I have never hung my license with any of these companies. I would be really interested in people's opinions about the HIGH priced companies. If I hear something that is convincing I may switch, but for the life of my I can't see why some agents choose to give these companies so much of their commissions. They get new agents in, the agents make a couple deals to their family / friends and in a year or so they are out the door back at their old job. In the mean time the big RE company has made their 20K on a minimum investment. Kudos to the owners of the big companies but what about the poor 8 of 10 individuals that failed to make it cause 50% of the commissions went to the company and 30% went to the goverment. I mean for god sakes the government takes enough as it is. I currenlty hang my license at a flat fee office or 100& company whatever you want to call it. Any and All replies are appreciated.

[This message has been edited by ArizonaAgent (edited 03-25-2004).]

Hello,

This should be a pretty good discussion.

First, what company are you currently with?

Second, Re/Max is pretty much a 100% company so I am a little unclear as to how they fit into the mix of the other three you mentioned?

Let me know as I would be happy to comment on this post.




------------------
Make it a great day!

Brian Rodgers, MBA
Brian Rodgers Seminars, Inc.
http://www.brseminars.com
1-800-339-8841

I know A LOT of agents from these companies are moving Keller Williams Realty.

Wonder why???

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Jeremy Bigelow
Keller Williams Realty
Owosso/Fenton, MI
jeremybigelow@mail.com

FACT - KELLER WILLIAMS REALTY HAS GROWN OVER 400% IN LESS THAN 4 YEARS. . . . . . . WOULD YOU LIKE TO KNOW WHY??? - EMAIL ME!

Jeremy,

It is so refreshing seeing someone get behind their company 100%

Keller Williams had made quite a splash in the industry.

If I wasn't already entrenched in my market with my franchise, I would consider Keller myself.




------------------
Make it a great day!

Brian Rodgers, MBA
Brian Rodgers Seminars, Inc.
http://www.brseminars.com
1-800-339-8841

I work for a small, independent company (ten agents.) I pay no franchise fees, desk fees, or any other fee whatsoever. My broker/owner pays for all print advertising and I pay for whatever additional advertising and promotions I decide to do on my own. I receive plenty of leads and my side of the split is 60%.
I know there may be some advantages to working with a large franchise, but I'm very comfortable where I am and would not consider leaving anytime soon.

The big outfits in my area try to justify the big splits for themselves by the training and mentoring they provide. Some are better than others. And they typically have a graduated scale of commission splits that improves your split based on your volume, and some provide near 100% commission for the high-volume agents.

Myself, I'm with a 100% commission company, and I no longer need the training and mentoring as much as I did earlier.

Of course, as a broker myself, I can hang my own shingle and get 100% also, but I like my present company for other benefits normally associated with a large company (brand, support services, discounts on advertising, vendor affiliations, etc.).

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Ruperto Elpusan, MBA, e-Pro
Broker/Officer
Beverly Hills-Malibu-Palos Verdes Real Estate
Torrance/South Bay Real Estate

I understand Remax is 100% and has a split structure too. I guess I wasn't clear. I meant a less expensive outfit. I understand remax charges a mortgage payment in itself to get 100% of the commissions. The thing I am wondering is the ROI ( return on investment ) worth it with these companies that charge 40-60% of your commissions or 1000-2000 a month to get 100% of your commissions. I crack up when I hear them tout "Training, mentoring" GIVE ME A BREAK...that is laughable.. But new agents buy it everyday. MY QUESTION IS, Are these companies giving you leads that close.. this is where I can only see them justifing getting half of your commissions. (oh lets not forget the governments share too ) so Big real estate company gets 50% the goverment gets about 25% of your 50% and you are left with dribble... Is it worth it? If I walk into remax and say ok, I'll give you 50% of my commissions but I want you to provide the leads... what will they say? AND what about the leads I generate on my own, how come the big companies want that money too? I think it would be fair for a big company to offer you leads at 50% then say well the business you get on your own will be 20% or something a little more favorable.. but no they still want 50% or close to that.. irks me.. but I haven't hung my license in a big company so I just can't quite see it from that perspective. I would really like someone on here who has LEFT a big company and had success at a smaller one. What was your experience. AND ENOUGH TOUTING KELLER WILLIAMS YOU SOUND LIKE AMWAY.


[This message has been edited by ArizonaAgent (edited 03-26-2004).]

Arizona,

Thanks.

Let me ask you, if you knew of a company that could make you into, not just a good agent, but a GREAT AGENT!

Wouldn't you want to share that with others??

I have experinced enough companies that like to take, take, take.

