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???

------------------
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.).

------------------
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"


------------------
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.



------------------
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 )

I can say I just joined Remax Greater Atlanta...I am moving from Las Vegas to Atlanta and I am with Century 21 in Las Vegas.

Comparing those 2 companies I can tell you that Remax by far is the cheaper of the 2. With Century 21 they have a 6% francise fee and I am on 100% commission. I also pay 400 per month for a private office.

With Remax it is a lot cheaper. I get a private large office plus phones copies and so on for 1200 per month and that includes all my fees to Remax and a 1 % transaction fee per deal. With this I get all my listings inputed so no wasted time doing paperwork and an office assistant that handles my files and opens my escrows.
This is not a typical deal most agents get.

Anyway from what I have seen Remax is by far cheaper and seem to be more pro agent then any other big named real estate company.

My other thoughts to this subject would be even if you are paying more then some other companies offer in your area you want to go with the company in town that controls most of the market share...whether that is a Century 21 or Remax or whomever.

You may pay a little more but in the long run it will bring more business to you then going with a national company that doesnt have a good percentage of the market share. Its all a matter of ROI= return on investment.

So my point being that cheapest doesnt mean the best and national name companies do and will bring you extra business in the door that the non national cheaper companies do not.

Best Of Luck


Atlanta Real Estate

I worked for Coldwell Banker for three years and moved after new owner bought it. I moved to an independent office of 13. I look at how ethical your broker owner is. My broker owner covered all my pendings while I was on maternity leave and all he wanted was $150 compensation for each transaction. I offered a 50/50 split but he refused. I also get a bigger split at the independent firm then I did at Coldwell Banker.

amy

As a Regional Rep for RealtyWorld Brokers Network I have read with interest some of the replies. Did you know that a broker can own a franchise with a rather low franchise fee - agents pay $150 per mo - state of the art marketing tools - outstanding training program -Powerful name recognition and much more. Give me a call @ 513 881 9077 to see if this might be an answer for you-Tony

Just remember that C21, Coldwell and ERA are all owned by the same parent company. Here's an excerpt from a recent NYTimes article:

Now Mr. Diller is on the offensive. He is taking aim at the heart of Mr. Silverman's domain: residential real estate. Having bought LendingTree.com and RealEstate.com, Mr. Diller's company, InterActiveCorp, has linked mortgage brokering on the Web with Internet real estate referrals, using commission discounts as a lure. No one has more at stake from real estate commissions than Cendant, which controls more than 25 percent of the brokerage business through its Century 21, Coldwell Banker and ERA franchises.

Hi there....can you tell me what company you are working for and how are you collecting your leads, is this through your company and do you have a marketing system in place that is doing this for you?

I've worked for

C21: my opinion, the ones here wanted you to pay all your own expenses and still be on a 50/50 split. And I was a good producing agent and they wouldn't pay me more to keep me. Good for a beginer as they have good training.

Remax: depending on what the fees are in your area not a bad deal, you need to be doing a min of 3mil in volume. good traing through the rsn satelitte network. downsides was they nickel and dime you to death, like charging for copies and letterhead. some of the agents were just bluntly said snakes in the grass that would screw you over a dollar. the office i was in had a greedy attitude.

self: left remax last year to work for myself, actually cheaper than my fees where at remax and i don't pay a 5% franchise fee anymore. things are ran the way i want them ran. i look at it as this will actually be a saleable assest one day unlike my book of business under a company.

if i ever wanted to leave and not run a company anymore i would go to the prudential here good local roots and reputation, and they pay all expenses provide a lot of company and pay a 80% split to better producers.

maybe keller williams if they ever get their fees down here. cost about $28k a year to hang your license at kw here.

Thank you for responding.....

I'm located in Norther California, where are you located?

Have any info on Caldwell Banker Grupe?

