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MY REAL ESTATE COMPANY, HOW DO I LOVE THEE, LET ME COUNT THE WAYS

THERE'S A REAL ESTATE BROKERAGE MODEL FOR EVERY AGENT. You just have to look at what each model offers and and select the one that fits the best. Many agents don't really examine the many real estate companies in md business models offered. They select a brokerage to hang their license because:

A friend of mine is an agent there.
They offered me training.
The lady that interviewed me is nice.
They have an office close to my home.
They've been around a long time.
I see their signs all over the place.
They have lovely offices.
They said I don't have to join anything right away.

Many would debate the value of any of the above reasons for hanging your license with a broker. I've heard all of the reasons for why agents joined a particular real estate company. Fact is:

Your "friend's" brokerage needs may be different from yours.
Training is important, but contracts are better.
All real estate recruiters are "nice" when they interview you.
Does that office close to your home offer the brokerage model that suits your needs?
They've been around a long time, but do they change with the market?
Are the agents with those signs benefiting from the market share that the broker enjoys?
How much time do you plan to spend in the office?
You may not have the resources to be in the real estate business.

A little known fact of real estate life is the individual job descriptions of agents and brokers:

Agent Job Description: Sell a lot of real estate and collect a lot of commissions.
Broker Job Description: Recruit a lot of real estate agents who will sell a lot of real estate and collect a lot of commissions.

Consider the many business models in the industry and you'll see that agents have a plethora of opportunities from which to select. Before a real estate licensee selects a company to join, they need to find out what type of brokerage model they employ and which type fits your individual practice and, perhaps you budget.

WHAT DIFFERENCE DOES IT MAKE? Aren't all real estate companies basically the same? real estate companies md

I love thee to the depth and breadth and height
My soul can reach, when feeling out of sight
For the ends of Being and ideal Grace.

NO! NO! NO! NO! Real estate companies are not even remotely the same. Just look at the many companies represented by the sign photos on this page. The business models of these companies range from companies that employ commission models including: real estate company md

The 50/50 Split. Agent generates the buyer or seller lead, makes the sale. The company offers a desk space, office access to the MLS, company developed advertising materials, yard and directional signs, cards, office equipment, mailers, magazine ads, etc., that the agent can buy. They may also offer "phone opportunity" where the agent serves as a receptionist taking incoming telephone calls and "walk-in" consumer inquiries in exchange for the business developed from those contacts. This is often how new agents developed their first sales.

This is the most popular company model and they offer a wonderful place for new agents to start their real estate company md real estate career. Depending on the experience and professionalism of the office managers, these offices offer access to basic training, mentoring and guidance. As the agent learns the business and develops markets for buyers or sellers, based on their gross sales production, the agent percentage of the commission increases. The success or failure of this business model may depend on the resources ($$$) that the agent brings to their business. Estimates for agent investment to practice full time for a year range from about $20,000 to about $40,000 depending on how ambitious the agent and their resources. Many of these offices are franchises following models that offer strong support for new agents.

The 100% Model. Where does an experienced real estate professional who needs little broker real estate company md supervision, finances their own advertising and marketing, works independently and has the resources to pay for an office that offers institutional advertising, strong relocation resources, fully equipped offices, and an atmosphere of success. Agents pay a significant "desk fee", often upwards of $2,000 a month. However, the name recognition of these companies is a powerful background in which experienced agents can operate a very successful business.

I love thee with a passion put to use
In my old griefs, and with my childhood's faith.

The non office office model. With the technical advancements of MLS resources, computerization of documents access, on line real estate forms, e-mail, Internet advertising and other IT advancements, many real estate agents do not feel the need to work "in an office" and operate completely from their home office. Most of these real estate company models offer a place for agents to real estate company md "hang their license" but have little in the way of broker support, company identification, business generation, etc. In fact, the company itself may not have a true bricks and mortar office, but operate from the broker's home office. These companies offer a place for a highly motivated, experienced agent to practice at a level comfortable for them. Fees are low, sometimes in the range of $200 or so a month or may work on a "per transaction" fee model. Some states require a minimum level of agent supervision and yearly meetings. These are almost virtual offices and appeal to many agents who just need a place to hang their license until they get their own broker's license. This is usually an agent who has invested heavily in IT hardware, computer, printer, scan, fax, cell, mobile MLS access, perhaps mobile office. This is often the agent who uses the Internet heavily for advertising their services and listings.

