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To Franchise or Not to Franchise Who Should I hang my License with???

Real Estate Agent with Signature Realty Associates

July 17, 2007 07:39 AM

Now before everyone get's their panties in a bunch I want to remind anyone out there that may take offense to this that this is just "my opinion and what has worked well for me", as a result, may help others that are in a similar situation or are simply looking for a great brokerage to join.

My story starts off when I was sucked into one of those so called "franchise" offices when I first got my license and what a bunch of malarkey. They promised me the universe, nickel and dimmed me to death and then to add insult to injury had me do "floor duty" that entailed nothing more than answering the telephone for them at 4 hour shifts, twice a week. Meaning they were getting a "free receptionist", by a person who held a Master's degree! Needless to say I did not earn a penny and within a month realized that this was not going to work out for me. It was by chance that I met another agent who pointed me in the right direction which was a company that offered 100% commission split. Wow I thought? How can that be? After meeting with the broker the same day I signed up and have been grateful ever since.

I now belong to the NUMBER ONE real estate office (5 years and counting for Hillsborough County, FL) Signature Realty & Associates. Their program has allowed me to stay in real estate because I can keep my commission and as a result can sell half the amount of houses versus having to sell twice as many because my broker does not take a giant cut. This has been crucial because I have a handicap and suffer from a back injury that at times does not allow me to work at all due to chronic and debilitating pain. If it were not for this company I would probably be unemployed and on public assistance. My brokers are just fantastic, they offer a full ongoing training program to new agents (AT NO COST), have an awesome staff that is always prepared to help, the use of professional offices that I have access to 24/7, no mandatory floor time or meetings and Brokers that offer the best support I have ever had. It has been a blessing in my life. If there are any agents out there who are tired of giving up their hard earned money and stressed about sales quotas give me a call and I will be more than happy to refer you to them, or simply call the offices and ask for Kevin Kennelly and tell them about this Blog, and who wrote it, he will probably wonder what you are talking about and chuckle. I just LOVE working there and consider them to be family. Thank you Kevin & Kathy!!!!!

2234 Lithia Center Lane, Valrico, FL 33594

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Neetu Kainthla

BHHS Caliber Realty - College Station, TX

Wow, keep 100% of the commission!! How does the company run? Who pays for the professional offices, utilities, maintainence etc., how does the training professional get paid, who pays for the awesome staff?

I wish I could run a office without any expenses.

Jul 17, 2007 07:52 AM

Ray Nellum

Envision Real Estate Group, LLC. - Fort Smith, AR

Fort Smith Real Estate

Nicole,

I am glad this situation has worked out well for you. There are some that have had a lot of success with the franchise and others feel the same as you. I am not a franchise person, but it depends on what works best for each agent and what they are looking for in a company. Good insight to what has worked for you.

Jul 17, 2007 08:00 AM

Wayne McMullan

Royal LePage ProAlliance Realty - Belleville, ON

Quinte Real Estate

I'm with Neetu, how does the brokerage make it's money? Is it through desk fees or other ways. 100% commission is great as long as the other fees are kep reasonable.

Jul 17, 2007 08:05 AM

Miriam Bernstei

Rochester, NY

Each office model works for some agents and doesn't work for others. I had the same experience you had with a traditional office when I started. But you should not define these offices as "franchises" because there are several models and they are not all like that. Who does pay the overhead if you keep 100%? You pay your own errors and ommisions ( it is less expensive for a group)?, who pays the rent? etc. I am with RE/MAX because I keep my commission pay a small amount and everything is taken care of. I have educational benefits as well. One my favorite stories is when I started I was with Better Homes and Gardens, this is a long time ago, and the Owner-Broker was hormonal and once had a fit one of the agents took two paper towels instead of one.

Jul 17, 2007 08:09 AM

Susie Roscoe

Signature Realty Associates - Brandon, FL

Real Estate Specialist | Brandon, FL

I agree, Signature is the best in the area! It allows us to be our own boss with minimal rules and regulations. Kevin & Kathy learned well over at RE/MAX all those years...and took the best they knew and made it even better!! Nice post...you should send them the link so they can appreciate it!!

Jul 17, 2007 11:19 PM

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI

Real Estate Services You can Trust!

Interesting blog Nicole, sounds like you have found the perfect place for you and are in a key brokerage for your area. I too work for a 100% brokerage. I think some of the comments were based on analysis of business models. You did not tell us much about the model itself. We know your and Susie are happy but what about the business. What type of services are offered? Typically a 100% model you pay for the following services: advertising 100%, affiliation fee $xxx.xx(this is the operating expense paid by you to be affiliated with the brokerage. This can be in the form of a monthly fee and even a small transaction fee that is passed on to the seller or buyer or both), E&O insurance, auto insurance rider naming the company for liability while you are transporting clients, office rent if you occupy office space, desk space cost if you do not have an office but use a desk instead, copy machine per sheet costs and the list goes on. The 100% allows you to manage your business as you see fit, however there are costs that come out of your 100% that have been transferred to you as a result of the 100% model. Which like I said work well for me, I want to invest my advertising dollars in areas that I feel are the most productive for me. I want the choice of brokerage office or home office. I have copy machines and laser printers so I have no need for any of those services. I have no need for training I pay for my own and in the direction I want to take my career at this point. But the training does have a cost and someone pays it.

Give us more detail on the business model you work for, that would really be helpful. The other ingredient you mentioned is right up there with pay as one of the number one reason people change brokerages too, the brokers themselves. Yours are doing a great job to have you and Susie feel so proud to be affiliated with them. Nice post, just give us the rest of the details please.

Jul 20, 2007 12:46 AM

Nicole Kraus

Signature Realty Associates - Dover, FL

RESPONSE TO GARY WHITES REQUEST!!!

You just have to make me work, HA! HA!

1. We pay our own E&O Insurance once a year on our anniversary date. Basically the cost is divided by the number of agents and averaged out. At least that is how I understand it. It runs about $330 a year currently.

2. I pay a monthly office fee of $185.00, I am on the home plan, but do have use of the office to meet with clients or do searches, etc.

3. We are charged a transaction fee of $330.00 per transaction. After your 20th transaction in a twelve month period you are no longer required to pay this, upon your anniversary date it starts all over again. Some agents even pass that fee onto their clients as a transaction fee so in essence they are receiving 100% of their commission. What is nice about this is it does not matter if I make a $3,000 commission or a $18,000 commission I still only pay $330.00.

4. I pay for my REALTOR dues, then again most agents do, and my MLS Fees and Supra Key.

That's about all, it just works for me and I Love IT!!!! Thanks for your comments.

Jul 20, 2007 08:15 AM

To Franchise or Not to Franchise Who Should I hang my License with???

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