Ok, I watched the entire Exit realty pitch video. The guy who made Exit talks like a used car salesman. Everything sounded like a scam. He said he had the greatest idea and kept it secret for 13 years. And the idea is to pay people for recruiting other people. What on earth is that? Is he high?

And then he went on to emphasize that what they are doing in not illegal. He goes 'if the broker pays you, that's illegal, if so and so pays you, tht's illegal' but the Exit corporation pays you! that's NOT illegal! What kind of commercial/sales pitch tells you 'WE ARE NOT ILLEGAL!' ????

But forget my impressions. I just want to find out what EXACTLY is this real estate reinvented formula?

In the informercial, the guy says you make 10% from each person you recruit so if you recruit 10 or more people, you add up each 10% so now it's > 100%?!?!? I am no math major but wouldn't that fail 3rd grade math? If I pay 7% sales tax on an apple, then I buy 10 more apples, I am now paying 77% sales tax?!?!?

What exactly is the exit formula? I can't find it listed exactly anywhere?!?!? How exactly does the corporation make money? How exactly does the broker make money? How exactly does an agent make money? Can someone give me a concrete algorithm on how people are making money? I don't want a sales pitch (7% residual for life!!. 7% or what? from whom?!!? how much does that really work out to in real life situation???)

Thanks for any help. I am just asking because there are billions and billions of exit realty's around here. I want to know either they are really onto something so fantastic or there is a scam going on?!!?


here is that video btw:
mms://video.lantrax.com/exit/UpClosePersonal18min.wmv]exit sales pitch
mms://video.lantrax.com/exit/UpClosePersonal18min.wmv

I believe that Exit focuses on recruiting rather than selling real estate. Our objective in this business is not to recruit, but to sell. Think about this:

You sell 10 homes in a year. You recruit 5 people that sell 5 homes in a year (that's 25). Chances are that a good many of your recruits will be a friend/relative/cohort/etc., so they are in your SOI.

If 3 of those folks are your personal associates, and you are effective at constant communication with them, chances are you will get some of the deals brokered by them if they joined Exit under you.

Here's the math:

Let's assume that each closing yields $5000 gross commission. We will also assume that 3 of the 5 recruits are personal associates and 3 of the 5 deals from each personal associate could be referred to you (if they were not recruited into real estate). So, it is a solid potential of 9 deals from this group.


Exit plan: 25 closings x $500= $12500. Not bad.

Traditional plan (assuming you are with a 100% company): 9 referred deals x $5000= $45000. Much better.

Next, let's talk about focus. With the vast number of agents competing for a fixed number of listings, along with normalization of some markets around the country, wouldn't it make sense to focus on obtaining listings instead of further increasing competition by actively adding agents to the pool?

When approached by Exit agents trying to recruit me, I get a deer-in-the-headlights look when I ask this question.

You said something about there being "billions and billions" of Exits around there. Thats all well and good. How many of those "downlines" would be gone in 90 days if the market seriously tightens.

It seems to me that one joins Exit in hopes of sitting on their butt, doing nothing while letting their "recruits" bring them money. Unfortunately, if the recruits have the same attitude, the original agent is somewhat screwed.

Go look at other companies. It sounds like you are not sure about Exit. Go with your gut.

Amway.

Herbalife.

If you want to recruit then Exit pays better than the others including KW. If you want to sell then Exit is about average in their commission split but you can do a lot better.

The furmula is simple: you get 10% of your recruit's commission capped at $10,000.

I did not know this.

What is interesting about this Amway style of recruitment and residuals is how fragile it can be and be sold against! Being we are in an age where commissions are droping faster than the peace process in the middle east, it would seem that this recruitment tactic (residuals) would be less and less attractive. In addition it appears that this type of company KW and Exit would easily be sold against at the kitchen table.

"Dear, Mr. and Mrs. Seller, you know there are companies out there who need to charge you 6% because they have to pay royalties, the broker, the agents, the agents upline that agents upline and so on. Now Mr. and Mrs. Seller how about we just do 5% and I'll give you back that 4,500.00 in commissions that would have gone to KW upline for doing nothing what so ever to sell your house."

Slam dunk! Not only that it puts even more bad taste in peoples mouths than they have already for agents.

Slam dunk, eh? How many listings have you signed using that pitch? By the way KW agents don't need to charge 6%. I even took a listing for 1 dollar once.

It's just an illustration... relax.

You're the one using exclaimation points and who implied this puts a bad taste in peoples mouths.

Can someone look at this video and tell me if this really sound like he's trying to pitch a scam or is it just me?

mms://video.lantrax.com/exit/UpClosePersonal18min.wmv

Link is not valid!

Ok so is there all it is? Does a realty have to pay Exit Realty Corp regular franchising fees?

When you sign up as an agent to this mom and pop realty office, do you have to pay a fee to them? Are there little bits and pieces where you get ripped off? That comprise the actual profit scamming from Exit? $10 admin cost here, $20 background check there, blah blah adding up to thousands of dollars each lil mom and pop that joins Exit corp.