MOST AGENTS LOVE THEIR REAL ESTATE COMPANY.

I love thee to the level of everyday's
Most quiet need, by sun and candle-light.

As long as an agent is successful, generates a fair amount of business, can make ends meet and stay busy, they will tell you that "I love my company". Fact is, an agent can move their license at will. Many agents do not view real estate practice at a business, they view it as a job. Once they place their license with a broker, they become part of the company and follow their daily routine based on their own individual level of ambition and resources.

THERE IS A REAL ESTATE BROKERAGE MODEL FOR EVERYONE. Agents will find the right company for their needs. If the match is a good one, the agent will prosper and the company will reward them accordingly. Company perks may include,

Buyer or seller referrals. These may carry a hefty fee and often eschewed by experienced agents who generate significant business from their own resources.

Preferred office space. The more productive agents in many offices will be offered the limited private offices. These office occupants rarely change because once an agent earns their way to an office assignment, they work hard to keep it.

Preferred telephone times. This business generator has peak times for productivity. Some offices give the best telephone time to more productive agents.

Top producer meetings. Some offices offer breakfast, luncheon meetings for top producers with speakers, seminars, management training, other benefits for experienced agents.

NO MATTER WHICH OFFICE MODEL YOU CHOSE, YOU'LL PROBABLY BE SAYING, "I love my office."

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 05/12/2008 10:21 AM

Comments (70)

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70 Comments on MY REAL ESTATE COMPANY, HOW DO I LOVE THEE, LET ME COUNT THE WAYS

MAY

2008

Fran, once again, you've added wonderful material to the AR world! Thanks for sharing, ALWAYS! (You always have something worthwhile to say, even when it isn't about R.E.), which of couse this is!

Kat. Thanks. "you always have something . . . . " That's for sure and I hope it is worthwhile. It surely is fun.

yes I love my office, but most offices are not a "one size fits all" the training and support is not there in the 100% commission brokers and at others places the offices cater to the high selling agents , you really got to look at what fits you individual needs,

Lenn Browning,

I was on my way to comment on your post about AR loan officers, but had to stop and comment here. What an unusual use of one of the worlds' great poems. It works!

Mike in Tucson

Lenn, what is it they say? Different strokes for different folks! There's certainly a model for everyone out there.

Lenn- You really summed the different business models up nicely for new agents. This question of which office to choose to work with is the most common one asked by new agents.

Your statement that most agents view their practice as a job rather than a business is so true. I feel they would be much more successful if they would treat their business as a business.

I love my office! I love my broker!:)

I am still looking for that "office to love"....I have only been with one brokerage...but I do think there is something better out there for me..because I don't "love my office" :)

Crystal. Indeed. That's what this post is about. You get it.

Mike. I love poetry.

"Give me a few words and I'll give you the world". Lenn Harley, May 12, 2008

Brian. Thanks. You are right on target.

Lenn- great article...but you forgot your initial disclaimer....This was way hardcore real estate talk!

Katerina. Thanks. Once the agents understand that they are "in business", they will start really making $$$$$$$.

Konnie. Goodness. Northern Virginia has about every business model you could imagine. I'm sure you'll find one. Of course, your success will depend on you and not your office.

Lenn, terriffic analysis of the different business models. Having been in a variety due to take-overs and moves, I used this kind of information to determine which works best for ME. Many agents truly don't understand the differences between all of the business models so this post should serve as a great resource for them!

Sometimes its about the Broker! I chose my first company based on the business model, but when my Broker decided to affiliate with a different company-I went because of the loyalty he has shown me in my years in the business. Of course the new company is essentially the same business model so it really made no difference.

Had he went with one of the other models, or the "Big Boys" We would have had a LOOOOOONG conversation.

Thanks Lenn.

