Chris,

I do not intend to offend you, but I think you might ought to research some of those statements.  I fully understand promoting your brand, but to make such broad, sweeping statements about your competitors is a bit over the top, and I am not just taking exception to what you said about my brand.  Oh, and by the way, RE/MAX was founded in the 1970's and it is doubtful that they have grown to over 120,000 agents by providing their agents nothing.  I am just as competitve as the next person, but I find that I tend to be more successful when I point out my strong points without knocking my competitors.

Amber-

Sory you took offense.  I was relaying my 11  years of experience in this industry speaking to agents of several brands (remax included).  But truly, what can a franchisor like Re/Max tangibly provide, if the agent is getting 100% of the commission?  Not slamming remax, just stating a point.   

Chris,

I am not really offended and I am not going to debate the details of what RE/MAX offers its agents with you.  I just think if you are going to speak of your competition (and I am not just taking exception with you untruthful comments about RE/MAX) that you should know your facts first and that means you should know what you are stating is truthful.  I also believe that is covered in the Code of Ethics.

Chris....my broker offers me...

  1) 100% on all commissions from day one
  2) All computer resources I need
  3) Free Office & Utilities
  4) NO Sales Meetings
  5) NO Floor Duty
  6) ALL leads from his website
  7) ZERO Franchise fee

I couldn't be happier.

I think much of what you are offering, many agent offices, in some states would not be allowed.  In Connecticut, there are rules for our offices.  I was with RE/MAX for over 13 years.  Did extremely well, loved their brand and systems. They are still like family to me, even though I am now on my own.

Brian Buffini was a RE/MAX agent, so was one of our Buffini Coaching Speaker/Trainer's, Joe Niego.  We all left to fill a life goal.  I believe you must work where you will be happy, produce and live the good life.  Wherever that may be for you:)

It's a Good Life!

Fran

Slamming your competitors will not get you ahead.  I know for a fact that the statements made about RE/MAX are unfounded and untrue.  Each office is independently owned and operated and most provide excellent support. 

They are smart in having realized that they can provide this support whether the agent pays them $15,000 flat or $38,000 through commission splits.  They do not believe that the harder and smarter an agent works, the fatter the broker's pocket should get.  Simply, they cut it off when they meet their income requirements on a per-agent basis.

Whereas, it sounds as if you penalize top producers, by charging them 6% of their income, on top of a monthly fee.  RE/MAX charges their agents 5% and spends a billion dollars on advertising a year.  Considering I've never heard of your company, I'd surely like to know where that 6% goes.  Plus, with RE/MAX, you have a receptionist and usually three to four administrators per office.  Your concept makes you go own your own with no administrative support, having to give you a slice of every dollar AND cover all of your brick and mortar expenses.  How in the world is that a great concept?  That is essentially opening a bricks and mortar office, and if I were going to do that, I'd go with the cheaper RE/MAX, a company every real estate consumer has heard of.

If I were looking for a new broker tomorrow, I would stay away from Real Living, as it appears they are unable to properly research their competitors to develop competing compensation programs.  Unable to compete with their offerings, they have no alternative but to knock the competition through lies.

Also, your virtual office plan would not fly in Maryland -- perhaps that's why you're not here.  The concept would be in violation of Maryland law. 

I have saved a PDF of this post -- still debating on sending it to the NAR for research of a possible ethics violation, as well as to RE/MAX corporate so that their legal team may investigate.

This entry also reeks of an attempt at price fixing.  It sounds to me as if you are encouraging brokers to refrain from setting their own commission rates, which is a crucial part of free markets.  DOJ would love that -- perhaps they'd like a PDF, too?

LOL, someone made you the Vice President of New Market Development?  The CEO of your company really needs to check up on his VP before he finds himself embroiled in an anti-trust lawsuit filed by the US Department of Justice.

BTW, congratulations for being the first person on Active Rain I have ever said anything even remotely negative about or the first person I have ever become upset with.

This post rubbed me the wrong way in so many ways, because I have to spend half of my time defending my profession for reasons such as this.  My job would be so much easier if we were all above board. 

Jesse-

Not slamming Re/Max in any way bud.  Actually I have a ton of respect with how they changed the indusrty with their commisison program and grew exponentially.  We're actually shooting to mimic their growth curve.

