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ISN'T SLAVERY ILLEGAL?!!!!! Except in the form of some Real Estate Teams

I have been asked a lot, WHY DON'T YOU FORM A TEAM. LIFE WOULD BE A BREEZE. A breeze yes but at whose expense ?

I know lot of agents with teams. And I have always wondered how is each team member compensated fairly? Well this morning I was awaken by a phone call from an agent on a very prominent team in Maryland and she was complaining that she has done open houses for members on her team and she couldn't understand why she didn't get so much as a thank you but worst not a penny for participating in the group.

She then went on to tell me that the team leader has paid all of her fees and dues for the past two years and she can't leave the team unless she repays close to $4000. Now she is a buyers agent only on this team, she has given her listings to the team leader with the understanding that she was to get a referral fee for doing so.

Ready for this the referral is as follows. The team leader told her she would get a 50% referral fee from her. Well not exactly, what the team leader meant was the she would get 50% of her 30% referral fee.

Not only that she can't leave the team for 18 months without a $2500 penalty.

Now the team leader is a top producer because of the listings are in her name first and a team member's. The listing team members are usually her relatives or close friends.

I told my friend to get a lawyer and speak with her broker. She told me that he agrees with the team leader's concept. HUH? ISN'T SLAVERY ILLEGAL?!!!!!

See why I work alone. I have assistants but they are hourly and not agents. And the agents I work with are agents I am mentoring for 10% of their first three transactions and beyond that we referred clients to each other with a standard 25-30% referral fee depending on the listing. Now that's a team concept.

Posted by Vangie Williams - Real Estate with Personality on 01/12/2008 02:02 PM

Comments (20)

real estate, customer service, client relations, marketing, personal image, smiles, rain maker, goal setting

Post is included in group: Real Estate with Personality

20 Comments on ISN'T SLAVERY ILLEGAL?!!!!! Except in the form of some Real Estate Teams

JAN

2008

50% of a 30% referral. Why didn't they just agree to a 15% referral and save the extra math step. Sounds like she agreed to a horrible deal.

If she was not savvy enough to get an employment agreement in writing, then unfortunately she is out of luck. I get everything in writing, when it comes to money. It is a good practice and people will respect you for it.

Sounds like the team agreement was very complicated and she should have had a lawyer look at it :(

Shoulda coulda woulda, this needs to be chalked up as a learning experience for newbies in the biz or anyone thinking about making a switch!!

Vangie,

I was wondering how the team concept works. I hope this is not it and just a fluke. This lady is in a mess, indeed. Used and abused! Thanks for sharing.

Yikes Vangie! That is insane! I too would contact an attorney. I personally have always liked the team concept. I came into real estate not knowing anything and worked with the Broker and his partner for the first year and half of my career, got my real estate license and began producing in commercial and land. After a while, I didn't think I was being compensated fairly so I too left; stayed with my company and got best wishes from them both. But I think have them beside me made me appreciate the team concept more. For the past year I've partnered with another agent, Heidi. Believe me the first 3-6 months were tough. You have to get to know your partners gifts and weaknesses and you personally have to realize yours as well. But she is my first call in the morning, sometimes my last at night and we really click in real estate. We make a powerful presentation and teach courses together successfully. If you are lucky enough to find a true equal, then I think your business can thrive. Having an assistant is also a wonderful idea. We do that from time to time but have yet to find someone we wanted on a full time basis.

Vangie, I have a team and they are well compensated as Buyer Agents. Any new business they bring in, not as a result of my marketing they get 70%, I keep 30%. But, I am the rainmaker and I bring in all the leads and hand them to them to follow up.

They are welcome to go out on their own solo, when they want to, but they do not take my clients with them. Only one girl went on her own last year and did 7 million her first year. I am so happy for her.

Our TEAM is busy, busy, busy. Many solo agents are struggling, they don't have the resources, both financially and influence to go it alone. They are grateful to not spend the big bucks to bring in business. I do 50/50 with them UNTIL they do 6 deals and then go to 60/40.

EVERY Team is structured differently. Everyone of them, this is probably a good fit for your friend at this time. Many new agents need mentoring for a few years, hands on. I spend hours training them.

There are 7 TEAM structures and you have to find a good fit for you.

No slavery here.

Adam... and all

Apparently it is written contract and is used very frequently within a certain real estate franchise. They prey on new agents just starting by promising crazy leads.

Look in your local newspaper for the ads reading "Top Producer looking for Real Estate Agents. No experience necessary, will train"

Thing is they don't train and these agents flop, badly and become angry with all agents thinking this is the system

Joe, she thought that it was just 50% of the entire referral. The contract is worded very poorly.

Renee, I agree, a lawyer is definately need and will be, if I can help it, be sought. She is basically starving at this point and she is a very capable agent. It's a horrible situation.

Karen... I don't know. I think teams with two or three people are very effective and can be a great concept for each participant. This team in particular has about 10 agents.

Melissa, I consider you and Heidi a partnership. You both a fortunate to have found each other. I actually met you a few months ago. I live off of Route 206 and I am very familiar with your work. You guys are great.

Missy, NOW THAT'S A FAIR TEAM.

You gave her good advise about seeing an attorney. I think they will be able to get her out of her contract, however, she will need to make arrangements to repay the money she owes.

Thanks Hank. I hope. She has turned over five listings and basically reaped no benefit.

Just thought I would drop a line and ask why you would use such an ugly word for someone who obviously should know better then to sign something without a lawyer looking at it. This is voluntary, the other is not.

This and things like this are why i fly solo! Plus I would eventually steal the business anyway! sometimes I can't help myself.

Gene,

The word is ugly, especially when describing people who use what they perceive as intelligence to manipulate people who are unknowledgeble or in this case unaware of the true nature of our profession. These people paid for her real estate classes, and with that understanding she thought they were going to train her. Her not knowing better signed an 18 month deal with them. She was trying to mke a better life for her and her children. Last year this yolung woman sold ready for this she works in a company with an 80% split, out of the 80% she had to pay this "team leader" 25% of that plus an advertising fee, training fees, office fees, etc. Last year she only made $45,000. She is a single parent. Who can survive with 4 kids on this. When she tried to get out of her contract, they threatened to keep her remaining commission as well as her still owing fees. The broker told her if she decided to leave he would have to bill her for a years office space.

Gene, she is going to see a lawyer for sure. My treat.

Slavery is a very ugly word and these people have in a new form of bondage.

Jeff... Yep!! Me too. I once had a partner who thought that she could sit at her desk at the office and watch me make the money. That worked for about four deals then I killed the partnership. Her lost!! That year she made $50K from doing nothing and I cleared - Well lets say a heck of a lot more by myself.

I really dislike teams! My team is my wife Ellen, Me and a host of computers! I refer my leads to very experienced agents for 25% referral fee!

My husband is my assistant now, He can write checks, handle the bills, and the greatest thing of all "I LOVE AND TRUST HIM", And I do refer leads to other agents when the load is tooooo much.

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