FYI
I am changin my username from VM Group to Area Pro Realty as we have just recieved our franchise license and can sell franchises pretty much anywhere in the US.

Congrats! Was the UFOC a pain to put together?

So does this mean you will be more interested in selling the franchises than in selling real estate?

I guess I'm not sure what the market for franchises looks like. Maybe independents looking for a larger name? Maybe current franchise holders looking for a different one?

Before going on my own I was with a company that for many years were part of Better Homes and Gardens (and later GMAC after they bought the brand from the publishing company). That sponsoring broker eventually left the franchise to be part of a large independent brokerage. To the average Joe Agent it looked an awful lot alike. I really haven't seen the advantage of a franchise, just another cost. In my opinion a local presence and good service will do more for your business than a brand name.

My broker once owned a C21 office, sold it, became the managing broker for years of an independent office, quit and started a new office as a Weichert franchise.

The Weichert name seems to have worked well for our office - after only two years we are ranked #3 in sales in our immediate market area and #5 in our MLS as a whole. Many of our buyers come from NY and NJ where the Weichert brand is very well known.

In this area, I wouldn't consider working at an "independent" office because they can not offer my sellers the tools that Weichert can.

Not sure I'd work at another Weichert office were I to move out of this area, as my broker and his partner are pretty unique and I don't know if I'd be lucky enough to find another office like mine.

Franchises have definite advantages depending on what your market and niche is. I can see where a franchise probably isn't going to help much with foreclosures....but if you want to be a listing agent the franchise brand name can be a big plus.

yes...i will be selling franchises, not real estate

That is the very reason why I wanted to get a real estate franchise. just about every franchise out there. Mr. Foreclosure you said it perfectly. My franchise has been designed to be a benefit, not a cost. Let me know what you think about this video I put together.

http://www.areaprorealty.com/franchise

Check it out! We just made national news with RIS Media:

The news release can be found by clicking here: http://rismedia.com/wp/2008-10-13/new-company-says-%e2%80%98recession-proof-real-estate-franchises-now-for-sale/





I have pasted the release below:

RISMEDIA, Oct. 14, 2008-Due to the ongoing downturn in the housing market, real estate brokers throughout the country have been tasked with reducing overhead, consolidating staff and offices, and reducing agent support and benefits. George Barlow, president of Executive Franchise Consulting claims, “with the continuing mortgage crunch and agents leaving the industry, real estate brokers need to be creative and resourceful to weather through this economic storm.”

Area Pro Realty, recognized by franchise leaders as the most innovative recession proof real estate company in the industry, announced that the company will begin selling franchises in numerous states across the United States. At a time when this economic downturn has forced many real estate brokerages out of business, Area Pro Realty has announced an enormous expansion throughout the United States. The Northern California based brokerage will seek real estate brokers throughout the country and provide the opportunity to operate a brokerage with an innovative, modernized and effective business model.

“We’ve created the most efficient, high-tech broker management system available in the industry, and it is extremely easy to use,” said Gene Ward, technology supervisor for Area Pro Realty. “This high-tech system coupled with our efficient, innovative business model creates a winning formula for real estate brokers, especially during a down market.”

According to the company, Area Pro Realty has developed a Central Technology Support Center (CTSC) located in Northern California to assist agents and brokers in their daily business activities.

“The CTSC takes the struggle of learning and maintaining industry technology and puts it in the hands of technology professionals, allowing the agents and the brokers to focus on what they do best, sell real estate,” said Gene Ward.

Led by best-selling author and real estate veteran Michael Volkin, Area Pro Realty has grown at an astonishing pace. Even during an economic downturn, Area Pro Realty continues to expand to new markets.

Area Pro Realty, says the company, has developed a unique virtual office which allows an agent, and even a broker, to work entirely out of their home office. This eliminates the broker’s need for an expensive office. A broker can now manage an entire franchise out of a home office, saving thousands of dollars in office expenses every month.

