Having just gotten the results of my final exam back, I'm looking to get started withn a brokerage. I've interviewed a few and found the fees ranged from $650/mo with an 85/20 split to $900/mo with a 95/5 split.

These are two of the bigger names (Century 21 & Remax) but are they in line with what I should be expecting to pay each month?

No doubt the lesser known brokerages offer cheaper brokerage fees with more or less the same splits, but I'm concerned that the training/support/name recognition won't be there. I'm in Canada, but I'd expect there's not too much of a difference from being in America.

I've had some agent friends recommend these lesser known brokerages, but I'm not sure if that's something I'd be best served doing.

Any advise would be appreciated.

I wouldn't necessarily assume that the "better known" brand are going to give you better training and support.

I would listen to your more experienced friends. You will also not be best served by paying ridiculous monthly fees before you ever get a first sale. How much money have you got to throw away during the first 6 to 9 months before you get your first commission? Even at the $650/ month you could be dropping over $5000 to the brokerage just to have "name recognition."

Keep in mind these brokerages want lots of bodies so they can collect a few months in fees before you go broke and go belly up. Think that will bother them? Of course not.

My brokerage charges NO fees except they take $30 per transaction for E & O insurance. Yes, the split is not that terrific but I don't have a monthly fee that's higher than my mortgage was hanging over my head just for the privilege of using the office occasionally (I work from home a lot!) Not only do they not charge a fee but they offer a lot of stuff to us that other offices charge for (and don't tell you till you're in the door and have your first batch of business cards ready, like telephone fees, copier fees, secretary fees....)

Interview around. Listen to the voices of experience advising you. Find a broker who has been in the business a while and is doing well and is willing to train you properly. My broker is awesome. I wouldn't work ANYWHERE else but where I'm at - and I started out at another office that also promised me training; but when the broker was never around and they were always "too busy now, next week sometime, okay?" I knew I wasn't going to last there...

When you do settle, don't go crazy buying tons of brokerage branded stuff, just in case it's not a good fit and you want to move elsewhere. Get your own website URL and your own email address (not broker provided) and keep your own database of leads and customers.

It sounds like you might be letting your greed get in the way of your success.

Forget how much the commission split is. If you don't learn how to sell real estate you won't have any commissions to split.

You should be looking for a company with hands on training and hands on support. If the support you need is at one of the smaller brokerages then that is where you need to be.

I relate the high per month fees to health club memberships.

They sweet talk you to get you in. Then once you sign they don't care if they see you again as long as the money is coming in.

650.00 to 900.00 a month is just ridiculous.

My company is a per transaction fee. They don't close and get sales I don't make money. This way they get all the help and support they want. Some of my agents are happy buying 2 investments a year and others want to do 6 deals a month.

Everyone gets into this business for different reasons.As long as they are not committing fraud or breaking license law and have a willingness to learn I will keep them on.

If you decide on re/lax make sure your IC contract doesn't lock you in for a long time. Some brokerages know their splits and fees are crap and after training the agents will flee. So in response they will try to lock you in to along contract with penalty fees if you leave early.

What brand of car is included with the 650 per month fee? If Lexus or better I say go for it!

Hi Donnie, welcome to the forum!

You never mentioned if your exam results were good or not. I assume they are good from your post though. If so, congrats!

Many agents and brokers on this forum are going to be a bit biased on large brokerages and small brokerages. Most of us are working where we work because we think it is the best place to be. In reality, it all depends on what fits for you at this point in time. There are many large companies that have great training and support. Sometimes you will take a bigger hit on the split, but it may benefit you in the end because you will be learning a lot about the business. I like having name recognition with my company, so I that is what fits me too. There are also large companies that are not so expensive with monthly costs or anything like you mentioned. I don't pay any crazy monthly fees and I am with the largest real estate firm in Nevada.