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I would go to a different brokerage and get trained on your own. $2M in sales for a 30 year vet isn't good, and it will be hard for her to give you any business with that little coming in.
You can start at Re/MAX but I think other companies are better for rookies. Re/MAX has mostly seasoned agents that have built businesses, at least out here. Is there another team you can join? Honestly, I don't think your MIL has what it takes to help you grow your business. You have to get credit for your own sales. With Zillow and Trulia allowing you to show your own sales, you will be toast if you are in this business for years and don't have credit for one sale to your name.
In my area, I would recommend KW for newbie training over CB or Pru, but all of those are local franchises and the managing broker/owner can make or break it.
Look online at the franchises you are considering and look at their online marketing. The more consistent quality you see across different agents, the better the managing broker is, generally speaking. When you see agents with crappy and crooked photos and agents with pro shots all from the same brokerage, they tend to me a more churn and burn style company.
I would go to a different brokerage and get trained on your own. $2M in sales for a 30 year vet isn't good, and it will be hard for her to give you any business with that little coming in.
You can start at Re/MAX but I think other companies are better for rookies. Re/MAX has mostly seasoned agents that have built businesses, at least out here. Is there another team you can join? Honestly, I don't think your MIL has what it takes to help you grow your business. You have to get credit for your own sales. With Zillow and Trulia allowing you to show your own sales, you will be toast if you are in this business for years and don't have credit for one sale to your name.
In my area, I would recommend KW for newbie training over CB or Pru, but all of those are local franchises and the managing broker/owner can make or break it.
Look online at the franchises you are considering and look at their online marketing. The more consistent quality you see across different agents, the better the managing broker is, generally speaking. When you see agents with crappy and crooked photos and agents with pro shots all from the same brokerage, they tend to me a more churn and burn style company.
^^^^^^ Amen. To all of it.
Get hooked up with someone who will help you be productive with the legal and ethical technicalities, and who has good internet footing, and can help you there.
I would go to a different brokerage and get trained on your own. $2M in sales for a 30 year vet isn't good, and it will be hard for her to give you any business with that little coming in.
You can start at Re/MAX but I think other companies are better for rookies. Re/MAX has mostly seasoned agents that have built businesses, at least out here. Is there another team you can join? Honestly, I don't think your MIL has what it takes to help you grow your business. You have to get credit for your own sales. With Zillow and Trulia allowing you to show your own sales, you will be toast if you are in this business for years and don't have credit for one sale to your name.
In my area, I would recommend KW for newbie training over CB or Pru, but all of those are local franchises and the managing broker/owner can make or break it.
Look online at the franchises you are considering and look at their online marketing. The more consistent quality you see across different agents, the better the managing broker is, generally speaking. When you see agents with crappy and crooked photos and agents with pro shots all from the same brokerage, they tend to me a more churn and burn style company.
According to statistics of the National Association of Realtors (NAR) rookies who enter the business with a RE/MAX broker as their first broker have a better chance of being in the business two years later than rookies who start with any other brand.
Note: I have not seen this information published, but I have been told this by an independent real estate consultant. Where she got her information, I don't know, but there was no reason for her to share otherwise.
Here is a possible reason, we see very few rookies who trust themselves and their abilities to truly commit to the business. Real estate is as much a business as opening a restaurant, a construction company, or a shop in the village. Failure to understand this is a death's bell to most entering the industry.
According to statistics of the National Association of Realtors (NAR) rookies who enter the business with a RE/MAX broker as their first broker have a better chance of being in the business two years later than rookies who start with any other brand.
Note: I have not seen this information published, but I have been told this by an independent real estate consultant. Where she got her information, I don't know, but there was no reason for her to share otherwise.
Here is a possible reason, we see very few rookies who trust themselves and their abilities to truly commit to the business. Real estate is as much a business as opening a restaurant, a construction company, or a shop in the village. Failure to understand this is a death's bell to most entering the industry.
I don't believe "stats" that I haven't seen. I am sure there are many successful rookies at Re/MAX that have attached themselves to successful teams. I don't think the MIL is that person.
I am a RE/MAX broker-owner. The local KW contract caps for an individual somewhere around $22500 (70/30 to $18,000 6% to $3000, $95 per month office fees). Our contract is 95/5 with a cap of less than $14,000 including the RAPP fees which mean that we allow agents to pay their fees using a split of each transaction.
