I am currently working for several years in an office that is declining in the market share as well as having a difficult manager, who seems to be undermining the agents business. I becoming increasingly unhappy in this situation and looking to move to Remax. I am not a major producer and on a commission split, but I feel like Remax is not just where top producers go but where agents go TO BE TOP PRODUCERS. I am just somewhat nervous with the desk fees in this declining market. I would really appreciate any honest opinions...Am I crazy for thinking of going there not as a top producer already?

I used to work for Re/Max. I loved it. The only reason I left back in 06 is because of the change in my market and my unwillingness to pay the desk fees anymore. The management was great, the franchise was great, the people were great- I was just too cheap. Now I am somewhere where I pay a split but I don't have to pay for anything or even take care of my own website, etc. We even have a marketing dept and and IT dept at our disposal. It took a huge element of stress out of my life. For me it is worth it, but it may not be for others it just depends on your situation. If you will get the support you need from Re/Max that you are not getting at your current office it may be a good fit for you to help move you to the next level, thus making the desk fees worth it. Good luck!

on edit: when I went there I was by no means a top producer, and when I left I wasn't either, but working there with top producers was very inspiring and educational.

LOL I only know a few "top producing" Remax agents.

It's not the brokerage, it's the agent. Two of the top producers I know used to work at a hokey little mom and pop brokerage and they were top producers while they were there. They were top producers when they were at Century 21, and they are top producers now at my office....Weichert...which incidentally...our office is topping all other offices in my entire MLS for residential sales two years in a row. (There are 4 ReMax offices in my area.)

Go where you can blossom. Maybe it's RE/MAX, maybe it's Coldwell Banker...Maybe it's Century 21...but rest assured those top producers are top producers because of THEMSELVES, not because of the brokerage.

I chose my office because yeah, it was successful - BUT I wanted to learn what they were doing to be so successful and they were willing to teach me.

I went to RE/MAX a little less then a year ago. I had my own company out of my house and one agent under me. Why did I goto RE/MAX. Well my franchise has affordable fees. Either $300 a month for 70/30 split up to $14k then it's 100%. Or $1000 a month for 100%. I think they charge extra if you have an office in the building, but I and my wife have our office at our house. I picked RE/MAX over the other 4 larger offices in my area as they are #2 in my market. #1 in my market charges agents about $20k a year to be there. I also wanted a national brand. I've closed about $700k this year that I wouldn't have had if I hadn't been at RE/MAX. I know that isn't much for some of you, but it is here and it more then pays for my office fees. I also went with my RE/MAX franchise as they are the leader with technology in our market. No one else comes close. Another interesting thing in my area with RE/MAX is that RE/MAX International has their headquarters in Denver which isn't far away and have some great training classes in addition to the online stuff they offer.

Plus going to RE/MAX I'm breaking even on what I spent just to run my own company without me having to worry about the management aspects of a company.

I am with REMAX too. I started here 10 years back, obviously as a green agent. I am not a Top Producer, but I do a solid whack at it, last year about 5 million in sales (my biggest year to date). This year will be less than that. I spend about 15k a year to be there. 5k of that are expenses I would have otherwise, maybe 6k. So I spend around $9600 on the balloon as I like to say. I keep 100% of everything I bring in. I love it. I do not maintain office space there, but do so at home.

My broker figures our 'effective splits' for us. He uses the splits (with names washed out) to help recruit. Total $ in vs. total $ to him. I am about 90/10 now. Even when I was coming up the income curve I was 82/18. It really is a good deal when you take an honest look at the numbers.

What could I do with the $9600? Alot I suppose. Open my own shop and join the Boards, purchase my own E and O. My broker charges me about $150 each year for that now. From what I have read on these boards I would be paying about 10x that. Believe me I have considrered it, but I am happy here.

To be honest I somewhat question still my decision of joining RE/MAX from my own company. But after my wife became an agent about 2 weeks ago and joined me at RE/MAX I'm glad I did. Why? Because she speaks spanish so now she is getting every call that comes into our office asking for a spanish speaker. And referrals from those that don't speak spanish. IF I was still on my own she would have joined my company and wouldn't have gotten those calls. And I can help her as she is new.

I've been a RE/MAX agent for 10 years. The referrals I get from other RE/MAX agents and the boost from the name recognition of the franchise have justified the fees. Some of the referrals have definitely kept me alive during some tough spots. How about a $1M "do-me" deal or two? How about being asked to write a $600K cash offer by an agent who did not want to write on his own listing?

I have been with two different RE/MAX offices in the last 4 years. I left the largest split commission company in my area to go to RE/MAX. The best thing is the 95% split and no split on BPO money. The only thing I do not like about RE/MAX is there is little time spent with other agents in the office. I find it very different from where I was before as there was a lot of fun and interaction between your co-workers. I am glad I made the change and would do it again.

Do Remax agents get very many leads from remax.com? I have always wondered if the national recognition really helps agents get more business.

Yes, Leadstreet is a big one, but I do not have a lot of experience working the leads I get. Broker has control of sending them out. Mine will send them to you if you pounce on them. I tend not to have the time. If one comes in on your listing it comes to you regardless.

It is a real source of business.

I know each office is independently owned but I have heard from a few different people that REMAX is not good for newer agents because they don't offer training and it's expensive. That's one of the reasons why the commission splits are higher than your traditional 50-60% offices when you first start out. Is that true?

