Home : Blogs : Geoffrey Lamb : Charlotte NC Real Estate

RE/MAX without the desk fees

Normally, I post blog entries more for keyword optimization and SEO but this one isn't for that at all. I'd really like some feedback. I've been offering positions on my team for about a month now with only moderate success. The thing is, I'm offering something that seems to be really cool for most anyone who is an average agent, closing one to two homes per month. Especially for RE/MAX agents who now pay $1,000 to $1,500. or more for desk fees, I'm offering RE/MAX branding for half of that, just $550 per month and the only thing I'm asking for is an additional 5% to cover team marketing. $550 a month with a 90% split and RE/MAX Branding, not a bad deal at all! I'm also offering a second plan with a 75% split and just $150 a month in fees, still not too bad but I always like to see what other people think.

Like I said, I've been test marketing the plan for a little while with only moderate results but I can't tell if it's because of the low level of exposure or maybe because other agent's interpretation of it is different from mine. Maybe people don't think it's true and there's a catch? Any feedback that you guys could give would be appreciated before I put it on a postcard and send it to basically everyone in the area :-)

Thanks,

geoff

Posted by Geoffrey Lamb on 10/11/2008 05:38 AM

Comments (16)

remax, team agents

Post is included in group: Cabarrus County North Carolina...The Racing Side of Charlotte
Post is included in group: North Carolina Real Estate
Post is included in group: Realtors®
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: TeamTopics

16 Comments on RE/MAX without the desk fees

OCT

2008

Geoff I'm wondering how you personally can offer that. From my understanding the RE/MAX franchise will still want more than the $550 a month - even if you are part of a team.

Kris: After the basics are taken care of... there is quite a bit of latitude each individual office owner has as far as how their run their own specific offices. I think that something outside the norm is the only way to be in a ReMax office... and be on a team. Anything else totally screws up the idea of being on a team.

Geoff... good luck with your plan. Actually... send me some more info on it if you could. :)

Karen: That's interesting...(something to ask my brokers about!) Geoff: If you see my comment as a blog hijack feel free to delete :-)

Geoff, I would think a successful agent is probably doing alright in their current office. However, to an agent who isn't doing much business a desk fee of $150.00 or $550.00 is a big expense. If you offered to waive the desk fee and pay the 90% split, you would probably get a better response. Although a good deal for someone experience with the ReMax system. Have a good weekend!

I pay way less and still get 95% but I guess your area is different.

I am trying to do the math here, but if an agent sells $250,000 a month at 3% for simplicity sake, they would be making $7,500 a month in commissions and after desk fees of $550 and the split to ReMax of $750, they are left with $6,200, which is about an 83% split. Not bad I guess. Then again it depends on how much that is worth to someone.

I guess I would look at HOW are you marketing...e-mail blasts, personal e-mails to targeted agents...direct mail...people are being far more cautious and there are fewer to choose from...are you targeting pepople who would move ?

Kris: Each franchise is different with specific advantages and Fees. The rate I'm charging are break even to cover my fees and in the case of the lower split, I'm paying a portion of it myself.

Michael: My thoughts were that many [previously] successful RE/MAX agents are having a tough time right now but don't like the idea of taking much less than 95%. This plan allows half the avergae fees charged by many franchises here, locally and keeps them on a high split - could help a lot of them make it through the Winter. Other agents who are with traditional 50/50 companies could see the other plan as a chance to raise thier split for just a small contribution monthly.

Neal: The RE/MAX Intl fees for an individual agent are aren't much less than what I'm asking for, I geuss you got a deal down there in Florida :-)

I haven't really started yet, Sally. Yes, I have a comprehensive campaign designed using email & direct mail & some other stuff thrown in. Getting the word out isn't really an issue, just wanted to make sure it the right word!

Thanks to everyone for the commments!

OCT

2008

WOW Geoff: That's the best team deal I've ever heard of. If you are providing leads to your Buyer Agents at that split, then you should have no problem finding new team members. If you are advertising that deal, then other Remax team members may be really tempted to change teams.

I haven't started advertising yet so we'll see. The leads are subject to standard referral fees so it not quite THAT good but the referral fees are 100% redirected back toward team-only marketing.

WOW that's good pricing for the RE/MAX branding. My office gives a good deal to those home office agents that's even better than your offers.

OCT

2008

Hello Again Geoff: Interesting idea on how to handle buyer leads, much fairer than when I was on another Remax team and I paid the same split regardless of if it was my own lead or a lead provided by the team leader. GREAT idea really.

Tough times require tougher measures.

OCT

2008

Most brokerages in my area seem to net out at about the same annual cost. Some have higher caps, but don't charge desk fees. Some charge desk fees, but if you produce well, you can save a few grand with a lower cap.

However, I see consolidation in our market. Consumers are nervous, and flocking to a few top name agents more than others. There seems to be a widening gap in our area between the top performers and the more average agents, as far as I can tell from the statistics on our MLS. Small companies do fine, but in very small areas, and with limited ability to bring in relocating consumers. Which seems to be one of the more reliable sources of busienss right now.

I see everyone in our market (which is better than many) -- even the top tier agents -- cutting way back on overhead & monthly costs. And, our top tier agents seem to all be affiliated with the 3 top firms that have no desk fees. There is one RE/MAX office in my area that is top ranking in production and has a few top tier agents.

Point being: I don't know however if you are competing with brokers that offer great tools with zero monthly costs.

Given that the recession expectations have adjusted in recent weeks -- to play out through 2014 or even longer (more recently revealed 60 trillion in credit swaps which deepens the problem way above and beyond problems associated with the sub-prime mortgages alone)... it is hard to imagine people lining up to incur the costs of switching.

If you offer a very complete and very compelling package that justifies the monthly cost and competes with what they would get from other brokers or on their own for lower costs (ie: Top Producer, or brokers that provide tools & don't charge monthly fees)....probably exeeding the typical suite offered by RE/MAX Intl. .... then it could be a compelling offer.

JUN

I work on a 95/5 split with RE/Max and my desk fees are 1200 dollars once we pay 100 here to remax advertising (regional office), 200 for something else( to regional), then 900 for my office. Some of the agents in the office are on a 60/40 split and they still get that high desk fee to.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?