I share this in response to those who wonder why it costs so much to be a RE/MAX agent.
While there are a few less than full time RE/MAX agents in the world, it is very hard for a part-time RE/MAX agent to succeed. As a matter of fact, few part-time agents anywhere really make a living.
Tom, I'm not sure you are comparing apples to apples. While every local is different, I just got done comparing the fees at various brokers in my area and ended up with KW because it was the cheapest option.
KW Fees:
$18,000 70/30% cap
$3,000 franchise cap
$1,260 in office fees ($105 per month)
= $22,260 total per year
Re/Max Fees (numbers are approximate. I threw out the material a week ago so I am going off memory):
$17,400 Cubicle desk fees ($1,450 per month)
$3,000 97/3% split for the first $100k
$2,000 98/2% split for second $100k
$500 99/1% split for final $50k
$276 Central showing service ($23 per month)
= $23,176 total per year
The reason I used the cubicle desk fees is because the brokers policy was that new agents must either have an office or a cubical for the first two years there. It would be an additional $100 a month for an office. Central showing service is used to schedule all showings and are a requirement by every office I spoke with. It is included in KW's $105 office fees per month. E&O is also included in the $105 whereas with Re/Max it is paid per transaction which would cause that total to go up. So as you can see for me KW was cheaper by $1,000.
I have nothing against Re/Max and I seriously considered going there. Part of what swayed me to KW is that they are by far the strongest office in the area. They do more than twice as many transactions as their next competitor (Re/Max). While it is true that they have a lot more agents (270 vs. 75 with Re/Max) it is still a staggering difference. Only about 100 of the agents are actually active. The number 1 agent in the area is with KW. The top 5 are made up of 2 KW, 2 Re/Max and 1 Ebby.
Tom, I'm not sure you are comparing apples to apples. While every local is different, I just got done comparing the fees at various brokers in my area and ended up with KW because it was the cheapest option.
KW Fees:
$18,000 70/30% cap
$3,000 franchise cap
$1,260 in office fees ($105 per month)
= $22,260 total per year
Re/Max Fees (numbers are approximate. I threw out the material a week ago so I am going off memory):
$17,400 Cubicle desk fees ($1,450 per month)
$3,000 97/3% split for the first $100k
$2,000 98/2% split for second $100k
$500 99/1% split for final $50k
$276 Central showing service ($23 per month)
= $23,176 total per year
The reason I used the cubicle desk fees is because the brokers policy was that new agents must either have an office or a cubical for the first two years there. It would be an additional $100 a month for an office. Central showing service is used to schedule all showings and are a requirement by every office I spoke with. It is included in KW's $105 office fees per month. E&O is also included in the $105 whereas with Re/Max it is paid per transaction which would cause that total to go up. So as you can see for me KW was cheaper by $1,000.
I have nothing against Re/Max and I seriously considered going there. Part of what swayed me to KW is that they are by far the strongest office in the area. They do more than twice as many transactions as their next competitor (Re/Max). While it is true that they have a lot more agents (270 vs. 75 with Re/Max) it is still a staggering difference. Only about 100 of the agents are actually active. The number 1 agent in the area is with KW. The top 5 are made up of 2 KW, 2 Re/Max and 1 Ebby.
First of all each RE/MAX office is independently owned and operated. Looks like KW beats RE/MAX hands down in your market..using the numbers provided. Now, what I know is that most KW's are also charging office fees over and above the cap.
You must also consider this: What is the average productivity of the various offices. For example here in Louisville in 2013, the average RE/MAX agent had four more sides than the average KW agent. Just to illustrate not to predict, but if you are just average, what would four sales at your area's average mean to your net (not gross) commission income? Here in Louisville, "just average" was a $20,000 gain at our RE/MAX office.
Tom, I'm not sure you are comparing apples to apples. While every local is different, I just got done comparing the fees at various brokers in my area and ended up with KW because it was the cheapest option.