Diane. Thanks. This is one of the things they don't teach in real estate school. Of course, I know agents that have been unhappy in their office for years and years.

Stephen. Thanks for dropping by. Sometimes it is indeed about the broker. I left my first office after 3 months and just went to another office in the same company. The first broker was obnoxious and not helpful. My second broker was a Prince. Same company, different broker.

Lenn - I suffer my brokerage gently. I have an office. I have a place to meet folks. I have no need for the rest of their package. My world revolves around my sphere of influence (fancy tech term for people that I know and trust and more importantly, they know and trust me).

I suppose, I would do just as well anywhere. It is about my work efforts.

Lenn, very nice summary. I started at a traditional company to make sure I could be successful. Left after 1 1/2 years and never really looked back. You never really know a company until you work there, you are right recruiters will tell you anything to get you there. And that is all I'm going to say to you on that subject at this time. LOL

Personally, I could never ever pay a relo company or for referrals at 37%. No way.

I agree there is a huge difference in working a job as a Realtor and running your own business. I should probably be on my own..................

Thanks for your in-depth analysis of choosing an agency to work with. I would have liked to have read this before I chose my office. It would have caused me to make a list of criteria for my new career choice, which would have made the company decision and the commission break-down a little clearer. It took me a year to figure out exactly what it was costing me versus what I was making.

I chose my office because "the owner was nice" (she sent me a thank you note and I received it within 24 hours-impressive!); it was "close to my home"; and it was well advertised and well known. In the 2 years that I've been here, I've questioned the business model a few times, but, at the core, it is the owner (and several fellow associates) that keeps me here. Through sheer luck, and gut feeling, I found the right office for me :-)

Thanks again Lenn

Frances Sanderson, Franklin, NH REALTOR®, Certified EcoBroker^®

The broker is very important when you are just starting out in real estate. There is no one size fits all. I'm glad we have a broker buffet.

John. I love that. I, too, suffered my former brokers, some not so gently. Actually, your company offers many benefits. Having the multiple offices around the area is helpful too. But, shucks, you do know what you're doing.

Missy. Thanks. I'm sure you're going to be successful wherever you are. For me, once I started working from home, it made no sense to pay a broker a dime.

Frances. There is a lot to be said for "gut feeling". I often rely on it.

Karen. Broker buffet. That's exactly what we have. Thanks.

Hi Lenn. Good points to consider. Most agents probably sign up too quickly.

I liked this line "You may not have the resources to be in the real estate business."

Painful to hear. Important to listen to.

Ken

Agents definitely need to look at how much hand holding they need. My office is pretty much virtual and we do not pay desk fees. I tell clients my office is the Internet so look for me there first. :)

I love my office too. I would say it is a nice mix between 50-50 and 100 percent. I think with the price of gas going up, more of us may be working from home.

I think this industry is fascinating in that you've got so many different business models out there, and thus you can truly find somewhere to hang your license that best suits YOUR needs.

Lenn, my business is somewhat the same way. I personally think a key is the broker. If they are knowledgable and also a good mentor, then you have you have a place you can do a lot of business from. If you become skilled and are confident in yourself, you can do anything. AJ

HELLO ALL!

I WAS SITTING AT MY DESK THINKING TO MYSELF ABOUT MY MOVE LAST YEAR FROM "THE BIG YELLOW MACHINE" TO AN OFFICE WITH PRUDENTIAL NEW JERSEY PROPERTIES. I WAS HAVING A GOOD CAREER WITH THE OTHER COMPANY BUT SOMETHING WAS WRONG AND THERE WERE PROBLEMS AND ISSUES WITH STAFF AND ASSOCIATES. I CAN GET ALONG WITH ANYONE AND HAVE HAD ONLY A HANDFULL OF PROBLEM RELATIONSHIPS IN MY LIFE(I SAID I WAS SORRY TO MY 4 EXWIVES!)

