i've been reading the board for a few weeks now to educate myself. i have passed my course and am preparing for the state exam. I met with a company which has 10 offices and a total of 300 agents (I had never heard of them before but they have been in business for 30 years). on their website they show they have 1200 listings of their own (not counting all the others on MLS that the website offers access to).

This is what was presented:

-good coaching/training, 1-on-1 mentorship and CDs and online training and videos to assist as needed
-60 (me)/40 split through first 10 transactions
-70/30 split indefinately after than that
-90/10 once the broker has received 24000 (80000 GCI) in a calendar year (increase only for closings for that year)
-100/0 oncer broker has received 39,000 from closed sales in a year

They have a relocation dept built in and a referral service...areas to get up to 25% of broker's commission and do nothing but give a referral. they offer an incentive to recruit to receive 20% on the recruitees first 3 transactions (percentage comes from broker's cut). they say this is secondary though to the business at hand which is growing my business and not recruiting (which I like)

Their website will capture leads if someone wants to see something on a house and goes through my website.

Their philosphy includes sending out mailers to my Center of Influence (for referrals), calling for sale by owners, knocking on doors to invite neighborhood to open houses...etc. They point blank say they are not the company for me if I want a company just to hand me leads...instead it's my business plan and I need to get prospects and they will teach me how.

Costs for the first year are 2800...350 of it includes mailing 100 postcards, 1000 color business cards, 1 for sale sign 1 pr-listing packet and training materials.,..includes local realtor association mls, lock box, email,, office use (note there is no floor duty- they have secretarial staff for phones0, voicemail NO MONTHLY OFFICE FEES, no franchise fees, no transaction fees...all other advertising i am responsible...and 35/month if i want a website to link to theirs.

So...does this sound like a good place? From past posts it seemed good in the way of splits but im very worried about my ability to generate leads completely on my own and don't like the idea of calling and pestering FSBOs. I was one and trashed every mailing I got (and annoyed when I got it) and would have hung up on any such caller. I also don't like people knocking on my door that I don't know. I don't mind mailings being left but I do not want to open my door to a stranger...so worried about how this approach will be for me on the other end. On a plus side i have encountered many people in my architectural career and life who may eventually be able to help with referrals.

Zip realty promises leads (no cold calling) and medical. problem is ive read you only get a 50% cut and have to give 20% back to buyer and there's a lot of micromanagement (management heavy- which i don't like).

What would I be better in starting with. The first place sounds great but if I cannot come up with any leads...well less commission is better than none...? If I do this- I will treat it as a business and go all out.

Sounds like a pitch from Zip Realty????? Spammming????

That's not a helpful response or even a response at all to my question. I didn't even write that I would want to work for Zip- I already crossed that off b/c I don't see a point in giving 20% back and don't want to be micromanaged. I had never heard of the company I mention that has a staff of 300 and unable to find any reviews of them online. I don't know how to evaluate what they are offering- if it is the norm, below or above for new agents. Zip offers leads but surely they are not the only company- even remax's website states they offer them off their web...how many I do not know.

Architect, I can tell you from EXPERIENCE do NOT sign up with Zip unless you want to be a telemarketer.I was with them for a couple of months at the beginning of my career and I can tell you it was the biggest waiste of my time. The only leads they give you are some internet buyers and I have to say ALL poor quality. I started with about 7 girls in the class and we ALL ended up leaving. The first company sounds great. The only thing im worried about is that upfront $2800? I dont like the sound of that. Ive only been licensed for 3 years but Ive had my share of BAD brokers. DONT go somewhere b/c they offer leads, go somewhere that you feel comfortable AND that offer great training. TRAINING is the most important!! Hope I helped! :)

I understand you have already ruled out Zip which is good, they don't sound kosher to me.

As for the other company, they are that big and strong and they have very little info out there? I would not like being 100% on my own to find leads. I am new as well and am leaning towards a widely known company that does provide a lot of floor time for new agents as well as support to get started. Even with that I will need to work hard but it will help to feel like they are in my corner.

Do you have any other choices?

I would look for a healthy mom & pop brokerage - you may end up getting more training there....

Or find another big name that is doing well and offers training. You will have a less attractive commission split of course but what good is a high split if you never learn to work your business?

My office offers excellent training but I think we're not the norm...so many other offices only hang licenses and then hang the agents out to dry...

Keller Williams is supposed to offer good training.

Thanks all for the pointers:

1) the 2800 included a mandatory 1100-1400 regional real estate assoc i must join (I got the impression this was to be a REALTOR)...not sure if every place requires that but it seems to be a lot to pay yearly. Strangely too they said when they take me on board (if I decide to join)- I'd go to the one office for paperwork and another for licensing stuff and would pay the $$ then (does seem a little unkosher to require a REALTOR assoc fee the day I start?). these fees included one time fees to state, mls, key code, etc so I expected to pay something.

2) I have crossed Zip off completely- no worries there. Interesting to know about their "leads"...

3) Yes, I am scared to be completely on my own for leads just starting out and I got the impression that would be the case even though the splits seem nice. They did say they give 1 on 1 mentoring and training but...I'm concerned not hearing any reviews about them from anyone online. I'm hesitant to shuck out 2800 and 4 months later I haven't even sold anything.

4) I have just started looking so have only looked at zip and this place to start. [b]Perky[/b] - by mom and pop do you mean say a small franchise of Remax or Century 21 or just a much smaller office that is not associated with the big names? I haven't even thought of looking for small offices but I will.

THANKS EVERYONE! You confirmed what my gut was telling me...something seemed off for me.

that does sound high but then again, each association / metro area is different.

In my area, I pay $60 quarterly MLS dues for 1 mls board; plus my annual dues of almost $400, plus my $185 / year for my electronic lockbox key. That is expected for everyone, newbs and oldies alike.

Some brokers may require their agents to join multiple boards due to being in an area served by multiple boards. My broker doesn't require it but some do I'm sure.

I just did a deal with a Zip agent. THe only time I saw him was when he showed the house, and the only time I spoke to him on the phone was when he submitted the offer. In essense, he did ZIP.

If you are getting into this business expecting ANY company to give you leads, you will fail within 1 year - I guarantee it.

Find a company that will show teach you the real estate side (contracts, procedures, rules, etc.) and will show you how to market yourself and get leads. What kind of training do they offer? What is the success rate of first year agents? Can you speak to agents that have been at the company for about a year?

You need to learn how to find your own business. 90% of the agents out don't know how, and they end up leaving the business.

Good luck to you!

Exactly most coming into this field had J-O-B where they did the bare minimum and slacked to get that paycheck.

Here you run your own business and you will be eaten alive and fail if you don't understand that you drive your own business even if the brokerage might hand you a few straggler for leads here and there.

Agreed 100%.

The realty is that You are not working for a real estate company, you are starting your own business. Your question really should be phrased "what brokerage do I want to hire?"

I agree, you hire the broker. Not the other way around. Find something to start with, but also do not feel obligated to stay when you do not feel things are working for you.