KW Fees:
$18,000 70/30% cap
$3,000 franchise cap
$1,260 in office fees ($105 per month)
= $22,260 total per year
Re/Max Fees (numbers are approximate. I threw out the material a week ago so I am going off memory):
$17,400 Cubicle desk fees ($1,450 per month)
$3,000 97/3% split for the first $100k
$2,000 98/2% split for second $100k
$500 99/1% split for final $50k
$276 Central showing service ($23 per month)
= $23,176 total per year
The reason I used the cubicle desk fees is because the brokers policy was that new agents must either have an office or a cubical for the first two years there. It would be an additional $100 a month for an office. Central showing service is used to schedule all showings and are a requirement by every office I spoke with. It is included in KW's $105 office fees per month. E&O is also included in the $105 whereas with Re/Max it is paid per transaction which would cause that total to go up. So as you can see for me KW was cheaper by $1,000.
I have nothing against Re/Max and I seriously considered going there. Part of what swayed me to KW is that they are by far the strongest office in the area. They do more than twice as many transactions as their next competitor (Re/Max). While it is true that they have a lot more agents (270 vs. 75 with Re/Max) it is still a staggering difference. Only about 100 of the agents are actually active. The number 1 agent in the area is with KW. The top 5 are made up of 2 KW, 2 Re/Max and 1 Ebby.
Note # 2
How many local KW agents produce $100,000 in Gross Commission Income? How many produce $200,000 in GCI? How many produce over $ 200,000?
In the Louisville MLS, there are 430 RE/MAX agents, there are 230 KW agents and there are 439 Berkshire Hathaway agents. Those 430 RE/MAX agents, and this is common around the US & Canada, produced more business than 660 agents.
Don't be fooled by hype. If you are making a decision based on statistics, then be certain that there are apples to apples comparisons.
I can't tell you what I would do if I were you because I am not in your town, and certainly, I don't know the players such as the brokers and business leaders, but you must also ask the unspoken. You must look under the sheets, and ask what the other 1/2 of the story is.
First of all each RE/MAX office is independently owned and operated. Looks like KW beats RE/MAX hands down in your market..using the numbers provided. Now, what I know is that most KW's are also charging office fees over and above the cap.
You must also consider this: What is the average productivity of the various offices. For example here in Louisville in 2013, the average RE/MAX agent had four more sides than the average KW agent. Just to illustrate not to predict, but if you are just average, what would four sales at your area's average mean to your net (not gross) commission income? Here in Louisville, "just average" was a $20,000 gain at our RE/MAX office.
Of course each office is independently owned and operated, but I highly doubt that my local Re/Max office fees are out of the ordinary. What do you charge for desk fees? As far as KW charging for office fees, yes they do charge office fees if you rent an office. The local Re/Max office charges $1,200 a month for desk fees if you office out of your house.
As far as average agent production, frankly I don't care about averages. All I care about is my production which will be pretty much the same regardless of which office I am at. The more effort I put in the more production I get out whether I am KW or Re/Max. I believe that the office can have an effect. For example CB and C21 are very week in our area. They just don't get the business. Most all RE transaction in my MLS area are KW, Re/Max and Ebby. I think as long as you are with one of those three you are good to go.
Statistics can be skewed any way you want. If you want to talk about averages my office closed 1145 transactions in 2013. At 270 agents that is a little over 4 per agent. Re/Max did 620 for the year. At 75 agents that is a little over 8. Twice as many transactions per agent right? However, as I stated before only about 100 agents in my office do any business at all. The others just hang on to their licenses for who knows why. So if you base it on only 100 agents you have over 11 transactions per year. Get my drift? In the end the numbers don't really matter when you have some agents doing nothing and other agents (team) doing 328. That is an actual number from an agent in my office. $79 million in volume. He does so much business that he bought a print shop in order to cut down on his printing costs. Thats why averages don't matter. The only thing that matters is what you yourself are doing.
Now this has gotten way off topic and I don't intend to take part in it any more.
What are your thoughts or Real Estate Teams? Are they effective? Or does it matter who runs the team?
I do know that with most TEAM'S listings don't belong to YOU they belong to the owner of the TEAM. I also know that you don't market yourself, you market A TEAM.
I want to know the downfalls or the greatness of teams!
Yes, for those who need be reminded, including myself, this is the OP. TEAMS are such an important part of the KW model, that avoidance of the discussion of different brand models can not be excluded when speaking of teams.
Now, that being said, the RE/MAX model has been team inclusive for years. My point is not to argue either model, but just to validate my understanding of the OP's question.
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