AT ANY RATE, IT OCCURED TO ME THAT PRUDENTIAL NEW JERSEY PROPERTIES WANTS ME TO BE THE BEST I CAN BE AND "THE BOTTOM LINE", WHILE IMPORTANT, IS NOT THE MOST IMPORTANT THING. I HAVE DISCOVERED THAT LIKE A PARENT WHO WILL GIVE A CHILD ANYTHING THEY NEED TO SUCCEED THAT THIS IS THE PRUDENTIAL NEW JERSEY WAY. WOULD I LIKE MORE MAILINGS PAID FOR BY THE COMPANY, MORE COCKTAIL HOURS, FREE BREAKFASTS AND A 90% COMMISSON SPLIT, SURE! BUT... LET'S GET REAL.

LET ME SAY THAT MY AGE IS "50 SOMETHING" AND I AM NOT GIVEN TO OUTBURSTS OF EMOTION OR UNDUE COMPLIMENTS BUT THIS PLACE TRULY HAS A LOVING ATMOSPHERE FROM THE MANAGER, MR. GARY LARGE, DOWN THROUGH THE NEWBIES THAT HAVE COME ON BOARD AND ARE DOING WELL DUE TO THE MINISTRATIONS OF THE MANAGER AND ALL THE OTHER ASSOCIATES THAT WORK HERE.

WE HAVE A COUPLE OF AGENTS WHO HANG THEIR LICENSES HERE WHO ARE CONSTANTLY AMONGST THE TOP AGENTS IN THE COUNTRY. THEY ALWAYS HAVE TIME TO ANSWER QUESTIONS AND PROVIDE SUPPORT. I HAVE NEVER BEEN "DISSED", NOR TOLD TO GET LOST(AT LEAST TO MY FACE!) BUT HAVE ALWAYS BEEN TREATED AS AN EQUAL.(EVEN WHEN MY QUESTONS OR STATEMENTS WERE ABSOLUTELY IGNORANT AND APPARENT)

OUR GREATEST ASSET IS OUR PROCESSOR/ADMINISTRATIVE ASSISTANT. MARIA BABCOCK. SHE ALWAYS HAS TIME EVEN WHEN THE DEADLINE IS PAST AND SHE KNOWS EVERYTHING ABOUT EVERYBODY AND EVERY DEAL THAT IS GOING DOWN. SHE DESERVES BIG BOUQUETS OF FLOWERS EVERYDAY, IF I COULD AFFORD THEM!

AND... THANKS TO ALL THE BIG BOYS AND GIRLS AT CORPORATE FROM BILL KELEHER ON DOWN.

(I HOPE HE READS THIS!)

THANKS TO...

ALBERTO, ANTOINETTE, BARBARA, BILL, BILL, CAROLLE, CHERYL, DEBBIE, DON, ED, EDITH, FRANK, GAIL, JOHN. JOHN, JUDY, KATHLEEN, MARIA, MARILYN, MARY PAT(ESPECIALLY), MILLIE, PAT, PETER, PHIL, ROBIN, ROLAND, STEVE, SUSAN VICKIE AND SUE!

Double thanks to Antoinette Sconamiglio because she told me about ActiveRain!

Lenn,

Great post..but it makes it sound awful easy for banks to reenter the real estate business...especially with such high foreclosure rates!!! Thanks, Fran

Sorry I didn't put my name on the last message....

Lenn: Never spoken more elequently or accurately. To each his own... If you are businessperson first, there IS a model out there that will most directly match the needs of your business. I think the trick is... Knowing your business. Most REALTORS that I know are weak here. They are not strong on strategy and business modeling, the set no goals and then have no understanding of whether they are doing well or not. If we all strive to understand our business, the objectives we are trying to meet and our goals to get us to those objectives, the choice of a real estate company to associate with becomes academic. As always a very thorough and concise post! Thanks! Steve

Good food for thought when chosing an office! Thanks for the contrast and comparisons. Thanks again!

Good post...should be taught in all real estate courses, but then again, most real estate courses are taught by companies that subscribe to one model. I am one of those non-office agents and I love it!

Tony. Thanks. There are many office models and not all are right for everyone.

Steve. You're so right. Understanding that we're in business is the key to success.

Christopher. You've got a great spirit and I'm sure it is conveyed to your co-agents and your clients.