And then they dont pay you back the 10% or whatever like they promised and they are now millions of dollars richer thanks to all the suckers? Or am I over fantasizing?

It just seems too conveninent that Exit realty is in another country, Canada, and trying to do all the work across the border.

mishla2, it's not just you, I got the same slimey feeling.

It works. just cut and paste the entire thing into the url. make sure there is no 'http://'
just purely 'mms://'

Actually that might be it?! The local broker pays Exit Corp every deal's cut 10% to Exit Corp. Then Exit Corp processes, (however long that takes and they make interests off a month, 2 months? 3 months' worth of interests) then finally send a check (IF AT ALL) back to the recruiter?

Sounds like trying to get mail in rebates?!!? Except you are trying to get a mail in rebate from ...Canada?

Has anyone finished a deal actually GOTTEN their 10% share from recruiting? Anyone got proof of receipt?

So everytime you or your recruit make a deal, you give a loan (10% commissions) to some Canadian company with 0% APR? So basically you are loaning people a few thousand dollars every time you make a deal to someone you don't know with ZERO interests? And they repeat this ALL over the US for every single deal people make? THAT SOUNDS LIKE A REALLY PROFITABLE SCHEME.

AND in a regular office that 10% would have went BACK TO THE OFFICE/BROKER. Why would ANY broker freely give away 10% to some guy in Canada? Where they normally would have kept it themselves?!?!?!

This is making less and less sense to me? Can someone correct me???

AND HOW DO YOU FIND OUT IF ONE OF YOUR 2594984 RECRUITS HAS MADE A DEAL SO YOU KNOW TO COLLECT MONEY? OR DOES EXIT CORP IN CANADA HAVE A REALLY BULLET PROOF DATABASE/BACK OFFICE SETUP TO PROCESS ALL THE CLAIMS? 5 YEARS FROM NOW, YOUR RECRUITS ALL MAKE A DEAL HERE AND THERE, YOU SIT IN YOUR HOUSE AND SUDDENLY CHECKS APPEAR FOR THOUSANDS OF DOLLARS? EXIT CORP SUPER HONEST?

Calm down, mishla2, Exit is a legitimate company and not that different than the other big name brokerages.

Company takes 30% of the commisison and gives 10% of that to the agent's sponsor. Once an agent has grossed $100,000 in commission for the year then the company only takes 10% and no more is paid to the sponsor for the remainder of the year. It's that simple, and not too different than how Keller Williams compensates associates for recruiting new agents.

that's sounds complicated. So at closing, the seller writes a check to the broker for entire commission. The broker then writes check of 70% to the selling agent. Then writes another check back to Exit head quarters in Canada for 10%? THEN Exit promises to write back another check for that 10% to the recruit?

Is it just me or that's a lot of checks going back and forth? And what happens if a broker decides he's not going to share that 10% he otherwise would have kept? Who enforces that kickback?

And can I see where this scheme is written in black and white? Where is it in paper? Or is it just what recruiters tell one another? And kind of dicey in real situation?

Well, I thought I had you fooled but to be honest it's all just a big conspiracy. Exit is going to stop paying recruiting bonus money and use the stolen money to fund Canada's military invasion of America.

It's all in what you want i just closed a deal 4,300 all mine,another deal fixing to close 12,000 all mine.I am with a 100 percent company and only pay a 300 trans fee for each closing dues are 45 a month.

I don't know how she does it and i don't care only that i get more for less.We are approaching 1,100 agents now and growing.I really believe this model is the future of re.

In reality exit's model is a load of crap and they know it,only a small fraction maybe 5 to 10 percent of agents in that company will hit 100k plus in commissions every year.So if you don't you are on a 70/30 split not great.

I wish www.solidsourcerealty.com was in your neck of the woods.It's a great company,usually with 100 percent companies you lose something to gain the 100 percent service,training etc.This company breaks that mold.

good luck

I"m not an Exit agent, but I have seen their pitch. Unless it has changed, it is a 70/30 split on the first 100%. Of that 30%, one third goes to a national fund for paying residuals.

If you recruit an agent, of the first $100,000 in commission you earn, you get 10%, up to $10,000.

If you were an active agent, pulling down a good salary, and you recruited two of your good friends to come to Exit, you could earn an additional $20,000 if they earn a minimum of $100,000.

The real benefit is if you retire. When you retire, you get 7% of their future commissions, up to $7,000. If you die, your estate receives 5%.

They only do a single layer of residuals. To compare them to Amway, or others is not accurate. To compare them to Insurance sales is very accurate. The founder had roots in the insurance business.

It's not for everyone, it wasn't for me, but I can see where it could be good for some. I suspect if your only thought is to recruit and not to sell, you will have a hard time making a living. If you are actively selling, and recruiting active selling agents, you have a change to supplement your income. If you took all of the residuals and put them into your 401K, you could increase your retirement nestegg considerably.

My problem with Exit is their name. It makes me think of someone "showing you the door" - which is not positive.

That and the fact that round here they try and recruit agents at broker luncheons in front of everybody. Tacky.