Keller Williams is the first company that I know of, that is willing to give back to those who bring in the $'s.

IBM, did the same thing when they started. Look at them now.


"GET BY GIVING"


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Jeremy Bigelow
Keller Williams Realty
Owosso/Fenton, MI
jeremybigelow@mail.com

FACT - KELLER WILLIAMS REALTY HAS GROWN OVER 400% IN LESS THAN 4 YEARS. . . . . . . WOULD YOU LIKE TO KNOW WHY??? - EMAIL ME!

I already am a great agent, and I would bet you a 1000.00 I am more honest, etical and hard working than 99.9% of KW's agents. I undstand their MLM approach to the agent structure. I also understand they are a fine company. The touting is what is getting iritating.

[This message has been edited by ArizonaAgent (edited 03-27-2004).]

Sounds like you are a little too GREAT for KW.



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Jeremy Bigelow
Keller Williams Realty
Owosso/Fenton, MI
jeremybigelow@mail.com

FACT - KELLER WILLIAMS REALTY HAS GROWN OVER 400% IN LESS THAN 4 YEARS. . . . . . . WOULD YOU LIKE TO KNOW WHY??? - EMAIL ME!

Ok, guys, let's get this thread back on track.

My opinion on this is you should choose your company based on the "Local Leader" not corporate.

I work with agents and brokers from all over North America and I must say that that there are great and not-so-great "local franchises" in every company and it is usually a reflection of either the owner or the managing broker at the local level. Now, if you find a great "local leader" in a great company you have hit a home run. But don't settle for a loser just because he/she is in a good company at the corporate level.

And for compensation -- No matter what compensation plan a company comes up with there is always going to be another company that comes up with something better.

DO NOT leave a successful real estate career, regardless of what company you are with, based on compensation alone. There are advantages and disadvantages to every single compensation plan.

My philosophy has always been:

"Every company and Every broker is going to have problems, pick who you are most comfortable with in dealing with those problems and stick with them until and unless their problems start hurting your credibility with your clients"

Again, if you are already successful, Do not leave based on compensation alone.



------------------
Make it a great day!

Brian Rodgers, MBA
Brian Rodgers Seminars, Inc.
http://www.brseminars.com
1-800-339-8841

It would appear to me that most people coming into the biz have a need for training, mentoring, motivational inspiration, etc. and some of the large fee-share companies give them that comfort level. After their first year, they should be on a successful path or out of the biz altogether. What I don't understand is if they are successful, why do some remain in a split fee company. Since they are at a stage where training, mentoring, etc. are no longer beneficial, why not move to a brokerage that has a moderate desk fee and 100% commission? Is it comfort level?

In my case, I started with REMAX and left after one year. I joined up with a small independent (4 people) and since than have never felt that I hurt my biz in leaving a large franchise.

I worked with 2 C21 companies and they had the same setup. Incremental commissions. Just when you get to 100%, the year was up and you had to start all over again. Also the brokers would take the sign calls and floor calls and distribute to the agents. But you did not have to pay for phone, elect, copier etc. The RE/Max companies in my area have different contracts. 100% commissions are the same but you can pay a monthly rate(depending on your private office size) or 50/50, 60/40 split, whatever you choose to pay for the office space until the bill is paid. I usually had my bill paid by May or June and sat on 100% commission for the rest of the year. You also get all sign calls and floor calls. But you had to pay phone,franchise fees (266/month). The brokers here never take a floor call. After 13years, I am now with an independent and there are no franchise fees, copier fees, etc. I am keeping more money. I also have a large past client data base that doesn't care who I work for.

Hopefully this will help.
[This message has been edited by ArizonaAgent (edited 03-25-2004).][/B][/QUOTE]

I am with a company that charges me $35.00 a month and $285.00 per transaction. All other non Board required expenses are my choice. We have a full service office with meeting rooms, computer rooms etc. I choose to work at home. We are over 800 strong Many of us coming from 100% companies. Since real estate is not like a car dealership (no showroom) I don't see the need for a fancy office at my expense.

I was with a very small company for my fist two months in the business. Can you say "two agents and one listing?" I left there and am now working with a C21 office that does very well. I am there for the up front recognition i gain from the C21 name. If, in a year or two, I am doing well and have a strong referral base, I'll either renegotiate my splits (I don't pay for any phones/copiers/desk/paper/etc and the office has computers available for MLS work) or I'll go to a 100% place. I need to get mt feet wet before I can decide to go it alone. My broker is very knowledgeable, and I'm learning quite a bit from her. besides, she pays half the "franchise cut" on all transactions, so when all is said and done, i walk away with about 45% (before taxes of course )