Fran. I don't understand your message. Are you sure you're in the right blog?

Alan. You're 100% correct. The broker sets the tone. Offices that have problame can trace it directly to poor broker management. Been there.

Kirk. Absolutely. Which makes sense when you realize that we're not all national franchises or cookie cutter offices. We are what we make us.

Jennifer. You are smarter than the average bear.

Linda. Indeed. I've worked from home since 1994. I'd sure hate to be driving to an office today. Shucks, it costs me $8.00 to get to the grocery store and back.

Ken. You wrote: "Most agents probably sign up too quickly."

How right you are.

Holly. You're right. Most of the companies that operate schools are of the 50/50 model best for new agents. Of course, the real estate schools are a recruiting scheme and a very, very good one.

Tony and Darcy. Thanks. There are, of course, more model types but this pretty much covers the main ones.

Lenn, I have those brokers calling me or emailing me often and boy, are they nice! Just for fun, I felt like writing a post saying I think of leaving my company 2x a day: Lunch, and when it's time to pick my kids up at the bus stop.

As easily as an agent can fall in love with their brokerage, they can also move on. One thing remains the same, and it's the last line of your post!

Lenn, I'm an independent broker in two states and own my companies. I started out in this business working for someone else and after six months, I vowed I'd never do it again. I haven't looked back since.

Natalie. Thanks. I have known many "marginal" agents who go from office to office not realizing that success is whthin themselves.

Eric. Good for you. I figure, if I have to generate the business, I might as well do it for myself and not someone else.

Lenn, Thanks for writing this post! It's always a good thing to look at especially for those looking into getting into the real estate business and then for those who are thinking about changing offices to better fit their needs. Good points to think about.

I think new agents should make training their priority. Too often, new agents, although we intentioned, really screw up. Too many brokers tell them ...just go out and do it. The best way to learn. WRONG. Thank God we make doctors go to medical schools rather than practice on their patients until they get it right.

And training doesn't stop at the 1-2 week classes that the larger companies have. YOu need to find a manager who is training oriented. They should have at least one training class per week. Ask to see the outline and agenda. When I managed a Coldwell office, I would schedule classes at least a month in advance. I did that for over 2 years and rarely taught the same material.

Once you have 1 yr or so experience, then you can decide ....do I want a small or large company. Both decisions are right.

Lenn- Great post pointing out the differences of the types of agencies out there. I recently changed to a model closer to 100%. For an experienced agent, it is wonderful. I think your summary was right on the money and really helpful.

Jessica. My pleasure. I love it when my posts cause folks to think about something.

Guy Berry. Training is, of course, essential because real estate school surely doesn't prepare one to practice real estate brokerage. My experience with office meetings, unless they are specifically training oriented, wind up being sales meetings. So, we've got a lot of agents out there selling like crazy and very good at it, but they don't know the law or COE. They're like loose cannons.

Kim. Thanks very much. I agree. That's why the RE/MAX model is so successful. The agents are experienced, otherwise they couldn't afford to hang their license there.

Lenn- I really enjoyed reading your post. I am fairly new to Real Estate and the differences that you pointed out between the different agencies was very informative. This information is not freely discussed. Thanks again for sharing.

Dana. Thanks. This information should be provided to new licensees before they join an office, spend a small fortune for start up costs and then find that the brokerage isn't a good fit.

Thriving is what you want, surviving is sometimes what you get. Most of the time it is your comittment to your business, not the company. ---That is just my humble opinion.

Good post! :)

It is really hard to choose a company today. The more you research, the more you know. Always talk to agents there.

All the best!

Chris and Rhonda. Of course. It is always what the agent can make of themselves. But, the office model is one of the things over which we have power. We need to know what's out there.

Kevin. Always. Always.

Shopping brokers is important. Back in 1999, I was going to put my license with a local company but they wouldn't pay me the 80% I wanted for my personal sales. So, I didn't joint that company. What they lost was about $60,000,000 in gross sales from my in-house referrals.

They couldn't see the forest for the trees. Oh well. It was stuff like that that caused me to get my own broker's license and hire my own agents and my agents sold the $60,000,000 and I collected 30% rather than 20%.

