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Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by austin-steve
If you fail, as most Newbie Realtors do, it won't be because the Broker you chose charged you a smidgen more than some other Broker would have. It will be because you suck as a Realtor.
I think you're focusing on the wrong thing. This is all chump change. Literally pennies to a successful, producing agent. You're setting yourself up to fail by thinking this small at the outset, in my opinion.
Focus on how you can grow your business such that you become more valuable to your Broker than your Broker is to you. Then you can set your terms and conditions as you see fit. If you fail, as most Newbie Realtors do, it won't be because the Broker you chose charged you a smidgen more than some other Broker would have. It will be because you suck as a Realtor.
Sorry, I'm just dishing it straight to you. Your time would be better used getting your list of people together, calculating how much in GCI you need to earn year one to net your desired income, how many houses you'll need to sell to get there, and how many listing and buyer appointments you'll need to in order to sell that many houses, and how many "touches" to your sphere you'll need to make to get that many appointments.
Think bigger.
Steve
Sound advice & appreciate the direct response.....have business plan devised with numbers crunched.
Last edited by stevebemo; 01-15-2013 at 08:54 PM..
Let me put it this way, (disclaimer first, the numbers used are for illustration only, my agents have complete freedom to negotiate listing charges from zero to up...)
Let's say a real estate licensee is credited with $1,000,000 in home transactions per year. At 3% commission splits, your broker would receive a total of $30,000. He/she then splits that amount giving you 90%. You have just made $27,000 for a years work. Oh, no, not yet, the closer to 100% the less the broker offers in support. So now, you've had to pay for 100% of all your advertising, your internet, phone, automobile, MLS/NAR/sAR, license fees, etc.
So, anyone who plans on making a living, they better be looking at all brokerage opportunities and models because a Walmart greeter makes more with absolutely no risk than most real estate licensees.
Solid advice on those last few posts. One more thing that is a great lesson to new agents: What's better-50% of something of 100% of nothing? Forget the money, who's going to put you in a position to succeed?
I too am a Keller Williams Agent. We in fact do make more than you in Re/Max because the simple fact is that we have a cap and are paid 100% after we cap. I am glad you like your National TV ad but as NAR has gave statistics year after year that Branding a corporate Real Estate Company doesn't help you as a Realtor.
Keller Williams promotes agents to run their business as a business and to hire staff and build teams. Most firms do not promote this at all. The bigger your team is the more Keller Williams Realty shines. That's a fact and maybe that is why Keller Williams over took Coldwell Banker this last year to become the number 1 Real Estate Company in the US in number of Agents.
Now I get contacted by Companies all the time to join their company. The difference is that Keller Williams shares their profit with us because they know that agents bring other agents so why shouldn't we share in the profit. Does your company do that? NO... Do you even know if your owner even makes a profit. You probably don't. If you want to stick your head in the sand that's your business but Keller Williams as you know is growing year after year as all the other franchises watch and wonder how we do it.
I too am a Keller Williams Agent. We in fact do make more than you in Re/Max because the simple fact is that we have a cap and are paid 100% after we cap. I am glad you like your National TV ad but as NAR has gave statistics year after year that Branding a corporate Real Estate Company doesn't help you as a Realtor.
Keller Williams promotes agents to run their business as a business and to hire staff and build teams. Most firms do not promote this at all. The bigger your team is the more Keller Williams Realty shines. That's a fact and maybe that is why Keller Williams over took Coldwell Banker this last year to become the number 1 Real Estate Company in the US in number of Agents.
Now I get contacted by Companies all the time to join their company. The difference is that Keller Williams shares their profit with us because they know that agents bring other agents so why shouldn't we share in the profit. Does your company do that? NO... Do you even know if your owner even makes a profit. You probably don't. If you want to stick your head in the sand that's your business but Keller Williams as you know is growing year after year as all the other franchises watch and wonder how we do it.
And this is what we use to call "drinking the red Kool-Aid".
I'm ex-KW, think highly of the organization, its systems, training and people. But Dude, small sips. Take small sips and don't dog your fellow non-KW agents or talk down to them as if they are dumb for not making the choice you made.
And this is what we use to call "drinking the red Kool-Aid".
I'm ex-KW, think highly of the organization, its systems, training and people. But Dude, small sips. Take small sips and don't dog your fellow non-KW agents or talk down to them as if they are dumb for not making the choice you made.
I too am a Keller Williams Agent. We in fact do make more than you in Re/Max because the simple fact is that we have a cap and are paid 100% after we cap. I am glad you like your National TV ad but as NAR has gave statistics year after year that Branding a corporate Real Estate Company doesn't help you as a Realtor.
Keller Williams promotes agents to run their business as a business and to hire staff and build teams. Most firms do not promote this at all. The bigger your team is the more Keller Williams Realty shines. That's a fact and maybe that is why Keller Williams over took Coldwell Banker this last year to become the number 1 Real Estate Company in the US in number of Agents.
Now I get contacted by Companies all the time to join their company. The difference is that Keller Williams shares their profit with us because they know that agents bring other agents so why shouldn't we share in the profit. Does your company do that? NO... Do you even know if your owner even makes a profit. You probably don't. If you want to stick your head in the sand that's your business but Keller Williams as you know is growing year after year as all the other franchises watch and wonder how we do it.
Dave, you are correct! On paper, at least. It is why I disrespect KW. They don't tell you the ENTIRE Truth.
Let's compare: Lets use $200,000 as the average sale price for both KW and RE/MAX, and we'll get paid 3% per side. (3% is the commission paid per side by HUD for FHA REO'S, so it's only an example to avoid FTC regs.)
If you are a typical KW agent, you will get 7 transactions per year, but let's add 3 so you were better than the average KW agent. Your broker's gross commission income would be $60,000. The broker is entitled to 30% of $60,000 (coincidentally the cap rate of $18,000) and 6% of $60,000 or more than the KW cap of $3,000. Your net income would be $39,000.
Now, let's use my office model (approximate #'s) You will pay less than $15,000 (70/30 to 10,898) + $3102 to RE/MAX and 5% of your $60,000. That's still $3000 below your deal with KW.
Now, here's the kicker. The average RE/MAX agent sold 15.1 transactions in 2012. (Remember KW sold approx 7). Let's keep the same transaction income of $6000 per deal and lets say you aren't quite as good as the average RE/MAX agent and only sold 12 transactions in 2012. That would mean that your Gross Commission income would be $72,000. I would keep only $15,000 and 5% of $72,000 ($3600). Your income if you are an average RE/MAX agent would be $90,000 less $15,000 + $4,500. Still less than the $21,000 you would pay KW.
So, tell me where would you rather be? With a company where your net commission income is less than $40,000 or where the same efforts and time would cause you to take home more than $11,000 more income?
Last edited by tomocox; 03-22-2013 at 03:11 PM..
Reason: correction
Yes, it certainly is. Problem is those who may appear to be most truthful, certainly may not be. Documentation is not a common asset.
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