Your First Broker Needs to Cut You Some Slack.

By
Real Estate Agent with Bill Cherry, Realtor 0124242

No one wants to hear about what I used to do in the dark ages of real estate when I had Adam and Eve's Garden of Eden for sale.  I know that.

 

But every now and then, I have to use myself as an example.  This is one of those times.

 

I founded and ran for a number of years two real estate agencies.  One was in Galveston and the other in Houston.  Both are still in business and very successful.

 

I preferred to contract with agents who had just gotten licensed rather than with those who possibly had been taught bad behavior at their former agency.

 

Getting a real estate license and then beginning to pound the streets for listings and sales is a very expensive undertaking.  The franchise companies, and I suppose others, now expect the new agent to pay money to join them.  So that's yet another front-end expense.

 

I used to let my new agents have 100% of the commission earned on their first transaction.  It helped them over the hump of their initial cash outlay and going without an income until they began to have closings.

 

I can also tell you that I never had an agent leave my company for another.

 

It is rather surprising to me that what I did isn't standard practice.

 

Bill Cherry

Realtor and Broker

SInce 1966

Keller Williams Dallas Premier

Direct: 214 503-8563

BillCherryRealtor.com

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Rainmaker
719,239
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Bill Cherry, When I got started in Real Estate as a young man, I had monthly obligations. I could not AFFORD to go to work for just any real estate brokerage. I needed money every month just to survive. The broker I started with had a very novel approach to this "problem." They paid a draw against future commissions. As a consequence, they were able to "hire" young men that might have had to give real estate a "pass" if they couldn't get this money.

Bill Roberts

Jun 25, 2015 12:33 AM #1
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Bill, there was a young waitress at a place I often ate lunch, Christie's Beachcomber.  It was on the sand at a Galveston beach.  Her name was Debbie.  I asked her how much she was making in tips.  She said, $18,000 a year.  I told her that if she would come work for me and get licensed, I'd promise her $25,000, no matter what, her first year.  She did, and she was the natural I thought she would be, and we both mad a lot of money as a result.  I post that only because your comment about your personal experience seems to me to be right on target.

Jun 25, 2015 08:49 PM #2
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

My first brokers in 1989 were wonderful and I learned a lot. I had come from owning retail stores for 16 years so I also brought a lot to the table, but real estate has its own logic, rules, and ideas so I was fortunate. That first broker is one of the reasons I am still here today and successful.

Jun 28, 2015 06:44 AM #3
Rainmaker
565,098
Martin Kalisker
Greater Boston Association of REALTORS - Boston, MA
Professional Standards & Legal Assistant

BILL CHERRY , although I love the thought of being able to do this, unfortunately my years of experience have taught me that newbies need to have some "skin" in the game from day 1.  I totally agree that pounding the pavement is key to getting business because you need to let people know that you are in the business and the best way to do that is to make eye contact and give them a business card and a handshake (and maybe get a name or number of someone looking to buy/sell or rent)...something that  a passive activity like posting an ad on Facebook isn't going to do.  But, if they can't pay the REALTOR dues, the E&O insurance, etc., I'd rather help them arrange for a loan than to let them know that "the first one's on me."  No, my time and training is worth something.  You've got to put some skin in the game for it.

Jun 28, 2015 06:47 AM #4
Rainer
613,756
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great thinking Bill.....No wonder no agent left your office to go some other brokerage. Its becaue you care enough for a new agent to let them keep whole commission on the first transaction.  No one does it, take it from me I have been in the business for 23 years

Jun 28, 2015 10:09 AM #5
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BILL CHERRY

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