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By working for an owned and operated shop, you will have access to Lead Router, Corporate Relocation and other leads that franchisees may not have access to. Some agents object to the large referral fees you must pay to participate, but the way I look at it, every deal counts and there will be more available to you at the company store than at a smaller franchise or mom and pop. If you do a good job for a client (regardless of how much you didn't earn on that deal) you have the opportunity to get referrals from them for years to come or buyers who call on your listings that don't have referral fees. As I posted earlier, and you agreed on your last post, having a great split but no deals isn't a great way to start your career. As you grow in your career, you'll have the opportunity to move that 50/50 split to a more favorable one or move on. Once you start making transactions the others will call you and you'll have the opportunity to stay or go.
I do not recall the last time a CB agent got a ready, willing and able buyer of anything off of realtor.com/lead router.
CB ( NRT) will not give corporate relo business to a new/newer agents.
CB ( NRT) will not give corporate relo business to a new/newer agents.
Most relocation companies want an agent with a fair amount of experience for their clients. Our company requires 2 years of experience just to participate and even then you've got to be one of the better producing agents.
I do not recall the last time a CB agent got a ready, willing and able buyer of anything off of realtor.com/lead router.
CB ( NRT) will not give corporate relo business to a new/newer agents.
Counting what's pending, I will have 10 closings in 2012 from Lead Router and many of those clients will refer to me in the future. The leads that come in to our NRT website are screened by staff "Do you have an agent, are you pre-approved," while the leads from REALTOR.com and the other aggregators are not. But then I've learned to be very selective about the leads that I accept and that wasn't always true. I believe I became relocation certified in my second year, but I might have successfully negotiated an early entry with my manager. middle-aged mom, perhaps it's the attitude towards the incoming lead that turns it into something good and vice versa. I felt the same way about desk duty leads (non-productive) and our company has taken us off the desk and let the clerical staff answer those calls.
Thanks to everyone for the continued input! I love hearing the different perspectives. I met with Coldwell Bank and KW today and decided to rule KW out completely. Perhaps it was this particular office, but it seemed entirely too much like a big pyramid scheme. Basically, if you focus on recruiting new agents, you move up the pyramid and get a kickback. I also didn't care for their training--it seemed too theoretical, rather than practical--seminars like "The Personality Qualities that Top Producers Possess" and things of the like. Hey, I don't care about personality traits and recruiting; I'm here to learn the business and sell houses...which brings me to the point that KW barely mentioned closings, contracts, leads, or anything of the sort in almost an hour and a half. They did have a better split than Coldwell Banker (70/30 vs. 50/50), but KW nickel-and-dimes you for everything, whereas Coldwell Banker is full-service. As a new agent, I think I'd rather take a lower split than be on the hook for a million monthly fees. If I don't do any sales in a month, I'd actually be losing money with KW. Needless to say, I didn't care for their slick "used car salesman" approach to real estate. I'd be curious to know if anyone else felt the same way, or if it was just this particular office.
KW's "pyramid scheme" is basically a way for agents to work more cooperatively. The money you get from recruiting new agents comes out of the corperate cut and not out of any agent's pocket.
As far as the training, they are pretty holistic in their approach to agent development but you could get training concerning nuts and bolts stuff if you needed it. They are big on positive mental attitude type stuff.
KW's "pyramid scheme" is basically a way for agents to work more cooperatively. The money you get from recruiting new agents comes out of the corperate cut and not out of any agent's pocket.
As far as the training, they are pretty holistic in their approach to agent development but you could get training concerning nuts and bolts stuff if you needed it. They are big on positive mental attitude type stuff.
Eddie, I'd like for you to tell me where the money to pay for "profit sharing" comes from if it doesn't come from the gross commission income generated by the agents. Think about it.... There is no other income that a KW office generates except from commissions earned by agents.
Eddie, I'd like for you to tell me where the money to pay for "profit sharing" comes from if it doesn't come from the gross commission income generated by the agents. Think about it.... There is no other income that a KW office generates except from commissions earned by agents.
Tom,
How does thd fact that GCI revenue that produces a profit define profit share as a "Pyramid Scheme?"
Under that unsubstainable assumption, the fact that GCI pays office rent might define "rent" as a pyramid scheme.
