I have looked at five well known brands very closely. Believe it or not, I like a regional brand office better than all. Would you pursue a local brand or is that crazy? Would you ever consider being a companys first franchisee?

Sure. What I have learned is that the brand/franchise does not mean much. I have been to offices in the same franchise that run/feel completely different. What you get from an office is more a function of the office manager and the agents than anything else.

I just hooked up with the Intero office in my area and my office feel is totally different from the other Intero offices in nearby cities.

R

RebelBroker,

I've heard a bit about Intero. Would you mind expounding on the model they use?

we are going for our franchise license and our franchise consultants say that the real estate industry has no brand name anymore. The days of paying remax or keller williams or C21 40K in initial franchise fees just because of their brand name are over. That is why tech leaders like the VM Group are a hot sell. We havent even got our license yet and we have at least 4 market centers waiting to start up

There is a company in Chicago with over 600 agents, the agent either pays $75 month and keeps 100% of the commission, plus gives company back $225 per closing side for E and O and admin costs [company schedules closings and does paperwork, also takes messages and schedules showings], or no costs per month except $15 technology fee [to be on their website and have your own], and you keep 90% of the commission. Agent pays all their own MLS fees, advertising, pays for signs, etc. Anybody elswhere in the US have this same deal offered?They are adding agents at a rapid rate..and expanding their business to the suburbs.

yes, but its better than this.
I have no monthly fee and 95 per transaction and I keep 100% of the commission. We have voicemail, agent website, free yard signs.

Who sets appointments, do the requests go right to your voicemail? You set your own closings?

my brokerage charges 450 a month and a 195 admin fee per transaction. e and o is paid by the agent yearly at a rate of 350 dollars. you get 2 months free if you pay for the whole year at once.

if i do say 1 transaction a month each month on a 300k house and say i list at 5% with a 2.5 co-op and 2.5 to my broker. using the numbers from the previous paragraph i would make. 90000 take away 7190 for my e&o,admin fees, and 10 months worth of monthly fees. the admin fees can be charged to the buyer or seller but for our demonstration i have the agent paying it. the net to the agent is 82810.


use the same numbers with the different plans and figure out how competitive your companies are compared to others.

that 225 per transaction with a 75 a month fee would be the company of my choosing if it were in my area. that sounds great. and with 600 agents the broker makes 45k a month even if agents do not produce. great deal for all sides of the fence(agents and brokers).


proreo,
95 per transaction. could you point me to the direction of the company website. i am very interested in learning more.

there is no way a company can give the proper level of support and benefits charging $95 per transaction. The required insurance alone exceeds that amount. I cant imagine a company like that lasting too long

that is why i would like to see how they have things setup.

Where I work, $50 p/month, $300 p/closing. Agents pay for Signs, Ads, E&O etc. Office space depending on size from cubicle to large office $50-175 p/month.
Our Company is located in 5 States, looking to expand into 3 more soon.

sounds like a great place to me. i like that setup.

I pay $69/month, $239 first transaction of each month (so max would be $239*12=$2,868/year), $40/E&O on each deal. Other than that, I get 100% + copies, faxes, set up on brokerage P2A Site, various internet based & in-person training (optional), & (surprise surprise) my broker actually answers the phone when I call him.

Using the numbers from estatereal's example it would work out as follows:

1 $300K sale at 2.5% = $7,500 minus $279 (transaction fee & E&O) puts it at $7,221 gross to me X 12 months = $86,652 (and if I do more than one sale/month, I only pay the $239 on the first one).

pikes peak and ManFromTheBand,

if your brokerages were in my area, i would be there in a heartbeat.


we were 450 monthly with no admin fees(which is really great),then they changed it so that admin fees are 195 per transaction.


e & o is paid annually



in my area there is pretty much no 100% broker that is more competitive.

The franchise from Chicago you can check out at http://www.majoronline.com.That is the one with $225 per transaction and 100% keep after $75 per month admin or 90% keep with no admin fee.It's been interesting seeing all the other programs available.When I started in the business everything was a standard 50/50/.My how things have changed since 1976!!!