Another innovative concept Area Pro Realty has developed is a unique commission structure. With this commission structure, agents are not charged a percentage split and brokers are much less vulnerable to economic downturns. This commission structure allows brokers to be extremely competitive in their local market and provides agents with numerous benefits on a very small budget.

“Once agents and brokers understand how Area Pro Realty operates, the entire real estate industry is going to change,” says company president Michael Volkin. “We have created an enormous buzz already from industry professionals; it’s only natural that we offer our business model to brokers throughout the country. Franchising will allow brokers to adopt our turn-key system and operate a real estate company at a fraction of the normal cost.”

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

"He has grown a real estate company from a one-person home office to a national success"

What company would this be?

Froy Realty?

from an agent perspective, i like low cost and 100%. i pay for everything and it benefits me and my sellers directly. there is nothing of real value (maybee percieved value) that i or my sellers miss out on by me not being with a national brand. in reality, i have more money brough in to me per listing to spend on selling properties and putting real systems that produce trackable results as opposed to smoke and mirror shows to get listings. the broker name really does not even come up. i have learned how to get somoene to hire me to make the point of brokerage moot. when i have some time later, i will have to read your whole article and watch the video.....

CONGRATS!

I know you weren't talking specifically to me but I have to respond, estatereal.

I really do not agree that what Weichert and my company as a "name brand" offers our sellers is smoke and mirrors. The call center is real and valid and it's not available with a mom and pop. Our open house program works and we're honest with our sellers about how it works. THe marketing that our office provides and that weichert provides obviously works, which is why we're one of the busiest offices around, while all the others - mom and pops included, whine about how bad the market is, our listings are selling and we're selling other listings.

Reminds me of the guy in my area who says "Be personalized, not franchised......" and he doesn't do HALF of what *I* personally do for my sellers, let alone what Weichert offers - and he can't even come up with an original slogan. THAT'S smoke and mirrors. My customers get more personalized, custom service than HE would even know how to give.

In fact, he lost a deal for his buyers by coming to our office and loudly broadcasting that he had a cash offer for $xxxx amount on someone's listing. Just so happened that there was another agent in the office iwth a buyer who was writing up an offer on that same listing. Guess who got the sale? His big mouth lost it for his customers. That's smoke and mirrors...sure he hand delivered the offer PERSONALIZED IT, so to speak - right to the other buyers! LOL

Rather than talk down on what another office offers, just talk about what you offer.

I think if you have a revolutionary software concept I would push that platform to ALL brokerages out there.Make way more money that way.

It just seems WHY would anyone want to buy a franchise from you?Your website is undergoing maitenance you have no listing inventory under the links at some locations.Usually when people buy franchises they buy proven business models.

I guess asked another way what do you have that would keep other brokers from replacating your product themselves at no cost?

Super Realtor,
If a broker can build the hundreds of thousands of dollars we have pumped into our central technology support center, propietary virtual office and premium websites with new technology, then by all means go for it. Or, they can purchase a franchise work WITH us for less than a hundreth of the cost.

was not directed to you....was a general franchise note that i have from my experience.

all cost involved with selling a home are eventually paid for by the commission from the selling of the home. in my experience, i have noticed taht national advertising of brand name brings regognition for teh brand and not directly into my pocket. every dime i spend goes toward my business and selling my properties and gives only me exposure. all of my marketing shows broker info(so i stay in compliance),,,,,,,yet makes my info more than stand out over top of broker info. the benefit of that is there is almost no chance of a call coming into my office just asking for an agent as opposed to someone calling me directly.

i understand that agents like different options, just like some sellers like national brand and some like independent.

imo, i like keeping the money that the brand would use to grow the brand and putting it only toward growing my business. some like working for a brand that makes their business grow through teh advertising of the national brand. there is no right or wrong answer, only tons of opinions.

I knew you didn't mean me specifically - I had a long reply started but it is off topic. I might start a new thread....maybe.

diplomacy is dead!