses into a database and writing a check.

The IDX feed is free from your board. At least that is my experience with the board I am a member of.

Hi,

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thanks for the spam! i will print this out and file it with all of the other spam that i find.

I don't think anyone mentioned the idea of a referral service for the trades. We all have our book of business cards that have painters, handymen, electricians, HVAC Contractors, etc. What I am working on putting together is a package deal of ancillary services to boost curb appeal and/or make necessary repairs to put a home on the market, finalize inspection lists, etc. I know some great people that work these trades that would gladly entertain either a referral fee or monthly subscription to keep gainfully employed.....

Building relationships with other professions is always a source of revenue. The bigger your network the larger your referral income. If you're in a sorority or fraternity that should be a referral source. If you possess multiple licenses then you'll have multiple sources of income.

Tanya
You might wish to explore and consider some of the following matters we offer our clients, on either a billable hour or flat fee basis, plus disbursements and utilizing the services of retained experts where advisable.

Investment Analysis - Feasibility Studies - Risk Assessment - Estate Planning - Compliance Audits - Liability Assessment - Litigation Support

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

creating a website where consumers in your farm area can post services, goods, even FSBOs for free can drive business to your website via your link as the sponsor of the site.

Join Active Rain ...it has over 75,000 members in just a couple years...awesome source for info and really helps with SEO too.

Check out Mortgage Payoff Source , it will give you access to a website that promotes a mortgage accecleration program that is currently helping Americans get out of debt fast.

Imagine giving your clients an option to:

Payoff their mortgage within 6-12 years

They will not have to spend a peeny extra then what they are currently doing

They will gain $10,000-20,000 equity each year and will allow them to upgrade homes more often

This program raises credit scores do to their debt to income ratio changing

You will have people calling you all day long just to find out what you are talking about....imagine the leads!

Realtors have a great opportunity to make extra income while helping others

This person is spamming the boards. Here is the response I posted elsewhere:

There are several versions of "mortgage reduction" schemes out there but they follow these basic principles:

* Sold through a multi-level (o.k. - network marketing) structure

* Promise that they have magic software or a program that will pay your mortgage off fast

* Some have you take out a home equity loan on your house

* Each costs a small fortune: $3500, $3000 and even $9500

* What they really do is have you channel every dime above your base expenses into your mortgage

The primary reason I am so hostile to these "programs" is that their adherents convince folks that there is a short-cut to reducing their mortgage. They promote all kinds of gimmicks: bi-monthly payments, interest leveraging, etc. But, every one comes down to this simple point: The only way you can pay your mortgage off early is by paying more.

These folks will obscure that fact behind all kinds of rhetoric but that is the brutal, honest truth.

People get burned when they take shortcuts. This is but a silly, deceptive shortcut.

Remember a basic, human truth: "Their ain't no such thing as a free lunch."