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.