I love my brokerage. When I have a differing opinion we are free to take it to the president of the house & it will be addressed at the next staff meeting. The outcome isn't what I'd always prefer, but everything is decided by agent vote! I'm so blessed and I know it!

June. Good for you. You are very fortunate. In fact, I believe that most agents like their brokerage. However, many don't always know what else is out there today. Some years ago, the first example above was about all there was.

Wow. I still love where I am. I don't want to change but you post is very enlightening.

Good stuff Lenn. I think way too many newer agents get caught up on the amount of the split instead of the true benfits the company has to offer. That 70% to 100% split looks real good until you figure out you are basically on your own.

Agents need to get into the mindset of interviewing the Broker.

LENN - I've worked under different models, and each has their own advantages and disadvantages. I'm sure that I'm not alone in saying that I'd like to get to the point where I am using your business model.

Pat. You're fortunate that you have the right place.

Bryant. Right you are. Interview the broker. Fact is, unless the broker is a selling broker with lots of business, the broker needs the agents more than the agents need a specific broker.

Adam. You have no idea how hard I worked to get my business model to work. I started in developing it in 1995 and since 1996, I've been building the base. It's almost self sustaining now.

Whew!!

Lenn, Agreed! But you better love what you're doing and where you're doing it. Otherwise, you should be making a change, because at that level you are not helping yourself nor others. I can't believe that some new agents will chose a co. when they start just because of the split. I started with a 50-50 co, but they offered me so much. Almost didn't go there at first until I 'interviewed' the broker. Granted, I've stayed with her pretty much since. But that will probably change by the end of the year when I go out on my own. It's just time.

Lenn - You are right about agents needing different things at different points in their career. One of the problems for new agents choosing their first company is that they often don't know what questions to ask or what they really need at the beginning of their real estate career. So they are guilty of chosing the company whoses signs they see the most.

After 30 years with one company moving was a big deal. I took over a year to decide since I plan on the remainder of my career to be here. The model I chose fits me and you need to find the one that fits you. Thanks for the analysis.

I agree Lenn, there is a place out there for everyone. The hard part is finding the right place at the right time. Great Post!

Lenn - Luckily we chose a model closer to yours from the beginning and are taking the final steps this year :) - Last company meeting at current brokerage was in 2006 - lol which we like - but then we came to real estate with strong tech and business background (40 combined years with IBM in Stategic Marketing, Business Consulting and Systems Engineering) so we BELIEVED in ourselves and chose to invest in those industry leaders we wanted to learn from - so far so good - plus we were at a stage to be true enterpenuers - all the risks and all the rewards - You and BB are 2 of my role models!!

P.S. I don't know how you'd survive right now giving someone 50% of what's coming in - IMHO :)

MAY

2008

Lenn-- I love it! Literary excellence. Thanks for sharing your wisdom. Indeed on size does not fit all. It's always good for agents reevaluate where they are in business and if the partnership with their current broker will help them move forward.

Also agents may find that initially one office works for their needs, but later on their needs may change and they will find they need to move to a different office - one that then meets their needs. It happens.

Bob and Carolin. That is very true. New agents will benefit from the affiliation of a large company with training resources, supervision and resources. Once they have some experience, they can easily move on to offices where they would keep a larger percentage of their commission.

Keishia. Thanks. This reminds me of my transformation with my first company. When I had no business, I did what they told me to do. As my business grew, I negotiated benefits, relocating clients, private office, advertising, no telephone duty, etc. Experience pays.

Cyndee. Thanks. "Enterpenuers", one of my favorite words. I believe I was born with that gene. How does anyone survive with 50%? I suppose if one did about $10,000,000 in gross sales, one could survive, but that's not easy to come by these days. Further, the agents doing $10,000,000 are not working for 50%, if they have a brain.

Christy. It's hard because folks get in a rut with one broker. Changing is expensive.

Terry. 30 years with one company? My goodness. I bet moving was an adventure.