I like the definition of "pyramid scheme" used in Wikipedia. No where is KW Profit Share cited as an example, although many many valid examples are cited.
It may be because KW Profit Share is certainly part of a sustainable business model.
It is always unfortunate when a team leader or associate stresses Profit share to the point that other components of the KW value proposition are back-burnered. Only weak KW associates depend on selling Profit share to the exclusion of other benefits of association.
Truly even more unfortunate that the OP could not recall any mention of business generation, when in my opinion, lead generation is over-stressed at KW.
Might consider trying to get a better snapshot from a stronger associate, unless the OP is completely soured.
Unsolicited advice to the OP:
Always be extremely skeptical of anyone in any field who cannot support their own company or career without negative remarks about another company or professional.
A company and its value should stand on its own merits for judgement, and not have to depend on the help to throw stones from their glass house.
A real estate agent should have a personal value proposition to promote, without attacking others. It is only adult behavior and ethical deportment to do so, and certainly a business approach you should absolutely demand of any leadership with which you associate.
Mike, I have never called the KW model a pyramid scheme. You can search long and hard, you will not find my description as such.
However, I know this to be a fact, KW, like a mutual insurance company must "overcharge" agents in order to pay a bonus or profit share. It is not easy to understand, but if there were no profit sharing from a non-profit revenue, then the firm could reduce its fees (or percentage of commission) giving all of its producers more take home income.
The way I see it, KW takes $xxx,xxx,xxx in overcharged commission income, pays about 50% of it back to the agents and calls it profit sharing. Am I mistaken?
++++
Mike, regarding negative comments. I didn't make any. I simply asked questions. I would say to you, if your brand was more forthright, especially in how it represents other models and brands, I would not need to be asking what you consider negative comments. I don't like negative at all, but I do love integrity and I do expect people to have enough information to make important career decisions with facts, and all the facts. If you come to my office, you will not be sold on why to join us, but rather you will be presented the good, the bad, and the ugly that you can expect with your association with us.
Like humans, there is no perfect model, management style, or brand, so people have a right to understand. My point in asking where did the profit sharing come from if it didn't come from the gross commission income generated by agent efforts.
One more point, I stand absolutely on one premise. There is no better brand to be affiliated with than RE/MAX. It may not be the perfect brand for everyone, but no other brand comes close to matching its productivity per agent, and per agent net profits. My office is a darn good office, but certainly a long way from perfection. We stand strong and true to the facts, and we make certain everyone who joins us knows all we know.
Mike, I have never called the KW model a pyramid scheme. You can search long and hard, you will not find my description as such.
However, I know this to be a fact, KW, like a mutual insurance company must "overcharge" agents in order to pay a bonus or profit share. It is not easy to understand, but if there were no profit sharing from a non-profit revenue, then the firm could reduce its fees (or percentage of commission) giving all of its producers more take home income.
The way I see it, KW takes $xxx,xxx,xxx in overcharged commission income, pays about 50% of it back to the agents and calls it profit sharing. Am I mistaken?
++++
Mike, regarding negative comments. I didn't make any. I simply asked questions. I would say to you, if your brand was more forthright, especially in how it represents other models and brands, I would not need to be asking what you consider negative comments. I don't like negative at all, but I do love integrity and I do expect people to have enough information to make important career decisions with facts, and all the facts. If you come to my office, you will not be sold on why to join us, but rather you will be presented the good, the bad, and the ugly that you can expect with your association with us.
Like humans, there is no perfect model, management style, or brand, so people have a right to understand. My point in asking where did the profit sharing come from if it didn't come from the gross commission income generated by agent efforts.
One more point, I stand absolutely on one premise. There is no better brand to be affiliated with than RE/MAX. It may not be the perfect brand for everyone, but no other brand comes close to matching its productivity per agent, and per agent net profits. My office is a darn good office, but certainly a long way from perfection. We stand strong and true to the facts, and we make certain everyone who joins us knows all we know.
Tom,
A project for you:
Prove that no KW office produces income other than GCI.
Question:
How much do you overcharge or undercharge your associates in commissions?
IF the answer is that you do neither, what is the standard fee to charge an associate that would be neither undercharge nor overcharge?
I can discuss business models all night and not mention another brand. It really isn't that hard for some of us.
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