Training usually does not occur on a one to one basis in my office. My broker will spend time with you as a new or newer agent to teach you about contracts and basic prospecting. I think he is unique in that though. RSN (REMAX Satellte Network) I think is now called REMAX University. It offers a ton of educational stuff. I did my CPDE there. But if you are new I do not know about the offerings and how they will specifically help you. The satellite is free and so is some of the programming, but others do cost money. I paid to attend the CPDE. Other times broker will order pizza or say bring your lunch, and sit for an hour to watch something on free.
The best way to address your unique concerns is to talk with the broker about your unique concerns, just as you would ask other brokers. I think you might be suprised.
My honest answer is that REMAX is more like a scavenger hunt. It is all there (and more) for you if you know where to look, who to ask, and have the will to do it. Most likely you will not be led through a process of training.


EDIT NOTE...............Glad to stand corrected, see below. Thanks Colorado.

I'm going to correct you a bit Doin. RE/MAX university is now on demand online. The satellite thing is gone. But they have lots of good stuff online. Which in my opinion is better then sitting in a classroom, but that's me. My office does very little training for new agents. My wife as I mentioned above is new, but she hasn't gotten any new agent training from my franchise besides a day long class on all the tools she can use. That was expected though so I'm not complaining. So I wouldn't recommend a brand new agent in my area to join RE/MAX. In fact I can't think of a company in my area that would be good for a brand new agent with regard for training. Maybe Keller Williams, but really I have no idea.

I have considered going to Remax a couple of times. I interviewed with the local office here and I was told that the total monthly fees were around $1,400. Does that sound high or average?

It sounds insane if you ask me.

That's about what they charge around here. That includes the monthly fee to the state franchisor and whatever the statewide ad fee is here (You don't think those billboards and TV ads come out of corporate's pocket do you?).

Many years ago, a Re/Max owner wouldn't take a newbie or even an agent with just a little experience because they weren't set up to train. When I worked at a Re/max (left in 2002 to open my own shop) they were starting to bring in new licensees since they had pretty much run through the pool of experienced agents.

And remember this, you will sign a contract guaranteeing payment of that $1400 per month, and if you leave owing money, chances are pretty good that the owner will sue you for payment.

That sounds high. I pay $850 at the one I am at now with a 95% split. I paid $1150 at the other RE/MAX here in town. Check to see if they all charge the same. The pass through fee is also different at the two offices with the 70/30 split.

If you can manage keeping yourself educated and up-to-date with the current real estate market, then hang your license anywhere you want. But, if you need that support, find a brokerage that will make sure you are getting the best bang for your buck. 100% of zero is still zero. Good luck in whatever you decide.

Any monthly fee seems high, whether you say it is $850, $1200, $1400 if you are not used to making a monthly payment-- rather than paying the house from your commission checks.

But when you earn a $9000 commission and go home with all of it, it balances out--and does so quickly.

To me, I see broker splits as high. I see my monthly bill simply as a bill, that's it.

Yes, but if you are not making the regular income to cover an extra $1200 or more a month...let's say 3 months go by and you make that $9000 commission and you owe your broker $4000 in fees...that's pretty close to a 50/50 split.

The break even on it is not that drastic Perky. At $60,000 total annual income your effective split is still over 77%. I am assuming a monthly bill of around 1200, since that is about what mine is. If you make $50000, the split drops to around 72%. If you make $40000 you are at a 64% split. It is not so scary when you look at it like that.


It is the same thing as the difference between withholding taxes and making quarterly payments to the IRS.

It is just a perspective game. I build up some reserves for the dry times, which do come along. But they do not last 3 months. BPO income helps smooth things out. But you have to predict income on a quarterly basis and annual basis, not a week to week basis or even a month by month basis. I do not think RE allows for that accuity.

My point is - a new agent can't do something like this unless they make it lucky early on or unless they have a lot of $$ to start.

Yes I agree with your point. A new agent needs a bridge if they want to be at REMAX to start with.

My broker offers the RAPP, which is the REMAX Approved Payment Plan. You pay out of your commissions until you catch up, then the split subsides until the start of the next year (years start when you do).

90% of the agents in my office choose this plan, not just the new ones. I think it is a contract and becomes part of your IC agreement I think.

Most agents come off of RAPP after 6 months or so and then have the rest of the year to collect their commissions in full. I think the split they are using under RAPP is 70/30. It really is a superior system, IMO.

I was a buyers agent for another top producer, so I had leads coming in from his signs. That was my bridge. I paid the agent a referral fee obviously.

The RAPP plan works fine for agents with what I call a "book of business" but not for newly licensed or marginal agents. They build up such a deficit they owe the broker that it takes a long time to overcome.

And as I mentioned in a prior post on this thread, if you leave owing money, you will be sued for the balance owed contractually. I know of two agents that ended up filing bankruptcy after leaving a Re/max. They both left because the broker recruited them saying he had a new construction project for them to work together. That never happened.

I think also there are 2 sides to this..the broker side and the agent side. I have watched my broker use RAPP to try and 'roll the dice' on some new agents. A lot of them went on their way after a while, some he asked to leave, but he made a couple of good choices that are paying him back.
From the agent side I think it makes a lot of sense--enough to be considered seriously.
And good point about those contracts---read them carfully. I know my broker has had some legal things with agents who left... I do not know the exact details, so I can't say if they are simpatico with what you said.

pay money to keep more money always works for me. i find that you will push yourself to close more deals if you put more"skin in the game"

i wish all agents had to pay money out monthly. i am all for survival of the fittest.

****here is the biggest truth of all****>>>there are agents that get by because they dont owe anything if they dont sell. they are stuck on mediocrity...if they had to pay out a grand a month, many of them would push themself to the next level and ultimately become a more competitive, successfull and competent agent. but because they dont have to close a deal because there is nothing lost, they stay at the level they are currently at.