I work for one of these companies that you quote are HIGH priced. But I also don't have any fees for an office, or copies, or telephone, and I get all the leads I want for free. I don't see the purpose in paying a fee every month, to keep 100% commission, when you pay it back in fees. I think the cut they keep is well worth what they pay. Not only do they cover the entire phone bill, and office and desk fees, advertising, (print and internet), but they pay the office help, the ones who write our ads for us, and input the mls, and put up our signs, and set up the showings for us. They give us all the training we need, not just 2 weeks, but as long as we need it. We get a lot of phone time,and all the phone calls are ours. We get to keep the leads. Broker and manager do not take ANY calls at all, (unless someone calls in for them specifically, of course). They do the advertising to get people calling in for us. And when we need them, they are there for us. Maybe some of the other brokers should read this, and see what a good office is like. I have no complaints. I sold over 3 million my first year, without paying for any leads, or office space, and working about 25-30 hours a week. The people just called in to the office, and if you were on duty, they were yours. Century 21 agent.

The KW manager never returned my calls (or emails from their web site).

I'm not too interested in them anymore.

What fees do you pay for? I'm sure not all C21s are like yours.

Hello...I'm new here. I came to find information about real estate companies and lo and behold, here you were, talking about this very subject.

I got my license in 2002 and signed on with my local Remax. I like the company and the people. I'm on a split until I get enough business generated, then I go to the monthly office fee of about $800- 1200 a month, with 99% commission. I decided to start shopping around for another company, mostly because I feel a need for more training and mentoring. Other than these, I have no complaints about my Remax office. I like everyone there and everyone is very helpful. But they are so busy...being that most are established and have been in the biz a long time.

I spoke with C21 yesterday and Keller Williams was suggested to me today. C21 has a seemingly good training program, but they are not a highly recognized brand in my county. There are plans to expand the local office, and to open another one in a different county. The person who referred me to Keller Williams felt that C21 was not a really good choice because of their market share in our area. I also investigated Coldwell Banker, but they have mandatory floor duty, which really doesn't appeal to me. (but maybe someone could convince me to change my mind)

I honestly don't know which way to go. I do know I want to continue in real estate. I enjoy it so much. As a new agent, I've only closed 11 sides in the past year. I feel that because I am working at this full-time, am a fast learner, and willing to put in 110% that I should have more business.

I suppose there have been plenty of responses to this type of post already, but I welcome any additional comments.

Thanks!

I am a relatively new agent with RE/MAX in my area.
As a new agent, I think I should have given some more thought as to where I should have started my Real Estate Career. There is no Team building in my office and Desk fees are around 1100.00 per month. The split is 92/8.
I realize that I am the one that must acquire the leads and turn them into business. I don't feel anyone should be doing that for me. But the office I am in is very much a closed door atmosphere and there is little or no help for a struggling new agent looking for a little prospecting tip here and there. Everyone seems afraid of giving something away. I do realize that other agents are definately busier than I am.
My first day at the brokerage I was given a quick run down of how things worked, and that was it! I was on my own without another word.
Maybe Exit, with its sponsering and Residual program would have been a better choice to start out. Its within everyones interest at EXIT that you succeed.
Don't get me wrong. RE/MAX is a great name with a great reputation, but I think its more for the established people and not the Newbies. Just my opinion.
I actually purchased a book on Amazon that is really helping me get started.

What book did you purchase? I am waiting until I save up 3 months wages before I get licensed - have plenty of time to read and learn. Book recommendations are welcome.

Has anyone ever heard of The Group Inc.? They are huge in Fort Collins, CO.... and I was wondering if they are a firm worth pursuing.

Ok ok.. I guess I will put my two actually five cents into the game...

First things first... Not all offices in every company is the same... Not every C21, Coldwell, ERA, Re/Max, KW, etc. is the same... In fact if they were all the same it would make life much easier for all... Each office of every company is run by the Broker/Owner of that office.. In other words the Franchisor(company) gives the "local independent" owner/broker the rights to use the name and a "general" and I mean GENERAL guidelines at how things work...

Now I have seen Re-Max offices where it would have cost me $1500 or more to have my license hung there and I have seen them where it is run just like a regular company... ALso I have seen 1 Coldwell run one way and the next, three blocks down the road run the a totally different way, blah blah blah...

Please base your judgement to with a certain office on a couple of things. Things like office reputation, broker reputation, personal feelings, etc. etc. etc. When you speak to a broker about hanging your license with him/her, YOU and I mean YOU SHOULD be INTERVIEWING them as much and maybe more than them interviewing you...

Take the time and go through all of your options when you look at a broker...

Good Luck and Good Selling..

Duane