Pam. You are so right. The recruiters at the big companies benefit from name recognition. Unfortunately, those companies are often the least rewarding $$$$$ for the agents. Many of the large companies here also operate real estate schools and they have a recruiting advantage. Oh well.

Marc. Congratulations on going out on your own. It's hard to contemplate and harder to take the leap, but once achieved, it's fabulous.

My company's business model supports mine. It is essential to be with a brokerage that supports the internet model if you are on the internet, for example.

To me, it isn't about the split, training or anything else!

Renee. You're right. I remember when the Internet was in the "infant" state for the real estate industry, one of the megas said that they wouldn't use it.

That same company has also said in the early days of buyers agency that they would never represent buyers.

Funny how public statements can make you look sort of silly after your position changes. I suppose that they figure no one listens or remembers.

Most brokerages support agents't on line work today. The ones that don't usually just want to keep the business themselves and sell it to their agents. That is a company that doesn't care about the agents.

Lenn: This is a timely post, as I am currently deciding where I should "hang my license" again, now that I have relocated from CA to WA. Thanks for the info.

Lenn, I've learned that agents dislike joining our company. I suppose it's my fault. The general concensus is that they don't want to "compete" with me. I have been overly generous with all of the assets, commissions, training and desk space but so far it's just no good. I think I just haven't come across the right people yet. I don't want anyone to be afraid of me or worried that I will take their business. I want a person that is strong enough to go get their own business like I did. Am I asking for too much? Or, should I just forget about trying to bring in agents? Thanks for any advice you can give. Later in the rain~Deb

Once again, Lenn, you bring a perspective born of experience, practical thinking, knowledge, caring and just plain common sense. How can anyone argue? I would say all agents who are starting out, and those who are not absolutely convinced they are in the right place, should read. Thank you.

Jeff

MAY

2008

Deb. Often agents, especially new agents, don't understand that real estate practice is running a business. The problem is that they have no "business". So, they look to the broker, whom they consider a boss like in a regular company where they had a job for all of the help they need, including clients.

That's fine too. If a broker generates a lot of business and provides leads to the agents, that lead is going to come with a cost, usually a lower commission. If an agent can generate their own business, they get a higher split. That's fair.

If the broker generates the business and takes the good leads, passing the rest off to the agents, that's fine too. If the agent wants better leads, they need to get out and develop some business. I generate a lot of business. I passed almost all leads on to my agents, but when that $5M or $12M buyer came along, they were mine.

Agents need to worry about what they sell themselves, not what their broker sells.

Jeff. Thanks. We have a huge population of agents who are recruited right out of real estate school by the mega 50/50 companies who don't even know the different models available.

Love the post Lenn! Great job in describing all the models. How come the "call the other agent and have them do all the work model" is not here?....ahhhhm REDFIN.

Thank you! I've been blessed with more knowledge thanks to you!

Lenn- Excellent way of describing the various types of offices. I know that my 1st. office was not a good fit for me. I used to say that it was great the office was a mile from my house. Now that really is not a good reason to choose an office.

Thanks for another great post.

Scott

Bill. I'll get to that. There are several specific models that I plan to cover in addition to this. These are the traditional models. The others are .. . . . something.

Agency is very important to me and to our clients. Those folks don't "represent" buyers or sellers.

Kim. Thanks for dropping by and commenting.

Scott. My first office wss probably about 1/2 mile from my home. I stayed 3 months. Of course, that's the only one that recruited me. Perhaps that had some influence on my decision. Back in those days, folks didn't recruit like they do today.

Lenn, you are so my kind of gal! I really needed that reinforcement. We have been giving the best commission split, the most leads, everything that a person would need to become successful but it's not enough for them.

I don't want to be an employer. I need to get that across to them. Maybe if we have that understood from the beginning? Thanks for the advice.

Later in the rain~Deb

MAY

2008

Great Blog!!!

Now is the time to re-educate clients. Thirty four states in 2007 had a drop in forclosures. Three states are distorting & throwing off the national curve (CA, FL, AR) The market is starting to stabalize. Now is the time to buy the investment property & get off the side lines.

Thanx.

www.realestatehugo.com

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