Appreciate your commentary and look forward to your comments on my future blogs.  FYI, and hopefully you take this as some friendly advice... you should fix your profile.  Your Jesse about technology section is all greek text. 

My company was started by a RE/MAX agent.  His beef wasnt splitting commissions with his broker...it was splitting commissions with the other agent in the transaction.  :-)  We dont split commissions here.

I really don't think the point of Chris' blog was to discuss RE/MAX.  From what I can see, it was an attempt to promote his brand by stating untruths about his competitors.  He also made statements about Coldwell Banker that I am sure they would take issue with.

Amber-

I believe you are missing my point.  I actually made the comment that CB (the largest agent company in the US) is typically one of the more expensive brokerages for agents to work for - and agents find value there - likely due to the services they are receiving.  It was intended to be a compliment. 

The ulitimate point I am making is that commission splits typically = level of service provided from a broker/franchise.  There are only so many commission $'s in a deal and the more the agent takes the less brokers/franchises are typically able to spend towards support tools, systems, etc. 

Additionally I was discussing the option we provide Real Living agents regarding satellite offices and posing the question to this forum as to if this would be a viable option.  Under this option, agents keep more and are able to open their own office - an example of offering agents more options.   

Not slamming competitors, not price fixing, etc. etc. 

Thank you for your comment. 

Wow Svec you have stired some things up with this one!!!

I have read this blog three times and see nothing remotely  untruthful or the "bashing of the competition". There may be some opinions but our research can back these statements. Real Living is not a company for every agent, as a matter of fact no company is, that is why there are many brands. We take a much different approach at Real Living, what that approach is doesn't seem relavent in this thread, but our value proposition to agents is different, and quite frankly very well received and appreciated in the market place.

We know everyone else's model, in most cases better than they do, and definately more than their agent populations do, that is why we are growing at a respectable rate when other companies are finding out their models may not work going forward. Again not mud slinging, dropping science.  So if you do not like our message and can prove it wrong please do. If not, please listen, read and perhaps learn. But at the very least, quit hating, and start congradulating.

This reminds me a bit of Rev Elijah Wright's soapbox.  Sometimes the more said, the deeper in the hole you get.

Scott,

I am not hating.  I just think that to make the statement that RE/MAX offers little or no services is a false statement.  I also think Chris' statement "In many markets you'll find that agents on 100% type plans are the biggest discounters and quick to cut their commission" would be found very offensive by many RE/MAX agents.  Chris' did not even have his dates correct in the blog.  I just think if you want to talk about the competition you should get your facts straight first.  Obviously you have not researched the competition as much as you say or Chris' would never have made that statement about little service.

I am not trying to be argumentative.  This is the first time I have even responded to a post that I had an issue with, but I do believe his post is in violation of the Code of Ethics.  I just don't see the point in bashing competition in an effort to further ones self.  This is my last post on this matter.  If I haven't made my point by now then I never will.

Hey Chris~Good information and an interesting cross-view of splits available out there.

Doug-

Thanks for the comment!

Amber,

I really am not picking here, as I mentioned before there is something in every brand for someone. Statistics we have from the many markets we are in prove what Chris is saying regarding the lowering of comissions. It only makes sense...if an agent gets to keep the 30% they would normally give a broker why not drop the price to the consumer?  Not a bad thing the way I see it.

The research is quantitative for the most part, but there have also been a great deal of interviews with agents and clients. We are not using this data to put down anyone, (to be sure there is some data that we are not so great in, but we are trying) we are just trying to get people to think, transperancy is a good thing.

As for the dates you will have to forgive Chris, we were still break dancing at the JR high dances in the 80's! So I am sure we are wrong on that

Break Dancing at Jr. High Dances...not a pretty picture. The satellite concept interests me...legal in Ohio? Need to brainstorm w/you.

For everyone out there...Real Living is doing well, even in a tough market. As a reasonably new broker (19 months), after 10 years as an agent w/ReMAX, I'm thrilled. No slams. Different strokes, as they say.

Just out of Harley Roudas mouth at Momentum....39.6% of all Real Living Agents increased their business in 2007 vs. 2006. 

Amazing Number.