So true.  The agents who are truly successful, in whatever way you choose to define 'success', treat themselves like a business.  As my dad likes to say, 'real estate is one of the last bastions of entrepreneurship left.'

Really good advice Sharon, So many REALTORS(R) look at this as a job instead of a business. If they don't get leads from their Broker, they fail. That is a terrible biz plan. A good REALTOR(R) can work any where and never miss a beat. I truly believe I could change States and be a success within 12 months. I know how to market and I know how to get business. REALTORS(R) should be interviewing Brokers not vice versa.

Good post... if you don't know what you spend it's difficult to know how much you make... I've has so many agents who say they make XXX which is their gross and never figure what they actually take home is a lot less.  That's why many agents are out of the business within 2 years.

Sharon, Well said.

Not only should you be concerned with the % you are paying the company and what you get in return but what about all of the garbage fees?  Come on, I have had 2 different larger brokers want to pack an extra $10 a month for technology!!!  I can show most o f them a thing or two about technology and they want to charge me... i don't think so.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR
www.JohnOcchi.com

Sharon, very good post. I am reminded of something I keep in mind when when bidding jobs; 'Life will pay you exactly what you ASK it to pay you.'

We've each got focus on what you are feel we are worth!

Cheers, -B

Nice post, surely something to consider when evaluating the how green the grass is from one company to the next.

Sharon, thanks for this post.  Lots of agents need to hear it's message.  When I first started out I had no clue and was so "grateful" when one of the big dawgs "allowed" me to work with them.  I quickly learned what it was costing me to be affiliated with them and left.  Had I been receiving something of value in return I would have stuck around.  But I wasn't. 

Before I actually got my license, I was pro-active in interviewing with MANY Brokerages to see what the difference was. I was amazed at the plethura of plans. I chose Fairfax Realty because when I sat down with them-they NEVER tried to sell me on how great they were and how much they had to offer.

They started with 2 main questions

1) Have you formulated a business plan? When I said yes he asked for the Readers Digest version and helped me tweek the plan.

2) What can I do to help you achieve the goals set forth in your business plan.

At that point I realized they were not about the money but the success of the agents! What more could I want?

Sharon,

I would hope that all agents would treat their real estate career as a business.  I enjoyed your post--it was interesting to look at the situation from another perspective.

So True, I am evaluating the Brand i am currently with based on the amount of money I make by being associated with them. Referrals, Brand, Marketing Materials etc. The split is just 1 Variable in the total value chain.

I STILL don't understand when people say they 'have an interview' with so and so agency.  When they word it as if the agency is interviewing them and hiring them.  Whenever I hear people talk like this, unfortunately, I already know they aren't going to make it in real estate.  It's YOUR business, not anyone elses.  You are NOT employed, you are an independent contractor.

Oh, and it drives me BONKERS how real estate agents are portrayed to be employees in TV and Movies.  Simply bonkers! 

Leigh - your Dad is a wise man.

Bryant - you're right. I know you'd be successful anywhere.

Kaye - some high grossers actually come out negative!

John - and I'll bet your technology hardware is more advanced than theirs.

Bryce - now that's carrying it even further. You have to know what you want out of life, too.

Jason - yes, it's always good to evaluate before you jump.

Maggie - some of us learn faster than others, but we all have to learn.

Stephen - goes back to the Ask Not question. Glad you found a company centred on its agents and their success.

Diane - unfortunately we can all hope that, but too many agent don't.

Mitchell, you're absolutely right - there are lots of variables that go into the analysis.

Christina - it does drive you crazy! Perhaps if the majority of agents regarded themselves as business people, the media might take notice.

Good job, Sharon.  I like how you flip the compensation model around and demand that the licensee determine the "value" they get for the broker's side of the compensation.  What a great reminder that we should be running our "business" like a business.  I also like how you encourage the reader to track their expenses per transaction.

Thanks for the entry in The "Carnival of the Economics of Real Estate".  I'll be posting the entries and winners by Friday and will be sure to notify the winner about his/her new Forbes subscription.  We had fifteen entries; two from new Active Rain members.  You can see all the entries here with a star next to them.

OK, Brian - you focused my morning. I read all the Stars and commented on most of them.  Tomorrow I'll get back to my regular blog reading.  Looking forward to getting your interview questions.

Sharon,

Excellent post.  I will add from a Mortgage Brokers perspective as we have similar compensation issues.

One of the big reasosn that I left other companies and started my own was that for the "cost" of hanging my license elsewhere, I was not receiving the support, technoglogy, and other necessary items to justify that cost.  The main reason is lack of flexibility and restrictions on my abilities to perform as a mortgage planner since those companies didn't fully understand what I was doing.

Any Realtor(R) or Mortgage Broker that has a license can and should go elsewhere if they are not receiving adequate value for their "cost" of employment (employer's cut).  As you mentioned, we are all running our own "businesses" and need to trim the "fat" from our expenses and work towards better customer service (main key) and increased profitability for us so we can stay in business.  Just my 2 cents.

Sharon~  I had a professor who insisted, "You can't get anywhere until your philosophy is in place." Your post reminds me of his advice.

Sharon  - I think one of the biggest, yet most successful myths created by real estate companies is the one about their brand being so helpful. Unless you're one of the favored agents, your business comes from you and nothing else. I used to asked my buddies at Pru Ca if they brought the 'Rock' with them on listing presentations.  I can't print their responses here. :)

Congratulations Sharon!

Along the line of what Jeff says:  Hot Air Balloons don't sell houses - REALTORS DO!

I wish more people in our business "got it"

Congratulations Sharon... I knew I really liked this when you wrote it...

K

Congratulations, Sharon.  You were in a MAJOR contest with outstanding posts so this victory should be extremely sweet.  Thanks to all who entered.

I think the questions will come this weekend.  I'm reading background articles about you and Lenn.  You two are so interesting and have amazing careers! 

Wish I could pay even less!

Ann - I'm sure there are places where you CAN pay less - it's all a matter of tradeoffs.

Our company is switching to GMAC on Jan. 1 and that the question I keep asking, we pay x what are we getting for that.

Brian - time of major change with a company are often times to re-evaluate where you are, where you're going, and where you WANT to go. The analysis may tell you to stay instead of move, but at least you'll feel better about your choice. 

When I got my real estate license, I'm thankful that someone reminded me that I was interviewing the BROKER, not the other way around, and it really helped me select the brokerage that best fit my needs.  I enjoy the education and support, but what is MOST important is the bottom line.  My broker has a 'cap' of what you need to contribute each year and once you reach that cap, all of your commissions are 100% until your next anniversary date.  It is fantabulous!

Kerry - you were lucky to have that advice - more agents really need to realize they're running a business and that they're paying the broker, not the other way around.