I am currently with a keller williams office our current spilt is 64/36 (until we cap at 18k paid to the office then it is 100% until our anniversary date)

Next month I will pay more than 8k into the office plus our monthly fees (phone,printing,office space etc)

Our office does not provide ANY training whatsoever; we have a competing broker (all lead that come in goes through her), we've just moved from a 6,000 square foot office space to a 1600 space (less lighting pretty dull and dark/inside of a building that was poorly finish)... some of people are great though...

Some agents told me I am being unreasonable in wanting to leave the office to go a company that just charges a flat fee per closing .... I have brought in all my business

Is the name worth paying 18k for nothing in return?

You should get lots of opinions on this....Is most of your production from /buyers/sellers who are coming to you from the KW branding or are they seeking your professional guidance because you are "you"?
I am on a slightly better split but will pay considerably more than 8k in the next 30 days and I haven't even been in the office twice in the last 6 months.

Yea, My production is coming from me because I am who I am lol

I mean I do not believe I've had one client because of the KW name but I have had many clients once they found out I was with Keller Williams say "really you all must be busy i see your signs everyone i go" it makes getting them to sign the listing/buyer agreement a lot more easy...

I guess because i'm really new to real estate (under 2 i years)... maybe i am nitpicking at things that do not matter

i've talked to other people and most people have said my age is the reason why im think the way do ...


[quote=SummersAtTheLake]You should get lots of opinions on this....Is most of your production from /buyers/sellers who are coming to you from the KW branding or are they seeking your professional guidance because you are "you"?
I am on a slightly better split but will pay considerably more than 8k in the next 30 days and I haven't even been in the office twice in the last 6 months. [/quote]

Sounds like KW has a major market presence in your area..when I was first licensed my brokerage had mega presence and it definately helps.
If i remember right, I paid close to 45k in my first year and it definately makes a person think.

yes it sure does. Are you with the same brokerage as you were when you first started?

Yes KW has a large presence around my area (not my particular office but the company name KW does overall)

[quote=SummersAtTheLake]Sounds like KW has a major market presence in your area..when I was first licensed my brokerage had mega presence and it definately helps.
If i remember right, I paid close to 45k in my first year and it definately makes a person think. [/quote]

The brokerage I was with dropped their affiliation after 2 years and I am now with Prudential. As a new agent (12 years ago) I was on a 50/50 split and it really is hard to take when it seems that you pay in and get nothing.

thanks

sounds like in the end it worked out for you?

Let me understand. You are paying $8000 for office space, phone and printing and your total office is only in a 1600 sqft space? I sure hope that $8000 isn't a month. Even if that is $8000 a year that is way to much. Why would they charge for phone? People have cell phones. Printing should be charged per copy not part of an office bill.

Is this $8000 in addition to your split? If it is then I'd say get away from that company immediately. Around here I could rent my own office space for my own company for much less then that a year. Your split sounds kinda lousy also. I sure hope they provide alot for that. If you are bringing in your own business and consistantly hit your cap I think you should investigate becoming your own broker. Or like you said find a flat fee agency. Or if you do like your KW office negotiate your split and bill.

I don't think you are being unreasonable at all. The people that say you are unreasonable are the ones being unreasonable and maybe lazy.

No the $8000 is the spilt. Besides that the monthly bill is roughly $150 on average and yes we are charge for phone whether we want it or not or whehter the system is up and running .... Total per year so far it seems like I'm paying roughly 20k to the office

Let's see... No training class in more then 5 months, no sinage, no lockboxes (office has like 5 total that agents can borrow), but we do have a competing broker. actually this office provides nothing to support the agents business. I would love to become my own broker... Except in my state you must be a licensed agent for 3 years and Im still a little under 2 years

I am a principal broker in Georgia so I can help you understand this.

You have to be actively licensed and in good standing for 3 years to become a broker.You have to take the 60 hour class and pass the exam.Then you have to go take the state broker exam which IS NOT basic multiple choice.Instead it is a simulator where there is a best answer and the worst answer.

Best gets for instance plus 3 and worst gets minus 3 points.The questions go into various scenarious and play out on multiple page son the computer screen.The answers are averaged and if you get above a 70 you pass.The score is only given as a pass or a fail.

Having a brokerage is VERY expensive.The local mls's get big deposits when you start out.This way if they brokerage goes defunct they are not going to have to chase them in court for the money.The mls can simply keep the deposit money.They never let the balance owed for mls access for the brokerage get above the deposit money and will cut off services until you pay.

Brokerages have about a 80 to 90 percent failure rate the first year starting up.

Your broker at KW downsized because the 6,000 sq ft office is eating them up in costs.The head broker has to decide if they want to burn through the hundreds of thousands of dollar sin profit they made in the boom times,downgrade to a smaller space,or shut it down all together.

I have a virtual office to keep costs down and I have my commercial agents on a 50/50 split.They don't like it I can go online and release them in a matter of about 10 seconds.

Brokerages are dropping like flies and or down sizing around here.We had a major RE/MAX franchise file for BK a few months ago.When boom times were happening brokers could afford to have these plush facilities but now it's a waste of money.

I work with my agents and train them on how to generate business.Residential side you have agents that want to pay a 150 trans fee and will complain about it.Those other companies can have all those types.I would have to do 200 transactions at 150 to make what I do off of one commercial deal for myself.

200 transactions is a massive headache and a crap load of work.

So you will be paying $8K next month from your commission split plus a small office fee? Do you account ANY of your success/transactions to having being affiliated to KW or do you feel you would be equally (or more) successful at a lesser-known brokerage? I know for me having a well-established brokerage has opened doors/opportunities, but obviously there are too many variables (i.e. market share, branding) to say that would work on my situation would work on yours. Best of luck.

I am on a 80% spent with no office fees, office assistance to help and my advertising is paid, you can find a better deal.

Do you have a Realty Executives Office near you.

You can elect to pay a flat fee per month

Yes, that is correct 8k plus the office fees. Pretty much I am paying for the copies that made the office 8k

In all honesty I probably can say I got 1 listing from being associated with KW (but it has not sold). Other than that it's strictly been becuase of myself of course people say oh I know who you are I those red signs but I got them before they knew i was with KW
This office has opened no doors for me at all nor is the office providing me with any new opportunities. This year I think this office has offered maybe 4 training classes, no office support, you pretty much are responsible for everything yourself; they offer nohelp in anything..

Interesting...I was w/KW right before I went out on my own. I worked on my broker's license while I was there. The office did provide decent, basic training for newbies. Their split was 70/30, but you had to pay out of your commission the 6% royalty (franchise fee), 10/mo. consortium (whatever that was), 3.5 cents per copy, $25/yr. KW fee, E&O $40/every 3 mos. By the time the fees were taken out of commission - just the flat fee, it probably came around 60% split really. The cap was $25k/yr then you got to keep 100% but a $25/process fee for up to 4 transactions per month. Oh, nickel and dime you to death! As I said, for newbies, the training was good, but I already had experience and was 3 yrs in. I wanted ADVANCED training which doesn't seem to exist. When I sat in on training for pulling comps and challenged the "instructor" on how one pull comps, I looked into her licensing. She hadn't even had her license one year and had no transactions under her belt. I thought "what the freedom!" The broker was also a competing broker. (It was the same when I was with C21.) Leads were given to favorites or to the broker's husband.

They didn't provide me with anything and that's when I went out on my own. Why was I paying them for nothing. The corporate's advertising is very enticing, but it's a joke too.

Know, probably no matter where you go, you'll have to obtain your own training and education. If I stepped back into someone else's brokerage again, I'd have to go with one that charged per transaction.

thanks

yes that sounds so similar. i started KW as soon as i got my license oct 2009... since the beginning no training has existed

yes like i have no problem getting my own training etc. but when your paying a company 18k a year and then you have to go and get additional training which cost more money it urkes me to death

thanks I know what decision I need to make

Prior to late 2009 I owned my own company, but I thought I would try out the local RE/MAX Franchise so I put my own company on hold. RE/MAX is a good company and if I hadn't been on my own before I would think they are fantastic. No training though, which is fine by me. Similar splits to what you all are describing. I did get 3 deals because of being there through referrals, floor time, being a farm and ranch expert. But when it came down to the end of the year I found I made only $800 more then I would have on my own. And I had to do the 3 deals that RE/MAX got me to do that. So basically I did those 3 rather large deals for free. At least to my way of thinking (Yes I know it's transactions that matter). So I decided to go back on my own after some health problems and not wanting the pressure to sell sell sell to pay an office bill.

So my point is if you generate most of your leads on your own. Why give up so much money for nothing.

It's mmakes perfect sense if I am providing my own leads, if I must pay for all of my own signage, cards, advertising etc, and if the company is not giving me anything to advance my career why pay them so much ....

th

If you don't think you're getting a good ROI on your commission split, go shop around. I looked around to confirm that I'm getting a good deal. I got some amazing promises from other firms, but for some reason, the calls stopped when I asked to get it in writing.